Energy


Oil, oil everywhere but not a drop to drink Print E-mail
Written by Dr. Rich Swier   
Sunday, 07 September 2008

Democrat Deceptions about Oil By Alan Caruba

Lost amidst the many speeches delivered at the Democrat Convention was one by Sen. Harry Reid of Nevada. He is the Senate Majority Leader and, as such, controls the legislative agenda in that upper house of Congress. Harry Reid hates oil, but then, so does the Democrat Party.

The reason this nation is held hostage to other oil producing nations is that the Democrats, going back to President Jimmy Carter, have waged war on the American oil industry. This is especially important insofar as nations ruled by monarchies, corrupt, and communist governments, control 75% of the world’s oil.


Seldon B. Graham, Jr., the author of “Why Your Gasoline Prices Are High”, a petroleum engineer and attorney, recently noted that “It is no secret that Democrats are for renewable energy and are against U.S. oil and drilling for U.S. oil. But, Democrats conceal the fact that they have held this position for three decades. Democrats are not about to change their thirty year-old energy agenda.”


“Thirty years ago, Democrats selected ethanol as their renewable energy of choice. Their ethanol agenda has proven to be a total disaster. But, it is a well hidden disaster. Democrats continue to push ethanol as the renewable biofuel which will eliminate our dependence on foreign oil and our necessity to drill for US oil. It is surprising that Democrats have been able to fool so many Americans about ethanol for so long.”


Not only has the Democrat Party left us vulnerable to other oil producing nations, but its ethanol agenda has created vast imbalances in the world’s food supplies as corn is diverted from domestic use and as a factor in our agricultural exports.


If you had heard Sen. Reid, a man who has said, “Oil makes us sick. Coal makes us sick. Global warming makes us sick,” you would have heard him attack oil as the reason for all the woes of the world. “President Carter warned us about it in the 1970s when he proposed real solutions—conservation, fuel efficiency, and alternative fuels—to what he correctly named the ‘moral equivalent of war.’” President Carter, whose weak response to the taking of U.S. diplomats hostage by the Iranian Revolution led to the election of Ronald Reagan, was wrong then and he is wrong now.


So-called “clean energy”, wind and solar, provides barely one percent of the nation’s need for electrical power. It does so only because of the massive subsidies, like those for ethanol, the federal government provides, but Harry Reid could not resist characterizing the Bush administration as rife with “oil industry cronies.”


He made no reference, however, to the Democrat’s agriculture cronies. As Graham points out, “Democrats gave ethanol a 40¢ per gallon government subsidy in 1978. In 1980, Democrats gave insured loans to build ethanol plants.”


“Currently, the government subsidy is 51¢ per gallon through 2010. Last year, the government subsidy payout for ethanol was $3.3 Billion. The government subsidy will increase to $18.4 Billion in 2022. Ethanol is causing severe economic harm to the American economy, not even considering the increase in the cost of all food products made from corn.”


This is occurring as Americans struggle to find the money to fill their gas tanks and many worry about the price of oil to heat their homes this winter.


Sen. Reid praised the Democrat candidate for President, Barack Obama, saying, “He articulates a vision of energy independence that is comprehensive and based on sound science and sound policies…” This is a lie. No nation on Earth can be or is energy independent. Even Iran has to import gasoline because it lacks the refining capacity to provide it despite its own vast oil reserves.


America, too, needs more refineries, but the threat of “windfall profits” taxes has kept our oil industry from making the vast, billion-dollar investments necessary to build them and a matrix of environmental regulations has made it even more costly and difficult.


The Democrats and their choice for the next President have resisted permitting our own oil companies to drill for millions of barrels of known oil reserves in Alaska’s ANWR and have resisted lifting restrictions on exploration and extraction of oil on 85% of our nation’s continental shelf.


Instead Sen. Reid called for more wind power, geothermal, and solar power generation. He called for “smarter vehicles, more efficient and accessible mass transit, energy-efficient building codes…” These are the illusions the Democrats offer in contrast to realistic, pragmatic and vitally needed responses to our need for increased oil and natural gas production.


The Democrats offer the lie that such production would not impact the current price of oil or our needs for “ten years.” The mere mention of off-shore production caused the price of oil to drop when offered by Sen. McCain. The end of the ethanol debacle would lower the price of gas at the pump. Drill now. Drill here. That’s the answer.


Alan Caruba writes a weekly column posted on the Internet site of The National Anxiety Center, www.anxietycenter.com. He blogs daily at http://factsnotfantasy.blogspot.com.

 
Drill Here, Drill Now. Print E-mail
Written by Dr. Richard M. Swier   
Friday, 01 August 2008
Our good friend Waldo Proffitt writes an interesting article about the pros of electricity provided by wind turbines in his column, "The Saudi Arabia of wind power".

Why do we compare American resources to Saudi Arabia? Is Saudi Arabia the new gold standard for energy? I prefer to think about America being the gold standard. We have been and we are.

Anyway, we agree with Waldo and T. Boone Pickens that we need to exploit wind power. That makes perfect sense. We need to find the optimal locations in America to place wind turbines and just do it. However, I am against subsidizing any form of energy production. T. Boone Pickens is asking tax payers to help fund his project with massive multi-billion dollar subsidies.

As the Wall Street Journal points out, "Mr. Pickens figures that [his plan] would save the U.S. about $300 billion a year, in addition to cleaning up the environment. But there’s a vicious circle in place: Wind can’t become a bigger part of the electricity mix until there’s a new batch of transmission lines, and nobody is willing to foot the bill for new power lines until there’s a lot of juice to move. Plus, a lot of communities hate the idea of big power lines plowing across their land. Mr. Pickens says he’s ready to pay for his own private transmission lines to get his wind farm spinning...

But to really take off nationwide, wind power needs a national solution, the Senate heard. Western governors are teaming up with counterparts in Mexico and Canada to build their own clean-energy networks across state boundaries. But so far, the patchwork of federal and state regulations and permits is acting as a brake on wind power’s growth. That means Washington has to act, Mr. Pickens said, by tackling prickly questions like eminent domain and right-of-way across big swathes of federal land."

Now for a reality check. Paul Driessen, from TownHall.com, writes, "Hydrocarbon fuels created America, gave us the technologies and living standards we enjoy today, enabled us to eradicate diseases that plagued earlier generations, and boosted our life expectancy from 50 in 1900 to nearly 80 today. They still provide 85% of our energy, and we could greatly reduce our reliance on oil imports if we would simply end the outrageous policies that keep our nation’s abundant energy resources locked up.

We have enough oil, natural gas, oil shale, coal and uranium to provide power for centuries. We have a growing consensus that we need to drill, onshore and off. But partisan intransigence and absurd environmental claims prevent us from utilizing them. Instead, we’re offered bromides like wind.

Wind contributes more every year to our energy mix. However, it still provides only 1% of our electricity – compared to 49% for coal, 22% for natural gas, 19% for nuclear and 7% for hydroelectric.

Wind power is intermittent, unreliable, noisy and expensive (even with subsidies). Many modern turbines are 400 feet tall and carry 130-foot-long, 7-ton blades that slice up raptors and other birds. They operate only 8 hours a day, on average, compared to 85% of the time for coal, gas and nuclear plants. They rarely provide power during peak summer daytime hours, when air-conditioning demand is highest, but wind speed is low to nonexistent.

Using wind to replace all gas-fired power plants would require some 300,000 1.5-MW turbines, covering Midwestern “wind belt” acreage equivalent to South Carolina. The noise, scenic impacts and bird kills caused by such an “eco-friendly” energy source defy imagination.

Building and installing these turbines requires 5 to 10 times more steel and concrete than is needed to build far more reliable coal or nuclear plants to generate the same amount of electricity, says Berkeley engineer Per Peterson. Add in the financing, steel and cement needed to build transmission lines from distant wind farms to urban consumers, and the effects multiply.

That means vastly more quarries, mines, cement plants and steel mills to supply those raw materials. But radical greens oppose such facilities. So under the Pickens proposal, we would likely import more steel and cement, instead of oil."

I am not against wind farms. I am against those that want "only" wind farms. I have said time and time again that the United States in general and Florida in particular must look at all forms of energy production. Florida has potentially billions of barrels of oil and trillions of cubic feet of natural gas just off of our coast lines. These natural resources belong to all Floridians. By tapping into these offshore resources and refining them we would bring billions of dollars into our economy, create high paying jobs, diversify our economy, increase tax revenues, and help America reduce its dependence on foreign oil.

Nothing should be off of the table. Wind, solar, geothermal, nuclear, oil, clean coal, oil shale, and biomass all have potential and must be developed. T. Boone Pickens is correct when he says we cannot drill our way out of this mess. We must drill, mine, build, invent, innovate, and use technology to get us out of this mess.

For those concerned about the environmental impact of drilling offshore Deroy Murdock of the Seattle Post Intelligencer reports, "U.S. offshore oil drilling is not perfectly tidy. It's only 99.999 percent clean. Indeed, since 1980 -- as MMS figures indicate -- 101,997 barrels spilled from among the 11.855 billion barrels of American oil extracted offshore. This is a 0.001 percent pollution rate. While offshore drilling is not 100 percent spotless, this record should satisfy all but the terminally fastidious. Ironically, in terms of oil contamination, Mother Nature is 95 times dirtier than Man. Some 620,500 barrels of oil ooze organically from North America's ocean floors each year. Compare this to the average 6,555 barrels that oil companies have spilled annually since 1998, according to MMS."

The Heritage Foundation states, "Congressman John Boehner of Ohio is set to introduce The American Energy Act, which will most importantly increase America’s energy supplies. The bill calls for leasing regulations for offshore natural gas by 2010, removing restrictions for outer continental shelf drilling, and opening up sections of ANWR for drilling.

As The Heritage Foundation’s Senior Policy Analyst Ben Lieberman has been arguing this even when gas prices were around $1 a gallon. More energy supplies, not more taxes and regulations, are what this country needs. It’s economics 101: expanding supply is the surest way to lower energy prices, and the quicker Congress moves to open up restricted areas, the quicker more resources will be available...

Where Boehner’s bill falters is the support for renewable fuels such as biodiesel and ethanol. Ethanol has been a prime culprit for rising food prices not only in America but also globally. The federal government has been trying since the 1970s to pick winners and losers by subsidizing unsuccessful alternative sources of energy and these sources still only comprise a small fraction of America’s energy profile."

Republicans have offered multiple bills in the Congress to develop all forms of energy. That is the best idea. That is the rational approach. That is what is best for the people. That is what we must do.

Last Updated ( Thursday, 21 August 2008 )
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Last but not Leased Print E-mail
Written by Dr. Rich Swier   
Sunday, 20 July 2008

Nancy Pelosi, the laughable Democratic Congress, and their non-solutions to our gas prices.

“The idea that oil companies are sitting on oil at $145 a barrel is laughable. Democrats simply oppose more fossil fuel use. Their environmentalist patrons worry more about global warming and polar bears than American energy security and family breadwinners driving to work.”

"Last But Not Leased" Editorial, Investor's Business Daily

House Speaker Nancy Pelosi is pushing the "Drill Responsibly in Leased Lands Act" to block offshore drilling. The fact is, these offshore rigs may be the ticket to saving both our coasts and our economy.

The act would deny oil companies any new leases unless they can show that they're diligently exploring and drilling in existing holdings. It's designed to con the public into thinking the Democrats actually support drilling and the oil companies are restricting supply to drive up prices and profits.

Democrats keep talking about "use it or lose it," referring to 68 million acres of existing leases. But these leases are being used and are already of limited duration. A lease is merely a permission slip to look for oil, not a guarantee of finding any.

Between 2000 and 2007, drilling of exploratory wells increased 138% while domestic crude oil production fell 12.4% to its lowest level since 1947.

According to the American Petroleum Institute, 5,219 oil wells were completed in the second quarter, up 17% from a year ago and the highest second-quarter oil activity since 1986. So oil companies are spending their profits looking for increased supply.

The idea that oil companies are sitting on oil at $145 a barrel is laughable. Democrats simply oppose more fossil fuel use. Their environmentalist patrons worry more about global warming and polar bears than American energy security and family breadwinners driving to work.

If 68 million federal acres are already leased, what are 2,000 additional acres in the Arctic National Wildlife Refuge going to hurt? We know oil is there, lots of it. The old estimate of 10 billion barrels in ANWR is based on old technology and old drilling techniques and therefore may be way too low.

In effect, Democrats want oil companies to find a needle in the haystack, but the haystack is off-limits. The 68 million acres they chatter about pales in comparison to the 1.76 billion acres of the Outer Continental Shelf. The OCS is estimated to contain some 86 billion barrels of recoverable oil and 420 trillion feet of natural gas.

Yet 85% of the acreage is off-limits.

Back in December 2006, Pelosi asserted that "our coasts need lasting protection from oil and gas drilling." She won't go after the 1.3 billion barrels of recoverable oil off the California coast, largely because of an oil spill off Santa Barbara in 1969.

But offshore drilling can actually reduce the amount of oil reaching our beaches by relieving the pressure that forces oil to seep from the ocean floor. According to data from the National Academy of Sciences, just 1% of oil found in U.S. waters comes from drilling and extraction, vs. 63% from natural seepage, 32% from cars and boats, and 4% from tankers.

According to the Department of the Interior, since 1985 more than 7 billion barrels of oil have been produced in federal waters, but less than 0.001% was spilled. It's likely that more oil has been leaked by cars, SUVs and motor homes traveling to these pristine beaches, or from the boats and jet skis rented by tourists, than has been or will be leaked getting the oil to fuel them.

By the way, off Louisiana's coast, not far from our Strategic Petroleum Reserve, 3,200 offshore oil platforms survived Hurricane Katrina without leaking a drop of oil. A study by Louisiana's Sea Grant college found 50 times more marine life around oil platforms, which act as artificial reefs, than in the surrounding mud bottoms. About 85% of fishing trips there involve fishing near these offshore rigs.

Drilling in ANWR and offshore would reduce our dependence on foreign oil, boost supply, cut energy costs and create U.S. jobs. We might even be able to afford to take the family down to the beach.
Last Updated ( Saturday, 09 August 2008 )
 
Environmentalists push 30 million into poverty! Print E-mail
Written by Dr. Rich Swier   
Wednesday, 16 July 2008

An environmentalist pipe dream that is an absolute disaster

This article is from the Heritage Foundation titled, "From Biofuels to BioFailure.

It’s hard to find a voice outside the Midwest or Archer Daniels Midland buildings that support the use of biofuels and ethanol as a means for filling gas tanks. Environmentalists and especially world hunger groups are adamantly expressing their concern about the unintended consequences of biofuels policy.

Christopher Booker and Richard North have a terrific piece in the Telegraph discussing the unique story of biofuels and how this policy went from pipe dream to absolute disaster. It chronicles the history of biofuel policy and how its implementation has led to rising food prices. They note that:

According to the World Bank’s top economist, Don Mitchell, biofuels had been responsible for three-quarters of the 140 per cent rise in world food prices between 2002 and 2008.”

Oxfam International says that these policies have pushed 30 million people into poverty. Even the head of Britain’s Renewable Fuels Agency is calling for a change:

So devastating has been this onslaught on biofuels that last Monday, Ed Gallagher, chairman of our new Renewable Fuels Agency, published a report recommending that Britain should drastically review its policy, slowing the introduction of biofuels and concentrating on “second-generation biofuels”, such as crop wastes and wood chips, that do not compete with food production.”

One alternative source of energy that already provides 20 percent of the nation’s electricity is nuclear power. British Prime Minister Gordon Brown wants eight new reactors to come on board by 2015 and says the sky’s the limit in terms of building new nuclear.

It’s time politicians here at home seriously consider changing its biofuel policy and repeal the ethanol mandate along with any tariffs that discourage imports. Furthermore, they should follow U.S. Ander Crenshaw’s lead in advocating nuclear energy; today he wrote a column supporting the four new reactors that could come to Florida pending approval from the Nuclear Regulatory Commission. If anything, it is important that Congress not overlook the benefits of nuclear energy when debating CO2 regulation.

Last Updated ( Wednesday, 16 July 2008 )
 
Rome is burning and Democrats are playing the harp. Print E-mail
Written by Dr. Rich Swier   
Tuesday, 15 July 2008

Gas prices continue to rise, the Democrats in Congress dither, and we get burned at the pump.

The Sarasota Herald-Tribune editorial board does their two favorite things: bash President George W. Bush and defend a failed Democratic Congress that has a 9% approval rating. In their editorial, "Offshore politics" they offer the same failed policies of Jimmy Carter.

Their solution to rising gas prices? "Further increase vehicle fuel-efficiency standards...Push for and pass pending legislation that would extend tax credits for producing and using alternative energy...Lower the speed limits on interstates and federal highways."

That's it? Lower speed limits, increase fuel efficiency standards and tax credits? So more government mandates and government largess using my tax dollars. Don't tell me, we will get the money for the tax credits for using and producing alternative energy from - gas taxes!

As I have said many times we have been doing what exactly Democrats wanted for over 30 years. We have mandated higher fuel efficiency standards, provided subsidies to alternative fuels, made it illegal to drill in ANWR, the Outer Continental Shelf and Gulf of Mexico, added ethanol to our fuel, over regulated the oil, coal and natural gas industries, created over 45 blends of gasoline to meet state and federal emission standards, not built a nuclear power plant in 30 years, not built a new gas refinery in nearly 40 years, and finally conserved our hearts out.

What has all this gotten us? $4.00 a gallon gasoline that is dragging down our economy, making the food we eat more expensive, costing us jobs and causing businesses to fail. We have created more pollution in the Gulf of Mexico from fertilizer run off raising the corn to make ethanol. Taken over 23 million acres of farm land that used to produce food to feed Americans and the poor overseas to make fuel for our SUVs. Kept the cleanest form of power generation, nuclear, off the table. Shifted our energy production from coal, of which we have an abundance, to more expensive oil, natural gas, wind and solar.

Finally, we spend from $650 billion to $1 trillion to buy our oil from overseas. That is the largest transfer of wealth in American history. Some of that money goes to fund those who want to kill us. Just think what that $1 trillion could do here. More jobs, lower gas prices, lower food prices, and a stronger economy.

I sat on a SCOPE committee that looked at having 50% of existing buildings and 100% of new construction have solar water heaters in Sarasota County in five years. This idea should have never made it to the discussion level because it is impossible. But those committed environmentalists and solar power proponents on the committee pushed it until now Sarasota County government is involved. The committee ignored the facts. For example, since 1998 Lakeland County, FL has had an incentive program through their electric utility. The heavily subsidized program in fact installed solar water heaters in only 60 homes. That's it.

Even when highly subsidized with Federal, state and county tax rebates like in Hawaii only 25% of people opted for a solar water heater system. Why? People want cheap and reliable power. Solar and wind do not provide that. Ethanol does not currently provide that. In fact, it takes more than a gallon of oil to produce a gallon of ethanol when you factor in the life cycle of growing corn or other biomass fuels.

As President Bush said we don't have time to wait. The onus is now on Congress to do something. All other road blocks to drilling have been removed by the President. Is this a political issue? Of course. Anything that impacts my pocket book is a political issue. Gas prices is a political issue, just ask your neighbor, unless of course he or she is a member of the Sarasota Herald-Tribune editorial board.

You see Democrats and the Sarasota Herald-Tribune want you to pay more for gasoline. They believe they are saving you from yourself. Personally, I can take care of myself without your help Barack, Harry, Nancy, and Tom.
Last Updated ( Wednesday, 16 July 2008 )
 
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