U.S. can regain swagger

Opinion: September 13, 2011 at 12:00a.m.

By Aubrey K. McCLENDON

McClatchy-Tribune

OKLAHOMA CITY

The current shocks to the U.S. financial markets reflect the prevailing pessimism about our nation’s economic prospects. We’ve lost much of our swagger at home and abroad. How to best regain it? Become energy independent and invest the saved trillions in the American economy.

A major problem in the current budget debates is that no one is betting on game-changing economic growth. Over the next 10 years, America will export at least $5 trillion to $7 trillion of American wealth to import foreign oil. This is unaffordable and unsustainable.

Imagine the mood swing if we took a part of that and invested it developing American oil and natural gas resources. Instead of importing $100 per barrel oil from foreign countries, we can find American oil at less than $20 per barrel and American natural gas at the equivalent of $12 per barrel and pocket the difference.

Domestic resources

We can supply all of America’s future energy needs from domestic resources. Production of oil and shale natural gas from 32 of our 50 states now provides fuel sources of revolutionary abundance, allowing us in the years ahead to stand tall again without the weight of exporting trillions of dollars to the world’s oil producers.

This new U.S. source of energy is so enormous that American manufacturers now enjoy natural gas costs that are the envy of the world. Since 2008, natural gas prices have dropped 67 percent, providing a national economic stimulus of $250 million per day. This cost advantage is already attracting industry back into the United States; witness announcements of new plants and jobs in the American steel industry, for example. In the next few years, rising production of American natural gas and new jobs will help revitalize America.

If we use natural gas as a primary transportation fuel, we can save businesses and consumers about $2 per gallon. All we need to do is invest about $2 billion in building compressed natural gas (CNG) and liquefied natural gas (LNG) pumps at truck stops along our interstate highways. This will give manufacturers and consumers the confidence to build and buy CNG/LNG vehicles.

The energy sector is one of the few bright spots on the domestic jobs front and remains one of the few American industries that still lead the world in technology and performance. American natural gas and oil producers are adding tens of thousands of jobs and generating tenfold more jobs for contractor, supplier and service industries. This year, Chesapeake Energy alone has hired 3,000 Americans.

Shale gas

But other industries win as well. According to a recent American Chemistry Council study, increased production of shale gas would produce nearly 400,000 new jobs in the chemical sector and among suppliers. This will not only ease taxpayer spending on unemployment benefits and add to federal, state and local tax revenues, but will also stimulate the economy through improved balance of trade and increased consumer confidence. In fact, it’s already happening: In 2010, U.S. chemical industry exports increased 17 percent, moving the industry from a balance of trade deficit to a $3.7 billion surplus.

These new opportunities are real and should be embraced by our political leaders and the public.

Aubrey K. McClendon is chairman, CEO and co-founder of Chesapeake Energy Corp. in Oklahoma City. Distributed by McClatchy-Tribune Information Services.