Obama makes green intentions clear in presidential race

The US President Barack Obama has made his energy policy crystal clear by proposing a significant increase in support for clean energy and a $39 billion reduction in oil and gas industry subsidies.

The proposals are more a political stance than a realistic policy to pass through congress, but it means the Democrats and Republications are at opposite ends of the spectrum when it comes to energy policy.

The budget is clear in stating, "Oil and gas subsidies are costly to the American taxpayer and do little to incentivize production or reduce energy prices. Removing these lower-priority subsidies would reduce greenhouse gas emissions and generate $38.6bn of additional revenue over the next 10 years, an amount that represents only a small percentage of domestic oil and gas revenues –about one per cent over the coming decade."

Also included in the budget is a plan to create 80% of the country’s energy from clean sources by 2035, a huge shift in the current energy mix. Unfortunately many of these policies are unlikely to reach implementation, as the House of Representatives is controlled by the Republican Party.

There are other areas of the budget which could be approved however, including $310 million to reduce the cost of solar power, $95 million on wind energy and further investment on advanced energy projects and a $770 million investment in modular nuclear reactors. The $34 billion loan guarantee scheme, which was made infamous by the collapse of Solyndra, is also retained.

The overall picture is that the Obama administration still wants to be seen as green. Whether there will be a significant shift in the energy mix depends largely on their re-election and a significant majority.