Capital Commerce

7 Ways McCain Can Use Energy to Beat Obama

By James Pethokoukis

Posted: June 16, 2008

"Climate change is never going to rise to the status of a top-tier political issue" is how one top climate-policy expert recently described the political lay of the land to me. Just take a look at the results of a recent NBC News/Wall Street Journal poll. The top issue for voters (27 percent) was job creation and economic growth. Right behind was the war in Iraq (24 percent). Then came energy and gas prices (18 percent). Far down the list were the environment and global warming, at a minuscule 4 percent. So despite all the media attention on global warming as an existential threat to humanity, it still scores a bit below illegal immigration in the hierarchy of voter concerns.

And there lies an opportunity for John McCain to turn the issues of energy and the environment to his advantage in his race against Barack Obama. Here are a few pieces of advice for Team McCain that I have gathered after talking to some political folks in recent days.

1) Stop talking about global warming. Or at least don't talk about it nearly as much as "energy independence." The latter has an incredible resonance with voters for national security and economic reasons. The former, apparently, not so much. In his much-derided New Orleans speech, McCain mentioned "climate" or "environment" a total of four times, "energy" eight times. Since voters seem to be about four times as concerned with the cost of energy as with climate change, maybe the ratio of "energy" mentions to "climate change" mentions should be at least 4 to 1 rather than 2 to 1 in all speeches. Move energy from being an environmental issue to being an economic and national security issue.

2) Ban the color green. Not only is it a less-than-flattering hue for McCain; but it implies a kinship with an anti-oil, anticoal, antidrilling, antieconomic-growth agenda.

3) Propose drilling in ANWR while standing in ANWR. Yes, McCain has come out against drilling in Alaska's Arctic National Wildlife Refuge. But with oil seemingly on its way to $150 a barrel or higher, at least if you believe many top energy analysts, surely McCain would be forgiven for a flip-flop. He could trot out that famous John Maynard Keynes line, "When the facts change, I change my mind. What do you do, sir?" The end of cheap oil is one huge factual change. And McCain could set the stage, as someone recently suggested, by visiting ANWR with Alaska's governor, Sarah Palin. Recall Ike's 1952 campaign pledge: "I will go to Korea." McCain could say, "I will go to ANWR."

4) Accuse Obama of wanting to launch a pre-emptive war on the American economy. McCain could attack Obama's plan on two main fronts: its overreliance on alternative energy vs. fossil fuels and nukes, and Obama's seeming willingness to go ahead with capping carbon emissions even if India and China—America's two main economic rivals of the future—take a pass. I can almost hear McCain now: "Senator Obama's policies would be tantamount to unilateral disarmament in our economic competition with our global competitors. It is another example of his naiveté."

5) Stop blaming Big Oil. Why should McCain echo Obama in criticizing the oil companies—a blame game that a Republican can't win—when he could easily blast the Democrats for a generation of policies that have limited oil drilling and the exploitation of nuclear energy?

6) Go with a populist "cost of living" argument. You can't expect McCain to abandon his plan to cap U.S. carbon emissions. But since his plan and Obama's similar approach would both raise energy prices for consumers, McCain could explicitly call for rebating money from the auctioning of carbon allowances—we are talking trillions of dollars over the coming decades—back to consumers in the form of lower taxes. It's a populist move that he could contrast with the Democratic plan to have the government keep that money and spend it on various "green" programs.

7) Advocate a cheap Manhattan Project. Obama wants to spend something like $200 billion over 10 years on various energy schemes like a government-sponsored venture capital fund to invest in clean energy. A more modest approach comes from the group Set America Free. It wants American taxpayers to spend $12 billion over the next four years to provide incentives to auto manufacturers to produce, and consumers to purchase, plug-in and flex-fuel hybrid vehicles, as well as to mandate substantial incorporation of plug-ins and FFVs into government fleets. It also advocates providing incentives to transform existing fueling stations so they serve all liquid fuels and to enable utilities to enter the transportation fuel market. In addition, it favors government policies to encourage mass transit and reduce vehicle-miles traveled.

Now all that stuff may anger some free-market conservatives, but it would probably strike voters who want Uncle Sam to do something as both prudent and fiscally responsible.

Shame on you!

Are you just trying to win another election or play another tune like Nero did while Roman burned. People better take this serious....this country is facing the greatest external and internal threat since the 1930s and 1940s.

Concerned citizen-retired military of WY @ Sep 10, 2008 00:18:16 AM

Speculation is a scapegoat issue for oil prrices

As of today, 8/18/08, oil prices are not near $150 anymore, so some of the smoke and hysterica can possibly clear. Speculators are not responsible for our energy crisis and Bernanke came out and said as much weeks ago. I think speculation is a government scapegoat and the culprit of uneducated people who are looking at the surface of things only.

Punishing speculators is ridiculous. These are free markets and all the commodities have been at record highs.

I think it would be a wise idea for every American voter to do some research on the history of the energy crisis we are in and see how we got here. Then, send letters or telegrams to the candidate you truly respect more, thinking of their values, their vision, etc. and provide some guidance. Leaders need intelligent support. It's not mostly up to Obama or McCain.

Lynne of IL @ Aug 18, 2008 16:30:19 PM

No we can't drill or way out

No oil man would ever suggest that we can drill our way out of this mess. It's impossible. We only have 55 of the oil in the world and we use 25%. However if we do want to drill more take back the 68 million acres we have already given to the big 4 oil companies and put them in a lottery where smaller oil companies who are willing to drill can make some money and just to make sure the politicians aren't just feeding themselves if they do open up the off shore drilling and ANWR let the independent drill. Of course suddenly it wouldn't seem like such a good idea to any of the politicians, but drilling does have to be part of a total plan to make this country independent of foreign oil. Like I said earlier comment we need to make a 10 year commitment just like John Kennedy did with the space program to get a man on the moon. Except this time it has to be to make this country oil independent. And yes that means renewable energy. Wind, wave and eventually solar. Alternative fuels for now yes it could be a big part of the over all 10 year plan. I do agree with a lot that you have to say. But a strong leader and a strong plan will give Americans a level of trust that would loosen up the purse strings and get them to start spending again and that would solve so many problems.

Of course the oil companies and big pharms are so greedy that they just want to take every last penny. We use twenty million barrels a day. Do math and multiply it times $120 dollars a barrel and then remember that it only costing the oil companies 2 dollars a barrel to get it out of the ground outside of the US. It cost more here. Still even after they do their 30/70 split with the country they are drilling in how much are they actually paying for oil?

Where a real leader when we need him?

George Mercier of CA @ Jul 27, 2008 04:01:40 AM

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Capital Commerce

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U.S. News business reporter Matthew Bandyk examines the issues, people, and debates that shape the nexus of political and economic life in the nation's capital.

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