News

Preach on, Brother Bradley. Forbes (8/20/12) reports: “Ethanol as government energy policy has been an economic and environmental bust. There’s little debate: it inflates motor fuel prices, while compromising the environment. And that was before this summer’s drought reduced corn and wheat supply. President Obama is under pressure from all sides to waive the ethanol requirement for less expensive fuel and food.”

When the government takes away your beer and hands you a shot, the end of the story is pretty predictable. Apply that same logic here. WSJ (8/20/12) reports: “Mandated increases in energy efficiency—popular almost everywhere on the ideological spectrum—have been implemented around the world. Laws like the European Union’s new requirement for 15% energy savings, or the U.S. Senate’s proposed Clean Energy Standard Act of 2012, appear like clear winners for almost everyone. If the costs of new technologies are within reason, they promise consumers lower energy bills and producers more profit while mitigating the environmental costs of energy development and consumption… There is just one problem: Basic economics says that the best way to promote some activity is to reduce its price. That often means efficiency requirements end up having the opposite effect than the one intended.”

 
Hey!  Somebody at AEI must read the Pipeline; for that we are truly grateful.  Now if we could get some kind of public commitment to stop playing footsie with those who favor a carbon tax. AEI (8/18/12) reports: “The hardest hit sectors of the U.S. economy from a carbon tax would be energy-intensive industries, particularly chemicals, automobile manufacturing, iron and steel, aluminum, cement, and mining and oil refining… These large industries would be at a serious disadvantage in the world marketplace, and many companies would move production to countries without such a tax.”

 
“We want to make it safe for Republicans to debate climate change.”  That is almost exactly what Bob Inglis said when he launched his effort.  I wonder who is paying for these efforts.  I’m betting it is somebody like Bob Grady or Boyden Gray or Jim Connaughton.  I also wonder whether Senator Graham really wants to talk much about climate change.  I bet he doesn’t. National Journal (8/20/12) reports: “In a campaign season where energy and climate change have become partisan lightning rods, a small but growing group of Republicans are pushing back against their party’s orthodoxy on both issues.”

 
Do you think Salazar cares that his Department is consciously trying to impoverish Native Americans, rural Americans, and just generally all Americans?  I bet he is more worried about how legit he looks in that cowboy hat and bolo. Alaska Business Monthly(August 2012) reports: “As of yet, oil and gas has not been commercially produced from the NPR-A. This lack of production can be attributed to an onerous and sometimes convoluted federal process, where interactions within the Department of Interior and between other federal agencies is often confusing, leading to actions of one agency being cancelled by the actions of another. This bureaucracy often leads to a stalemate within agencies that can take years to sort out, leaving outside parties with no means of moving projects forward.”

 
This is a bit old (3 days now), but the message is too solid not to share.  The only scarce resource is wisdom; we have plenty of everything else. Washington Post (8/17/12) reports: “Sometimes the news is that something was not newsworthy. The United Nations’ Rio+20 conference — 50,000 participants from 188 nations — occurred in June without consequences. A generation has passed since the 1992 Earth Summit in Rio, which begat other conferences and protocols (e.g., Kyoto). And, by now, apocalypse fatigue — boredom from being repeatedly told the end is nigh.”

Nobody’s perfect, but we doubt the Sierra Club will be starting up a “Beyond Wind” campaign anytime soon. Hawaii News Now (8/3/12) reports: “This was the third fire related incident at the Kahuku wind farm since it opened in March 2011.  The battery energy storage system was hailed as breakthrough technology but clearly there are flaws.”

Heather Wilson in New Mexico.  Jon Tester in Montana.  Union folks, farmers, ranchers, salon owners, even children.  Pretty much everyone understands the importance of energy and refineries to manufacturing jobs and economic growth.  We welcome them all. Billings Gazette (8/16/12) reports: “Throughout the day, fairgoers, including Sen. Jon Tester, autographed a giant over-the-road bus parked outside the Heritage Building. The bus was driven by representatives of the American Energy Alliance, a nonprofit group that is advocating for a diverse energy policy.”

And if you didn’t see the bus while we were in Montana, you probably heard about it on the radio. Voices of Montana (8/16/12) reports: “[Today’s] show was live from Energy Day at Montana Fair. Various guests were on [today’s] show including Senator John McCain.”

Let me save you the read.  Electricity prices are going to go up, reliability is going to go down.  EPA and FERC don’t seem to care about either.  That is all. GAO (July 2012) reports: “Available information suggests these actions would likely increase electricity prices in some regions. Furthermore, while these actions may not cause widespread reliability concerns, they may contribute to reliability challenges in some regions.”

No better way to put it . . . Environment and Public Works (8/17/12) reports: “”The federal court’s decision to uphold EPA’s plan to permit higher-level blends of ethanol is a huge loss for Oklahomans and consumers nationwide,” Senator Inhofe said. “My constituents in Oklahoma want to be able to use fuel compatible with their vehicles, without having to worry about what kind of damage higher blends of ethanol will do to their engines. This ruling just enables EPA to continue pushing too much corn ethanol too fast through the Renewable Fuel Standard (RFS), a program that has had negative impacts on the safety of those operating vehicles and other equipment as well as food prices.”

Natural gas is the great destroyer.  Fortunately, the Farm Bill spends a lot of your money on biodiesel. Seeking Alpha (8/17/12) reports: The fact that even European producers have begun to cancel plans for the commercial-scale production of biofuels via biomass gasification could result in shareholder pressure on the few remaining employers of the pathway in the U.S. to do the same, or at least to consider feedstock diversification.

Again, either the Canadians are getting smarter (challenging to believe) or we seem more stupid. Canada Free Press (8/13/12) reports: “The Canadian Taxpayers Federation (CTF) today submitted its recommendation to kill the B.C. carbon tax with the provincial government panel reviewing the tax.”

Just a little more on the carbon tax from our friends in Australia. 4-Traders.com (8/18/12) reports: “No one is immune. Charities, councils, schools, hospitals, small businesses, community groups, public transport operators, have all seen their costs go up, during a time of increased economic uncertainty.”

Ken Green from AEI has requested from us a formal apology for tying him to our concerns about AEI’s involvement in planning a carbon tax campaign.  We apologize, Ken, and will not make that mistake again.

In his request, Mr. Green notes that Arthur Brooks has told “dozens of people” that he opposes a carbon tax. Not one of the dozens has been someone at AEA or (as far as we know) a reporter on the record. What Arthur Brooks has done is allow the use of AEI resources to contribute towards a campaign in support of a federal carbon tax. We are also sorry about that.

Furthermore, AEI’s fellow travelers on this effort (we know at least five meetings have been held) include some of the most questionable elements of the American environmental movement.  In the South, there is a saying about dogs, and fleas, and laying down with one and rising with the other.  That, too, is regrettable, but inevitable

Basically, Dan Simmons ran the show, even though it’s not actually named after him. The Diane Rehm Show (8/16/12) reports: “The role of subsidies for wind energy has become a hot-button issue in the presidential campaign. Governor Romney opposes extending tax credits for the wind industry. President Obama has re-doubled his commitment to them. In a rare show of bipartisanship last week, the Senate Finance Committee voted to extend the credits for another year. The debate over their fate will likely surface again in the fall. Supporters of the extension argue all major sources of energy have received federal help. Opponents say it’s time to let the free market take over. Diane her guests discuss the politics the future of wind energy in the U.S.”

One job in the coal industry supports six downstream jobs? That’s probably an understatement. Affordable energy makes literally every job (not propped up by government) possible.

This I don’t get at all.  I thought renewables were supposed to be cheaper.  At least that is what that lunkhead in Hobbs, New Mexico told me last week.  I wonder if he was wrong. CBS (8/15/12) reports: “New Mexico regulators have approved a request by the state’s largest electric provider to add a charge to customers’ bills to pay for renewable energy.”

Do you know how the President is always talking about how we built the Hoover Dam together?  Can anyone even imagine that anymore?  Nowadays our government celebrates tearing dams down and lying about it.  When are the Westerners going to wake up? Redding.com (2/28/12) reports: “A federal agency’s former scientific integrity adviser has filed a whistle-blower complaint saying he was fired from his job after he began questioning top officials about “spinning” evidence to tout the removal of Klamath River dams.”

We don’t make the news here, we just report it. ACCCE (8/16/12) reports: “Robert M. “Mike” Duncan has been named president and CEO of the American Coalition for Clean Coal Electricity, effective Sept. 10… Duncan brings wide experience in energy policy and business to ACCCE. Working with elected officials at every level and in all political parties, he has served as board member and chairman of the Tennessee Valley Authority; assistant director of the Office of Public Liaison in The White House; chairman of the American Crossroads 527 committee; and chairman of the Republican National Committee.”

Jon Haubert wanted to know why we keep bringing up the carbon tax.  It is because it is incredibly destructive policy.  And the crew at AEI, led by Arthur Brooks, doesn’t seem to care about that. Sydney Morning Herald (8/17/12) reports: “A TASKFORCE comprising trade unions and manufacturers has cited the carbon price as adding to the pressures on the struggling industry sector in a report to government containing more than 40 recommendations, sources say.”

If some is good, more is better. The Australian (8/15/12) reports: “The carbon tax is doing exactly what it was intended to do and hurting Australia’s economy,” he said.”

Why we fight.

The video on this was awesome, despite the profound physical deficiencies of the interviewee. KXNews Bismark (8/14/12) reports: “You may have noticed an unfamiliar bus driving through the streets of Bismarck Tuesday. The bus is part of an American Energy Alliance bus tour. It’s stopping across the country raising awareness about the importance of Domestic energy production, manufacturing, and also how important refinery’s are.”

You know, he wasn’t any better in Billings. KULR8 Billings (8/14/12) reports: “A bus tour promoting domestic energy production made two stops in Billings on Monday. The American Energy Alliance’s “Products and Power” bus tour is going to 18 states over five weeks. The group says domestic energy production provided job and economic growth, and that simple, streamlined regulations make it easier to create new jobs.”

Governor Romney was right to come out against giving more taxpayer money to Obama’s cronies.  And Dan Kish is just the most solid person on the planet. USNews (8/14/12) reports: “But subsidies won’t sustain an industry that can’t stand on its own without the government. Just look at Europe, whose governments are now turning away from heavy subsidies for alternative energy production, says Dan Kish, senior vice president for policy at the Institute for Energy Research.”

“I laid off 239 last week.”  What else is there to say?  Except that the Obama Administration doesn’t seem to care about any of these people. WTRF (7/14/12) reports: “Governor Romney will be at Century Mines on Tuesday to speak to thousands of coal miners and their families… Local politicians will be speaking as well, including Josh Mandel for Senate, and Ohio Senator Rob Portman will introduce Governor Romney. Romney is scheduled to speak for half an hour, then plans to spend an hour talking with coal miners and their families.”

Let’s review.  More expensive cars ($3200 more expensive on average).  More deadly accidents (as many as 240 additional deaths every year).  No environmental benefit.  A corrupt federal government using its substantial leverage to keep private companies in line.  But other than that, this is a really good rule. American Products. American Power. (8/10/12) reports: “The Committee on Oversight’s report found that the administration “places ideology over science and politics over process” and that these extreme fuel economy mandates have “serious consequences for consumers in the choice, cost, and safety of vehicles.” One example of this is a report from the National Automobile Dealers Association which found that these regulations will increase the price of cars so much that 7 million drivers will no longer be able to afford to drive.”

Preach on, Brother Beauprez. Denver Post (8/12/12) reports: “As state and federal lawmakers debate the country’s energy policies and Colorado’s role in the ever-expanding energy economy, let’s hope they remember that unnecessary regulations stifle growth while doing nothing for public safety or health. They would also be wise to listen to voter dissatisfaction regarding overly-burdensome regulations.”

Hard to disagree with any of this.  So we won’t. Junk Science (8/10/12) reports: “The slow global take-up of EVs has been mirrored in Australia, with only 18 sold privately this year and 45 sold to government and business… While many blame high prices Mitsubishi i-MiEV retails at $48,800, Nissan Leaf at $51,500 and Holden Volt at $59,990 Australian industry figures point to a lack of government subsidies.”

If the carbon tax in Australia did not exist, we would have to invent it just to make people like Greg Mankiw, Arthur Brooks, Kevin Hassett, Bob Inglis, and the remainder of the surrender monkeys look even more ridiculous than they already do. Sydney Morning Herald (8/10/12) reports: “Liberal state health ministers have banded together to attack the carbon tax, which they say will add millions of dollars a year to their health care bill.”

How do you think the President’s crew would respond if we suggested that they should allow oil and gas exploration on military bases?  Wouldn’t more of those resources improve national security? Environmental News Service (8/8/12) reports: “The Obama Administration is moving quickly to harness solar, wind, geothermal and biomass energy resources on or near military bases across the United States and on public lands.”

“’I was a climate negotiator, and no one had this in mind,’ said David Doniger of the Natural Resources Defense Council.”  Except, obviously, for the Chinese and Indian businessmen, who are clearly smarter than environmentalists in the United States and Europe.  Seriously, read the entire article and see if you can get through it without laughing.  But also remember that guys like Doniger really think they are smarter than the rest of us. NYTimes (8/8/12) reports: “They quickly figured out that they could earn one carbon credit by eliminating one ton of carbon dioxide, but could earn more than 11,000 credits by simply destroying a ton of an obscure waste gas normally released in the manufacturing of a widely used coolant gas. That is because that byproduct has a huge global warming effect. The credits could be sold on international markets, earning tens of millions of dollars a year.”

Smuckers should have responded that they planned to start producing HCFC-22. Business Wire (8/7/12) reports: “In recognition of Smucker’s [NYSE: SJM] positive first steps to respond to climate-related risks, Trillium Asset Management, LLC (Trillium) and Calvert Investment Management, Inc. (Calvert) announced today that they have formally withdrawn a shareholder proposal which called on the company to disclose climate-related risks to the Folgers™ Coffee and other brands. These brands currently represent over 40 percent of Smucker’s overall revenues and a significant portion of the company’s recent growth.”