In the Pipeline: 3/28/12

The answer is, of course, who cares?  The only reason anyone buys a Prius is so they can demonstrate how much holier they are than everyone else.  And to expose the fact that they don’t what the word “fungible” means Good Magazine (3/27?12) reports: In his book, The Conundrum, New Yorker staff writer David Owen ruffles the feathers of energy-efficiency advocates with his argument that living sustainably often means living, in his words, “pretty much the way I live right now, though maybe with a different car.” He argues that no matter how many Priuses, LED bulbs, and vegetarian entrees we buy, we won’t save the planet, because we’ll negate the energy (and money) savings by spending them on some other energy-sucking activity…Owen’s argument rings true to anyone who’s rationalized leaving the extra-efficient lights on when rushing out of the house (guilty) or eating a hamburger after a few meat-free meals (guilty again). But there’s plenty of evidence that consumption justified by sustainable choices doesn’t eat up all the energy saved. A new bit of research makes that case for the Prius, a quintessential green purchase.

We have a lot of energy Fuel Fix (3/28/12) reports: The number of gas drilling rigs is declining in Pennsylvania and nationwide, due to a combination of low natural gas prices and renewed interest in oil…There were 98 drilling rigs in Pennsylvania during the week of March 23, according to Baker Hughes, a company that monitors national counts. That’s down from a peak of 116 reached during the summer of 2011. Drilling rigs bore the holes and set pipes, but all wells don’t go into production immediately…Experts said the decline doesn’t mean the natural gas boom is over, in Pennsylvania or elsewhere. Now, many companies are investing in pipelines and other distribution facilities.

And when we say a lot, we mean we are never going to run out CNBC (3/27/12) reports: Increased production of energy from a number of sources including deepwater drilling, natural gas exploration and Canada’s oil sands could make North America the next Middle East, according to a new report from Citigroup… The bank estimates that total North American energy production will rise from 15.4 million barrels per day in 2011 to almost 26.6 million barrels per day by 2020, boosting gross domestic product (GDP)   and creating ripple effects throughout the economy…Citigroup analysts say the U.S. will see large gains in oil production from deepwater drilling, while Mexico will begin to reverse recent declines in output. Production of shale gas liquids will increase by 3.8 million barrels per day by 2020. The report says this new production would amount to about 7 percent of additional global production, “a higher growth rate than OPEC can sustain.”

Let me strip away all the Senate verbosity.  The Democrats wanted the Republicans to talk about tax credits.  The Republicans instead planned on talking about everything the Democrats have done to reduce gasoline prices (not a long list).  So the Democrats decided they really wanted to move on to the incredibly pressing issue of postal reform.  Got it? The Hill (3/27/12) reports: Senate Majority Leader Harry Reid (D-Nev.) used a procedural tactic Tuesday to block consideration of a series of amendments to legislation that eliminates tax breaks for the largest oil companies…The bill, authored by Sen. Robert Menendez (D-N.J.), is being debated this week on the Senate floor. A final vote is expected Thursday, according to Senate aides…The Democrat-backed legislation is unlikely to pass, but Republicans backed a procedural motion Monday that enabled floor debate on the measure. The GOP also voted Tuesday to prevent the Senate from moving forward with postal reform legislation in an effort to continue pummeling Democrats over the bill on the floor.

Matt Daly (St. Anselm’s Abbey) is a silly good reporter.  But I think he might be wrong about gasoline prices in the Mid-Continent coming down as a result of Seaway.  The reality is that refiners in the Mid-Continent will simply have their margins come back to earth.  Because right now they are making a killing (is that simple enough, Mr. Waxman?) Journal Star (3/27/12) reports: Pipeline builder Enbridge Inc. is investing nearly $4 billion in a new round of construction to improve the flow of Canadian oil sands crude to the U.S. Gulf Coast and try to beat TransCanada there…The effects may be to raise the demand and prices of Canadian crude and raise the price of gasoline in the Midwest, now under pressure from the glut of North American oil unable to get to Gulf refineries…Enbridge, Canada’s largest transporter of crude, said Tuesday it will expand its Flanagan South Pipeline from Flanagan, Ill., to Cushing, Okla., to a 36-inch diameter line with a capacity of 585,000 barrels per day.

In the Pipeline: 3/27/12

Do you think Willard’s folks here in DC, who lobby for crews like Chevron,  API, Encana, and Halliburton should say something to someone about this?  I mean, other than the usual complaints about how rude it is for people to point out that Willard may not be as pro-energy as he (now) says he is? New Yorker (3/25/12) reports: Last week, Mitt Romney, who, it now seems, is going to become the Republican nominee whether anybody likes it or not, called on President Barack Obama to fire three of his Cabinet members: the Energy Secretary, Steven Chu; the Interior Secretary, Ken Salazar; and the head of the Environmental Protection Agency, Lisa Jackson. According to Romney, the three have spent the past few years carrying out a not-so-secret plan to raise the price of gasoline at the pump. Only by firing the “gas-tax trio,” Romney told Fox News, can the President demonstrate that he did not approve of this plan. “Time for them to go,” Romney said

First they came for the coal.  Then they came for the oil.  Then they came for the natural gas.  Then they came for me and there was no one left to speak out for me GigaOM (3/26/12) reports: Three environmental groups on Monday filed a law suit against the federal government over a proposed solar farm in California, contending that the government has failed in its duty to ensure the project would not pose a significant harm to wildlife…The 663.5 MW solar project, called Calico Solar, would take up 4,600 acres of public land in the Mojave Desert. Its original developer, Tessera Solar, sold it to K Road Power in late 2010 after receiving final approval from the U.S. Department of Interior. K Road said it wanted to change the technology to use mostly solar panels instead of only solar mirrors. The Bureau of Land Management said last October it would start preparing a supplemental environmental impact report to reflect the proposed change to the project.

President Rig Count apparently forgot to tell EPA to forget all about that green agenda stuff National Journal (3/26/12) reports: The Obama administration is expected to unveil long-awaited global-warming regulations as soon as Tuesday in a move that will make a big splash politically but won’t have real environmental or economic impact until long after the 2012 elections…The controversial rules—initially setting limits on greenhouse-gas emissions from new power plants—have been in the works since 2009, when the Environmental Protection Agency determined within a year of President Obama taking office that it had a legal obligation under the Clean Air Act to rein in carbon pollution that scientists say is one of the chief causes of climate change.

Every once in awhile, we like to remind you that all craziness is not limited to energy and environmental issues.  No sir, there are idiots everywhere prepared to spend your money on ridiculous “ideas”.  Just ask Ray LaHood Business Week (3/25/12) reports: On a dusty, rock-strewn expanse at the edge of the Mojave Desert, a company linked to Senate Majority Leader Harry Reid wants to build a bullet train that would rocket tourists from the middle of nowhere to the gambling palaces of Las Vegas…Privately held DesertXpress is on the verge of landing a $4.9 billion loan from the Obama administration to build the 150 mph train, which could be a lifeline for a region devastated by the housing crash or a crap shoot for taxpayers weary of Washington spending.

In the Pipeline: 3/26/12

“It’s really about the supply…”  So says David Plouffe.  So say we all National Journal (3/25/12) reports: With gas prices rising and the choir of critics growing louder, Obama senior advisor David Plouffe defended the president’s energy policy and said the administration has not ruled out opening the country’s Strategic Petroleum Reserve…“What I’ll say is we’re not taking that off, that option, off the table,” he said on CNN’s State of the Union.“There are supply disruptions right now in places like Sudan. You still have oil not at its peak in places like Libya. Obviously the sanctions are working, the crippling sanctions the president has put in place are working in the Middle East and strangling the Iranian economy, but there is no doubt that what we have to do in this country, we have to use less oil.”

What makes this really odd is that the President himself told us last week that the Solyndra fiasco was owned by the Republicans.  Well, why then was the entire apparatus of the White House prepared to defend their actions on Solyndra?  Either the reporter is wrong (not very likely), or the President told an intentional, premeditated lie last week.  Which would make him a . . . The Hill (3/25/12) reports: Several key White House offices were involved with the Obama administration’s messaging plans and other preparations as the collapse of the taxpayer-backed solar company Solyndra was imminent, newly released documents show…The latest White House documents delivered to House Republicans on Friday again highlight the extent to which senior administration officials braced for the fallout as Solyndra – a company President Obama had personally visited – was about to go under.

You have to know a couple of things about this.  First, Jay Cranford was really, really good.  Second, as impossible as it seems, Mike Catanzaro is even better The Hill (3/25/12) reports: If you want to see Speaker John Boehner (R-Ohio) get riled up these days, ask him about President Obama’s energy policy…The Speaker has been hammering the president over energy for months, first over his delay of the Keystone pipeline and more recently as gas prices have risen.. When Obama toured the country last week touting an “all-of-the-above” energy strategy, Boehner openly mocked him. At a press conference meant to bracket Obama’s appearance in Cushing, Okla., the Speaker on Thursday rolled out a new slogan, the “Obama energy gap.”

Debunking the AP’s lame article on the correlation between drilling on 3% of federal lands and gas prices Just One Minute (3/25/12) reports: An AP “Fact Check” on the correlation of US energy production with gasoline prices takes us to the border of supply and demand before veering off into a comedy club: FACT CHECK: More US drilling didn’t drop gas price WASHINGTON (AP) — It’s the political cure-all for high gas prices: Drill here, drill now. But more U.S. drilling has not changed how deeply the gas pump drills into your wallet, math and history show…A statistical analysis of 36 years of monthly, inflation-adjusted gasoline prices and U.S. domestic oil production by The Associated Press shows no statistical correlation between how much oil comes out of U.S. wells and the price at the pump.

You had to guess this sort of nonsense was going to start sooner or later.  Should someone tell the Administration that very little crude oil is actually exported?  Do you think they understand the difference between oil and gasoline?  Maybe John Podesta could ask his wife Heather.  She lobbies for Marathon Oil.  And does anyone yet have a definition of “speculation”?  Again, maybe Heather knows; she used to lobby for Prudential Politico (3/25/12) reports: Democrats have a “huge opportunity” to reclaim control of the debate over gas prices by training attention on the excesses of oil companies, two prominent party strategists argue in a memo obtained by POLITICO…The document circulating among Democrats was authored by Center for American Progress Chairman John Podesta and pollster Geoff Garin, and cites private polling that confirms “Americans are tired of the stranglehold oil companies have over our national energy policy.”

I know it has been awhile, but this is the mine that had a permit that EPA then tried to revoke.  Fortunately, the court concluded that EPA is limited by, you know, the law and stuff The Republic (3/25/12) reports: A federal judge says the U.S. Environmental Protection Agency exceeded its authority in revoking permits for what could now become West Virginia’s largest mountaintop removal mine…In a ruling Friday, U.S. District Judge Amy Berman Jackson in Washington, D.C., ruled in favor of St. Louis-based Arch…She declares a U.S. Army Corps of Engineers water pollution permit for the Spruce No. 1 mine in Logan County is “valid and in full force.”…She declares a U.S. Army Corps of Engineers water pollution permit for the Spruce No. 1 mine in Logan County is “valid and in full force.”

In the Pipeline: 3/23/12

The gas plan is easy — lease more land, issue more permits, reduce regulations CNN Money (3/22/12) reports: The oil industry recently laid out a set of proposals it believes will instantly lower gasoline prices…The proposals call for more domestic oil production, fewer environmental regulations, and for not raising taxes on the industry. They’re basically what the Republican presidential candidates are calling for.

Amen Chicago Tribune (3/22/12) reports: When the summer driving season starts soon, and tension heats up over Iran, gas may reach $5 a gallon. Nothing bothers voters more than paying an extra $20 or $30 every time they fill up. In times like these, they soon might prefer even an oilman in the White House to an ideologue whose opposition to new oil development seems more religious than empirically based…All presidents, of course, usually get the blame or praise when the price of gas skyrockets or plummets, just like they own a bad or good economy, or a successful or failed war.

If we lose Alaska, it’s gone forever. Let me explain, TAPS can operate so long as it’s economically viable, but its capacity is way down. That means if we don’t allow American companies to drill in Alaska, there’s no oil flowing and that means Congress has the authority to tear down the pipe. We all saw what happened with Keystone XL Businessweek (3/22/12) reports: It could take billions of dollars in additional annual investment from oil companies just to stem the decline of oil production in Alaska. Oil company executives on Wednesday said this kind of investment will never happen without changes to its tax structure…Officials from the North Slope’s three main players — BP, ConocoPhillips and Exxon Mobil Corp. — testified before the Senate Finance Committee, which is working on an oil tax plan. They said the current version of the plan, SB192, doesn’t go far enough to change the investment climate and said changes of the magnitude that Gov. Sean Parnell has proposed would create the potential for billions of dollars in new investments…BP and ConocoPhillips have talked about $5 billion in new investments if a bill on the order of Parnell’s is implemented. For projects at Prudhoe Bay, Exxon also would need to buy in. Dale Pittman, Alaska production manager for Exxon Mobil Production Co, told the committee Wednesday that the company “fully supports” BP and ConocoPhillips’ plans.

The NYT trifecta begins with an article about the technological advances and blessings of hydraulic fracturing New York Times (3/22/12) reports: As Eric Lipton and I write in The Times, oil production is increasing rapidly in the United States even as gasoline consumption is falling…The revolution in production in Texas and across the country is due in part to the rising price of oil over much of the last decade, which propelled aggressive technological experimentation and development. (Government encouragement over the last several administrations helped as well.)Horizontal drilling and hydraulic fracturing have been around for years, but over the last five years, engineers have fine-tuned these and other techniques, even as many environmentalists worry about their impact on water and air.

The second article talks of energy independence through drilling New York Times (3/22/12) reports: The desolate stretch of West Texas desert known as the Permian Basin is still the lonely domain of scurrying roadrunners by day and howling coyotes by night. But the roar of scores of new oil rigs and the distinctive acrid fumes of drilling equipment are unmistakable signs that crude is gushing again.

The trifecta is complete with a heart wrenching story about three men finding a new start in North Dakota oilfields New York Times (3/22/12) reports: Last spring, Bob Ripka decided the time had come for drastic change. His once-robust income from his job at a printing company was dwindling. His family lost its house in the real estate crash. And employment prospects around his home in Pine City, Minn., more than an hour north of Minneapolis, appeared scant…He heard talk around town about plentiful work in North Dakota, where new drilling technologies are driving an oil boom. “And I decided, ‘Well, I’m going to go make some money,’ ” he recalled in an interview. So on Memorial Day weekend, Mr. Ripka, 48, removed the rear seats from his 2003 Dodge minivan and replaced them with a mattress. He threw some clothes in a bag, said goodbye to his family and drove 10 hours west to Williston — ground zero in the North Dakota petroleum explosion.

In the Pipeline: 3/22/12

The best part of this is that Congressman Markey is always in favor of people sending their heating oil to Massachusetts (think LIHEAP).  Maybe someone should introduce a bill outlawing the transport of energy across State lines Juneau Empire (3/21/12) reports: U.S. Rep. Edward Markey, D-Mass., told oil giants BP, ConocoPhillips and Exxon Mobil his natural gas export bills now in Congress would block a proposed $40 billion pipeline to export Alaska natural gas to Asia…The bills, originally introduced in February, drew a sharp response from Alaska’s Sen. Mark Begich…The $40 billion plan was covered by Financial Times reporter Ed Crooks on Wednesday (on.ft.com/GF4pMJ). Markey released an announcement the same day in which he “decried the plans” to allow export of “American natural gas to China.”

$100K Fisker’s dying on owners; $12.50 a gallon for Volt to pan out. And Obama laughs at Americans who want to drill for oil Reuters (3/21/12) reports: Scott Kluth has a love-hate relationship with his new Fisker Karma luxury electric sedan…The 34-year-old car lover bought the plug-in hybrid electric Karma in December for $107,850, but five days later the car’s battery died as he was driving in downtown Chicago. While the car he affectionately calls a “head turner” was fixed in a recall, Kluth remains uncertain how much he will drive it…”I just want a car that works,” Kluth said. “It’s a fun car to drive. It’s just that I’ve lost confidence in it.”

This guy makes a lot of sense Forbes (3/21/12) reports: If you are opposed to the continued use of fossil fuels in the world, then you are not in the position to embrace the modern-day renaissance of oil and natural gas in America…Since President Obama’s election three and a half years ago, he and his administration have done everything in their power to stop fossil fuel usage, including a carbon tax, increased federal regulations, delays in federal permitting, infrastructure permitting denials for the Keystone XL Pipeline, capital starvation for drilling by the elimination of intangible drilling costs, and depletion allowance.  All of these actions are designed to result in higher costs at the pump for the consumer.  At the same time, there are billions of dollars in subsidies being given to solar, wind and all other alternative sources of energy.

The President isn’t quite lying, but he’s not telling the truth either.   Which should make you proud as an American.  What he is doing is trying to do is avoid the simple fact that we have 200 years’ worth of oil in the ground in the United States.  Right now.  And the only thing keeping us from getting it is the federal government which he, I think, leads Politico (3/21/12) reports: President Barack Obama visited an oil and gas field in New Mexico Wednesday night to distance himself from rising gasoline prices by framing the issue as one controlled by fickle international markets…”Every time there’s instability in the Middle East, we will feel it at the pump, even if we are drilling nonstop here in New Mexico and all across the country,” Obama said…Obama cited an Associated Press analysis that concluded there is no statistical correlation between domestic drilling and prices at the pump.

I am willing to bet a lot of money that Ed Markey is going to tweet something about this Forbes (3/21/12) reports: A federal judge in Mississippi has ended a long-running suit that attempted to hold a selection of U.S. utilities and coal and oil companies responsible for flooding damage caused by Hurricane Katrina…U.S. District Judge Louis Guirola Jr., in a decision released yesterday, dismissed Comer vs. Murphy Oil with prejudice, meaning it can’t be refiled or reconstituted. The decision should serve to preclude, other similar lawsuits accusing companies of emitting global-warming gases that cause damaging weather patterns.

AEA praises defeat of Stabenow, Menendez-Burr Amendments

For Immediate Release
March 13, 2012

WASHINGTON D.C. — The United States Senate defeated on a bipartisan 49-49 vote an amendment to the transportation bill on Tuesday that would have reinstated the production tax credit (PTC), a scheme to provide billions of dollars in taxpayer-funded handouts to providers of unreliable and intermittent wind energy. Similarly, the Senate defeated the Menendez-Burr Amendment to create subsidies for natural gas vehicles.

The American Energy Alliance was joined by numerous free market organizations and other concerned government watchdog groups to oppose the amendments offered by Sen. Debbie Stabenow (D-Mich.), Sen Bob Menendez (D-N.J.), and Sen. Richard Burr (R-N.C.).

“The defeat of the Stabenow Amendment and the Menendez-Burr Amendment is a victory for U.S. taxpayers and free markets that are hurt by government intervention in the energy sector. For more than 100 years, wind has been used to generate electricity, and it has yet to provide reliable, affordable energy for American consumers,” noted President Thomas J. Pyle after the vote.

“The Obama administration has been working overtime to create a market for wind and solar energy, using taxpayer money to bankroll now-defunct renewable companies like Solyndra to the tune of $535 million and more. As for subsidies to natural gas vehicles, the market is already responding to historic price declines due to record production on private and state lands. There is no need for the federal government to tinker with the market, which only invites more wasteful spending and greater fraud.

“Today’s votes send a clear signal that the American public has tired of the Administration’s interventionist schemes, which have already cost hundreds of billions of dollars and done nothing to reduce the cost of skyrocketing electricity and gasoline prices.”

###

AEA to Congress: Oppose Gov’t Intervention in Energy Markets

For Immediate Release
March 8, 2012

WASHINGTON D.C. — The American Energy Alliance sent two coalition letters to all United States Senators today opposing amendments to the Senate transportation bill that would create new taxpayer-funded subsidies for natural gas vehicles, extend the production tax credit (PTC) to underwrite wind energy, and revive the 1603 Treasury grant program that gives taxpayer money for the installation of solar panels and other renewable technologies.

“The scheme is little different from the federal government’s loan to Solyndra. Banks are willing to loan money to people that present little risk, but Solyndra and natural gas fueling infrastructure obviously present enough of a risk to need a government subsidy,” reads one letter.

“There is no need for Congress to intervene to try to pick winners and loser in the natural gas market — the market is already responding to lower natural gas prices in an efficient and cost-effective way.”

In calling for the defeat of amendments to extend the production tax credit and other renewable energy hand-outs, AEA President Thomas Pyle denounced “the intervention of politicians and bureaucrats in the energy sector,” which has “had devastating economic consequences and led to embarrassing scandals.”

“We urge you to stop digging this hole any deeper, and to spare the consumers and businesses the terrible pain that will surely eventually accrue because of uneconomic sources of energy. After more than 20 years of direct subsidy payments, it is time to tell the mature renewable energy industry to get a job.”

The American Energy Alliance was joined in the letters by Americans for Prosperity, the Council for Citizens Against Government Waste, Freedom Action, The National Center for Public Policy Research, the Sixty Plus Association, and the Club for Growth.

To read AEA’s coalition letter opposing special tax treatment for natural gas vehicles, click here.

To read AEA’s coalition letter opposing extension of taxpayer-funded subsidies for renewable industries, click here.

###

In the Pipeline: 3/8/12

If only these guys had positions of authority, and resources they could use to address these issues, and . . . oh wait . ..National Journal (3/7/12) reports: Leaders of some of the world’s biggest oil and natural gas companies are issuing a plea to their industry to do a better job managing what they call the “shale gale”—vast resources of shale natural gas recently discovered throughout the United States and in other countries…“Let’s be honest, as an industry, we have not always done our best to engage in the public debates about these issues,” Peter Voser, CEO of Royal Dutch Shell, said on Wednesday at a speech during a major energy conference here. “This has resulted in some misconceptions taking root, especially about the impact of hydraulic fracturing, or ‘fracking.’ ”…Fracking is a controversial process where large amounts of water, chemicals, and sand are pumped into a well at high pressures to fracture rock and allow natural gas to escape. Environmental groups and residents who live near natural gas wells are concerned about potential water contamination.

So, it turns out that we don’t need to give Boone Pickens a bunch of our money.  Nor do we need to give Aubrey McClendon a bunch of our money.  Which is good, because those dudes are billionaires, and here at the Pipeline we are barely thousandaires.  It is also good because McClendon insists on bankrolling attacks ($100 million to the Lung Association, $25 million to the Sierra Club) on those who have concerns about EPA Yahoo (3/7/12) reports: More natural gas-powered vehicles will hit the market soon, as rising gasoline prices, booming natural gas production and proposed tax credits make them a more attractive option. But they’re a long way from being a common sight in U.S. driveways…Starting in July, Chrysler will sell a Ram 2500 Heavy Duty pickup that runs on compressed natural gas (CNG). The truck has both gasoline and natural gas storage tanks, and the engine shifts automatically between the two, without the driver needing to push a switch. The truck can run for 255 miles on natural gas and the range is extended to 367 miles using gasoline.

Actually, Mr. President, the fuel of the future is here and it’s oil Fox News (3/7/12) reports: President Barack Obama on Wednesday dismissed oil as “the fuel of the past” as he made an unapologetic election-year pitch for his alternative energy industry policies and sniped at Republicans over painfully high gasoline prices…”They get out on the campaign trail—and you and I both know there are no quick fixes to this problem—but listening to them, you’d think there were,” he said at a Daimler Truck manufacturing plant in the battleground state of North Carolina…Obama said that because the United States accounts for 20 percent of the world’s consumption of oil but has only 2 percent of its petroleum reserves, “we’re not going to be able to just drill our way out of the problem of high gas prices. Anybody who tells you otherwise either doesn’t know what they’re talking about or they aren’t telling you the truth.”

Speaking of which, does President Obama own stock in oil companies? Why else would he artificially make oil more expensive? Bloomberg (3/7/12) reports: U.S. House Republicans sought to link rising gasoline prices with President Barack Obama’s restrictions on offshore drilling and denial of the Keystone XL pipeline from Canada, an argument rejected by Democrats…The Obama administration lacks the power to stem the increase, Democratic lawmakers said, and an energy analyst said U.S. consumers should get accustomed to price swings at the pump driven by consumers outside the U.S…Prices will “gyrate wildly” as demand increases in Asia and other emerging economies, Robert McNally, president of the Rapidan Group LLC, a Bethesda, Maryland-based energy research firm, said…“There is no silver bullet for a short-term solution,” he said, echoing words used by Obama in a Feb. 23 speech.

I wonder how this talking point is going to be graphed onto President Obama’s speeches on the economy Reuters (3/7/12) reports: A booming U.S. oil and gas sector was responsible for generating some 9 percent of all new jobs last year, with three indirect jobs for every one directly involved in the industry, a study released on Wednesday found…The World Economic Forum report, which highlighted the role that the energy industry can play in reviving the global economy, comes during a presidential election year as candidates argue about high U.S. unemployment and energy policy.

First step in becoming a 21st century millionaire, start a renewable energy company. Second step, make a donation to President Obama. Last step, collect your millions CNN (3/7/12) reports: The federal government spent $24 billion on energy subsidies in 2011, with the vast majority going to renewable energy sources, according to a government report…Renewable energy and energy efficiency accounted for $16 billion of the federal support, according to the Congressional Budget Office, while the fossil-fuel industry received $2.5 billion in tax breaks. This is a stark change from a decade ago. The CBO noted that until 2008, most energy subsidies went to the fossil-fuel industry. The idea at the time was to encourage more domestic oil production, especially when the price of oil was low…CBO said the $24 billion total is a small fraction of the hundreds of billions the government’s various annual subsidies, which take the form of both grants and tax breaks.

AEA’s Thomas Pyle responds to Obama press conference

“Instead of unleashing lawyers at the Justice Department, the president should unleash the Interior Department to open the outer continental shelf.” — AEA President Thomas J. Pyle

WASHINGTON D.C. — Thomas J. Pyle, president of the American Energy Alliance, issued today the following statement in response to President Obama’s Mar. 6 press conference:

“President Obama continues to offer inadequate solutions and deceptive talking points instead of policies that will promote affordable energy for American consumers. When asked about rising gas prices, the President promised to promote drilling in Sudan, relieve pipeline bottlenecks that the federal government has no control over, and sick Attorney General Eric Holder on free markets with yet another ‘task force.’

“Why the president believes that gas prices are more closely tied to increased drilling in Sudan than exploration in North America is inconceivable. Currently, only 3 percent of U.S. federal lands are being utilized for exploration. Moreover, given his statements during the press conference, President Obama apparently wants the U.S. to rely more on Sudan than on our closest trade partner, Canada, for oil supplies. Otherwise he would have approved the Keystone XL pipeline.

“Already, the United States is the world’s third largest oil producer, and with the vast resources we have under our feet, there is no reason why we can’t be the first. In the process, we could create hundreds of thousands of good-paying jobs that would grow our economy and increase our energy security.

“Americans are paying historic prices for gasoline, and the president offers another task force headed by Attorney General Eric Holder. Instead of unleashing lawyers at the Justice Department , he should unleash the Interior Department to open the Outer Continental Shelf, ANWR, and millions of acres of federal lands to energy development.

“The American people deserve either new energy policies or new leadership, and perhaps both.”

###

AEA President Thomas Pyle responds to Obama energy speech

For Immediate Release
February 23, 2012

“If the president is serious about our energy future, he would put a restraining order on the Department of the Interior to stop the administration’s job-killing embargo on American energy.” — AEA President Thomas Pyle

WASHINGTON D.C. — President Barack Obama delivered today a widely-anticipated speech outlining his administration’s energy policies, which include provisions that raise taxes on energy producers, increase dependence on foreign sources, impose sanctions on domestic production and double down on taxpayer handouts to administration allies in the renewable sector.  Thomas Pyle, president of the American Energy Alliance, issued the following statement in response to the president’s speech:

“Today’s speech made for perfect election year posturing to satisfy the president’s anti-energy base. But such posturing does little to help American consumers who can’t afford $6 per gallon gasoline for the cars they own, and certainly can’t afford the $40K electric cars that the President wants to force us to buy.

“The president had the temerity to claim credit for increases in domestic oil and gas production, even though production on federal lands declined last year. Clearly, the facts tell a different story. Production on lands controlled by the administration dropped by 11 percent for oil and 6 percent for natural gas in 2011. Taking credit for production increases in light of his administration’s sustained efforts to block federal lands from energy development is the definition of political deceit.

“Once again, the president has attacked his favorite bogeymen in the oil and gas industries, calling for discriminatory tax increases on job creators that currently sustain millions of working men and women in a tough economy. Undeterred, the president now proposes policies that will actually raise the price of gasoline higher than it already is. At its core, today’s speech was more of the same failed prescriptions that lead to higher energy prices and less stability in a global market.

“If the president is serious about our energy future, he would grant a permit for the Keystone XL pipeline, open up the outer continental shelf to previously agreed territories in the Gulf of Mexico, off the Eastern coast and Alaska, and put a restraining order on the Department of the Interior to stop the administration’s job-killing embargo on American energy.”

###