The Dow Chemical Company (DOW), Alcoa Inc (AA): America’s Energy Advantage

A look behind the politics
While the administration’s arguments are founded on solid logic, they’re not necessarily in the United States’ best interest. The availability of rare-earth materials is very different from the availability of natural gas at cheap prices. Equating them is an oversimplification that does not bespeak the true complexities of both issues. You must hope that the message the president is sending is but the public face and not the final word on what will happen.

In the alternative, Obama could publicly support free trade while simply allowing the ramp-up of exports to drag out over a course of years. There are limited means by which LNG can currently be exported, and approval will be required for the situation to change. The administration could choose to trumpet free trade while conducting a multi-year study to address safety concerns — the practical version of a pocket veto.

Ultimately, this issue is critical to the future of American business and the global economy. Monitoring how things play out can give you a good look at where energy prices may head in the future. There is more to American energy independence than LNG, but it shouldn’t be overlooked.

The article Will Obama Kill American Energy Independence? originally appeared on Fool.com and is written by Doug Ehrman.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool has the options on Chesapeake Energy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.