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Prediction: Mitt Will Condemn Capitalist Consolidation Tonight

If I had my way, President Obama would defend his investments in alternative energy by saying something like this:

In 1945, a great Democratic President sealed an alliance with our Saudi allies that cemented our energy security for the next half a century. While our commitment to the Saudis has come with setbacks over the years, it nevertheless provided the foundation for unprecedented American power and strength.

It’s in the same spirit of proactively ensuring America’s future greatness that my Administration set out to–and succeeded–in doubling our production of alternative energy. My Republican opponents, however, have sought to turn efforts to ensure America’s future greatness into a petty political issue. Doing so risks leaving America unprepared to compete in the future.

Never mind the problems FDR’s commitment to oil in 1945 brought about. Never mind overselling the importance of his 1945 meeting. Both are details Republicans will never point out.

More importantly, by posing Republican opposition to alternative energy as a refusal to take care of America’s future, it would turn GOP favoritism for oil into a national security weakness. As it really is.

But Obama won’t say that (or at least he hasn’t yet, and he’s had over a year of Solyndra attacks in which to do so).

So I hope when Mitt brings up the A123 bankruptcy tonight, Obama is at least prepared to call it what it is: capitalist consolidation just like the kind that Mitt has built his quarter billion fortune on. And this one is probably a net win for the US all around.

A123, one of the more innovative battery companies, announced this morning that it will file for bankruptcy. Mitt is likely to bring it up because A123 received energy stimulus funds for battery plants in MI.

But not only is A123 in negotiations to sell the rest of its business areas, it has already announced Johnson Controls (disclosure: I own stock) will purchase it auto related holdings–the stuff that benefitted from stimulus dollars.

A123 this morning said that it has agreed to sell its automotive business assets, including facilities in Livonia and Romulus, Michigan, its manufacturing facilities in China and its stake in the joint venture Shanghai Advanced Traction Battery Systems Co., to Johnson Controls for $125 million.

A123 said it “continues to engage in active discussions regarding strategic alternatives for its grid, commercial, government and other operations, and has received several indications of interest for these businesses.”

Say what you will about diminishing competition in a field where competition really serves innovation. But as far as stimulus dollars goes, this represents a consolidation. JCI–which received multiple energy grants itself, including for a battery factory in Holland, MI–has gotten expanded facilites at a discount. It will also benefit from the money the Chinese have invested in A123.

One more neat part to this: JCI is headquartered in Milwaukee, WI. They’re not in Paul Ryan’s district, but they do bleed into his WI ideological home, Waukesha. So when Mitt attacks the A123 investment, he will ultimately be attacking his running mate’s neighborhood.

It’s likely Mitt will bring up the A123 bankruptcy tonight. If he does, I hope Obama is prepared to use it to flip GOP attacks back on Mitt.

Update: The Department of Energy is talking about consolidation too.

In an emerging industry, it’s very common to see some firms consolidate with others as the industry grows and matures. Read more

Obama, Stuck in the 9/11 Era as Much as Mitt Is Stuck in the Cold War Era

Working on another post, I went back and read all three Obama DNC speeches. (200420082012) Aside from the biographical details, several things remained constant through all three: the Hope theme (though it has evolved in interesting ways, which is what I was looking at), the inclusion of some version of “We don’t think the government can solve all our problems,” and a call for energy independence.

2004

In 2004, that call came in a list of things John Kerry planned to accomplish.

John Kerry believes in energy independence, so we aren’t held hostage to the profits of oil companies or the sabotage of foreign oil fields.

2008

In 2008, the call came with a specific goal: to end dependence on the Middle East by 2019.

And for the sake of our economy, our security, and the future of our planet, I will set a clear goal as President: in ten years, we will finally end our dependence on oil from the Middle East. [my emphasis]

Obama embodied the refusal of DC to address energy independence in John McCain’s career, and in the “Drill Baby Drill” chant that was the rage in political circles in 2008.

Washington’s been talking about our oil addiction for the last thirty years, and John McCain has been there for twenty-six of them. In that time, he’s said no to higher fuel-efficiency standards for cars, no to investments in renewable energy, no to renewable fuels. And today, we import triple the amount of oil as the day that Senator McCain took office.

Now is the time to end this addiction, and to understand that drilling is a stop-gap measure, not a long-term solution. Not even close.

And he made several promises–several of which he has made progress on, several of which he has thankfully not achieved, one of which–nukes–he has at least rhetorically dropped from his convention speech.

As President, I will tap our natural gas reserves, invest in clean coal technology, and find ways to safely harness nuclear power. I’ll help our auto companies re-tool, so that the fuel-efficient cars of the future are built right here in America. I’ll make it easier for the American people to afford these new cars. And I’ll invest 150 billion dollars over the next decade in affordable, renewable sources of energy – wind power and solar power and the next generation of biofuels; an investment that will lead to new industries and five million new jobs that pay well and can’t ever be outsourced.

2012

And last week he, correctly, argued that Mitt would not continue this commitment to an energy independence that relies on a range of sources (Mitt would certainly keep drilling, would expand traditional coal mining, and would keep paying Iowa farmers to pour corn into cars, but would probably not continued subsidies for clean technologies).

OBAMA: You can choose the path where we control more of our own energy. After thirty years of inaction, we raised fuel standards so that by the middle of the next decade, cars and trucks will go twice as far on a gallon of gas.

(APPLAUSE)

In this section, Obama quietly–too quietly–bragged about the jobs he created in battery and turbine plants.

We’ve doubled our use of renewable energy, and thousands of Americans have jobs today building wind turbines, and long-lasting batteries.

And he accurately claimed that these policies (plus the recession, plus a warm winter, though he doesn’t mention them) have made a difference.

In the last year alone, we cut oil imports by one million barrels a day, more than any administration in recent history. And today, the United States of America is less dependent on foreign oil than at any time in the last two decades.

(APPLAUSE)

So, now you have a choice – between a strategy that reverses this progress, or one that builds on it.

What I’m interested in, though, is the emphasis he places on the energy and the unconvincing nod he makes to climate change. In 2004, Obama had listed “the future of our planet” as the third of three reasons for his commitment to energy independence; the other two were “our economy” and “our security.” Here, an explicit admission that “climate change is not a hoax” comes among promises to “drill baby drill.”

We’ve opened millions of new acres for oil and gas exploration in the last three years, and we’ll open more. But unlike my opponent, I will not let oil companies write this country’s energy plan, or endanger our coastlines, or collect another $4 billion in corporate welfare from our taxpayers. We’re offering a better path. [my emphasis]

Even when I listened to this passage the other night, I was offended by his promise not to let oil companies endanger our coastlines. Oil from the BP spill came onshore with Hurricaine Isaac. Just a week before he delivered these lines, Obama approved Shell drilling in the Chukchi Sea which presents predictable dangers to coastlines and species, particularly given how Shell has already failed to take necessary precautions. And even the Saudis recognize that fracking presents a real threat to our groundwater. So not only is Obama not subordinating the sanctity of our coastlines to his commitment to drill, neither is he making adequate efforts to protect our drinking water.

(APPLAUSE)

We’re offering a better path, a future where we keep investing in wind and solar and clean coal; where farmers and scientists harness new biofuels to power our cars and trucks; where construction workers build homes and factories that waste less energy; where — where we develop a hundred year supply of natural gas that’s right beneath our feet.

If you choose this path, we can cut our oil imports in half by 2020 and support more than 600,000 new jobs in natural gas alone.

(APPLAUSE) [my emphasis]

Then, after what, given the brevity of the speech, is a very long section on drilling, Obama immediately nods to climate change.

And yes, my plan will continue to reduce the carbon pollution that is heating our planet because climate change is not a hoax. Read more