Free Markets, Free People

Energy

Green Jobs, Distorted Markets And “Comprehensive” Energy Policy

This is what it takes to create “Green Jobs“?

President Obama’s announcement earlier today of an additional $2.3 billion in federal tax credits for creating approximately 17,000 subsidized temporary jobs in the green energy industry is drawing a less than enthusiastic response from Thomas J. Pyle, president of the Institute for Energy Research:

“Show me one other industry that requests and receives a nearly 30 percent taxpayer subsidy. That’s what the wind and solar industries require – at a minimum – to exist. All the president did today is throw more money at an unproven technology that is not economically viable in the marketplace. Unfortunately, the only winners in this latest taxpayer giveaway will be Wall Street money managers and corporate interests in the wind and solar industry.

Of course, dividing the subsidy by the number of jobs shows us that each job costs the taxpayers $135,295 each. The usual inefficient and wasteful spending for which the government is famous.

But there’s another bit of truth in Pyle’s statement that the right likes to mostly ignore – corporate interests, not just in the wind and solar industry, are deeply intertwined with political interests in this country and those corporate interests use their ability to influence in ways that give them an advantage (even to the point of helping to write legislation). However, that’s a post for another day.

Today, we’re looking at a perfect example of a governmental distortion of a market. Without the subsidy, the wind and solar industries most likely wouldn’t survive. But since it is a politically favored industry, it gets a hand out to keep it afloat. Meanwhile, it finds only a limited market share because the alternatives – coal, natural gas, oil, etc. – are much cheaper, more reliable and more readily available. Says Pyle:

“If the president really wants to create an environment that will foster economic growth and job creation, he need not look any further than the domestic oil, gas and coal industries. These three industries and energy sources built this nation. For the administration to continue to ignore this fact and to keep the vast resources that taxpayers own under lock and key at the Department of Interior is irresponsible and a disservice to the American people.

“The Outer Continental Shelf (OCS), if opened for business, would create over 1 million high-wage jobs. It would reduce our dangerous dependence on hostile nations for their energy resources and spur economic growth across all 50 states. Development of these energy resources will create sustainable employment, not taxpayer dependent make-work jobs.”

Instead, as I pointed out in a post last week, this administration is doing the opposite. New rules from Secretary of the Interior Ken Salazar make such exploration and exploitation of these known reserves much more difficult to do. It is step 2 in the government’s distortion of the energy market.

And it’s distortion of markets does have an effect – mostly unintended and, frankly, negative. Take the biofuel mandates Congress passed into law a year or so back.

It sounded like a good idea: Provide a little government money to convert wood shavings and plant waste into renewable energy.

But as laudable as that goal sounds, it could end up causing more economic damage than good — driving up the price of raw timber, undermining an industry that has long used sawdust and wood shavings to make affordable cabinetry, and highlighting the many challenges involved in decreasing the nation’s dependence on oil by using organic materials to create biofuels.

In a matter of months, the Biomass Crop Assistance Program — a small provision tucked into the 2008 farm bill — has mushroomed into a half-a-billion dollar subsidy that is funneling taxpayer dollars to sawmills and lumber wholesalers, encouraging them to sell their waste to be converted into high-tech biofuels. In doing so, it is shutting off the supply of cheap timber byproducts to the nation’s composite wood manufacturers, who make panels for home entertainment centers and kitchen cabinets.

The subsidy has distorted the market that has historically seen timber byproducts go to composite wood manufacturers and, since the subsidy pays more, seen those byproducts go to the production of biofuels. Result? Higher timber prices, an important market segment in trouble and an industry which couldn’t survive in the market without the subsidy continues to function.

In fact, the tail is wagging the dog as the government uses its power and purse to attempt to meet the arbitrary mandates that Congress passed into law:

The federal government is actively working to support the growth of as many of these biomass crops as possible, in part to meet requirements under the 2007 energy bill: The country must produce 5.5 billion gallons of advanced biofuels annually in five years, and 21 billion gallons by 2022. Right now, almost no U.S. land is devoted to raising biomass crops; according to congressional estimates, by 2022 the country will need between 22.2 and 55.5 million acres for this purpose

Did you get that? In 13 years it is estimated that between 22 and 55 million acres will be devoted to growing crap “crops” – like switch grass – instead of food – just to feed this contention that biofuels are better for us than fossil fuels. Those, I suppose, will be “green jobs” as well.

Speaking of green jobs – the government doesn’t even have a definition of what that means:

Even the Bureau of Labor Statistics, which has been cogitating on the problem since last spring, hasn’t made up its mind on how to count green jobs.

“There’s alternative ways for doing that and we haven’t yet finalized our methodology,” says John Galvin, associate commissioner for employment statistics at the BLS.

So you, and they, can call just about whatever you want a “green job” – and I have little doubt that the spinmeisters in government will do exactly that for the foreseeable future (especially when inventing statistics for “created and saved” jobs).

In reality I have no problem with “green jobs” or alternate and renewable fuels. I only have one demand – that they carry their own weight in the marketplace. Subsidizing each doesn’t meet that demand. Instead it unleashes the law of unintended consequences in all its negative fury and distorts exiting markets in ways that cost jobs and productivity that this economy badly needs. As Thomas Pyle points out, we have existing resources and existing technology that could create more available energy while creating thousands of good paying jobs not requiring a single dollar in subsidies that we’re ignoring to push an industry (or industries) which aren’t economically viable and, with existing technology, won’t be for years if not decades.

It is a short-sighted, politically driven policy which will hurt us in the long run. While this administration talks about a “comprehensive” energy policy, it is clear it has settled on one which is focused on an nonviable but politically correct industry to the detriment of the viable but carbon based existing industry. That is not a comprehensive policy regardless of how many times the politicians claim it is or put it in the title of their bills. A comprehensive strategy would recognize the reality with which we’re faced, exploit the traditional carbon based fuels while putting together a rational timetable for switching over to alternative (nuclear) and renewable fuels as the technology proved viable and cost effective.

Instead we get subsidized distortion of the markets, eschewing of readily available carbon based fuels and a push for jobs no one has yet to be able to define.

It’s madness. And, unfortunately, it is a madness which is going to cost us dearly in the not too distant future.

~McQ

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About That Dependency On Foreign Oil – Get Used To It

The double-talking Obama administration, who lectured us about the need to wean ourselves from our dependency on foreign oil, has, through actions taken by Interior Secretary Ken Salazar, made the goal of less dependency less likely.

Salazar, yesterday, announced a new level of bureaucratic requirements sure to slow and provide disincentives to increases in domestic oil and gas exploration.  In the first year of the Obama administration’s tenure, Salazar had already slowed such exploration to a walk  As the Institute for Energy Research (IER) reports:

* Under the first year of the Obama administration’s 2009 oil and gas leasing program, fewer onshore and offshore acres have been leased than in any previous year on record.

* The Interior Department collected less than one-tenth the revenue from oil and gas lease sales in 2009 than it did in 2008

* For the year 2008, lease sale revenues produced a return for the taxpayer of $942 per acre leased. In 2009, taxpayers received about $254 in return for each acre leased under the Obama administration – indicative of the quality of leasable land made available under Sec. Salazar

* More than 97 percent of the 2.46 billion acres of taxpayer-owned lands in the public domain are presently not leased for oil and gas exploration

In a time of economic hardship where federal revenues are way down and deficit spending runs rampant, it is almost criminal to do what Salazar has done. As the Industrial Energy Consumers of America points out:

“At a time when we should be working to enhance our energy supplies here at home, we believe it would be a mistake to pursue policies that would make it more expensive or difficult to access critical natural-gas resources …”

But that is precisely what Secretary Salazar intends to do. IER president Thomas J. Pyle released the following, which pretty much calls the administration out on their absurd policies concerning domestic exploration for oil and gas.  Frankly, I think it is an understatement:

“When it comes to paving the way for the responsible development of homegrown, job-creating energy resources, no administration in history has done more to ensure producers do less.”

The Bureau of Land Management released the following:

Under the reformed oil and gas leasing policy, BLM will provide:

* Comprehensive interdisciplinary reviews that take into account site-specific considerations for individual lease sales. Resource Management Plans will continue to provide programmatic-level guidance, but individual parcels nominated for leasing will undergo increased internal and external coordination, public participation, interdisciplinary review of available information, confirmation of Resource Management Plan conformance as well as site visits to parcels when necessary;

* Greater public involvement in developing Master Leasing and Development Plans for areas where intensive new oil and gas extraction is anticipated so that other important natural resource values can be fully considered prior to making an irreversible commitment to develop an area;

* Leadership in identifying areas where new oil and gas leasing will occur. The bureau will continue to accept industry expressions of interest regarding where to offer leases, but will emphasize leasing in already-developed areas and will plan carefully for leasing and development in new areas.

BLM Director Bob Abbey said the increased opportunity for public participation and a more thorough environmental review process and documentation can help reduce the number of protests filed as well as enhance BLM’s ability to resolve protests prior to lease sales.

Of course, anyone who has been around for more than a day or two has seen this sort of wording before and know how to read between the lines. For instance, note the last sentence. “Increased … public participation” means environmental groups opposing such leases will be given much more access to the process. “A more thorough environmental review process” means leases will essentially be held hostage to a review process which could last years. Finally, the “ability to resolve protests prior to lease sales” means the priority will be to make the protesters happy, not those seeking a lease.

The effect, of course, will be less exploration, less production, fewer jobs and more dependency on foreign oil. Given the economic climate today and the country’s energy needs,  that’s inexcusable.

As Jack Gerard, president of the American Petroleum Institute warns:

About 9.2 million Americans rely on the oil and gas industry for their jobs. By imposing these unnecessary additional hurdles, American jobs will be threatened along with the economic opportunities afforded by oil and gas development.

So, instead of safely and swiftly exploiting domestic resources (and creating jobs and increasing revenue) it appears the plan is to sit on an estimated 86 billion barrels of oil and 420 trillion cubic feet of natural gas offshore, as much as 35 billion barrels of oil in Alaska and the Chukchi Sea, and a massive 2.2 trillion barrels of energy in oil shale deposits in Utah, Wyoming and Colorado while Salazar plays politics with our energy future.

Why, You Ask, Are Businesses Not Hiring? The EPA For One Reason…

As regular readers know, we’ve been talking about why businesses are sitting on the sidelines and not hiring at the moment.  Businesses don’t like unsettled questions about the arena in which they must operate.  Health care legislation will effect the cost of doing business.  Until that is settled, there’s little incentive to take a chance and hire or expand their business.   If it costs more to do so after the legislation is passed – and it seems it will, they’ll wait to see the eventual outcome (and cost) and adjust accordingly.  Same with cap-and-trade.

However, in that regard, the EPA seems ready to proceed on it’s own schedule and businesses are not liking what they’re hearing:

Officials gather in Copenhagen this week for an international climate summit, but business leaders are focusing even more on Washington, where the Obama administration is expected as early as Monday to formally declare carbon dioxide a dangerous pollutant.

An “endangerment” finding by the Environmental Protection Agency could pave the way for the government to require businesses that emit carbon dioxide and five other greenhouse gases to make costly changes in machinery to reduce emissions — even if Congress doesn’t pass pending climate-change legislation. EPA action to regulate emissions could affect the U.S. economy more directly, and more quickly, than any global deal inked in the Danish capital, where no binding agreement is expected.

Bottom line – if the administration can’t get it done legislatively, they’ll just assume the authority and implement what they wish to do to restrict emissions and require “changes in machinery” unilaterally.

An EPA endangerment finding “could result in a top-down command-and-control regime that will choke off growth by adding new mandates to virtually every major construction and renovation project,” U.S. Chamber of Commerce President Thomas Donohue said in a statement. “The devil will be in the details, and we look forward to working with the government to ensure we don’t stifle our economic recovery,” he said, noting that the group supports federal legislation.

Can you imagine a more pervasive “emission” or arbitrarily applied set of mandates? Start asking yourself who the favored and unfavored industries are out there? Do you suppose coal fired power plants might be target one? And I’d guess that refiners would be in the same boat – unless they make ethanol.

The point of course is this is a perfect way to target and increase the cost of operating businesses that the EPA decides are the worst CO2 polluters. They’ll just write regulations that require costly renovations and changes. The net outcome, of course, is increased cost to consumers – most likely in their electricity bills, the cost of goods (transportation) and just about every other aspect of life you can imagine.

An endangerment finding would allow the EPA to use the federal Clean Air Act to regulate carbon-dioxide emissions, which are produced whenever fossil fuel is burned. Under that law, the EPA could require emitters of as little as 250 tons of carbon dioxide per year to install new technology to curb their emissions starting as soon as 2012.

The EPA has said it will only require permits from big emitters — facilities that put out 25,000 tons of carbon dioxide a year. But that effort to tailor the regulations to avoid slamming small businesses with new costs is expected to be challenged in court.

Legislators are aware that polls show the public appetite for action that would raise energy prices to protect the environment has fallen precipitously amid the recession.

Understanding that the public appetite for such action is very low, legislators are perfectly happy to let cap-and-trade languish. So the bureaucracy is being empowered to go where no elected politician dares at the moment. And if you’re a business, that means you’re still not clear what that means to you at the moment.

And so, you don’t hire. You don’t expand. You’re barely competitive in the global market as it is and now they’re talking about adding more cost? Yeah, that settles everything, doesn’t it? They’ll start hiring tomorrow.

~McQ

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Why The GOP Remains A Minority

About a week ago, amidst all the hoopla about the health care bill and then missed when the atrocity of Ft. Hood occurred, was this:

Even as a Senate global-warming bill remained in limbo with Democrats refusing to delay a committee vote until an economic analysis was completed, hopes rose for a potential bipartisan compromise.

The Senate, meanwhile, appears to be moving away from the bill, authored by Sen. Barbara Boxer, D-Calif., and Sen. John Kerry, D-Mass., which would require a 20 percent reduction in carbon emissions by 2020 and would have the government sell the right to emit carbon dioxide.

Even as Boxer conducted an unusual one-sided hearing on her bill in the Environment and Public Works Committee, Kerry, Sen. Lindsey Graham, R-S.C. and Sen. Joe Lieberman, I-Conn., held a news conference to announce they are working on a compromise that might attract GOP votes and has earned a tentative endorsement from the U.S. Chamber of Commerce.

So, here we have a Republican, sort of, lending a hand to the Democrats and buying into the premise that a) this cap-and-trade economy killer of a tax is valid and b) needed. He just wants to modify it a bit:

Kerry, Lieberman and Graham released few details about the new bill, but said it would include a cap and trade proposal. They said it would also address increasing nuclear energy, more drilling and clean coal technology, all initiatives that are high on the wish list of Republicans willing to work on a climate change compromise.

Of course this is the sort of legislative formula which is killing our country. This is exactly how the lousy legislation gets through the system. Republicans like Graham buy into the premise of cap-and-trade, try to get it reduced just a little bit to make it more palatable, and then  attempts to sell it by including things that Republicans want – more drilling, nukes and clean coal.

The problem, of course, is with Democrats in charge, you can count on cap-and-trade being implemented, but for some reason, you can bet that more drilling, nuclear power and clean coal just won’t see the same urgency to implement found among majority Democrats. So in essence, what Graham is proposing is tantamount to selling out the GOP’s principled position for the 30 pieces of silver offered in promises for things Republicans want.

You’d think by now, having watched the Democratic shenanigans with drilling (are we doing so yet or are they still “slow-walking” the process) they’d know better.

The Graham capitulation has been noticed by his home state party.

The Charleston County Republican Party’s executive committee took the unusual step Monday night of censuring U.S. Sen. Lindsey Graham for stepping across the GOP party line.

County Chairwoman Lin Bennett said the unanimous vote “is an effort to get his attention. They (party leaders) are just fed up, and they want him to know they’re fed up.”

The resolution mentions Graham’s cooperation with U.S. Sen. John Kerry, D-Mass., on a bipartisan energy bill, and his support for the $700 billion Troubled Asset Relief Program and the time he called some opponents of immigration reform “bigots.”

Sure it’s only one county doing so, but it is an unusual step. And frankly, I think it is a long overdue one. Graham’s actions, as far as I’m concerned, are one of the main reasons the GOP is in the shape it is in. There is a time to work in a bi-partisan manner and there is a time to stand on principle. The GOP supposedly believes we’re over taxed, a position I happen to support as well. So why is a member of that party stepping across party lines and lending support to what everyone, even Democrats, acknowledge is a new huge and burdensome tax?

Why should anyone ever believe Lindsey Graham again when he says he’s against new taxes when he’s involved with Democrats proposing one? Why should anyone ever believe Lindsey Graham when he says he’s against excessive spending when he voted for TARP?

The answers to those two questions tell you precisely why even the GOP’s base doesn’t trust Republican legislators and why their collective poll numbers remain dismal. Calling Graham to account for his position is both healthy and necessary if, in fact, the GOP is serious about its principles. And, if the Tea Parties are any indication, it is clear the base is. And apparently the GOP’s grass-roots are willing to stand up as well as indicated by this county organization’s censure of Graham.

I wonder if Graham will get the message or arrogantly dismiss it as he’s been known to do in the past? The reason the GOP is in the minority right now isn’t because it is a conservative organization that appeals only to old white men in the South. It’s a minority organization because its own base doesn’t trust it to live up to its own principles. How do you generate the enthusiasm necessary to turn out the vote if what the base is left to vote for is a version of Lindsey Graham’s Democrat lite?

~McQ

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Top 10 Reasons To Pass Cap-And-Trade

No, I’ve not lost my mind, I just wanted your attention for this great list from the American Energy Alliance:

10) It’ll be the largest tax increase in history and will help pay for the government takeover of health care.

9) America’s unemployment rate is only 10 percent. Higher energy prices and the resulting transfer of American businesses overseas will help us double it.

8 ) The U.S. has been the world’s number one economic superpower for long enough. It’s time to lie down and give someone else a turn.

7) Expensive energy is good. Really expensive energy is even better.

6) By making it more expensive to produce more of the vast amounts of American oil we have right at home and transitioning to affordable, commercial-scale alternatives that don’t exist, we can end our dependence on foreign oil in 10 years!

5) Spending billions of taxpayer dollars to create temporary, government jobs at the expense of long-term, private sector jobs not only makes perfect sense, it’ll be a boon to the nation’s struggling economy. Just look at Spain.

4) Energy is the lifeblood of the American economy – it is, literally, the capacity to do work. Hence, making American energy more expensive and less available will strengthen our economy and enhance our capacity to put Americans to work. Get it?

3) California and Massachusetts have adopted similar policies and they’re now enjoying some of the highest energy prices and unemployment rates in the nation. We need to level the playing field so every state can reap the benefits of expensive energy and abundant joblessness.

2) It will create millions of well-paying green jobs without destroying the jobs of Americans who are currently employed. Who put the green welfare provisions in there, anyway?

1) Reducing economic growth while achieving virtually no environmental benefit is simply a good idea. Don’t ask questions.

Sounds like a heck of a deal, no? ~McQ

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China Buying Oil Leases Off American Shore?

That’s the word from Mark Tapscott at the Washington Examiner:

Gas prices here in the U.S. are creeping back up towards the $3-per-gallon mark even as news breaks today that China’s state-owned energy firm just closed a deal to buy interests in four development leases on the American Outer Continental Shelf (OTS) in the Gulf of Mexico.

The deal, which requires approval of the U.S. government, is between Norway’s Statoil and China National Off-Shore Oil Corporation (CNOOC). This is the same CNOOC that would have bought Unocal four years ago for $18.5 billion but for pressure from Congress, according to The New York Times, quoting an energy industry trade publication.

Because it must be approved by the U.S. government, the Statoil/CNOOC deal puts President Obama and Ken Salazar, his Secretary of the Department of the Interior, which controls OTS leasing, in a difficult position.

Really? Why does it put the government in a “difficult position”? Oh, you mean the apparent willingness to sell these leases to foreign entities vs. opening them up to domestic American exploration?

The deal also focuses renewed attention on Salazar’s slow-walking of a new plan for approving energy exploration and development in the OTS, which includes approximately 1.7 billion acres, and, according to Interior, holds up to 86 billion barrels of recoverable oil and more than 400 trillion cubic feet of natural gas.

The administration is moving much too slowly to open more of the OTS to development for domestic U.S. uses, according to Jack Gerard, president of the American Petroleum Institute …

But it apparently isn’t moving too slowly to open up the OTS to foreign competitors.

In the meantime:

If the administration approves the deal, it will be more vulnerable to charges that the White House is being careless with U.S. national security issues in the energy sector, and that it is putting the interests of a foreign power before those of U.S. energy consumers.

If Obama and Salazar reject the deal, it will likely complicate relations with China, the emerging Asian superpower that defense experts predict will be able at will to challenge U.S. legitimate national security interests around the globe in the near future.

Oil isn’t going away anytime soon and its use is critical during any transition to alternate energy sources (which, for the most part are vaporware). Additionally, the charge that the Obama administration is playing fast and loose with US national security will resonate if the public becomes aware that domestic producers have been barred from OTC production but foreign producers are given access.

So the dilemma facing the administration is one of its own ideological making. Its “slow walking” of the plan for domestic producers to explore the OTC is a decision it made to thwart the desires of a majority of the nation to secure those assets for the US’s use. And now it’s going to hand them over to China?

That will not play well in at all in middle America.

~McQ

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CBO Outs Cap-And-Trade Lies – Democrats Don’t Care

Which lies?  Well in this case I’m talking about the lie that cap-and-trade will be a green job bonanza and an overall job producer and that it will stimulate the economy. Not so says the CBO:

So, instead of stimulating economic growth, it will slow it and instead of creating net jobs, it will be a job killer. Tell me again how that’s a “good thing” in a recession?

A House-passed bill that targets climate change through a cap-and-trade system of pollution credits would slow the nation’s economic growth slightly over the next few decades and would create “significant” job losses fr-om fossil fuel industries as the country shifts to renewable energy, the head of the Congressional Budget Office told a Senate energy panel Wednesday.

CBO Director Douglas W. Elmendorf emphasized that his estimates contained significant uncertainties and “do not include any benefits from averting climate change,” but his message nevertheless contrasted sharply with those of President Obama and congressional Democratic leaders, who have suggested that a cap on carbon emissions would help revive the U.S. economy.

How much will it slow the economy? Elmendorf’s estimates:

Elmendorf testified before the Senate Energy and Natural Resources Committee that the cap-and-trade provisions of the House bill — in which emitters of greenhouse gases would be able to buy and sell pollution credits — would cut the nation’s gross domestic product by 0.25 to 0.75 percent in 2020 compared with “what it would otherwise have been,” and by 1 to 3.5 percent in 2050.

That in the face of growing skepticism over the science supporting the premise that a) man is causing the climate change problem and b) that man can actually “change” nature’s direction in that regard.

But that doesn’t matter. Reps Waxman and Markey have decided that it is necessary regardless of the science, cost or what you want. They have a planet to save you see and it’s all our fault we’re in the situation we’re in now:

“The harsh reality is that America’s global warming and energy challenges are just too important for us to keep mailing it in by not enacting a comprehensive energy and global warming bill.”

So they plan on passing this tax which will slow growth, increase joblessness and impact most those who can afford it the least. Why would they concern themselves with that when the possibility exists they might be able to save a couple of polar bears.

Congress’s approval ratings effectively reflect their priorities – and as you can tell, constituents have figured out their priorities have nothing to do with the needs of constituents or the nation.

~McQ

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Saudis – “Subsidize Our Lifestyle!”

I‘m not sure the word “chutzpa” is appropriate when used in conjunction with Saudi Arabia, but it certainly best describes this particular idea:

Saudi Arabia is trying to enlist other oil-producing countries to support a provocative idea: if wealthy countries reduce their oil consumption to combat global warming, they should pay compensation to oil producers.

The oil-rich kingdom has pushed this position for years in earlier climate-treaty negotiations. While it has not succeeded, its efforts have sometimes delayed or disrupted discussions. The kingdom is once again gearing up to take a hard line on the issue at international negotiations scheduled for Copenhagen in December.

The chief Saudi negotiator, Mohammad al-Sabban, described the position as a “make or break” provision for the Saudis, as nations stake out their stance before the global climate summit scheduled for the end of the year.

“Assisting us as oil-exporting countries in achieving economic diversification is very crucial for us through foreign direct investments, technology transfer, insurance and funding,” Mr. Sabban said in an e-mail message.

Got that? The Saudis, who’ve been very happy over the past decades to be a part of a cartel that has cut off shipments of oil at times and limited oil production to drive up prices now are sniveling about the possibility that their revenue may be reduced as countries develop alternate energy sources? I’m laughing over here. Gee maybe if they hadn’t spent billions on spreading their radical brand of Islam they’d be in better financial shape.

What’s happened, however, is they have become accustomed to a particular style of life. They like having Filipinos and Indonesians waiting on them hand and foot and living in virtual slavery. They want to continue to spread their poisonous religion and have you pay for it. They enjoy the profligate life-style and by gosh, they expect you to continue to subsidize it.

“Make or break” provision? Be clear here – what they’re talking about is a subsidy paid out of taxes to pay for something they could have already done – “economic diversity”. The answer should be not only “no” but “hell no” followed by a good round of laughter at their expense.

Copenhagen is shaping up as a “loot the rich countries” forum and the number one target will be the US.  Unfortunately we are represented by a political leadership that may capitulate on a lot of things which may potentially cost us trillions in the upcoming decades and help kill any nascent recovery or long-term economic growth before it can develop.

~McQ

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Waxman-Markey. Boxer-Kerry. Let’s Call The Whole Thing Off (update)

That is if we’re committed to using science as the basis for our determination of whether or not the House or Senate versions of cap-and-trade are needed. And, as we’ve been pointing out for the last couple of weeks, the science of AGW is shaky at best and continuing to come apart at the seams.

But that hasn’t stopped ye olde sausage factory in the Senate from grinding out another version of CO2 emissions control. The Boxer-Kerry (BK) cap-and-trade bill has emerged with even more stringent caps on CO2 than the Waxman-Markey (WM) bill. BK calls for a 20% overall reduction of 2005 levels by 2020 (17% in WM) and 83% by 2050.

You can get an idea of how BK plans on administering the carbon offset market here. But, like WM, it targets those industries which fuel and power the nation (although unlike WM, it does give a nod to nuclear power and “clean” coal).  However there is evidence that the administration is trying to hide the real impact of such legislation from the American people:

Meanwhile, the Competitive Enterprise Institute (CEI) today accused the Treasury Department of continuing to hide information on the cost of climate legislation. In a news release, CEI said it had notified the Treasury Department of its intent to sue over the administration’s “inadequate disclosure of documents” recently requested under the Freedom of Information Act.

Documents released by the Treasury Department two weeks ago show the administration believed climate legislation could cost as much as $300 billion per year, which was much higher than the government’s public estimates, and could result in companies moving overseas. Studies have shown that the Waxman-Markey bill could eliminate 2 million American jobs a year.

2 million jobs a year? See the post below. Add the cost of 300 billion a year and then try to imagine a manufacturer that is a heavy user of energy trying to justify staying here instead of going somewhere else where not only energy, but labor, are cheaper than here.

Thus far BK has about 45 Senators who’ve signed on. Kerry is giddy (this would most likely be his first substantial accomplishment during his Senatorial tenure and naturally it would do more harm than good) saying he thinks the bill has a good shot of passing. But a senior Republican says he knows of no Republicans who would support the bill as written.

Senator Lamar Alexander seems to represent the prevailing thinking of the Senate’s Republicans:

“The Kerry-Boxer bill has fancy, complicated words that add up to high energy costs that will drive U.S. jobs overseas looking for cheap energy,” said Lamar Alexander of Tennessee.

But John Kerry see’s it differently:

Kerry said the event was the “beginning of one of the most important battles we will ever face as legislators and citizens.”

For once, Kerry is right about something, but not for the reason he believes. It is the beginning of one of the most important battle we well ever face and the importance lies in the fact that if passed, this legislation will kill jobs, push companies out of the US and drive our economy off the cliff. That makes it very important in my book. And with Copenhagen’s climate talks coming up in December, Democrats are going to try to push this turkey through so President Obama doesn’t show up empty handed.

The short term goal should be to ensure he does show up empty handed and the long term goal should be to defeat this outright. It’s based on shaky science, it is an economy killer and it will cost us far more than it will ever accomplish in terms of the environment. A much more sensible course would be a comprehensive energy policy which begins to use nuclear power and natural gas as the basis of a transition to clean energy with viable renewable brought on line as they become available while continuing to use and exploit the resources we have available.

Instead we’re being threatened with legislation that’s real purpose is to create a multi-billion dollar revenue stream out of thin air which will cost us jobs, income and our standard of living.

UPDATE: Speaking of Copenhagen and the desire to show up at the climate conference with something positive, it appears that the Obama administration has decided it will act unilaterally instead of wait on Congress.

Unwilling to wait for Congress to act, the Obama administration announced on Wednesday that it was moving forward on new rules to regulate greenhouse gas emissions from hundreds of power plants and large industrial facilities.

[...]

But he has authorized the Environmental Protection Agency to begin moving toward regulation, which could goad lawmakers into reaching an agreement. It could also provide evidence of the United States’ seriousness as negotiators prepare for United Nations talks in Copenhagen in December intended to produce an international agreement to combat global warming.

“We are not going to continue with business as usual,” Lisa P. Jackson, the E.P.A. administrator, said Wednesday in a conference call with reporters. “We have the tools and the technology to move forward today, and we are using them.”

The proposed rules, which could take effect as early as 2011, would place the greatest burden on 400 power plants, new ones and those undergoing substantial renovation, by requiring them to prove that they have applied the best available technology to reduce emissions or face penalties.

Phaaa, Congress … who need’s them?

~McQ

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Global Warming “Science” v. The Scientific Method (update)

Even the youngest student of science knows the foundation of scientific inquiry rests in the scientific method. It is by scrupulously following that method that the data and science behind it can be verified. In short:

Scientific method refers to a body of techniques for investigating phenomena, acquiring new knowledge, or correcting and integrating previous knowledge. To be termed scientific, a method of inquiry must be based on gathering observable, empirical and measurable evidence subject to specific principles of reasoning. A scientific method consists of the collection of data through observation and experimentation, and the formulation and testing of hypotheses.

It also requires that the data collected be made available to peers so the theories in question can be tested for their validity.

Among other facets shared by the various fields of inquiry is the conviction that the process be objective to reduce biased interpretations of the results. Another basic expectation is to document, archive and share all data and methodology so they are available for careful scrutiny by other scientists, thereby allowing other researchers the opportunity to verify results by attempting to reproduce them. This practice, called full disclosure, also allows statistical measures of the reliability of these data to be established.

The bold is my emphasis because I want to highlight a remarkable article at NRO by Patrick J. Michaels entitled “The Dog Ate Global Warming”. Obviously a little twist on “the dog ate my homework”, Michaels says that the “data needed to verify the gloom-and-doom warming forecasts have disappeared.”

Or, said another way, the findings are now unfalsifiable because those who did the original research say they no longer have the original data.

First some background about what’s being discussed:

In the early 1980s, with funding from the U.S. Department of Energy, scientists at the United Kingdom’s University of East Anglia established the Climate Research Unit (CRU) to produce the world’s first comprehensive history of surface temperature. It’s known in the trade as the “Jones and Wigley” record for its authors, Phil Jones and Tom Wigley, and it served as the primary reference standard for the U.N. Intergovernmental Panel on Climate Change (IPCC) until 2007. It was this record that prompted the IPCC to claim a “discernible human influence on global climate.”

Putting together such a record isn’t at all easy. Weather stations weren’t really designed to monitor global climate. Long-standing ones were usually established at points of commerce, which tend to grow into cities that induce spurious warming trends in their records. Trees grow up around thermometers and lower the afternoon temperature. Further, as documented by the University of Colorado’s Roger Pielke Sr., many of the stations themselves are placed in locations, such as in parking lots or near heat vents, where artificially high temperatures are bound to be recorded.

So the weather data that go into the historical climate records that are required to verify models of global warming aren’t the original records at all. Jones and Wigley, however, weren’t specific about what was done to which station in order to produce their record, which, according to the IPCC, showed a warming of 0.6° +/– 0.2°C in the 20th century.

So we’re talking about the findings which were used to make the IPCC’s dire warnings in its report. They are the basis for the entire global warming movement’s desire to do what is necessary globally to lower the amount of CO2 emissions.

But, others scientists ask, given their doubts about the accuracy of the data, should it be? Scientists interested in peer reviewing the theory, as the scientific method demands, found it impossible to do so. And therein lies the story:

Now begins the fun. Warwick Hughes, an Australian scientist, wondered where that “+/–” came from, so he politely wrote Phil Jones in early 2005, asking for the original data. Jones’s response to a fellow scientist attempting to replicate his work was, “We have 25 years or so invested in the work. Why should I make the data available to you, when your aim is to try and find something wrong with it?”

Reread that statement, for it is breathtaking in its anti-scientific thrust. In fact, the entire purpose of replication is to “try and find something wrong.” The ultimate objective of science is to do things so well that, indeed, nothing is wrong.

Michaels is stunned by he reaction. Anyone who reads that response should be stunned by it. As Michaels says, it is “breathtaking in its anti-scientific thrust”. Not unscientific. Anti-scientific. Jones is refusing a peer the data used to reach his conclusions in direct contravention of the scientific method. When you see a refusal like that, especially phrased the way it was phrased, all sorts of alarm bells should go off in the head of anyone who claims to be a scientist. And, of course, they have.

Over the years, requests have been made for the data and almost uniformly turned down for various reasons. Finally a request for the data made by Roger Pielke Jr., a professor of environmental studies at the University of Colorado solicited this response from Jones:

Since the 1980s, we have merged the data we have received into existing series or begun new ones, so it is impossible to say if all stations within a particular country or if all of an individual record should be freely available. Data storage availability in the 1980s meant that we were not able to keep the multiple sources for some sites, only the station series after adjustment for homogeneity issues. We, therefore, do not hold the original raw data but only the value-added (i.e., quality controlled and homogenized) data.

Michaels calls BS on this one:

The statement about “data storage” is balderdash. They got the records from somewhere. The files went onto a computer. All of the original data could easily fit on the 9-inch tape drives common in the mid-1980s. I had all of the world’s surface barometric pressure data on one such tape in 1979.

Anyone familiar with data storage throughout the short history of the computer age knows this is nonsense. Transfer of data from various systems to newer systems has been accomplished without real difficulty all thorough its development. What Jones is trying very hard to do is one of two things a) hide data that he’s pretty sure won’t support his conclusion or b) admitting to a damningly unscientific procedure which should, without his ability to produce and share the original data, call into serious question any findings he’s presented.

Why is this important – because based on this finding, the world is moving toward economy crippling treaties and legislation, like the pending cap-and-trade bill here in the US, based on totally unverified “science”. As Michaels says this story isn’t just “an academic spat” – it questions the very foundation of the premise which these economic crippling moves are based in.

Scientific consensus? Not even proven science, for heave sake – yet we’re moving on it like it was. Dangerous, foolish and costly. This is what rushing into things without making all of the inquiries necessary (and taking the time to do them) usually ends up with bad legislation.

And cap-and-trade promises to be no exception to that rule.

UPDATE: The Thinker provides a reminder of what I expect to see concerning Michael’s charges from the “Chicken Little” crowd:

As I described in my my model of belief, a faith-based belief is a belief in something for which there is no good evidence either for or against (e.g., the existence of God), whereas a delusional belief is a belief that is maintained in spite of evidence to the contrary (e.g., the efficacy of astrology). It is usually a delusional belief that requires an “appeal to other ways of knowing,” since a faith-based belief (strictly as I’ve defined it) can’t be challenged on scientific grounds.

The “appeal to other ways of knowing” is one of the strategies that a delusional person will use to cope with the cognitive dissonance that occurs when their beliefs bump up against reality. When questioned on this “other way of knowing” the person will then be forced to resort to other coping strategies (i.e., fallacies and biases).

Just a little helpful guide for those trying to evaluate the comments of those trying to defend the indefensible. Always handy to know if you’re dealing with someone grounded in a faith-based belief or a delusional belief, wouldn’t you say? If you’d like a local example of delusional belief, I’d steer you to the comment thread on Honduras where it is available in full flower.

~McQ

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