This write-up is concerned with only a tiny fraction but highly significant aspect of the Obama vision for America, and its possible economic and welfare consequences to the Nigerian economy and its citizens. I am talking about Obama's quest for the implementation of his administration's comprehensive clean energy and climate change policies for America. Obama's thoughts on these very highly emotive twin issues dates back to his maiden budget (FY 2010) address delivered to the joint session of the US Congress on Tuesday, February 24, 2009. It was through these three landmark presidential speeches to the American people, its Congress and the rest of the world that Obama's vision for a clean energy economy for America was conveyed.
For example, Obama's vision includes investments in important technologies to diversify America's energy sources and reduce its dependence on foreign oil, including: the renewal of America's nuclear energy industry after a 30-year hiatus, cutting-edge biofuels and clean coal technologies, as well as additional offshore oil and gas drilling. Furthermore, to fully transition to a clean energy economy and create millions of new American jobs, Obama asked the US Congress to pass a new comprehensive energy and climate legislation to promote energy independence and address climate change. For example, Obama emphasised that: "…to create more of these clean energy jobs, we need more production, more efficiency, and more incentives."
Accordingly, he said all these efforts will be built on the historic $80 billion investment made through the Recovery Act (i.e. the $787bn American Recovery and Reinvestment Act of 2009, abbreviated ARRA or Pub. L. 111-5). Obama argues that: "…the country that harnesses the power of clean, renewable energy will lead the 21st century. And yet, it is China that has launched the largest effort in history to make their economy energy efficient. We invented solar technology, but we've fallen behind countries like Germany and Japan in producing it. New plug-in hybrids roll off our assembly lines, but they will run on batteries made in Korea. Well, I do not accept a future where the jobs and industries of tomorrow take root beyond our borders - and I know you don't either. It is time for America to lead again."
There is no doubt that these are very powerful political statements. Hence, a few days ago, while delivering his maiden State of the Union Address, Obama also reiterated his position regarding these issues, when he categorically stated that his administration is committed to: "building a new generation of safe, clean nuclear power plants in this country…making tough decisions about opening new offshore areas for oil and gas development… continued investment in advanced biofuels and clean coal technologies."
In 2009, Obama also made similar policy pronouncements when he stated that: "Providing incentives for energy-efficiency and clean energy are the right thing to do for our future -- because the nation that leads the clean energy economy will be the nation that leads the global economy. And America must be that nation." Furthermore, on March 19, 2009 he stated that: "So we have a choice to make. We can remain one of the world's leading importers of foreign oil, or we can make the investments that would allow us to become the world's leading exporter of renewable energy. We can let climate change continue to go unchecked, or we can help stop it. We can let the jobs of tomorrow be created abroad, or we can create those jobs right here in America and lay the foundation for lasting prosperity."
Obama also financially backed up his political rhetoric by announcing that his administration "will invest $15billion a year to develop technologies like wind power and solar power; advanced biofuels, clean coal, and more fuel-efficient cars and trucks built right here in America."
As proof to all, the next day after delivering his maiden State of the Union address, Obama dashed to Tampa, Florida to break ground on a new high-speed railroad and Inter-city Passenger Rail grants funded by the Recovery Act to the tune of $8billion in seed money. This is out of the more than $55 billion of proposals from 50 states all across the country. Obama was not yet done. He further stated that: "We have committed to another $5 billion in funding over the next five years. It's a down payment on a truly national programme that's going to reshape the way we travel.
It will change the way we go from place to place, change the ways we work and live, and will connect communities to each other in a way that in the past was impossible. Just like the Interstate Highway structure did back in the mid-'50s, it will have far-reaching consequences…"
But the billion-dollar questions are: what will be the net cumulative negative effects of Obama's clean energy vision for America on Nigeria's oil sector. What far-reaching negative consequences and challenges will this have to Nigeria's position as number five exporter of crude oil to America, as America relies on Nigeria for 11 percent of its crude oil imports? All this is food for our economic, energy and strategic policymakers to ponder.
