Chesapeake CEO Has Innovative Plan To Cut Use of Imported Oil
Chesapeake Energy’s CEO and co-founder Aubrey K. McClendon has 20/20 vision when it comes to envisioning an energy policy for America that will end our dependence on imported oil.
Over the next 10 years, McClendon says we will spend $5-7 trillion on foreign oil, a practice which he says is unaffordable and unsustainable.
In an article McClendon penned in the fall edition of The Play, a quarterly publication produced by Chesapeake, he outlines his plan for using domestic natural gas and biofuels rather than imported oil.
“Imagine the mood swing if we took a portion of that $5-7 trillion and invested it developing American oil and natural gas resources,” McClendon writes. “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.”
Read on and you’ll see that McClendon’s plan makes sense, especially when you consider the other options—there really aren’t any. Americans have been waiting for a sensible energy plan since the days of Jimmy Carter, but it’s never happened. We’re spending more on imported oil now than ever. Meanwhile, attempts by our government to encourage the development of new energy technology turn into the likes of the Solyndra farce.
McClendon says we can supply all of America’s energy needs from domestic sources. Have you ever heard anyone in government say that? Production of oil and shale natural gas from 32 of the 50 states now provides fuel resources of revolutionary abundance. This new source of energy is so enormous, McClendon says, that American manufacturers now enjoy natural gas prices that are the envy of the world. Since 2008, natural gas prices have dropped 67 percent, which is serving as an incentive to attract industry back to this country. An example of this is the American steel industry announcing new plants and new jobs, thanks to an abundant supply of inexpensive natural gas. And do I need to remind you of the megawatt natural gas-fired power plant that’s being proposed in Asylum Township? It will bring jobs to our region and clean electric power to 750,000 homes.
How would you like to save $2 per gallon on your fuel costs? McClendon says Americans can achieve those savings with a $2 billion investment to build compressed natural gas (CNG) and liquefied natural gas (LNG) pumps along our interstate highways. This investment would be an incentive for manufacturers and consumers to build and buy CNG/LNG vehicles. Chesapeake is leading the way toward this goal with a $150 million investment that will underwrite 150 LNG fueling stations at truck stops along major highways. Chesapeake’s investors have agreed to ante up with another $150 million. America’s trucking industry consumes an astonishing one out of every three barrels of imported oil.
McClendon says there are three major steps to making Chesapeake’s plan a reality.
First: Invest in American shale plays to boost domestic production of oil and natural gas liquids by three to four million barrels a day, a 50 percent increase in five to 10 years.
Second: Build the American natural gas superhighway system with natural gas fueling stations coast to coast and border to border.
Third: Invest in new technology to combine two things America has in abundance—non food biomass waste and natural gas—to produce an ultra-clean, renewable “green gasoline” for existing cars, trucks and aircraft.
For those of us living in the northern tier counties of Pennsylvania, there’s ample evidence that McClendon’s plan is already taking shape. We see it everywhere we look. The investment in the Marcellus Shale natural gas field is not just bringing unprecedented prosperity to our region, it’s playing an important role in America shaking free from unaffordable imported oil.
Our nation’s leaders should take a close look at McClendon’s energy plan. He’s not talking about ill-fated taxpayer-backed stimulus plans and expensive bailouts. He’s talking about using American ingenuity and our own abundant resources to bring jobs and prosperity to our nation while ending our dependence on foreign oil. Who can argue with that?
On Monday of this week, the Congressional Super Committee announced that it could not reach a compromise to cut $1.2 billion from the federal budget deficit over the next 10 years. Maybe the committee should give Aubrey McClendon a call. He could likely show them a thing or two about cutting expenses.
To learn more about Chesapeake’s plan to cut the use of OPEC oil, visit www.chk.com/Independence.