?While the celebrations still continue for President-elect Sen. Barack Obama, analysts and others are trying to determine what his presidency will mean for the U.S. energy industry. The early consensus is that alternative energy and natural gas may be on the verge of a Golden Age, while the oil industry may be in for some rough years.


Democrats also beefed up their majorities in both houses of Congress, taking at least five Republican seats in the Senate and about a dozen seats in the House.


The Tudor, Pickering, Holt & Co. Securities Inc. research team reports, “As long as gasoline prices stay low, we wouldn’t count on much Obama energy action in the near term as the economy is items 1 through 50 on his agenda. We figure Obama is no particular friend to the energy industry. Remember his ‘oil companies should share their record profitability’ comments?


“He is a friend to alternative energy—there have been big rallies for those stocks in the past few days—and will be better for gas than oil. Watch for a carbon tax, which could raise energy costs, but hurt demand.”


IPAA chief executive Barry Russell says, “President-elect Obama has announced his support for increasing American natural gas production as part of his energy agenda. We will work with his administration to ensure new supplies of clean-burning, American natural gas. We also look forward to working with him on the federal-resource leasing process, including the recently expired offshore moratoria and the necessity of acquiring new leases.”


He adds that gas now accounts for approximately 20% of the energy used to create electricity in the U.S., and the Natural Gas Council expects it will become even more important in the upcoming climate-change debate. The IPAA is a member of the council. In the past 10 years, more than 90% of the new electricity capacity built in the U.S. has been gas-fired generation.


Natural Gas Supply Association chief executive R. Skip Horvath says, “We are blessed as a country to have so much domestic natural gas in the ground. If the Obama administration and Congress follow through on their campaign promises to rely on more renewables to make electricity, natural gas will prove extremely useful in enhancing the reliability of those fuels.”


He notes that about 84% of the natural gas used in the U.S. is produced domestically, while most of the rest is from Canada.


In a campaign stop, Obama said his energy plan calls for the U.S. to invest up to $150 billion during the next 10 years on alternative energy—wind, tidal, deep ocean, solar and geothermal—and in doing so, create 5 million new jobs. Also, majors such as ExxonMobil Corp. and Chevron Corp. could face a windfall-profits tax, which Obama has promised to impose to pay for a $1,000 “emergency energy rebate” for families.


Of his energy plan, Obama said, “Combating global warming will be a top priority of my presidency, and I will attend to it personally. Putting a price on carbon is the most important step we can take to reduce emissions. I will enact an economy-wide market-based cap-and-trade system to reduce U.S. carbon emissions by 80% by 2050.”


American Petroleum Institute chief executive Jack Gerard says Obama’s election could mean a new chance for the energy industry to work with government to develop a comprehensive energy policy for the nation.


Gerard says, “America’s oil and natural gas industry looks forward to working with President-elect Barack Obama and Congress to deliver a comprehensive and realistic energy policy that encourages development of all domestic energy sources, including oil and natural gas, for the benefit of consumers. The American people have spoken loud and clear that they want politicians to put aside partisan bickering and get to work on meaningful energy policy that contributes to economic stability.


“The oil and natural gas industry stands ready to help put America’s vast energy resources to good use, strengthening our nation’s economy and energy security and providing good jobs for Americans across the country.”

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