Free Markets, Free People

coal

How to increase China’s influence and enable China’s global energy policy in two words

And those two words are “Barack Obama”.

I don’t know about you but I’ve gotten real tired of seeing the US play the dope on the world stage these last 6 years.  I’ve touched on this before, but it doesn’t get much coverage and is indicative of how much foreign policy damage this administration is doing.  I touched on this earlier, but I’m fascinated by how totally tone-deaf and inept this administration appears to be.

The story, as the administration wants it to unfold:

The US government has stepped up pressure on the World Bank not to fund coal-fired power plants in developing countries. In a letter sent to the World Bank United States Executive Director Whitney Debevoise said, “The Obama Administration believes that the Multilateral Development Banks (MDBs) have a potentially critical role to play in the future international framework for climate finance, and, in particular, to assist developing countries in mitigating greenhouse gas emissions and strengthening their economies’ resilience to climate risks.” Following Debevoise’s controversial guidelines, the axe has already fallen on Pakistan’s Thar Coal and Energy Project on the grounds that “the limited financing available from the Bank should be directed toward investments that address energy supply shortfalls in an environmentally sustainable manner’’.

So there Pakistan?  No coal fired plants for you! We have spoken!

Oh, wait:

Chinese President Xi Jinping is set to unveil a $46 billion infrastructure spending plan in Pakistan that is a centerpiece of Beijing’s ambitions to open new trade and transport routes across Asia and challenge the U.S. as the dominant regional power. The largest part of the project would provide electricity to energy-starved Pakistan, based mostly on building new coal-fired power plants.

It’s just blatant now … total disrespect for the US.  Even our ally in the region, Australia, has had enough.  Japan is tired of the posturing and pushing of ideology in support of something science doesn’t support much less prove.  More importantly, they’re not going to play ball anymore and aren’t making any bones about it.

Who do you suppose Pakistan is looking too for leadership in the energy sector now? Who do you suppose they might see as a champion of their economic growth?

The Geological survey of Pakistan reveals that 175 billion ton of coal is buried under the Thar Desert. These coal reserves alone are equivalent to total combined oil reserves (375 Billion Barrels) of Saudi Arabia and Iran. The coal deposits in Thar can change the fate of the country if utilised in a proper way. The coal reserves at Thar Desert are estimated around 850 trillion cubic feet (TCF) of gas, and are worth USD 25 trillion.  According to experts, if this single resource is used properly, we not only can cater to the electricity requirements of the country for next 300 years but also save almost four billion dollars in staggering oil import bills.

And if Pakistan feels that way, what about India?

India is hoping a new China-backed multilateral lender will fund coal-based energy projects, an official said, putting it in direct conflict with the World Bank, whose chief has maintained that it would stick to its restrictions on such lending. A senior Indian official told Reuters the Asian Infrastructure Investment Bank (AIIB), sponsored by China, is expected to allow funding of coal-fired power plants that the World Bank has almost totally blocked. “When you have 1.3 billion people starved of electricity access and the rest of the world has created a carbon space, at this point denying funding is denying access to cheap energy,” said the official, who spoke on condition of anonymity.

So now “rich America” is trying to force developing countries to forgo cheap energy in the name of  … ideology.  Hey, wasn’t Obama the guy always apologizing for the way he felt America bullied other countries?

Well, at least he only bullies allies.

~McQ

How disastrous is our foreign policy?

There are so many places to point to that illustrate the answer to the question (Libya, Iran, Egypt, Iraq, Syria, China, Russia … ad infinitum, ad nauseum), but there’s one that’s been going on sort of behind the scenes that illustrates it perfectly.

As we all know, our President has an ideological agenda item labeled “global warming” “climate change” that he is hell bent on forcing on not only us, but the world to his agenda.

Here’s the interesting part – much of the world is sympathetic with his agenda.  Just look at the UN and those who adhere to the UN line about climate change.  A smart guy – at least the guy who supporters claim is always the “smartest guy in the room” – would use that fact to try to fashion some sort of coalition and agreement that would advance his agenda.

Not our prez.  He’s an “all-or-nothing” sort of guy when it comes to things like this – science be damned.  And he likes to bully and shame people and countries into doing his bidding.

Except that never seems to work.  What am I talking about?

The Infrastructure Investment Bank – A China led initiative that not only extends China’s influence but will extend loans to developing countries to help develop their energy infrastructure – to include coal.

Well, Obama’s well known for his war on coal and his inflexibility about including it in future.  But if you’re actually trying to be a  diplomat – you know, foreign policy – you might end up understanding that you are at the extreme with the “no coal” position and see if you can’t influence the agenda via compromise.  Oh, and if you’re against China’s initiative, you gather allies to work against their goal and toward yours.  That’s if you have any savvy at all concerning diplomacy and foreign policy.

So, you have to ask, how did this happen?

Australia’s decision to join the Asian Infrastructure Investment Bank follows a reversal of policy, revealed in The Australian this month, based on strategic ­arguments about China. The change followed a reassessment within government and intense talks within the G7 group of ­finance ministers and central bank governors.

Australia had been one of our allies, along with Japan, in resisting this effort by China.  What happened?

While Australia, Japan, South Korea and Britain have been cautious and aware of the US criticism, all are moving towards joining. Japanese industrialists keen to sell “ultra-super-critical coal-fired” electricity generators to India for more efficient use of brown coal are pushing for Tokyo to sign up.

Mr Obama’s administration has been tightening internat­ional funding for coal-fired ­generation but the Asia Infrastructure Investment Bank is likely to be more sympathetic to the pleas of developing nations.

The expansion of coal-fired power generation is a boon to Australia’s coal exporters and represents a boost to the flagging Japanese economy.

So, knowing that, what did the bully-in-chief do? Well, if you know anything about him, you’re unlikely to be surprised.  Just think – “ally” and it will come to you:

Australia has joined forces with Japan in international ­forums to resist the US campaign of limiting lending to developing nations seeking more efficient coal-fired generation. The technology offers the promise of cheaper power. The moves follow Mr Obama’s climate change speech at the G20 summit in Brisbane last November. The US President’s remarks, which embarrassed Mr Abbott and angered his ministers, were seen as an ­attempt to push the administration’s climate change policies in Mr Obama’s final year in office.

Yup, condescension and embarrassment have a tendency to move things in a direction you don’t want – especially when you do it in the country of your ally.

Result?  Another in a long, very long line of foreign policy failures.  Australia joins with China in rebuffing Obama’s agenda.

On the whole, I’m quite pleased with that.  However, it does indeed demonstrate how badly this circus is being run by the clown-in-chief.  I’m sure, even now, that James Taylor is tuning up for a trip down under.

~McQ

EPA on crash drive to end coal use as we know it – and the jobs that go with it

Apparently they fear an Obama loss:

President Obama’s Environmental Protection Agency has devoted an unprecedented number of bureaucrats to finalizing new anti-coal regulations that are set to be released at the end of November, according to a source inside the EPA.

More than 50 EPA staff are now crashing to finish greenhouse gas emission standards that would essentially ban all construction of new coal-fired power plants. Never before have so many EPA resources been devoted to a single regulation. The independent and non-partisan Manhattan Institute estimates that the EPA’s greenhouse gas coal regulation will cost the U.S. economy $700 billion.

More of that laser like focus on creating or saving jobs, huh?

One more in a veritable litany of reasons to get rid of this guy tomorrow.

~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

The most underreported energy related story?

Did most of you know about this?

The U.S. Energy Information Administration’s (EIA) June energy report says that energy-related carbon dioxide fell to 5,473 million metric tons (MMT) in 2011.

That’s down from a high of 6,020 MMT in 2007, and only a little above 1995’s level of 5,314 MMT.

Better yet, emissions in the first quarter of 2012 fell at an even faster rate — down 7.5% from the first quarter of 2011 and 8.5% from the same time in 2010. If the rest of 2012 follows its first-quarter trend, we may see total energy-related carbon dioxide emissions drop to early-1990s levels.

Wow.  Victory for the enviro crowd, yes?  Regulation has succeeded, right?  The government has turned the tide?

Nope.  In fact it has nothing to do with the enviro crowd, government or regulation.

Two dirty words: Hydraulic fracking.  Two more for good measure: Natural gas.  And the dirtiest word of all: Markets.

Those three have combined, via a price point that has stimulated demand and made the conversion of coal plants economical to drive down emissions as they produce electricity more cheaply and efficiently.  This trend began in 2007 and is now having a real effect:

Increasingly, power plants are turning to natural gas because it has become abundant, and therefore cheap. And though technology is improving our ability to reduce emissions from coal usage, natural gas is still a much cleaner source.

Natural gas, given the extensive finds and the exploitation, is much cheaper than coal now.  In fact:

Indeed, natural gas has just passed an important milestone. As noted by John Hanger, energy expert and former secretary of the Pennsylvania Department of Environmental Protection: "As of April, gas tied coal at 32% of the electric power generation market, nearly ending coal’s 100-year reign on top of electricity markets."

That’s how it works in markets, or is supposed too.  The fact that emissions are down is an actual side benefit of the process.  And it is a process that has managed to work despite government and environmental groups like the Sierra Club’s interference or attempted interference in the process (the Sierra Club has declared war on natural gas and fracking after accepting millions in previous years from the natural gas industry). 

It is a part of the creative destruction of the capitalist process.  Coal will still have its uses, but just as it was replaced as a primary fuel for heating homes last century, it is now being replaced as a primary fuel for generating electricity for the same reason – there is a cheaper and more efficient fuel (which also happens to have fewer emissions) that is easier to produce and deliver than coal. 

At some point coal producers will either have to reinvent themselves or find something else to do.  And on the other side, opportunities will expand within the natural gas industry as more and more demand builds.

But shhhhh.  Don’t want anyone knowing this all happened because of markets.  Why that would hurt the argument that it requires government intrusion, regulation and the pressure of environmental groups to make things like this happen.

Can’t have that.

Forward.

~McQ

Twitter: @McQandO

D’oh: Union boss suddenly realizes Obama’s war on coal means losing union jobs

Yes, he’s apparently finally realized that as goes coal, so goes his union (via Labor Union Report).  Interesting comparison to Osama Bin Laden.  My guess is the administration see’s coal in the same sort of light as they viewed bin Laden – an enemy.  And thus, the results of their campaign against it – the loss of jobs, even if they’re union – are acceptable “collateral damage”.

The coal industry will suffer the same fate as Osama bin Laden under new climate regulations proposed by the Environmental Protection Agency, the head of the United Mine Workers of America said this week.

The Navy SEALs shot Osama Bin Laden in Pakistan and Lisa Jackson shot us in Washington,” Cecil Roberts, president of the powerful union, said during an interview Tuesday on the West Virginia radio show MetroNews Talkline.

Roberts blasted Jackson, the EPA administrator, over the proposed regulations, which would limit greenhouse gas emissions from new power plants. Opponents of the regulations, including Roberts, say the new rules would be the death knell of the coal industry.

But, will Mr. Roberts actually do anything to actively protect the jobs of his union members?

Uh,no:

While the United Mine Workers of America likely won’t actively oppose President Obama’s reelection bid, Roberts said the new EPA regulation could prevent the union from endorsing the president.

“That’s something that we have not done yet and may not do because of this very reason. Our people’s jobs are on the line,” Roberts said, adding that Obama has “done a lot of great things for the country.”

So United Mine Workers, why are you paying the dues to pay this man’s salary?

He certainly has made his choice hasn’t he?  Unquestioning party loyalty over your jobs.  He doesn’t care about them and obviously neither does the president.

I’m sure you’re surprised.

~McQ

Twitter: @McQandO

Why the EPA’s new regulation will increase electricity prices significantly

Because, as you know, the laws of supply and demand can’t be repealed, no matter how much some want that to be true.

Today, the EPA will act to make electricity more expensive.

How?

The Environmental Protection Agency will issue the first limits on greenhouse gas emissions from new power plants as early as Tuesday, according to several people briefed on the proposal. The move could end the construction of conventional coal-fired facilities in the United States.

The proposed rule — years in the making and approved by the White House after months of review — will require any new power plant to emit no more than 1,000 pounds of carbon dioxide per megawatt of electricity produced. The average U.S. natural gas plant, which emits 800 to 850 pounds of CO2 per megawatt, meets that standard; coal plants emit an average of 1,768 pounds of carbon dioxide per megawatt.

If you can’t get Congress to pass a “cap and tax” law, then simply go it alone and direct executive agencies to implement regulation which will cap CO2 by making it too expensive to operate if the plant produces CO2 above the arbitrary limit you set.

“After Congress refused to pass carbon caps, the administration insisted there were other ways to skin the cat, and this is another way — by setting a standard deliberately calculated to drive affordable coal out of the electricity market,” Popovich said.

And that’s precisely what Obama’s done here.

Result?

Well it gives lie to the “all-of-the-above energy plan” that Obama has been pushing in stump speeches around the country:

Industry officials and environmentalists said in interviews that the rule, which comes on the heels of tough new requirements that the Obama administration imposed on mercury emissions and cross-state pollution from utilities within the past year, dooms any proposal to build a coal-fired plant that does not have costly carbon controls.

“This standard effectively bans new coal plants,” said Joseph Stanko, who heads government relations at the law firm Hunton and Williams and represents several utility companies. “So I don’t see how that is an ‘all of the above’ energy policy.”

Nor do I.

And it will have a significant effect:

The proposal does not cover existing plants, although utility companies have announced that they plan to shut down more than 300 boilers, representing more than 42 gigawatts of electricity generation — nearly 13 percent of the nation’s coal-fired electricity — rather than upgrade them with pollution-control technology.

Michael Brune, executive director of the Sierra Club, said the new rule “captures the end of an era” during which coal provided most of the nation’s electricity. It currently generates about 40 percent of U.S. electricity.

So the war on coal continues apace despite claims of an inclusive energy policy.

This is a preview of a 2nd Obama term.  As mentioned yesterday, public opinion will be of no consequence in January 2013 if he’s re-elected.  Hence, there’ll be no need to concern himself with it again.  4 years of unilateral action by agencies such as the EPA can certainly be expected:

The EPA rule, called the New Source Performance Standard, will be subject to public comment for at least a month before being finalized, but its backers said they were confident that the White House will usher it into law before Obama’s term ends.

“The Obama administration is committed to moving forward with this,” said Nathan Willcox, federal global warming program director for the advocacy group Environment America. “They’re committed to doing it this, and we’re committed to helping them do it.”

Fair warning.

~McQ

Twitter: @McQandO

Quotes of the Day–Green Jobs edition

Another “told you so”:

WHEN is a job not a job? Answer: when it is a green job. Jobs in an industry that raises the price of energy effectively destroy jobs elsewhere; jobs in an industry that cuts the cost of energy create extra jobs elsewhere. You will hear claims from Chris Huhne, the anti-energy secretary, and the green-greed brigade that trousers his subsidies for their wind and solar farms, about how many jobs they are creating in renewable energy. But since every one of these jobs is subsidised by higher electricity bills and extra taxes, the creation of those jobs is a cost to the rest of us. The anti-carbon and renewable agenda is not only killing jobs by closing steel mills, aluminium smelters and power stations, but preventing the creation of new jobs at hairdressers, restaurants and electricians by putting up their costs and taking money from their customers’ pockets. –Matt Ridley, City A.M., 15 December 2011

And:

The parallel-energy universe known as renewables, a place where dollars and economic theory know no bounds and make no sense, looks increasingly like a bubble set to collapse. Or, as I wrote here back in March of 2010: “That eerie hissing you hear may well be the air beginning to seep out of the green energy bubble. The sound is similar to the pfffffft and sshhhhsssssp noises we heard in the early days of the dot-com bubble collapse or the subprime mortgage meltdown.” –Terence Corcoran, Financial Post, 15 December 2011

But our rulers know better, don’t you know?  That’s why they do so well picking winners and losers (I assume I don’t need to deploy my sarcasm tag here):

Workers in Germany’s once booming solar energy industry face a shakeout of major proportions following declines in the price of solar panels over the past year. A decision by the German government earlier this year to phase out nuclear energy has done little to reignite the sector. The resulting power gap is likely to be filled by coal and gas rather than solar and wind energy. — Sarah Marsh and Christoph Steitz, Reuters, 15 December 2011

For instance:

Solon’s insolvency filing is likely to be followed by other high-profile German solar company failures, analysts said, as the blood-letting in the global industry intensifies. Shares in Solon plunged 58 percent on Wednesday after the solar module maker announced the filing late the previous day, becoming Germany’s first major casualty of a crisis in the sector.  “Solar managers and experts warned already about further bankruptcies,” a Frankfurt-based trader said. Christoph Steitz, Reuters, 14 December 2011

Like the man asked, “when is a job not a job?”  When it kills other jobs and has to be subsidized by government to continue to exist.

But, you know, that’s old fashioned thinking — just like it was when the dot.com bubble was building.  The laws of economics seem to always enforce themselves on an apparently unsuspecting or willfully ignorant elite don’t they?

~McQ

Twitter: @McQandO

In the midst of terrible economic times, let’s raise energy prices dramatically and lay people off …

“Never let the reality of the situation stand in the way of a political agenda”, ought to be the slogan of the Obama reelection campaign.

In the midst of the worst economic downturn the executive branch of the Federal Government (the Obama administration), under the guise of the EPA is ratcheting up standards that will shut down many coal fired plants and their jobs as well as cost billions for utilities to keep other coal plants open.  Result:

Consumers could see their electricity bills jump an estimated 40 to 60 percent in the next few years.

The reason: Pending environmental regulations will make coal-fired generating plants, which produce about half the nation’s electricity, more expensive to operate. Many are expected to be shuttered.

Of course the timing of the increase is predictable:

The increases are expected to begin to appear in 2014, and policymakers already are scrambling to find cheap and reliable alternative power sources. If they are unsuccessful, consumers can expect further increases as ore expensive forms of generation take on a greater share of the electricity load.

Yup, safely reelected (he hopes), Mr. Obama will smile benignly as he watches more of you hard earned money go for what should be cheap and plentiful energy based on incredibly abundant coal.  Instead we’ll be chasing “reliable alternate power sources”.   One would like to believe we’d go to natural gas, but then those abundant finds are also being slow walked through the red tape of the government approval process.

More than 8,000 megawatts of coal-fired generation capacity has been retired in the U.S. since 2005, according to data from industrial software company Ventyx. Generators have announced they plan to retire another 21,000 megawatts in the near future, and some industry consultant studies estimate 60,000 megawatts of power, enough for 60 million homes, will be taken offline by 2017.

This in the midst of projected energy shortages as demand increases while we shut down power generation assets.

Certainly we may want to, at some time in the future, shut down all coal fired plants.  We may collectively wish to see other energy sources used as well.  But that would require a coherent transition plan, viable alternatives, phasing and a little common sense (or essentially being in touch with the reality that one finds around them).

This is  a agenda driven, safely-after-the-election, regulatory fiat that will cost workers their jobs and consumers a higher portion of their earned income in poor economic times.

Another, among a myriad of reasons why the man in the White House needs to be in his own house come 2014.

~McQ

Twitter: @McQandO

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The US: Massive energy resources and an incoherent energy policy

As Peter Glover says, writing in the Energy Tribune, this ought to be the lead story in every American paper and on every American news show.  But it’s overshadowed by Japan, Libya and other developments in the world.

America’s combined energy resources are, according to a new report from the Congressional Research Service (CSR), the largest on earth. They eclipse Saudi Arabia (3rd), China (4th) and Canada (6th) combined – and that’s without including America’s shale oil deposits and, in the future, the potentially astronomic impact of methane hydrates.

The US and Russia are the two most resource rich countries in the world.  Here’s the chart that shows how huge our advantage is:

 

worldfossilfuel

 

Note it says “Oil Equivalent” on the left side.  That’s because it includes coal.  Yeah, that icky, nasty stuff that we’re trying to ban or make it supremely expensive to use.

The CRS estimates US recoverable coal reserves at around 262 billion tons (not including further massive, difficult to access, Alaskan reserves). Given the US consumes around 1.2 billion tons a year, that’s a couple of centuries of coal use, at least.

In fact, the US has 28% of the world’s coal.

Natural gas?

In 2009 the CRS upped its 2006 estimate of America’s enormous natural gas deposits by 25 percent to around 2,047 trillion cubic feet, a conservative figure given the expanding shale gas revolution. At current rates of use that’s enough for around 100 years. Then there is still the, as yet largely publicly untold, story of methane hydrates to consider, a resource which the CRS reports alludes to as “immense…possibly exceeding the combined energy content of all other known fossil fuels.” According to the Inhofe’s EPW, “For perspective, if just 3 percent of this resource can be commercialized … at current rates of consumption, that level of supply would be enough to provide America’s natural gas for more than 400 years.”

So, the possibility of 400 years worth of NG, a couple hundred years worth of coal – but what about oil?

 

americasoil

 

Well shucks, seems we have the potential to be quite free of foreign oil, doesn’t it?

While the US is often depicted as having only a tiny minority of the world’s oil reserves at around 28 billion barrels (based on the somewhat misleading figure of ‘proven reserves’) according to the CRS in reality it has around 163 billion barrels. As Inhofe’s EPW press release comments, “That’s enough oil to maintain America’s current rates of production and replace imports from the Persian Gulf for more than 50 years”

Of course that all assumes we do something about taking advantage of the resources we have and actually putting ourselves in a position where we’re not at the mercy of foreign sources of the same sorts of product.

Obviously and hopefully, we’ll come up with affordable and available renewable energy products while we’re doing that. 

However, we have no coherent energy plan from this administration.  Instead it seems to have gone to war with the oil industry and is doing everything it can to slow its ability to find and exploit these resources.  19,000 jobs and 1.1 billion in earnings have been lost since the imposition of the administration’s moratorium.  Both former Presidents Bush and Clinton have spoken out against the delays.   And the administration remains in contempt of a court order which ordered them to speed up the permitting process.  As a result the EIA has estimated a loss of 74,000 barrels a day of production due to the moratorium this year.

Meanwhile our President touts foreign oil, our investment in it and claims we’ll be its “best customer”.

As Glover says:

Meanwhile US energy policy persists in pursuing the myth that renewables are the economically viable future, with fossil fuels already, as the president said in January, “yesterday’s energy”. With 85 percent of global energy set to come from fossil fuels till at least 2035 no matter what wishful thinkers may prefer, current US energy policy – much like European – is pure political pantomime.

Couldn’t agree more.  We sit on a veritable treasure trove of natural resources which could actually make us energy independent and we have an administration which is doing everything in its power to not just keep us dependent on foreign oil, but to increase our dependence.

~McQ

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