Showing posts with label oil. Show all posts
Showing posts with label oil. Show all posts

Saturday, February 25, 2012

Lower Than Pond Scum

By Alan Caruba

Between 1955 and 1959 I was a student at the University of Miami. It was perhaps the best four years of my life and remembered fondly for its combination of fun and learning. On Thursday, February 23, President Barack Obama was on the UM campus to tell the biggest bunch of lies about energy in America I have heard compressed into a single speech.

This President has already set records wasting taxpayer’s money on a range of so-called clean energy and renewable energy “investments”. Solyndra, the solar panel company that went bust and stuck taxpayers with a half-billion in loan guarantees is just one of those “investments” and I keep waiting for someone to ask why public funds are being flushed down the toilet when, if the companies involved were viable, they could not raise private venture capital?

“And we’re making investments in the development of gasoline, diesel, and jet fuel that’s actually made from a plant-like substance known as algae,” said the President. “Believe it or not, we could replace up to 17% of the oil we important for transportation with this fuel that we can grow right here in America.”

All politicians put the best face on their pet projects, but to flat-out lie about one of the most idiotic ideas to replace oil when this nation has enough oil, domestically and offshore, known and estimated to exist, defies the imagination. It is an insult to every one of us. And Obama wants to pump $14 million into algae, otherwise known as pond scum.

It is very likely that, like the solar panel and other “clean energy” scandals that we know about and will learn about as time goes alone, the average American is unaware that, by 2008, there were fifteen (15) algae startup companies. When I heard Obama talk about algae, I could practically hear the campaign fund-raising bundlers scurrying like rats from company to company.

To those of you not intimately and well informed about algae, it is that organic stuff that gathers in ponds and swamps and, in aggregate, is politely called “plant-like organisms that are usually photosynthetic and aquatic.” It is scum. It has no roots, stems, or leaves. It is scum.

In a marine environment it is called seaweed. Algae have chlorophyll and can manufacture their own food through photosynthesis. Algae, the scientists tell us, produces more oxygen than all the plants in the world in addition to being an important food source for marine creatures as diverse in size as shrimp and whales.

The notion that millions would be “invested” to turn algae into fuel ranks just above the idiocy of converting thousands of acres of corn into ethanol instead of food.

Barack Obama has been lying about so many things for so long I doubt he even knows when he is lying or even cares. It’s not enough to dismiss this saying that all politicians lie because many do not. Some in Congress right now are desperately trying to get the public in general and voters in particular to understand that America has more debt per capita than Greece. We are on the precipice of financial collapse and Barack Obama just wants to spend more and more and more; some of it on pond scum.

During his UM speech, he derided those who have for decades been saying that America has to allow oil companies access to its vast reserves in order to reduce our dependence on imported oil. “We’ve heard the same thing for thirty years,” he said. He’s right. And administrations and Congress have blocked access for just as long. It’s our oil!

He went further, though. “It means that anyone who tells you we can drill our way out of this problem doesn’t know what they’re talking about—or isn’t telling you the truth.” That’s rich, coming from someone who lies almost as often as he exhales. Oil is a global commodity. The more that’s available to the market, the lower its cost. Domestic oil always costs consumers less than imported oil!

The truth is that oil production on federal lands declined last year by eleven percent on lands controlled by the Obama administration and six percent for natural gas in 2011.Oil and natural gas production on federal lands is down by more than forty percent (40%) compared to ten years ago. The Obama administration, in 2010, issued the lowest number of onshore leases since 1984. In 2011, it held exactly one offshore lease sale.

On February 24, one day after the Obama speech, the U.S. Geological Survey released a report on the amount of oil estimated to exist in the North Slope of Alaska. “The amount of oil that is technically recoverable in the United States is more than 1.4 trillion barrels, with the largest deposits located offshore, in portions of Alaska, and in shale in the Rocky Mountain West. When combined with resources from Canada and Mexico, total recoverable oil in North America exceeds 1.7 trillion barrels.

In a 2008 Wall Street Journal interview, Obama’s Energy Secretary, Dr. Steven Chu, famously said, “Somehow we have to figure out how to boost the price of gasoline to the levels of Europe.” Anyone who does not believe this administration has a deliberate policy of achieving this goal is just not paying attention. Remember that the next time you fill your car’s gas tank.

This is the same President who stopped the building of the Keystone XL pipeline from Canada that would provide more oil for our refineries and not cost the American taxpayer one penny to build. This is the same President who imposed a moratorium on oil from the Gulf of Mexico even after the courts told him to remove it. It caused the loss of an estimated 12,000 jobs while rigs departed for Cuba, Brazil and Mexico.

Between now and November, the President will be out campaigning and telling the same lies. The rise in the cost of oil isn’t just a seasonal thing though prices have usually gone up in the summertime when people travel more for vacations. It’s up because the Iranians are closing in on making their own nuclear weapons and their own missiles to hit, not just Israel, but the U.S. It’s up because it is essential to ensure that the tankers oil-producing nations around the Persian Gulf can enter and exist it via the Strait of Harmuz.

The world isn’t running out of oil and is not about to run out. The Earth floats on an ocean of oil despite the rising demand from Asia and other developing nations. To replace foreign oil with algae-based fuel would require a chemically-controlled tank the size of the State of Colorado, about 69.3 million acres.

In 2010, Obama’s mandated biofuel production was less than ten percent of foreign oil imports. It is impossible for biofuel of any description to replace foreign oil imports; just as it is idiotic to pay $41,000 for an electric car when you can have a gasoline-fueled car for around $16,000.

Pond scum is not a rational substitute for oil and spending $14 million on its production as a fuel is beyond absurd. It is the same confidence game as selling “carbon credits” to avoid the hoax of “global warming.”

© Alan Caruba, 2012

Monday, February 20, 2012

Greener Than Thou

By Alan Caruba

The most obnoxious and hypocritical people are those who are always preaching a “greener” way of life, insisting that anything that constitutes our modern lifestyles are destroying the Earth and depleting its natural resources. Never mind that we depend upon oil, natural gas, coal, and a host of minerals and chemicals for that lifestyle, the absence of which caused people in earlier eras to live shorter, far more unpleasant lives.

Oil, other than ust an energy source is also a component in countless products, starting with plastic, and is so vital to modern life that its value goes far beyond just being able to drive our cars to visit grandma.

Greener than thou has replaced holier than thou ever since Rachel Carson penned her pernicious and seriously flawed attack on DDT and other chemicals, fertilizers and pesticides in 1962. The result has been the needless deaths of millions from malaria in Africa and subtropical nations after the U.S. banned DDT and other nations followed suit. If there was a comparable pesticide available today, the U.S. would not be suffering a biblical plague of bed bugs.

A bone fide environmentalist, David Owen, has written a book that quite literally filets environmentalism, “The Conundrum: How Scientific Innovation, Increased Efficiency, and Good Intentions can Make Our Energy and Climate Problems Worse.” ($14.00, Riverhead Press, softcover).

Owen, who has authored 14 previous books, examines the way environmentalism frequently makes no sense at all. This is not to be confused with conservation, the earlier movement that led to the preservation of some of the nation’s natural wonders.

To live an environmentally acceptable way of life is the same as striving to be a saint, avoiding “sin” in order to secure a place in heaven. It is not only virtually impossible, but to be human is to consume what Nature provides. If you think about, all of Earth's creatures are consumers, depending on where they are on the food chain.

For example, when environmentalists convinced Congress to reduce the amount of water in toilet tanks, the only thing they accomplished was to require that the newer, smaller tanks had be flushed twice to rid he toilet of feces and urine, i.e., more use of water, not less. The EPA has just issued a ruling they claim is necessary to reduce mercury emissions despite the fact that your average volcanic eruption puts more into the atmosphere than any human imposed restrictions could ever achieve. Congress, however, passed a law banning 100-watt incandescent light bulbs, thus requiring people to purchase mercury-filled ones that, if broken, require a hazmat team to clean up after.

Environmentalism is essentially irrational.

It believes that humans actually have anything to do with “saving the Earth” when the natural forces of the Earth are so far beyond any “control” that it routinely reminds us of this fact. We have zero impact on the climate and, as for carbon dioxide, the villain of all “global warming” claims, humans exhale about six pounds of it every day. And there are seven billion of us. Even so, it constitutes barely 0.033 percent of the atmosphere.

Owen begins by posing the question, “How do we truly begin to think about less—less fossil fuel, less carbon, less water, less waste, less habitat destruction, less population stress—when our sense of economic, cultural, and personal well-being is based on more?”

The real question at the heart of all environmentalism is what do we do when there are seven billion humans using the resources of the Earth and the real answer for environmentalists is how do we reduce the Earth’s population and how do they grow rich in the process? That is what lies at the heart of all the “solutions” put forth by the United Nations environmental program; an enemy of the human race if there ever was one.

What environmentalists want is “a vast, unprecedented transformation of human behavior in our relationship with energy and consumption.” The next time you hear anyone call for a “transformation” know also that they are a charlatan seeking control over your life.

The environmental assumption is that the Earth is running out of the sources of energy and that consumption is bad. Both are equally wrong because the Earth is not running out of the sources of energy and consumption is what humans and all other species on Earth do every day.

Owen believes that humans are “the world’s main emitter of manmade greenhouse gases” and this is utterly false. The so-called greenhouse gases are the ones in the atmosphere that not only keep the Sun from turning the Earth into a desiccated version of Mars or the Moon, but in the case of carbon dioxide, it is responsible for every single element of vegetation upon which all life depends.

Owen and many environmentalists would prefer that all of humanity live packed side-by-side in crowded cities, using mass transit or bicycling to work to save the Earth, but anyone who gives two thoughts to the amount of energy consumed to maintain a city knows this too is yet another idiotic environmental conceit.

Indeed, Owen notes that “There are many downsides to density, including the fact that squeezing people and their destinations close together makes diseases, wars, and natural disasters more efficient, too.”

That, says Owen, is a conundrum. Indeed, his book is filled with environmental conundrums that he tries to resolve while overtly and inadvertently exposing the idiocy of environmentalism.

Simply put, farmers are the world’s natural environmentalists, relying on the weather—which they cannot control—and the stewardship of their land to feed themselves and others. They must, however, have a means to move their crops to places where other humans can acquire them and that requires a massive system of transportation which, in turn, requires the affordable use of energy.

Environmentalism’s goals, clean air and water, are laudable, but a massive governmental bureaucracy to require that people use less energy and consume less is not.

Time and time again we see examples of environmentalism that only manage to kill people, whether it is the banning of beneficial chemicals or the use of the least efficient forms of electrical power, wind and solar energy.

The least reported story out of Europe these days is the extreme cold that is literally killing people because it puts the lie to all the environmental “solutions” advanced since the 1960s. Environmentalism has been decried as a religion and, for those who want to deny a greater power, Nature or God, it remains their holy grail.

© Alan Caruba, 2012.

Wednesday, February 15, 2012

U.S. Hostages Abroad and High Gas Prices at Home--It's Jimmy Carter Redux

By Alan Caruba

A lot of things that a President cannot control can gravely affect his chances of being reelected. In 1979, the combination of an oil embargo and the Iranians taking U.S. diplomats hostage ended any hope of a second term for Jimmy Carter.

As this is written, there are 19 U.S. citizens being held hostage in Egypt, but you are hearing little to nothing about that in the mainstream media.

The economy is going to affect President Obama’s odds of being reelected this year and Americans who are notorious for gaging the impact of inflation by watching the cost of gasoline at the pump rise are going to blame Obama. An attack on Iran’s nuclear facilities and a possible conflict will drive prices through the roof.

When Obama took office, the average price of a gallon of gasoline was $1.61.Averaging $3.50 at present, the price of a gallon of gas is predicted to rise to $4 and even $5 by summertime.

If the U.S. was not dependent on imported oil, we could control our own fate, but for decades every effort possible has been made to drive up the cost of automobiles and gasoline, led by environmental organizations like Friends of the Earth and the Sierra Club, two notorious anti-energy foes, in combination with the Environmental Protection Agency.

Little wonder they are in a full war against the Keystone XL oil pipeline from Canada or that the Obama administration has been trying to convince Americans it favors opening access to existing and new oil reserves.

Dan Kish, vice president of the American Energy Alliance, recently took note of the political maneuverings over the American Energy and Infrastructure Act of 2012, saying “At the end of the day, the American people don’t care whether federal lands are opened in one large piece of legislation or in separate smaller pieces.”

“The bottom line is that the Federal government currently leases approximately 2.4 percent of the land owned by U.S. citizens, while lands equaling ten times the State of Texas are kept off limits by Federal regulators. With reports coming out that gasoline could approach five dollars a gallon by this summer, we cannot wait any longer to begin tapping these resources.”

If the Obama administration really wanted to create jobs and improve the economy, it would “lift the embargo on American energy,” said Kish, “and open our onshore and offshore resources for robust exploration and development.”

“The U.S. Geological Survey estimates that the nation has six times the proven oil reserves of Saudi Arabia”

In 2010, while oil, natural gas and coal accounted for 78 percent of U.S. energy production, its producers received 11 percent of all federal energy subsidies. By contrast, subsidies to the wind industry increased 10-fold, from $467 million in 2007 to $4.9 billion in 2010.

Closer to the pump for Americans was the deal the Obama administration struck with thirteen auto manufacturers in July 2011 to boost new car fuel economy standards from 35.5 miles per gallon (mpg) in 2016 to 54.5 mpg in 2025.

The claim made was that it would save Americans $1.7 trillion over the lifetime of vehicles and $8,000 per vehicle by 2025. Higher gas prices as the result of increased costs of imported oil and higher automobile prices that will result from this deal will cancel out any alleged savings.

Who wants to be fooled again by this administration?

And what business is it of the federal government how much mileage an auto gets?

The U.S. government has been messing around with the fuel economy program—believe it or not—for forty years. The result was the rise in sales of Japanese auto companies and European imports while Detroit saw General Motors and Chrysler come so close to collapse they had to be bailed out with billions of taxpayer dollars.

The culprit has been the Corporate Average Fuel Economy program and Marlo Lewis of the Competitive Enterprise Institute calls it “a case study of unintended consequences. If the fuel-saving technologies requisite to meet the new standards are such a great bargain, why do we need a law forcing automakers to adopt them?” Good question!

Both the Environmental Protection Agency and the Department of Transportation crowed that “Today’s announcement is the latest in a series of executive actions the Obama administration is taking to strengthen the economy and move the country forward because we can’t wait for Congressional Republicans to act.” That’s right, they blamed by-passing Congress and the deal on Republicans!

Meanwhile, the only thing CAFE standards accomplish is an increase in the cost of automobiles and a decrease in the safety of their occupants as cars are forced to be lighter and more vulnerable in a crash.

In a February 2nd opinion published in The Wall Street Journal, Alaska Governor Sean Parnell welcomed news that Congress might finally be moving in the direction to permit Americans benefit from access to their own oil.

Opening the Arctic National Wildlife Reserve (ANWR) to oil exploration and production would have obvious benefits. “This legislation opens 400,000 acres of the ANWR coastal plain’s 1.5 million acres” that represent “less than three percent of ANWR’s 19 million total acres.”

The other way Americans have been forced to pay more at the pump have been the mandates for the mix of ethanol in every gallon of gasoline. Why? Because its advocates claimed that this would reduce carbon dioxide (CO2) emissions, but in fact ethanol increases CO2 emissions while at the same time reducing the mileage of every gallon of gasoline. And there is absolutely no scientific justification for reducing CO2 emissions because the mandate is based on the totally debunked global warming hoax.

The cost of building new oil refineries in America was increased exponentially by the Clean Air Act of 1970. There have been no new refineries since 1976. There are currently 149 refineries in the U.S. Requiring them to make different blends for different regions of the nation has done little more than to drive up the cost at the pump. The taxes on gasoline have been a bonanza for the federal government and the states.

The good news is that two new refineries are being developed, one in Yuma, Arizona, and one in Union County, South Dakota. The bad news is that Sunoco Inc has just announced it will continue to exit the refining business due to the lack of profitability. In business for 117 years, Sunoco has been gradually shifting out of refining, reducing its capacity 43 percent since 2009.

Come November, if drivers of cars are shelling out $5 a gallon at the pump, a lot of voters are going to be very unhappy. If our citizens are still being held hostage in Egypt they will be even less happy.

© Alan Caruba, 2012

Sunday, January 22, 2012

How to Murder a Superpower

By Alan Caruba

It is the crime of the century that America, home to some of the world’s greatest reserves of coal, natural gas and oil, is being deliberately destroyed by the Environmental Protection Agency and the Department of the Interior as they do everything in their power to restrict access and drive energy producers out of business.

It is common sense that a nation that cannot produce sufficient electricity to turn on its lights and power its manufacturing sector will be destroyed if current Obama administration regulations and actions continue. Our vital transportation sector and all others that utilize petroleum-based products will suffer, too.

While President Obama babbles about millionaires and billionaires, everyone will be impoverished by the loss of jobs and revenue our energy sector produces now and can produce in the future.

This isn’t an “energy policy.” It’s a “no-energy policy” and it is a guarantee of economic disaster.

Obama’s decision to reject a permit for Canada’s XL Keystone pipeline is just one example. It is a job-killer and a revenue-killer. There are thousands of pipelines serving America’s energy needs and the XL Keystone pipeline would ensure that Canada’s own vast energy reserves would flow to America. It is one of our key trade partners and Obama has slapped it in the face.

In early January, Ken Salazar, the Secretary of the Interior, announced a new 20-year, million-acre ban on uranium mining for federal lands in Arizona, despite the fact that these lands hold the highest-grade of known uranium deposits in the United States. It is an outrage that a new GOP-Congress will have to overturn if the nation is to be assured of sufficient uranium to power its nuclear plants and for weapons development. If the ban remains, these uranium resources would be inaccessible until 2023!

Tom Pyle, president of the Institute for Energy Research said that Salazar’s announcement “further compounds a man-made energy crisis that has been planned and executed in Washington, D.C.”

At the same time we are learning of enormous natural gas discoveries that can reduce our energy bills and turn sleeping little towns into boomtowns, environmental organizations have launched a vast propaganda campaign against “fracking”, a technology that has been safely used for more than fifty years. Their claims about dangers to the nation’s supply of fresh water are baseless. Their claims that fracking has caused earthquakes in Ohio are absurd.

Need it be said that the Environmental Protection Agency has turned its eyes on fracking and is working on a report due later this year that will likely call for harsh crackdowns on its use and more regulations to throttle the expansion of natural gas extraction?

The EPA has just released a report of those power plants that top the list of its regulation of carbon dioxide (CO2) emissions. There is no basis in science to justify the reduction of CO2. Indeed, since it is a gas on which all vegetation depends, much as oxygen is vital to all animal life, reducing it would impair great crop yields and healthier forests.

These regulations are based on the global warming hoax that blamed CO2 for warming the earth. That is utterly false. The Earth is currently in a perfectly natural cooling cycle and the climate of the Earth is almost entirely based on the Sun—solar radiation—along with the actions of oceans, clouds, and even volcanic activity that spews tons of particulates into the atmosphere.

Coal-fired power plants account for fifty percent of all the electricity generated in the United States. Fifty percent! And yet the EPA is determined to shut down dozens of them providing that vital factor in the lives of all Americans and the economy, nor does this take into account the billions that energy producers have spent to upgrade their technology to reduce emissions.

The Obama administration fuel economy agenda, a call for 54.5 miles per gallon ignores simple physics. There is a finite amount of energy a gallon of gas can generate. If you dilute it with ethanol as is currently required, you get even less mileage. The administration is trying to circumvent Congress by issuing standards based on regulating “greenhouse gas emissions”, but there is no need for this. It is a false argument. The Center for Automotive Research says that the proposed new standards would cause the retail price of average motor vehicles to increase by more than $11,000.

Americans and the nation’s future are being victimized by Obama administration policies. The 18th annual Index of Economic Freedom, was released on January 12th by The Heritage Foundation and The Wall Street Journal, measures the many factors that contribute to the economic health of a nation—things like property rights, regulatory efficiency, open markets, free trade and labor policies.

Economic freedom is declining worldwide as governments try to spend their way out of the global recession. The United States fell to 10th place. In 2009 it ranked 6th, in 2010 it was 8th, and in 2011, it was 9th.

We are witnessing the deliberate murder of a superpower.

© Alan Caruba, 2012

Thursday, January 19, 2012

Obama's Keystone Debacle


By Alan Caruba

Future historians may conclude that President Obama’s decision to reject a permit for the building of the XL Keystone pipeline was a key factor in his defeat for a second term in 2012.

One can only hope that, in the course of the campaign, Republicans will focus public attention on the deliberate “no energy” policies of the Obama administration that have thwarted the creation of jobs, the generation of electrical power for homes and businesses, as well as fueling our transportation needs.

The Obama administration policies also meant that billions in tax revenue have been lost. Tapping U.S. energy reserves of coal, natural gas, and oil would also be a major step toward greater national security, freeing the nation from dependence on foreign oil.

In a recent article posted on The Heritage Foundation’s website, Rob Bluey reported that “oil and natural gas production on federal lands is down by more than forty percent (40%) compared to ten years ago.”

“Under the Obama administration, 2010 had the lowest number of onshore leases issued since 1984. The Obama administration held only one offshore lease sale in 2011.”

Following the President’s announcement regarding Keystone, the president of the Institute for Energy Research, Thomas Pyle, said that “Tens of thousands of American jobs died today because of the president’s rejection of the Keystone EL pipeline permit. For more than two years, the administration has delayed, hoping to get past 2012 without having to reveal the president’s true anti-job, anti-energy agenda. Because of today’s announcement, Americans will continue to send $70 billion overseas every day to purchase foreign oil.”

The secret President Obama wants to keep from Americans is that the price of domestic oil is always cheaper than foreign oil. Oil industry expert, Seldon B. Graham, Jr. says that this price deferential is “never reported by the media. The media only reports Wall Street speculators’ guesses of oil prices six months in the future…the U.S. price is always lower than the OPEC price.”

In February 2011, a CNS News article reported that “A new study says drilling on Alaska’s Outer Continental Shelf could make Alaska the eighth largest oil resource province in the world—ahead of Nigeria, Libya, Russia and Norway.”

In announcing the decision on the Keystone pipeline, the President boasted that, under his administration, “domestic oil and natural gas production is up”, but Bluey pointed out that “The vast majority of America’s new oil and gas production is happening on private lands in states like North Dakota, Alaska, and Texas.” Private, not public lands. One result is that North Dakota’s unemployment rate is 3.4 percent, the lowest in the nation.

Who favored the president’s decision?

An environmental organization, Green for All, hailed the decision. Its CEO, Phaedra Ellis-Lamkins, said, “This project would have helped Big Oil and their allies get richer at the expense of American workers and permanently damaged our environment.” How does it help to kill 20,000 jobs and an estimated 100,000 related to the pipeline?

The Sierra Club, another environmental organization, claimed that the pipeline would bring “toxic, highly corrosive tar sands crude from Alberta, Canada to refineries and ports in Texas.” If it was corrosive, it could not be transported by a pipeline, but ethanol which is mandated for use in gasoline is so corrosive it cannot be transported by pipeline and requires fleets of trucks instead. Echoing Green for all, the Sierra Club said, “Thank President Obama for standing up to Big Oil and rejecting the Keystone XL oil pipeline.”

Friends of the Earth, another environmental organization, branded Big Oil as “one of the most profitable and most unscrupulous industries on the planet.” Profits equal dividends for investors in oil companies. Profits equal jobs for thousands of Americans. Profits ensure that more oil can be discovered and extracted…except on federal lands and offshore because of present administration policies.

By contrast, James M. Taylor, a Senior Fellow for Environmental Policy of The Heartland Institute, a free market think tank, said, “The Obama administration has confirmed the fears of everyday Americans that it is more interested in paying off environmental extremists and other far-left groups than it is in laying the foundation for a growing economy.”

“The Obama administration’s decision to block construction of the Keystone XL pipeline demonstrates as poignantly as a slap in the face that President Obama is either completely out of touch with the American people or is callously indifferent about our ongoing economic woes,” said Taylor. “I suspect that in the November elections voters will severely punish President Obama for this foolish decision.”

I suspect Taylor is right!

© Alan Caruba, 2012

Monday, November 21, 2011

Obama's Green Energy Fail


By Alan Caruba

Watching Secretary of Energy Steven Chu face nearly five hours of grilling by a congressional committee seeking answers to the multi-billion dollar loss taxpayers have taken after the department dispensed their money in pursuit of its Green energy program was a reminder that ideology is not a substitute for reality.

Dr. Chu received a Nobel Prize in Physics in 1987 for his work at Bell Labs, shared with colleagues, on cooling and trapping atoms with laser light. At the time he was appointed to head the Department of Energy, he was a professor of physics at the University of California, Berkley. He also had gained notice as an environmental enthusiast advocating a shift away from fossil fuels—coal, natural gas and oil—to combat “climate change.”

At one point Dr. Chu thought that painting roofs and other structures white would help reflect the sun’s radiation and save the nation and the world from global warming. Another nutty idea of his was a global “glucose economy” to create a “low-carbon economy” by shipping glucose from tropical plants would replace oil, the energy source that fuels transportation worldwide and serves a multitude of other uses.

Why any of this nonsense qualified him to be the chief administrator of the Department of Energy defies understanding. A footnote to this is the fact that the Department was the creation of the failed presidency of Jimmy Carter whose “windfall profits” legislation drove much of the oil industry out of America despite the fact that the U.S. sits atop some of the greatest deposits of oil in the world.

The loan guarantees of grants made by the Department of Energy are turning out to be a huge scandal for the Obama administration, rivaling the Department of Justice’s “Fast and Furious” gun-running program to the drug cartels of Mexico. When you toss in an unemployment rate that rivals that of the Great Depression, it is hard to understand why anyone would suggest that Obama will be reelected.

As reported in The Washington Post in September, “A $38.6 billion loan guarantee program that the Obama administration promised would create or save 65,000 jobs has created just a few thousand jobs two years after it began, government records show.”

This works out to $5,077.574 per job created.

We are now familiar with the Solyndra scandal, one of the companies that received loan guarantees despite grave misgivings of DOE staff members. It declared a very predictable bankruptcy as a manufacturer of solar panels. Its failure was blamed on competition from China, also a major producer of wind turbines.

Between solar and wind technology, the failure of these two Green energy producers touted by the Obama administration, is beginning to be noticed at the same time the Environmental Protection Agency is hell-bent on closing down coal-fired electrical power plants and the companies that mine coal.

Another DOE beneficiary was BrightSource, another solar firm which received a $1.4 billion bailout. It turns out that the DOE officials involved was Sanjay Wagle, formerly a principal in Robert Kennedy, Jr’s firm. In 2010, BrightSource whose largest shareholder was Kennedy’s VantagePoint Partners, had $1.8 billion of debt obligations and had lost $71.6 million.

Just how many billions the Obama administration’s Green energy program will have lost by the time they are eventually calculated will be testimony to the general failure of solar and wind power. Meanwhile, the Sierra Club is celebrating Obama’s decision to delay approval of the Keystone XL oil pipeline, estimated to generate 20,000 jobs.

The Department of the Interior has just delayed shale gas drilling in Ohio “for up to six months” and an industry group estimates that drilling in the Utica shale affected by the delay would produce 204,500 jobs by 2015.

In mid-November, Lisa Murkowski, a Senator from Alaska, wrote an opinion published in The Wall Street Journal, noting that the Obama administration’s proposed expansion of offshore oil drilling in the Arctic Ocean and the Gulf of Mexico are its first concession since its moratorium on drilling in the Gulf. The administration still opposes offshore drilling on both the Atlantic and Pacific coasts.

Sen. Murkowski pointed out that “Cuba, Mexico, the Bahamas, Canada and Russia are all moving ahead on offshore development adjacent to our borders,” noting that according to the Department of Interior, “our offshore areas hold more than 86 billion barrels of recoverable oil and 420 trillion cubic feet of natural gas. The Artic Oceans is projected to hold 20% of the world’s undiscovered oil and gas.”

Why anyone thought Dr. Chu was qualified in any fashion to run the Department of Energy defies the imagination. Why anyone still believes that solar and wind energy can replace traditional proven sources of energy is testimony to environmental propaganda and myth-making.

Green energy is simply one more way the Obama administration has set about destroying America’s capacity to generate the energy needed for everything requiring electricity. It is one more way to impoverish the nation. And he is running for reelection in 2012.

© Alan Caruba, 2011

Sunday, October 30, 2011

Killing Energy, Killing Jobs, Killing America


By Alan Caruba

America has been under attack since Barack Obama took the oath of office on January 20, 2009. The primary target has been the nation’s ability to generate energy for electricity and transportation, without which this nation will slide into Third World status and economic decline.

This appears to be the goal of this administration from the President to his Secretaries of Energy and Interior, to his Director of the Environmental Protection Agency. There is no other rational explanation for what they are doing.

We are days away from the latest Environmental Protection Agency assault in the form of the “MACT” rule allegedly to reduce mercury and other emissions that the Federal Energy Regulatory Commission says will reduce electricity generation in America by about 81 gigawatts in the years ahead. A recent Wall Street Journal editorial said “this could compromise the reliability of the electric system if as much as 8% of generating capacity is subtracted from the grid.”

The Wall Street Journal reports that eleven Governors have written the EPA to ask that it delay the final rule in November. Twenty-five state Attorneys Generals have filed suit “to lift a legal document known as a consent decree that the EPA is using as a fig leaf for its political goals.”

As but one example, in Illinois, Ameron announced the planned shutdown of its Meredosia and Hutsonville energy centers, The Meredosia center generates 369 megawatts. The Hutsonville center has a generating capacity of 151 megawatts.

The EPA, even before the Obama administration, has been using the 1970 Clean Air Act to bludgeon the nation’s ability to access the energy resources required to generate electricity, primarily coal that provides 50% of such generation, and oil that fuels our transportation capability.

In late October, James J. Mulva, the CEO of Conoco-Phillips, addressed the subject of the growing discoveries of natural gas being found throughout the nation. “More than 600,000 Americans already explore, produce, store and produce natural gas, according to consultancy IHS Global Insight.”

At least 15 states now produce shale gas and others may join them,” noting that the largest shale area, the Marcellus which covers much of the Northeast” “already supports 140,000 jobs in Pennsylvania alone.”

The Obama administration, beginning with the president’s admitted goal of shutting down as much of the coal industry as possible, has demonstrated his intention of deterring the provision of energy. When the BP Oil rig exploded in the Gulf of Mexico, the administration imposed a moratorium on all drilling. The decreased production cost 360,000 barrels a day in addition to lost jobs related to oil drilling in the Gulf. Rigs that are needed to drill have since been moved to other sites around the world.

The U.S. is home to more than 150 billion barrels of conventional oil that has the capability of generating thousands of new jobs if access to it was permitted. The most immediate result has been the rise in the cost of gasoline at the pump. Two courts ordered that the moratorium be lifted.

Oil companies currently pay more than $30 billion a year in federal, state, and local taxes. Meanwhile the Obama administration has been wasting billions in loan guarantees to essentially useless solar and wind power companies, the latest of which, Solyandra, will cost taxpayers millions when the solar panel producer went belly-up. Others will follow.

Meanwhile, the President crisscrosses the nations demanding higher taxes on companies engaged in coal, oil and natural gas. When Jimmy Carter imposed a windfall tax on oil companies many ceased to explore for new sources here, moving their efforts to other nations. Today, by withholding the necessary permits to produce energy in Alaska, the Trans Alaska Pipeline System is operating at one third of its capacity.

A proposed pipeline from Canada still awaits approval and, on November 6th, led by the Sierra Club, the largest protest against its tar sands is expected to draw thousands to Washington, D.C. to join hands and circle the White House to ensure the Keystone XL pipeline is kept from providing the U.S. with the oil extracted. The proposed pipeline would reduce the U.S. dependence on Middle East oil. The U.S. already has more than 50,000 safely operating oil pipelines to support our transportation and other needs.

In January 2010, Thomas J. Pyle, president of the Institute for Energy Research, warned that the Obama administration “continues to embrace Washington-dominated, command-and-control energy policies focused on mandates, subsidies, and political favors—not market forces.” He criticized “subsidizing one form of energy,” wind and solar, “while restricting the exploration of another,” warning that it “will lead to several measurable outcomes, increasing energy prices across the board, fewer jobs, and a weaker footing in the global economy..”

Nearly two years later, that warning has come true with a vengeance.

Oil, coal, or natural gas, it doesn’t matter to an administration and a president determined to restrict the amount of energy Americans need for their present and future needs. The result, in part, has been a stalled energy sector and a contributing factor in an economy with an estimated 20 million unemployed or under-employed.

The losses in income taxes and the taxes paid by this industry sector, in addition to the hideous borrowing and spending by the Obama administration is doing enormous harm to America and yet Barack Obama wants a second term in office.

Little wonder that Americans fear for the future of the nation.

© Alan Caruba, 2011