Courtesy Reuters

New Energy Jobs Won't Solve the U.S. Unemployment Problem

The Hard Facts That Will Spoil Campaign Promises

U.S. President Barack Obama and the leading Republican candidates for president don't agree on much, particularly when it comes to jobs and energy. But they do appear to share a conviction that a vibrant energy sector is central to solving the U.S. unemployment problem. Obama has put clean energy jobs at the center of his economic message. On the Republican side, both Texas Governor Rick Perry and Mitt Romney, his rival, claim that the oil, gas, and coal industries is where the real future of American job growth lies, contrasting their approach with one that has produced the recent Solyndra debacle. Alas, on the one point on which everyone seemingly agrees, they are all wrong.

There is no doubt the energy sector could employ many more Americans. But exactly how many matters. The Republican candidates have made bold and concrete predictions. Perry is running on his record of job creation in Texas, which included a big boost from the booming oil and gas sector employment. Romney claims that expanded drilling could create 1.2 million energy jobs and that shale gas operations in the Northeast could add another 280,000 and Perry offers similar numbers. This is an exaggeration. The American Petroleum Institute, which is hardly an impartial arbiter (it is the oil industry lobby), projects that opening all U.S. lands to drilling while loosening a range of regulations would create 400,000 new energy-sector jobs and perhaps one million support and spinoff jobs by 2030. The real potential for oil and gas jobs

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