When a study conducted by the highly respected firm ICF International, released in December 2008, reported that America’s vast domestic oil and natural gas resources could generate more than $1.7 trillion in government revenue, create an additional 160,000 new jobs and enhance the nation’s energy security by significantly boosting domestic production -- if Congress and Obama will allow it.

Now that president Obama signed some super form of health care “reform”… He said, “will reduce the cost of an employee to American business by 3,000%.”

In other words American business can now earn about $150,000 per employee hired due to health care reform! Can this be fact, fiction or some funny calculations on his teleprompter?

The focus should shift to energy not only to generate $1.7 trillion in government revenue but 160,000 new jobs. Hopefully , the debate on the energy bill will not turn out to be as monotonous as the health care one was. But if did take our eyes off the economy for a while.

It seems reducing America's foreign energy dependency should be near the top of the list, with Obama's decision this week to expand offshore oil and natural gas exploration (subject to environmentalist approval). It reverses a law that banned oil drilling off most U.S. shores. It appears to be a slick double-edged subterfuge.

While talking about a plan to increase America's domestic energy sources - rather than relying on foreign supplies - it's also an attempt to garner Congressional support for a significant new climate change bill.(Cap & Tax) This decision is also part of a plan to turn America from a nation that predominantly uses fossil fuels into one that runs on clean energy.

The American public is starting to get wise to these diversionary tactics on the part of this president and administration.

The government also announced that it will double the number of hybrid vehicles in its fleet to 5,000. The Transportation Department and Environmental Protection Agency also just agreed to new fuel efficiency standards for cars.

Strange he didn’t mention natural gas vehicles… His recently acquired, GM who has been manufacturing natural gas powered cars for sale in foreign markets for years… The conversion from Gasoline to natural gas is technology we have right now and is inexpensive compared to electric or Hybrid alternatives.

Why Natural Gas?

Natural gas production in the U.S. has exploded to the up side!

Today, there are shale gas plays in nearly 30 states and more turn up every day. We have more gas than we can use.

The result is a gas bonanza! Unlike crude oil, the United States is experiencing a tremendous increase in natural gas reserves. We have nearly 2,100 tcf (Trillion Cubic Feet), which equates to a 100-year supply.

That’s 33% higher than just three years ago. In fact, with technological improvements, you can fully expect that estimate to double over the next three to five years. How much gas do we need?

One trillion cubic feet is enough to run 12 million cars per year. Replace 75% of the U.S. vehicle fleet (190 million vehicles) and we’re still only looking at 15 tcf per year.

While electric cars might be the ultimate future alternative to fossil fuels, switching to natural gas-powered vehicles gets us a long way down the road towards energy independence and a cleaner environment right now.

More importantly, it buys America valuable time to replace power generation with alternatives, further reducing our dependence on fossil fuel.

The positive outcome of the Nat Gas Act could put us on the road to energy independence, environmental cleanup and lead our economy out of this great recession.

The bill’s two versions H.R. 1835/S1408 is commonly referred to as the “NAT GAS Act”. The good thing is both have bi-partisan support and both are currently in committee.

Each version offers immediate tax incentives to buy natural gas-powered vehicles, build modern NG engines for both trucks and regular cars and open new natural gas fueling stations.

We’re talking about an 80% tax cut on nearly all purchases and access to tax-free bonds to get the program into motion.

The exciting news is:…In the House version, the U.S. government will have to switch its vehicles to 50% natural gas by the end of 2014. That’s one out of every two cars and trucks the government buys.

The Obama administration recently purchased over 17,000 cars. And that’s just the White House in a single summer.

The stimulus designates funding for 500 liquefied natural gas trucks and 2,300 compressed natural gas vehicles. It has been called to our attention that AT&T is moving to convert nearly 8,000 vehicles to natural gas.

California has half of its public buses on natural gas… Well before the 2014 mandate goes into effect, the majority of the U.S. commercial trucking fleet will be revolutionized.

Trucking companies are already starting to make the switch from diesel to natural gas engines. Two of the world’s largest truck manufacturers, Kenworth and Peterbilt are already on board.

To get $1.7 trillion into the U.S. government coffers, America's political leaders need the foresight to allow more resource development of America's coastal areas, as well as allowing more environmentally responsible access in Alaska and a small portion of currently unavailable federal lands in the Rockies.

Instead of just taxing the working citizens and sending our money overseas to foreign oil suppliers we need to use what we have in abundance “Nat Gas”.

I might mention that Canada is opening up a new mining area called the Golden Triangle in British Columbia by building roads and supplying 200 miles of electric power lines to aid private mining operations…

The Canadian Government’s return looks like over $300 billion per year back to them in tax revenue for many years. How come they know how to use their brains to generate tax revenue instead of their citizen’s checkbooks?

Michael Economides, editor of the Houston-based Energy Tribune, is one of a growing number of industry observers who is convinced that natural gas will supplant oil as the primary energy source, not only in the coming decades but over the next several centuries.

In the soon-to-come era of natural gas dominance over oil, Iran will replace Saudi Arabia as the world’s leading supplier for energy. Sometimes we kiss the wrong ring!

Expect a Boom in Natural Gas Acquisitions.

ExxonMobil (XOM) signaled the way with its $41 billion acquisition of XTO Energy on December 14, 2009. This landmark deal is a major bet on the future of natural gas.

It sets the stage for a raft of future acquisitions by energy majors in 2010. This happened before when Exxon bought Mobil.

Other oil companies quickly merged to keep pace. Exxon projects that natural gas demand will grow 1.8% per year through 2030—TWICE the Rate of Oil Demand!

Bob Tonachio, CEO of Robert James & Associates. May be contacted at 1-800-530-5700… His firm does not charge fees for local, confidential, consultations or advice.