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Obama's Energy Policy: A Labyrinth of Contradictions

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Message James Stafford

He has advocated nuclear power and has endorsed loan guarantees for new nuclear reactors. But in a piece of blatant political opportunism Obama has canceled all work, and even licensing, on the Yucca Mountain waste repository site in Nevada. Yet, Yucca Mountain was the cornerstone of the civilian nuclear revival.

To understand why YuccaMountain has been abandoned, together with $10 billion of taxpayer money, look no further than the senior senator from Nevada, Harry Reid. And to understand Reid's stubborn rejection of a national patriotic role for Nevada, look no further than the gaming tables and slot machines of Las Vegas. At least part of Obama's energy policy is influenced by fruit machines.

Obama first declared against Yucca Mountain during the campaign. Many thought that his opposition would, in the way of campaign promises, melt in the sunshine of reality.

But the politics of the Senate triumphed. Obama's need for Reid, the majority leader in the Senate, became utter dependence in the health-care debate. So the will of previous Congresses for a sophisticated and vital nuclear industry, was trumped by Reid. The Joker came out of the pack face up.

Good thing for energy policy that Nevada has no other big energy issues. Part of its previous attraction for nuclear was its small population and remote location. But the wheel of fortune spins in politics as well as roulette, and unpredictably Reid rose to be the most important Democrat in the Senate.

The offhand way the administration has junked Yucca Mountain should worry all in energy supply. White House press secretary Robert Gibbs dismissed the abandonment of Yucca Mountain as being done on "scientific grounds." If you believe that, the tooth fairy is your sister.

So the administration has pushed nuclear in the full knowledge that California and other states by law cannot approve new plants without a viable repository for their spent fuel. In a stroke, the administration has converted certainty to limbo.

The squeezing of coal is similar. EPA is moving ahead with classifying carbon dioxide as a pollutant, presumably in order to pressure Congress to pass the highly criticized cap-and-trade legislation.

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I have an interest in the financial markets, commodities and Geopolitics.
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