Free Markets, Free People

Energy

Failing California doubles down on solar power

You’d think, by now, governments would have figured out how poor they are at picking winners and losers.

Of course, they haven’t as witnessed by the witless California government continuing to push solar energy.

For example:

California’s Riverside County is producing more solar energy than anywhere in the U.S., with close to a dozen solar plants either online or proposed.

“On the face of it, it looks like a good deal. They talk about all these huge jobs and long-term benefits to the county. The truth is, it’s a very short term,” Riverside County Supervisor John Benoit said. “We’re going to be carrying the burden of having these types of facilities for decades to come, and because of the incentives that have been provided by federal and state government, there’s virtually nothing left for the county government or the local people to get benefit back after the small number of construction jobs are gone.”

Unlike Riverside’s 500 megawatt natural gas-fired facility, which pays $6 million a year in property taxes, a solar plant being built a few miles away will pay next to nothing, just $96,000.  When Riverside balked at its own upfront infrastructure costs and tried to impose an impact fee, the industry sued.

So Riverside has hundreds of square miles carpeted with solar panels and no jobs to speak of and barely any revenue to show for it.

But surely, as promised, this has led to cheap, reliable and renewable energy, right?

Yeah, not so much:

Solar also promised to be a cheap source of power, fueled by the sun. What the industry didn’t say is the technology only converts a fraction of the sun’s energy, and the intermittent nature of sunshine does not produce the power promised.

And Stanford economist Frank Wolak, a California energy expert, said solar could boost consumer energy bills up to 50 percent, a finding similar to the state Public Utilities Commission. Solar power from two recently approved plants range from $100 to $200 per megawatt hour, at least 8 times higher than the $16 consumers pay for natural gas.

“It’s probably 50 percent more (than coal or natural gas) today,” Benoit said. “Five years ago, it was probably a 100 or 150 percent more costly to generate a kilowatt with solar. The cost of these panels has come down dramatically. But still, getting back to the old equation, do you want to spend a little bit more to be green? And the legislature and the governor in California have said clearly, we’re going to do that.”

But at what cost to consumers and to what benefit to much of anything except government’s chosen crony, er, beneficiary?  Instead of allowing markets – i.e. consumers and producers – to decide on the mix, government has unilaterally taken that away from them and made the decision itself.

After all, the autocrat has decided:

Answering critics at a solar ribbon-cutting earlier this year, Gov. Jerry Brown laid down the gauntlet, affirming his commitment to solar energy and saying he would “crush” opponents of solar.

“There are going to be screw-ups. There are going to be bankruptcies. There’ll be indictments and there’ll be deaths. But we’re going to keep going – and nothing’s going to stop me,” Brown said.

I can believe that.  Somebody needs to tell Brown the whole effort is a ‘screw-up’.

But since government is involved, the crony gets the treatment other industries don’t:

“There’s been a policy to fast-track and install these utility-scale renewable energy installations that are on the scale of five to 10,000 acres each,” said April Sall of the Wildlands Conservancy. “We’ve seen thousands of acres of the desert bladed and now undergoing utility-style construction to basically convert that from pristine habitat that included those sensitive plants and animals, to becoming potentially a dust bowl.”

Now imagine if these actions and plans were those of “Big Oil”.  Yup, you don’t have to imagine long, do you?  But in this case?

The two largest green groups in the U.S., the Sierra Club and Natural Resources Defense Council, have remained silent on the impact of Big Solar on land use and endangered species, which is not so with gas, oil or coal. Sall and other local environmental groups say the Washington-based organizations see climate change as a bigger threat and therefore won’t get involved.

Shoddy “science” is their excuse and they’re sticking with it.

And that’s your update on the imperial blue state model today.  And yes, it’s going down the tubes which is why this cartoon applies to more than small business in the state:

~McQ

Doha – the zombie UN climate change charade staggers on

Peter Foster at the Financial Post sums up the Doha “climate change” conference best:

The UN climate conferences have descended into ritual farce, as naked money-grabbing on behalf of poor countries contrasts with finagling impossible solutions to what is likely a much-exaggerated problem. One leading question is how dubious science, shoddy economics and tried-and-failed socialist policies have come to dominate the democratic process in so many countries for so long. The answer appears to be the skill with which a radical minority — centred in and promoted by the UN, and funded by national governments and, even more bizarrely, corporations — has skilfully manipulated the political process at every level.

A fairly succinct and accurate summary of the ongoing effort.

Walter Russel Mead also has a take on it with which I agree:

Climate negotiators at the most recent conference on global warming were unable to reduce expectations fast enough to match the collapse of their agenda. The only real winners here were the bureaucrats in the diplomacy industry for whom endless rounds of carbon spewing conferences with no agreement year after year mean jobs, jobs, jobs. The inexorable decline of the climate movement from its Pickett’s Charge at the Copenhagen summit continues. The global green lobby is more flummoxed than ever. These people and these methods couldn’t make a ham sandwich, much less save Planet Earth.

And, while I agree that is so, the UN, these conferences, 3rd world nations and the so-called “green agenda” continue  attempts to exert control over advanced countries and extort a chunk of their GDP as “compensation” for what no one is sure.  There desires in this regard have never been more obvious than in their questionable opposition to the boom in natural gas (something, one could argue, that would be helpful to developing 3rd world countries while satisfying the “green agenda”).

It’s green, it’s cheap and it’s plentiful! So why are opponents of shale gas making such a fuss? If it were not so serious there would be something ludicrous about the reaction of the green lobby to the discovery of big shale gas reserves in this country. Here we are in the fifth year of a downturn. We have pensioners battling fuel poverty. We have energy firms jacking up their prices. We have real worries about security of energy supply – a new building like the Shard needs four times as much juice as the entire town of Colchester. In their mad denunciations of fracking, the Greens and the eco-warriors betray the mindset of people who cannot bear a piece of unadulterated good news.

Obviously, it would be even harder to sell their extortion attempts if advanced countries are able to develop a source of energy that is indeed “green, cheap and plentiful”.  And, apparently, even they realize they’re not going to get too far attempting to demonize natural gas per se.  So they’ve instead focused on the process used to extract it (hydraulic fracturing – “fracking”) and are in the usual mode of demonizing it instead.  That, despite the fact that the process has been used in the US, at least, since 1948 on over 1,000,000 wells without negative results to ground water (the supposed threat that fracking poses).  But as we’ve all learned, facts are not the currency  this group uses.

The point?  This circus will continue for the foreseeable future because the majority of the UN sees an extortion opportunity that is just too good to pass up. Their initial success in scaring the world with “shoddy science” continues to motivate their efforts.  They haven’t quite accepted that it is failing.

Of course, real science has never really been a part of this process.  All they needed was a veneer to successfully launch the project. Al Gore and “consensus” provided that.  The assembled then declared the “science” to be “settled” (Science never attains consensus and is never “settled”).  After that, the participants in this extortion attempt have simply stated that further review is essentially unneeded.  The argument is over, just STFU and accept it. Meanwhile that “science” continues to come apart at the seams as real data is collected and demonstrates the underlying climate “science’s” shortcomings and outright falsehoods.

Natural gas provides a new alarming problem for these folks.  When it was thought to be a fairly scarce resource, enviros embraced it (the Sierra Club touted it for years before turning against it when it became plentiful and cheap).  Now that it threatens to undermine their entire culture of extortion and control, they’re rabidly against it – or at least what it requires to extract it.

One can only hope that the failure in Doha signals the end game of this farce, but that’s doubtful.  No dissenting word is allowed.  As Lord Monckton learned when he tried to bring up the fact that there has been no warming for the past 16 years and was summarily ejected for doing so.  This is no longer about science.  This is no longer about an imminent threat.  It’s about extortion, plain and simple.  And anyone with the least bit of honesty will recognize that and should join in the call to end this farce for good.

~McQ

Keystone XL: So now what will the excuse be to delay it?

You likely recall the controversy concerning the President’s denial of approval for the Keystone XL pipeline a few months back.  Citing the route through the state of Nebraska as a problem, Obama decided to defer a final decision until after the election.

Up for grabs – a lot of oil and 20,000 jobs.  Most saw approval as a no-brainer and the route through NE as easily “fixable”.   But Obama was having none of it, choosing to please his base vs. opting for jobs for Americans.  Since the disapproval, Canada, where the pipeline originates, has announced plans to sell that oil to China.

So, where are we now?

Well, there’s a new route through NE and local leaders have voiced strong support for the pipeline:

TransCanada has proposed a new route for the pipeline that avoids the Nebraska Sandhills, and the Nebraska Department of Environmental Quality is seeking comment before it drafts its report on the new route. Port-To-Plains Alliance, which is made up of more than 100 local elected officials and community leaders, has today offered its “strong support” for the Keystone XL Pipeline.

Their reasoning seems pretty strong — if you’re interested in putting Americans back to work and helping the economy:

Keystone XL will provide significant economic benefits for our region. The pipeline is expected to create approximately 20,000 manufacturing and construction jobs in the United States. It could also generate more than $5.2 billion in tax revenue to the Keystone XL corridor states. At a time when state and local governments across the country are struggling to balance their budgets, these employment and revenue benefits are critical to our region. Specific benefits for Nebraska include:

  • More than $465 million in new spending for the Nebraska economy
  • More than 7,500 person years of employment
  • Increased personal income by $314 million
  • Additional state and local tax revenues of more than $11 million
  • $390 million in increased Gross State Product

And that’s just Nebraska.  Other states stand to gain significant revenue as well.

Then there’s the issue of the Bakken Formation oil in Montana and  North Dakota.  It too needs the pipeline to be finished so it can efficiently ship oil from there to the coastal refineries.

Again, the major problem has apparently been solved.  It’s a move that would lessen our dependence on Venezuelan and Middle East oil (instead opting for supplies from a loyal and stable ally), would make the shipment of Bakken oil less costly, benefit state and Federal revenue (at a time when both entities are hurting for it) and, most importantly, create multi-thousands of jobs.

So, what excuse do you believe Obama will use to further delay or disapprove it this time?

~McQ

But remember, government knows best …

And if you need an example of why you should always rely on government to get it right, well, just consider the latest concerning the mandated use of food ethanol for fuel:

The AAA says the Environmental Protection Agency and gasoline retailers should halt the sale of E15, a new ethanol blend that could damage millions of vehicles and void car warranties.

AAA, which issued its warning today, says just 12 million of more than 240 million cars, trucks and SUVs now in use have manufacturers’ approval for E15. Flex-fuel vehicles, 2012 and newer General Motors vehicles, 2013 Fords and 2001 and later model Porsches are the exceptions, according to AAA, the nation’s largest motorist group, with 53.5 million members.

“It is clear that millions of Americans are unfamiliar with E15, which means there is a strong possibility that many may improperly fill up using this gasoline and damage their vehicle,” AAA President and CEO Robert Darbelnet tells USA TODAY. “Bringing E15 to the market without adequate safeguards does not responsibly meet the needs of consumers.”

Ya think?

Hey look buddy,  the ideological agenda waits on no one and if you’re among those driving the 228 million “other” vehicles, tough nuts.

The government has said 15%.  Nuff said.

BMW, Chrysler, Nissan, Toyota and VW said their warranties will not cover fuel-related claims caused by E15. Ford, Honda, Kia, Mercedes-Benz and Volvo said E15 use will void warranties, says Darbelnet, citing potential corrosive damage to fuel lines, gaskets and other engine components.

Gee, I wonder if anyone will question the “fairness” of this.

Anyone doubt who will pick up the tab for this, Mr. and Mrs. Consumer?

~McQ

World’s largest oil producer? If we can get government out of the way …

That is the key. And, given the re-election of Barack Obama, it may not be very likely:

A shale oil boom means the U.S. will overtake Saudi Arabia as the world’s largest oil producer by 2020, a radical shift that could profoundly transform not just the world’s energy supplies, but also its geopolitics, the International Energy Agency said Monday.

In its closely watched annual World Energy Outlook, the IEA, which advises industrialized nations on their energy policies, said the global energy map “is being redrawn by the resurgence in oil and gas production in the United States.”

The assessment is in contrast with last year, when it envisioned Russia and Saudi Arabia vying for the top position.

“By around 2020, the United States is projected to become the largest global oil producer” and overtake Saudi Arabia for a time, the agency said. “The result is a continued fall in U.S. oil imports (currently at 20% of its needs) to the extent that North America becomes a net oil exporter around 2030.”

This major shift will be driven by the faster-than-expected development of hydrocarbon resources locked in shale and other tight rock that have just started to be unlocked by a new combination of technologies called hydraulic fracturing.

And there’s the rub. Fracking has been demonized by the enviros and the Democrats. Nevermind the fact that in this nation alone it has been in use for 64 years and over a million wells have been drilled using it. This is not new technology despite the apparent belief by some that it is and that it is dangerous.

Environmental groups and some scientists say there hasn’t been enough research on fracking.

Right.  1948.  A million wells.  No history there.

EPA is publishing new regulations on fracking which they claim will not impede production.  Any bets out there concerning the truth of that assertion?

We talk about “energy independence” often and others rightfully point out that oil is a global market and that it is difficult to become truly independent.  Given these new finds, I’m not so sure that argument is still valid.  Or at least it isn’t as valid as it was when we believed we only sat on top of 2% of the world’s reserves.

Let’s be clear here , the possibility of increased fossil fuel production, to the point of defacto energy independence flies in the face of everything the left wants to do in the energy sector.  Anyone who doesn’t understand that has not been paying attention.  We’ve seen it with this administration’s ban on off-shore drilling, putting areas of federal land off-limits and slow-walking the permit process.  There is no reason to believe that will change.  None.

We have the possibility to strategically help the country, create thousands if not millions of jobs, create revenue for government and begin to help a struggling economy get off it’s knees and at least begin staggering forward in a positive direction.  If the past four years is any indication, that’s an opportunity that will likely be passed up or at best, minimized.

Oh, this administration will talk a good game, it always does.  And it will claim it is interested in “all of the above” when it comes to energy.  But action speaks louder than empty words and the action we’ve seen from Obama, et. al., says exactly the opposite is true.

We’re sitting on potential energy resources that could be a veritable game changer.  One problem.  With a government in place that loves to pick winners and losers, it looks upon fossil fuel as a loser.

The results, unfortunately, are predictable.

~McQ

Obama Administration shuts down half of Alaskan National PETROLEUM Reserve

Note the capitalized word in the title?

The WSJ fills in any blanks:

President Obama is campaigning as a champion of the oil and gas boom he’s had nothing to do with, and even as his regulators try to stifle it. The latest example is the Interior Department’s little-noticed August decision to close off from drilling nearly half of the 23.5 million acre National Petroleum Reserve in Alaska.

The area is called the National Petroleum Reserve because in 1976 Congress designated it as a strategic oil and natural gas stockpile to meet the “energy needs of the nation.” Alaska favors exploration in nearly the entire reserve. The feds had been reviewing four potential development plans, and the state of Alaska had strongly objected to the most restrictive of the four. Sure enough, that was the plan Interior chose.

Why?  Because Ken Salazar in his infinite wisdom, knows more about all of this that you proles, especially the proles in Alaska. The excuse?

Interior Secretary Ken Salazar says his plan “will help the industry bring energy safely to market from this remote location, while also protecting wildlife and subsistence rights of Alaska Natives.” He added that the proposal will expand “safe and responsible oil and gas development, and builds on our efforts to help companies develop the infrastructure that’s needed to bring supplies online.”

Got that?  Restricting use of a area designated by Congress for a specific purpose, a purpose backed by the state in which the area is located, will “help industry” and expand “safe and responsible oil development”.

Really?

George Orwell, call your publisher.  Time to update Newspeak.  Up is now down, and restrictions now “help industry” and “expand” development.

Meanwhile in coal country:

Two coal companies in Pennsylvania blamed President Obama and his Environmental Protection Agency (EPA) for the layoffs announced last week.

“[T]he escalating costs and uncertainty generated by recently advanced EPA regulations and interpretations have created a challenging business climate for the entire coal industry,” said PBS Coals Inc. President and CEO D. Lynn Shanks in a statement on Friday, as noted by the Pittsburgh Post-Gazette. The company also cited weaker-than-normal demand for coal.

Shanks’ comment on the EPA came as he announced a 28 percent work force reduction. “PBS Coals Inc. and its affiliate company, RoxCoal Inc., laid off about 225 workers as part of an immediate idling of some deep and surface mines in Somerset County,” Post-Gazette added. “The company now employs 795 workers.”

Yes, the Obama promise to essentially put coal out of business is indeed making progress.

So wait, we have the administration restricting the oil industry in Alaska and the EPA causing layoffs in coal country, and my guess is Obama will attempt to brag about how many jobs he’s created tomorrow night.  Any takers?

That said, guess who is getting “fast tracked”?

The Interior Department set aside about 285,000 acres for commercial-scale solar in Arizona, California, Colorado, Nevada, New Mexico and Utah. The federal government will offer incentives for development, help facilitate access to existing or planned electric infrastructure and ease the permitting process in the 17 zones.

“Energy from sources like wind and solar have doubled since the president took office, and with today’s milestone, we are laying a sustainable foundation to keep expanding our nation’s domestic energy resources,” Interior Secretary Ken Salazar said. …

The development program approved Friday cuts some up-front costs for developers, as the federal government already has performed National Environmental Policy Act assessments for the sites.

I’ve been writing about the plan to carpet the desert with solar panels for a while.  But there’s a bit of irony here as Erica Johnsen of Hot Air points out.  First the news:

The administration fired the most recent volley Wednesday by affirming tariffs on Chinese imports. The Commerce Department determined Chinese solar panels were sold below fair value and that its solar businesses unfairly received direct government support.

Now for the irony:

Yes, you read that correctly — even with all of the many types of subsidies and special government treatment the solar industry receives, they still can’t compete, so the government affords the domestic industry protectionist tariffs… purportedly because China gives its own industry unfair government help.

Amazing.

Anyone who still thinks this isn’t the most political, inept, corrupt, ideologically driven and opaque administration in the history of this country has to have been living under a rock for a few hundred years.

This bunch makes one pine for Jimmy Carter.

~McQ

Ethanol: MIT study reminds us “correlation is not causation”

We’ve heard the claims about how corn ethanol has lowered the price of gasoline and made us more energy independent. Don’t believe them.

Economics professors at the Massachusetts Institute of Technology report ethanol mandates do not lower the price of gasoline, despite claims by the ethanol industry.

A recently published MIT study debunks the oft-repeated claim that ethanol usage reduces the price of gasoline at the pump.

The MIT study, “Ethanol Production and Gasoline Prices: A Spurious Correlation,” analyzes and refutes claims by the ethanol industry that ethanol reduced gasoline prices by nearly a dollar per gallon in 2010 and more than a dollar per gallon in 2011.

You see, as we’ve mentioned here, ethanol doesn’t provide the power that pure gasoline does, so it takes more of the ethanol mixed gasoline to provide the same distances that pure gasoline gives us.

The MIT study points out the largest variable for the price of gasoline is the cost of crude oil. Wholesale gasoline prices go up when the price of a barrel of oil goes up. Ethanol, by contrast, has a minimal impact on the cost of crude oil, the study notes.

The study further explains that ethanol has 33.3 percent less energy than gasoline, so engines need more of it to power a vehicle for the same distance.

As to the claims of lower prices because of ethanol?

“The fact is ethanol, because it only contains about 60 percent of the energy provided by gasoline, does not have the same value, making direct price comparisons meaningless.

And, given that the largest variable for the price of gasolineis the cost of crude oil, what about the 2010 and 2011 claims:

“Put simply, the empirical results merely reflect the fact that ethanol production increased during the sample period whereas the ratio of gasoline [prices] to crude oil prices decreased,” the study explained.

“The claim that ethanol reduces gasoline prices is just silly and is based on the fallacy that correlation equals causation,” said Tom Tanton, president of energy economics consultants T2 & Associates.

Instead:

He added, “As I testified to Congress in early July, corn-based ethanol may provide some energy security from some geopolitical risks associated with the petroleum market, but it creates a serious weather-related risk. With 25 percent of our corn crop used to make ethanol, and most corn grown only with natural rainfall, our fuel supply has only traded one type of risk for another.

“We’d be more secure if we produced our own vast reserves of petroleum and brought in Canadian, and enjoy lower prices to boot,” Tanton said.

Indeed.

~McQ

Twitter: McQandO

Facebook: QandO

Obama means 4 more years of disaster

A reminder:

Obama 2012: “I never said it would be quick or easy”

Obama 2009: “If this isn’t done it three years, we’re talking about a one term proposition”

Last night we heard, well, we heard a speech that was not so hot. Oh he said lots of stuff, but we’ve all learned over the past 3 plus years not to really trust what he says, but instead to watch what he does. He knows how to own the rhetoric, he just rarely if ever lives up to it.

He’s the “I want to have it both ways” president.

For instance – last night he said this:

We don’t think the government can solve all of our problems, but we don’t think the government is the source of all of our problems …

And this:

And the truth is, it will take more than a few years for us to solve challenges that have built up over decades. It’ll require common effort, shared responsibility, and the kind of bold, persistent experimentation that Franklin Roosevelt pursued during the only crisis worse than this one.

On the one hand he tells us government isn’t the answer and on the other, he claims it more government is the answer. Which should we believe?

Well in this case, the latter, given his actions (see ObamaCare which he never once mentioned last night, just like the number “8.2%.). He spent two years going the FDR route with a Democratic Congress and had he not seen his party go down in flames in 2010 and a check put on him in the House of Representatives, you can be assured he and the Democrats would have attempted to grow government even more.

This is a guy on whose watch we almost doubled the debt. Yet not a mention of that last night. Instead he tried to tell us how much he was going to take off the debt . 4 trillion he claims.

Independent experts say that my plan would cut our deficit by $4 trillion.

But another thing you learn listening to this president is to take his claims with a grain of salt. 4 trillion? Only if you believe in “creative” accounting. Jennifer Rubin, quoting the Washington Post’s Glenn Kessler’s fact check of that claim points out why it is a load of rubbish:

By the administration’s math, you have nearly $3.8 trillion in spending cuts, compared to $1.5 trillion in tax increases (letting the Bush tax cuts expire for high-income Americans). Presto, $1 of tax increases for every $2.50 of spending cuts.

But virtually no serious budget analyst agreed with this accounting. The $4 trillion figure, for instance, includes counting some $1 trillion in cuts reached a year ago in budget negotiations with Congress. So no matter who is the president, the savings are already in the bank.

Moreover, the administration is also counting $848 billion in phantom savings from winding down the wars in Iraq and Afghanistan, even though the administration had long made clear those wars would end.

In other words, by projecting war spending far in the future, the administration is able to claim credit for saving money it never intended to spend. (Imagine taking credit for saving money on buying a new car every year, even though you intended to keep your car for 10 years.)

Rather than good arithmetic, independent budget analysts called the maneuver “a major budget gimmick.”

The administration also counts $800 billion in savings in debt payments (from lower deficits) as a “spending cut,” which is a dubious claim. We didn’t realize that debt payments were now considered a government program.

There are a number of other games being played, so fake money is being used to pay for real spending projects. In effect, most of Obama’s claimed deficit reduction comes from his proposed tax increases.

And, as we’ve all learned, those tax increases are but a drop in the sea of red ink this president has unleashed. His appeal to authority notwithstanding, his claim is as empty as his rhetoric.

As most have figured out, the problem isn’t about who is or isn’t “paying their fair share”, it’s about out-of-control spending. In the entire speech last night, that was not a subject that was addressed. Instead, as you saw above, we were given a real preview into what he has in store for us when he can be “more flexible”. FDR type experimentation.

What does FDR type experimentation require? More government and more spending.

Finally, if you missed this, you need to be reminded:

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

That says two things. One, he plans to do the same sort of slow walking for fossil fuel he’s done this past four years while doubling down on his disastrous green policy. And part of the doubling down is undoubtedly to somehow impose a carbon tax that will help feed a ravenous spending machine.

The president who said he would return science to preeminence in decision making during his administration, is now planning on using the pseudo-science of AGW as an excuse to raise taxes on everyone. If that’s not clear, you’ve just not been paying attention.

So he’s right, there’s never been a more clear choice. Continued disaster, keeping a country on the wrong track on that track or an attempt to change that.

Will Romney be better?

He’s actually a turn-around specialist with experience and success in the field. How could he be worse?

I say we make Obama stick with the 2009 statement – for the good of the country.

~McQ

Twitter: McQandO

Facebook: QandO

Romney offers states control and the ability to create jobs, the NY Times offers spin

But remember, they’re not biased.

What’s a good way to for the Federal government to begin the long road toward economic recovery?  Do something that creates incentives for businesses to hire and expand.

Here’s one, but look how it is spun by the NY Times:

By proposing to end a century of federal control over oil and gas drilling and coal mining on government lands, Mitt Romney is making a bid for anti-Washington voters in key Western states while dangling the promise of a big reward to major campaign supporters from the energy industry.

He’s “making a bid for anti-Washington voters in key western states”  while pandering to “Big Oil”.  That’s it?  That’s what this is all about?

State control isn’t really bidding for the anti-Washington vote as much as a return to “federal” government vs.a national or “unitary” government.  Here’s the point:

The federal government owns vast portions of states like New Mexico, Nevada, Utah, Colorado and Alaska. Under President Obama, officials in Washington have played a bigger role in drilling and mining decisions on federal lands in the states, and such involvement rankles many residents and energy executives, who prefer the usually lighter touch of local officials.

It owns more than “vast portions”, the federal government owns most of the West.  And when an administration like the Obama administration takes the angle on energy it has taken, it is free to block and slow walk oil and gas exploration while carpeting vast stretches of the West with marginally efficient solar and wind farms.

Most believe those sorts of decisions should not be left up to the neer-do-wells in Washington.  Those sorts of decisions should be left to the states and those who have to live with the DC decisions.  But they’re not.  And consequently you see the difference as reflected in the progress in North Dakota (where the decisions are made by the state and local government in conjunction with private property owners) and Nevada (which is 80% owned by the Federal government and where most decisions are  made in Washington).  North Dakota is booming.  Nevada is not.

Federico Peña, secretary of energy in the Clinton administration and now a co-chairman of Mr. Obama’s re-election campaign, said Mr. Romney’s plan would cause more problems for the oil and gas industry. “I cannot imagine a world in where there are 50 different kinds of rules and regulations for industry,” Mr. Peña said. “To see Balkanization of rules and regulation I think would drive the industry crazy.”

Really?  Seems the industry is handling it just fine in those states in which it is already happening.  And, my guess is they’re willing to endure it in those states where the Federal government now restricts exploration and drilling.

“It is a preposterously bad idea — we are talking about federal trust lands that belong to the whole nation,” said Bobby McEnaney, a senior aide at the Natural Resources Defense Council, an environmental group.

Because it would be impossible to sort out those lands which should actually be in a “federal trust” and “belong to the whole nation” vs. those included just “because”, huh Mr. McEnaney?

Here there is an opportunity to a) actually return to a bit of federalism and get the federal government out of making decisions states could make and b) create incentives that would lead to expansion of an industry, jobs, revenue for the federal government and produce more domestic oil and gas (which would effect the global price of those fuels).

Win-win, yet those possible outcomes are never mentioned by the NY Times.

Instead we get the “anti- Washington” (how dare the proles question their elite masters!) and “Big Oil” spin.

Some things never change.

~McQ

Twitter: @McQandO

Facebook: QandO