In the Pipeline: 3/16/11

Greenies rejoice after shutting down a coal port in WA and retreat to their tree houses to burn animal dung for heat while the poorest among us suffer Wall Street Journal (3/15/11) reports: Environmental groups claimed a victory Tuesday when a unit of Australia-based Ambre Energy Ltd announced it withdrew its permit application for a proposed export terminal to ship coal mined in Montana and Wyoming to Asia via the Columbia River port of Longview, Washington…Millennium Bulk Terminals LLC’s withdrawal follows months of protests by citizens opposed to construction of the terminal, which was permitted by Cowlitz County officials in November. Millennium Bulk Terminals said it would reapply for a permit to export from the Columbia River port after conducting a new environmental impact study. The project’s budget was about $100 million, the company said, and was one of several coal-exporting terminals coal producers are seeking to develop on North America’s Pacific coast to meet booming demand for U.S. coal in China…Opponents of the Longview coal terminal include The Sierra Club, Earthjustice and the Washington Environmental Council.

 

Of course the Obama Administration wants to keep nuclear, it’s the only energy source they endorse that works Los Angeles Times (3/15/11) reports: Energy Secretary Steven Chu on Tuesday restated the Obama administration’s commitment to keeping nuclear power in the mix of renewable sources under development in the U.S., but treaded carefully around questions of how the nuclear disaster in Japan might affect that effort…”The administration believes we must rely on a diverse set of energy sources, including renewables like wind and solar, natural gas, clean coal and nuclear power,” Chu said before a House subcommittee. “The administration is committed to learning from Japan’s experience as we work to continue to strengthen America’s nuclear industry.”…No new reactors have been fully developed in the U.S. since 1979, when the partial meltdown at Three Mile Island in Pennsylvania made investors and the public skittish about the safety of nuclear power…As the memory of Three Mile Island faded and concern over fossil fuels and global warming increased, the nuclear industry seemed poised for a comeback.

Bipartisan effort to restore energy sanity — Energy Tax Prevention Act passes first obstacle in the House New York Times (3/15/11) reports: Moving on a central tenet of the Republican energy and environment platform, a House committee on Tuesday approved a measure to halt the Environmental Protection Agency’s proposed program to regulate greenhouse gas emissions. Republican leaders promised a floor vote on the bill before the Easter recess…The House Energy and Commerce Committee passed the bill, known as the Energy Tax Prevention Act of 2011, by a vote of 34 to 19. Three Democrats, Representatives John Barrow of Georgia, Jim Matheson of Utah and Mike Ross of Arkansas, voted with the unanimous Republican majority…The bill would repeal the E.P.A.’s finding that carbon dioxide and other heat-trapping gases are a threat to human health and the environment and would bar the agency from imposing new rules to control them. Its Republican sponsors argue that new limits on greenhouse gas emissions from refineries, power plants and other major sources would drive up energy prices, depress the economy and hamper job creation.

You got to know when to hold ‘em, know when to fold ‘em and know when to walk away — Sen. Reid allows vote on EPA regs. Politico (3/15/11) reports: Senate Democrats are scrambling to combat a GOP-led offensive against the Obama administration’s climate regulations ahead of a possible Wednesday floor showdown…In a surprising move, Senate Majority Leader Harry Reid signaled Tuesday he would allow a floor vote on a Republican amendment to nullify the EPA’s authority to regulate greenhouse gases…Minority Leader Mitch McConnell offered the amendment — authored by Sen. Jim Inhofe (R-Okla.) — to the small-business bill pending on the floor. The language mirrors the anti-EPA bill the House Energy and Commerce Committee passed during a daylong markup Tuesday…Now, Reid and other top Senate Democrats who oppose the amendment are looking for ways to kill it. And they may have a tougher time than they expected, given the momentum after the Energy and Commerce vote and anti-EPA sentiment among moderate Senate Democrats.

The score: Salazar 1 American People 0 — 5th circuit puts a stay on Judge Feldman’s court order to either issue or decline permits for the Gulf Bloomberg (3/15/11) reports: U.S. offshore regulators aren’t required to act this month on certain Gulf of Mexico drilling permits delayed by the Obama Administration’s ban, a federal appeals court said…A three-judge panel today granted the government’s request for a reprieve from a court-ordered deadline without comment…U.S. regulators threatened to deny the seven Gulf drilling permits that U.S. District Judge Martin Feldman in New Orleans singled out for quick action if they were forced to act by his deadlines. Feldman ordered government action by March 19 on five permits and by March 31 on two additional permits…The Interior Department had asked Feldman to delay his order so that the U.S. Court of Appeals would have time to review it. When Feldman didn’t respond quickly, the U.S. turned to the appellate court.

After two years of study and despite the fact that there are 55,000 miles of oil pipelines in the U.S., the State Department can’t figure out if the Keystone Pipeline is safe. Fuel Fix (3/15/11) reports: The State Department said Tuesday it will conduct another environmental study before deciding whether to approve a proposed pipeline to deliver oil sands crude from Canada to Gulf Coast refineries — but that a decision is likely this year…The plan for another environmental impact statement was a blow to oil and gas industry leaders who had been urging the Obama administration to approve the 1,700-mile pipeline swiftly as a way to strengthen America’s partnership with Canada, create jobs and lessen the United States’ reliance on oil imported from other continents…“This much-studied and much-needed pipeline would provide a critical link to our largest energy supplier — Canada — and its vast resources of nearby and available crude oil,” said Jack Gerard, president of the American Petroleum Institute. “It is past time for the administration to approve this important infrastructure investment.”…In a news release, the API emphasized that the pipeline already has been subjected to 32 months of scrutiny under a federal law called the National Environmental Policy Act.

Risk adverse: Germany guards against the next tsunami in the Pacific by shutting down their older nuclear plants — energy prices skyrocket Bloomberg European power prices rose, surging to their highest in more than two years in Germany, where the government decided to halt the country’s seven oldest nuclear reactors following explosions at an atomic plant in Japan…Baseload electricity for next quarter in Germany, Europe’s biggest power market, rose to the highest price since November 2008. The contract increased as much as 8.75 euros, or 16 percent, to 62.75 euros ($87.23) and was at 62.70 euros as of 1:20 p.m. Berlin time, according to broker data compiled by Bloomberg. Baseload is generated and sold around the clock…“There was a massive reaction to the decision to halt the nuclear plants and that caused an intraday rally,” Kevin McDermott, a Tullett Prebon director for European energy and commodities, said today by phone from London. Volumes are set to beat yesterday’s levels, the highest this year, he said…Germany, Europe’s biggest power market, will keep its seven oldest nuclear reactors off line during a three-month moratorium it will use to evaluate the safety of the facilities, Chancellor Angela Merkel told reporters in Berlin today. The plants were all built before 1980. E.ON AG (EOAN) is already preparing to take its 878-megawatt Isar-1 reactor built in 1977 off line, and will close it in the coming days, according to a company statement.


In the Pipeline: 3/15/11

Great article that puts the nuclear situation in Japan in perspective New York Times (3/13/11) reports: The difference between a partial meltdown and a full meltdown at a nuclear plant is enormous, both in the degree of damage and in the potential release of radiation, experts in nuclear power said…A partial meltdown, like those suspected at two reactors in northeastern Japan over the weekend, may not necessarily mean that any of the uranium fuel in the core has melted, experts said. The fuel rods may be only damaged, a portion of them having been left uncovered by cooling water long enough to crack, allowing the release of some radioactive elements in the fuel…But in a full meltdown — which could occur within hours if all cooling water was lost and the rods became completely uncovered — melting is all but guaranteed, as thousands of fuel pellets fall to the bottom of the reactor and heat themselves into a molten pool at several thousand degrees Fahrenheit.

Natural disasters make for bad policy — the nuclear situation in Japan will have lasting consequences on energy policy Wall Street Journal (3/13/11) reports: After a once-in-300-years earthquake, the Japanese have  been keeping cool amid the chaos, organizing an enormous relief and rescue operation, and generally earning the world’s admiration. We wish we could say the same for the reaction in the U.S., where the troubles at Japan’s nuclear reactors have produced an overreaction about the risks of modern life and technology…Part of the problem is the lack of media proportion about the disaster itself. The quake and tsunami have killed hundreds, and probably thousands, with tens of billions of dollars in damage. The energy released by the quake off Sendei is equivalent to about 336 megatons of TNT, or 100 more megatons than last year’s quake in Chile and thousands of times the yield of the nuclear explosion at Hiroshima. The scale of the tragedy is epic…Yet the bulk of U.S. media coverage has focused on a nuclear accident whose damage has so far been limited and contained to the plant sites. In simple human terms, the natural destruction of Earth and sea have far surpassed any errors committed by man.

The one two punch — first he takes on ethanol and now President Clinton is saying we need to permit in the Gulf of Mexico Politico (3/14/11) reports: Former President Bill Clinton said Friday that delays in offshore oil and gas drilling permits are “ridiculous” at a time when the economy is still rebuilding, according to attendees at the IHS CERAWeek conference….Clinton spoke on a panel with former President George W. Bush that was closed to the media. Video of their moderated talk with IHS CERA Chairman Daniel Yergin was also prohibited…But according to multiple people in the room, Clinton, surprisingly, agreed with Bush on many oil and gas issues, including criticism of delays in permitting offshore since last year’s Gulf of Mexico spill…“Bush said all the things you’d expect him to say” on oil and gas issues, said Jim Noe, senior vice president at Hercules Offshore and executive director of the pro-drilling Shallow Water Energy Security Coalition. But Clinton added, “You’d be surprised to know that I agree with all that,” according to Noe and others in the room…Clinton said there are “ridiculous delays in permitting when our economy doesn’t need it,” according to Noe and others.

What do DC, LA, SF have in common? They are broke. Also, they rank as top green cities — coincidence? Greener Buildings (3/14/11) reports: More than 12,600 commercial properties in the United States now meet the U.S. Environmental Protection Agency’s standards as Energy Star buildings, and for a third consecutive year Los Angeles tops the agency’s list of cities with the most energy efficient buildings…For a second straight year, Washington, D.C., and San Francisco hold the No. 2 and No. 3 spots, respectively…The EPA released its annual list today of the 25 cities with the most buildings that have earned Energy Star status in the past year. To qualify for the energy efficiency rating, buildings must perform in the top 25 percent of a nationwide comparison of similar properties, and performance must be independently verified by a registered architect or a licensed professional engineer.

Champion of affordable and reliable energy — Congressman John Peterson explains what’s happening in the Gulf and the bureaucratic mess Salazar oversees Centre Daily (3/15/11) reports: Interior Secretary Ken Salazar found himself between a rock and a hard place as he begged for bureaucratic bucks before the House and Senate energy committees last week…Though called to defend his department’s request for a 50 percent increase in budget funds over last year, Salazar was also grilled about why his agency prolonged its permitting freeze for deepwater drilling projects in the Gulf of Mexico amid $100-per-barrel oil and escalating tension in the Middle East. It’s hard to feel sorry for the secretary, given that his agency’s bureaucratic permitting delays have produced an energy freeze that’s kept thousands of Gulf workers unemployed and supporting businesses across the country sitting idle…Though the secretary tried to deflect criticism by citing his agency’s first deepwater permit grant since the BP spill, the fact is, this coordinated move for political cover is too little, too late. Though it’s a step in the right direction, our government still has a long way to go to get our country where we need to be…Continued inaction in the Gulf threatens to force the United States to import an extra 88 million barrels of oil a year by 2016, at a cost of $8 billion. Truckers who transport goods, farmers who use oil to raise and harvest crops and working families are now paying more at the pump as a result of this energy freeze

In the Pipeline: 3/14/11

Question: How many green jobs have been created with tax payer subsidies in Oregon? Answer: your guess is as good as mine Oregon Live (3/13/11) reports: Labor leader Tom Chamberlain decided some basic research was in order before the Oregon AFL-CIO could lend its support to the state’s increasingly expensive subsidies for green energy projects. “We wanted to know what we were getting for the money,” he says. “How many jobs? What do they pay? Like any tax incentive program, you want to make sure you’re getting bang for your buck.”..Instead of numbers, Chamberlain says, he got the equivalent of a blank stare from the Department of Energy, which administers and approves the subsidies…That was two years ago…Today, little has changed. Despite claims by supporters that the subsidies have led to “thousands” of jobs, no one can say with any certainty what impact the Business Energy Tax Credit, or BETC, has had on the state’s stubbornly high unemployment rate.

Can’t retire soon enough—Sen. Lieberman wants a moratorium on nuclear, but he doesn’t realize there has been a permitorium since the 70’s on new plant construction. CBS (3/13/11) reports: Independent Sen. Joe Lieberman on Sunday called for a temporary moratorium on the construction of nuclear power plants in the U.S. in the aftermath of Japan’s devastating earthquake and tsunami, which damaged two reactors at a nuclear facility in the country’s northeast…”The reality is that we’re watching something unfold,” he said in an interview for CBS’ “Face the Nation.” “We don ‘t know where it’s going with regard to the nuclear power plants in Japan right now. I think it calls on us here in the U.S. – naturally not to stop building nuclear power plants, but to put the brakes on right now until we understand the ramifications of what’s happened in Japan…Japan, which was ravaged by an 8.9 magnitude earthquake and subsequent tsunami last week, is now struggling with a growing nuclear crisis as a partial meltdown is already likely under way at one nuclear reactor, and operators are frantically trying to prevent the disaster from growing worse…Noting that while in recent years the Federal Emergency Management Agency (FEMA) had enacted upgraded emergency contingency plans for nuclear power plants in the event of a natural disaster, Lieberman said the situation in Japan could be instructive in preventing future crises.

Can’t stop, won’t stop—China rejects the idea that nuclear is not a viable energy source. Wall Street Journal (3/13/11) reports: China currently generates about 10.8 gigawatts of power from nuclear facilities in the country, but efforts are on for a massive ramp-up in that capacity as it strives to reduce its dependence on polluting coal-fired plants, which are estimated to account for a majority of the nation’s power generation…China is currently building about 28 reactors, and aims to start building nuclear plants with a capacity of about 40 gigawatts by 2015, Reuters reported, citing Beijing’s goals under the nation’s 12th Five-Year Plan, covering 2011 to 2015…The comments came as shares of uranium-mining companies fell sharply in Sydney on concerns nuclear plants would receive a setback in the wake of Friday’s earthquake in Japan.

Obama Administration was so kind to let tax payers keep more of their hard earned money, but realizes the war on affordable energy comes with a price. Washington Post President Obama acknowledged Friday that the fast-rising cost of gasoline could diminish the effect of policies designed to stimulate economic growth, but warned that he is not yet prepared to unleash the nation’s energy reserves to bring down the price of oil…In a news conference, Obama said that a payroll tax cut signed into law in December as part of the tax package would now go to cushion the impact of a recent spike in oil prices and allow for continued economic growth…An Energy Department analysis released this week says that the average U.S. household will pay $700 more in fuel costs this year, cutting into the $1,000 per year savings per family that Obama cited as a result of the payroll tax cut…“[G]as prices are hurting individuals right now and obviously taking some of that tax cut that we gave them and forcing them to use it on gas as opposed to buying other items,” the president said.

In the Pipeline: 3/11/11

Yes my economically illiterate green friends, it’s called the Jevons paradox— greater energy efficiency can actually lead to more energy use overall. Auto Blog (3/10/11) reports: Sweden seems to be experiencing what experts call a backfire effect from the company’s rash of green car sales. Swedish car buyers have been snapping up clean diesel and ethanol vehicles in droves thanks to sizable government incentives, but, according to reports, the nation has actually seen its emissions from the transportation sector increase by an impressive 100,000 tons. What happened? According to statistics from the Swedish Transportation Agency, average emissions from new cars in the country decreased from 164 to 151 grams of CO2 per kilometer driven, Swedish drivers used their green cars to cover more territory than ever before. Thanks in part to better fuel economy and the idea that a green vehicle has a slimmer impact on the environment, the overall result is more fuel burned, more emissions spewed.

Poetic Justice — CA enviros are caught in their own green tape Los Angeles Times (3/10/11) reports: At least two dozen solar, wind and other energy projects currently tangled in bureaucratic and environmental red tape could give California a multibillion dollar boost if they were to move forward, a new report says…The study, commissioned by the U.S. Chamber of Commerce, estimates that building and operating 31 stalled energy projects in the state would create 142,100 jobs annually and pump nearly $60 billion into the economy…The report was unveiled as gas prices continued to climb and calls for cleaner sources of energy have been rising…”We have hundreds of laws with thousands of provisions, all of which can stop a project,” said William Kovacs, the U.S. chamber’s senior vice president of environment, technology and regulatory affairs. “As you delay these projects, you put them at economic risk.”

How could Americans not think Dems are responsible for high-energy prices? Sec. Chu wants $10 gas, Sec. Salazar won’t drill and Obama confessed under his plan energy prices would “necessarily skyrocket” Politico (3/10/11) reports: Democratic leaders insist that voters won’t punish their party for high gas prices — but the pain at the pump could make it even harder for them to pass the president’s energy agenda…Republicans have shown no fear in tying the oil price spikes to anything on the Democratic energy agenda, from President Barack Obama’s stance on offshore drilling permits to long dead cap-and-trade legislation and pending climate change rules for power plants… The GOP attacks may have no basis in fact when it comes to changing short-term prices at the pump. But they certainly change the politics on a number of big energy votes looming on the horizon…Floor debates are expected over halting EPA’s climate regulations, offshore drilling and maybe even opening up Alaska ‘s Arctic National Wildlife Refuge to oil and gas development. All are within a hair of going the Republicans’ way, and several rank-and-file Democrats up for reelection hold crucial votes that Obama and Senate Majority Leader Harry Reid are counting on.

If you thought the oil problem was bad now, just wait until you see the greenies’ solution The Hill (3/10/11) reports: A group of House Democrats introduced legislation Thursday to tap the country’s oil reserves in response to rising prices…“This is the time to deploy a responsible amount of reserves before it is too late,” Rep. Edward Markey (D-Mass.), the author of the new bill, told reporters…Markey’s bill represents the latest effort by Democrats to release oil from the Strategic Petroleum Reserve (SPR), a 727-million-barrel emergency stockpile of oil. But the proposal faces opposition from Republicans and at least one senior House Democrat…The legislation would require that over the next six months at least 30 million barrels of oil be released from the SPR. President Obama ultimately has the authority to release oil from the SPR.

 

 

In the Pipeline: 3/10/11

The game is rigged—CA and NY buildings are forced to go green, giving companies like Retroficiency a guaranteed market. Reuters (3/9/11) reports: At the same time, energy efficiency is becoming less of a luxury and more of a requirement in many key markets. New York City will soon require all buildings over 50,000 square feet to benchmark and record their energy use, and the state of California’s new CalGreen building codes, put into effect this year, include a host of energy efficiency requirements that could be adopted by other states in the years to come…If making buildings more energy-efficient is the cheapest and fastest way to make money on green investments, why isn’t every office building owner in the land doing it? The answer is the up-front cost…But Retroficiency, a startup out of MIT, says its software and deep data analysis can make the process of identifying which buildings in a portfolio of hundreds are ripe for efficiency retrofits, a lot easier and cheaper. On Wednesday, the Boston-based startup announced an $800,000 angel round from investors including World Energy Solutions, as well as a working relationship with major property management firm Jones Lang Lasalle that will give it a chance to test the tech out in the real world.

Company launches “Tiger Blood” energy drink designed to take you to a new level of WINNING. We hope the folks at the White House drink up so we can finally win the future with affordable and reliable energy instead of that stuff they’re peddling now. M&C (3/9/11) reports: Troubled star Charlie Sheen has inspired a new energy drink designed to bring you to a new level of WINNING! Harcos Laboratories has launched their new liquid potion called Bi-Winning Tiger Blood. Sheen’s impassioned outbursts about his strength and mental prowess have inspired the red drink, which is described on the company ‘s website as: ‘Made from 100% passion specifically to make your brain fire in a way that’s not from this particular terrestrial realm.’

Duh! DOE says there is a 25% chance of $4 gallon gas this summer. Wall Street Journal (3/9/11) reports: Federal energy officials say there is a 25% chance that gasoline prices will average $4 a gallon or more during this year’s summer driving season. The U.S. Department of Energy says it expects oil prices to average $105 a barrel in 2011, up from its previous estimate of $91 a barrel…The agency’s Energy Information Administration attributed the change in the forecast in part to disruption of the crude oil supply due to instability in Libya. Unrest in other parts of North Africa and the Middle East also threaten to hurt the oil supply. In some ways the government is telling us what we already suspected.

In the good old days, Google’s motto was “Don’t be evil.” To hell with that. Now these billionaires want to take taxpayer dollars to pay for their pet energy schemes. If that’s not evil, it’s tough to see what is. NY Times/Greenwire (3/9/11) reports: Google Inc. has launched a lobbying campaign seeking government help spurring a green-technology transformation.”The way we use energy — whether it’s powering our cars or our homes and businesses — hasn’t changed in decades,” Michael Terrell, Google’s energy policy counsel, wrote yesterday on the company’s blog. “Our economy needs a cleaner, more efficient way of delivering energy while giving people better tools and information to manage their energy use.” The Mountain View, Calif.-based company recruited Crowell Strategies LLC. The consulting firm’s lobbyist, Colin Crowell, previously worked as a senior counsel at the Federal Communications Commission and before that as an aide to Rep. Ed Markey (D-Mass.). It is the latest venture by Google in the political energy arena. The company already has hired lobbying firms to work on energy efficiency and renewable issues and research & development of smart-grid transmission.

Remember that Denmark study? Can’t happen here, right? There was a time when CA wasn’t a running joke. Mercury News (3/9/11) reports: The Colorado Public Utilities Commission is deciding how Xcel Energy should use millions of dollars’ worth of wind-energy credits it sells to California…Xcel has more wind generation than it needs to meet Colorado’s renewable energy standard. It sells the excess as credits to help others meet renewable-energy requirements…Last year Xcel sold $33.6 million worth of renewable-energy credits to California and returned about 54 percent of that to customers…The Denver Post reports Xcel has proposed keeping 20 percent of future sales, returning 80 percent to customers, and using money to support renewable-energy programs. The state Office of Consumer Counsel is seeking 85 percent for customers, with some money going toward lowering customers’ bills.

You go girls! Sens. Hutchison and Landrieu introduce common sense legislation to renew all permits in the Gulf for one year. Fuel Fix (3/9/11) reports: Sens. Kay Bailey Hutchison, R-Texas, and Mary Landrieu, D-La., said today they are sponsoring legislation to extend oil and gas leases in the Gulf of Mexico for one year in order to make up for time lost during the Obama administration’s moratorium following the BP oil spill…The Interior Department suspended some deep-water exploration and drilling operations in the Gulf 10 days after the April 20 explosion of the Deepwater Horizon drilling rig at BP’s Macondowell…The administration ended its ban in October and, last month, issued the first drilling permit for work that had been blocked by the moratorium…During the ban, government officials and industry representatives worked to strengthen environmental and safety regulations for offshore operations…The Interior Department’s Bureau of Ocean Energy Management, Regulation and Enforcement is now reviewing permit applications to make sure they comply with the new standards…Present law enables the bureau to decide whether a lease extension is prudent. The Hutchison-Landrieu bill — the Lease Extension and Energy Security (LEASE) Act — would provide a blanket extension.

President Obama on Nov. 3 talking about cap-and-trade—there’s “more than one way to skin a cat.” He get his wishGasoline cost to jump $700 for average household. Reuters (3/9/11) reports: U.S. drivers will pay another 10 cents a gallon for gasoline before the latest jump in wholesale costs is fully passed on at the pump, and yearly motor fuel costs will rise 28 percent from last year, the Energy Department said on Wednesday. The average U.S. household will spend about $700 more for gasoline in 2011 than it spent last year, bringing total motor fuel expenses up 28 percent to $3,235, based on an annual pump price of $3.61 a gallon, the department’s Energy Information Administration said.

The Obama administration’s energy price mantra: Price increases are bad when they are the product of global market forces, but it’s no problem to intentionally increases energy prices through policy. Don’t worry, it doesn’t make sense to be either. Denver Post (3/9/11) argues: Here ‘s what you need to know about rising energy prices: They’re a threat to prosperity when they’re the product of global market forces, but they ‘re a boon to job creation when they’re the result of government mandates and subsidies. And please don’t ask our policymakers to explain the apparent contradiction. The Obama administration — champion of cap-and-trade and other price-boosting schemes — has had no trouble acknowledging the threat from the recent run-up in oil prices. As William Daley, the president’s chief of staff, explained Sunday when discussing the possibility of tapping the strategic oil reserve, “All matters have to be on the table when you see the difficulty coming out of this economic crisis we’re in and the fragility of it.” But if today’s surging energy prices are a threat to economic health, why are rising prices benign when contrived by domestic policy?

Just how bad is our current ethanol policy? It’s so bad that Sen. Tom Coburn (R-Okla.) and Sen. Ben Cardin (D-Md.) are cosponsoring a bill to end $6 billion in ethanol subsidies. The Hill (3/9/11) reports: Sens. Tom Coburn (R-Okla.) and Ben Cardin (D-Md.) are teaming up in a new push to end tax credits that support the domestic ethanol industry. The pair — reviving a left-right push against ethanol — introduced a bill Wednesday that would repeal the 45 cents-per-gallon credit, which refiners and gasoline blenders receive for each gallon of ethanol purchased and mixed into gasoline. “The ethanol tax credit is bad economic policy, bad energy policy and bad environmental policy. The $6 billion we waste every year on corporate welfare should instead stay in taxpayers’ pockets where it can be used to spur innovation, stimulate growth and create jobs,” Coburn said in a statement Wednesday.

The White House wants you to only notice that oil production increased last year. They don’t want you to notice that their policies will end the increase and cause oil and natural gas production to fall this year on federal lands, even as production increases on state and private lands. The Hill (3/9/11) explains: The Obama administration and House Republicans are at odds over a federal report released Tuesday that lays out the status of the country’s domestic oil production. The disagreement over the report is the latest indication that oil drilling is quickly becoming a hot-button political issue amid rising gas prices and unrest in the Middle East and North Africa. Not surprisingly, both sides are only giving a partial picture of the new data. The White House is touting numbers that show domestic oil production increased in 2010, while Republicans are highlighting data that show production will actually decrease in 2011 and 2012.

The Obama administration will issue a “handful” of drilling permits, knowing full well that its allies in the environmental community to sue to delay and stop any actual drilling. Who needs domestic source of energy—we always have OPEC right? The Wall Street Journal(3/9/11) reports: WASHINGTON—The Obama administration will issue a “handful” of deep-water oil-drilling permits the near future, a cabinet official said yesterday.Interior Secretary Ken Salazar said the permits would be coming as he faced more questions from U.S. lawmakers about pending applications to drill in the Gulf of Mexico. “We have in hand a number of other permits that we expect to issue very soon in the deep water,” Mr. Salazar said at a hearing of the Senate Appropriations Subcommittee on Interior, Environment, and Related Agencies. “These first permits hopefully will become a template allowing other deep-water permits to be issued.” Mr. Salazar’s comments came as the Obama administration appeals a ruling from a federal judge who has ordered it to act on pending permits.

 

 

In the Pipeline: 3/9/11

Memo to Geithner: The U.S. is one of those major developed economies with substantial oil reserves. Oh, and don’t forget to pay your taxes this year. Bloomberg (3/8/11) reports: Major oil producers and consumers are well-placed to respond to any shortfall in supplies resulting from the crisis in Libya, U.S. Treasury Secretary Timothy Geithner stressed Tuesday…Oil prices have spiked higher recently as a result of the Libyan uprising and fears of unrest elsewhere in the region. They retreated somewhat on Tuesday as OPEC ministers discussed whether to ramp up production but remain near 30-month highs…”It’s important to recognize that the major producers of oil and the major developed economies do have substantial reserves, resources available that they could mobilize if necessary to respond to any supply disruption,” Geithner said after talks with German Finance Minister Wolfgang Schaeuble…He added that “even in the face of these uncertainties,” there are “encouraging signs of gradually strengthening recovery” across major global economies.

The writing is on the smoke stacks — China is buying and developing affordable and reliable energy and exporting the stuff that doesn’t work very well to the West. Wall Street Journal (3/9/11) reports: Two clean-energy businesses—Beijing Jingneng Clean Energy Co. and the solar-glass unit of Xinyi Glass Holding Ltd. —plan to raise a total of roughly US$1.1 billion from Hong Kong initial public offerings this year, highlighting the rapid growth of demand for renewable energy in China…Chinese property developer Top Spring International Holdings Ltd. also plans to raise as much as US$260 million in initial public offering ahead of its listing in Hong Kong on March 23, according to a term sheet seen by Dow Jones Newswires on Wednesday…The first Chinese clean-energy company aiming to list in Hong Kong since China Datang Corp. Renewable Power Co’s US$682 million IPO in December, state-owned Beijing Jingneng plans to raise about US$500 million in an IPO in the second quarter, people familiar with the situation said Wednesday….As at the end of December, Beijing Jingneng, a clean-energy unit of the Beijing municipal government, had a total installed capacity of 1.19 gigawatt of gas-fired power. It accounted for 70% of Beijing’s total gas-fired power capacity, according to the website of its parent, Beijing Energy Investment Holdings Co.

Big Sun, meet King Corn. Having mastered the art of funneling massive federal subsidies for ethanol, Iowa wants in on the solar racket, too. Des Moines Register (3/9/11) reports: A solar-powered tent was pitched on the state Capitol grounds on a cloudy Tuesday as part of an effort to get lawmakers thinking about creating a solar energy policy for Iowa…An added enticement was a new report showing that solar energy could create nearly 5,000 jobs if Iowa adds 300 megawatts of solar power during the next five years…That may sound like a lot of energy, but it’s only 8 percent of the 3,675 megawatts that wind power already produces in Iowa…Iowa needs a solar energy goal, said David Osterberg of the Iowa Policy Project. The Iowa City think tank was a co-sponsor of solar activities at the Capitol. The event included an appearance by former University of Iowa and NFL star Tim Dwight, who is now a co-owner of a California solar development company.

Meet Ed Markey. A man who never met an energy project he didn’t hold up. This time he is confused that a proposed nuclear plan will actually produce power. New York Times (3/9/11) reports: The Nuclear Regulatory Commission is moving toward approval of the Westinghouse AP1000 reactor and its strikingly different containment design, which has far fewer pumps and valves plus a safety system that relies mostly on foolproof forces, like water flowing downhill or heat rising. But complaints over the design persist…In a notice on Feb. 24 in the Federal Register, the commission invited public comment on its intention to approve the design; the comment period runs until May 10…The notice quickly drew comment from Representative Edward J. Markey of Massachusetts. In a letter sent on Tuesday to the chairman of the regulatory commission, Gregory Jaczko, Mr. Markey asked that the commission hold off until it has resolved a dispute with one of its staff members, John S. Ma, a senior structural engineer, over whether a shield building in the new design could withstand an earthquake or the impact of an airplane crash…“Taxpayer dollars should not be spent on reactors that could be at risk of suffering a catastrophic core meltdown in the event of an aircraft strike or a major earthquake,’’ Mr. Markey wrote.

Coincidence? Tesla has a showroom in downtown DC. Washington takes your tax dollars and hands rich greenies a tax break on Tesla’s $58,000 sedan. CNN (3/8/11) reports:  Tesla Motors, best known for the plug-in electric Tesla Roadster, plans to begin delivering its new Model S sedan around the middle of next year, the automaker announced Monday…Prices for the plug-in electric Model S sedan will start at $57,400 but the vehicle will be eligible for a $7,500 tax credit. The base model will have a driving range of 160 miles, Tesla said, but buyers will be able to pay more for versions with larger battery packs and longer driving ranges… In fact, the first 1,000 cars off Tesla production line — housed in a California factory that had produced cars for General Motors and Toyota — will be the Model S Signature Series, a version capable of driving 300 miles on a charge…These cars are expected to cost about $20,000 more than the base model, Tesla said on its website. For $10,000 over the base price, customers will be offered a car with a 230 mile driving range…Tesla expects to produce only 5,000 of the cars in 2012 but hopes to expand production capacity to 20,000 cars by 2013.

 

In the Pipeline: 3/8/11

Wanna bet the Queen won’t have to change her own behaviour? Financial Post (3/5/11) reports: Electricity consumers in the UK will need to get used to flicking the switch and finding the power unavailable, according to Steve Holliday, CEO of National Grid, the country’s grid operator. Because of a six-fold increase in wind generation, which won’t be available when the wind doesn’t blow, “The grid is going to be a very different system in 2020, 2030,” he told BBC’s Radio 4. “We keep thinking that we want it to be there and provide power when we need it. It’s going to be much smarter than that…“We are going to change our own behaviour and consume it when it is available and available cheaply.”…Holliday has for several years been predicting that blackouts could become a feature of power systems that replace reliable coal plants with wind turbines in order to meet greenhouse gas targets. Wind-based power systems are necessary to meet the government’s targets, he has explained, but they will require lifestyle changes.

The Obama Administration’s national energy policy has been a natural disaster that qualifies for tapping the Strategic Petroleum Reserve.  Or maybe we can just drill for oil in the Gulf, Alaska, Virginia, California…starting to get the picture? The Hill (3/8/11) reports: A member of the House GOP leadership is attacking the White House over its consideration of releasing oil from the Strategic Petroleum Reserve.“As the price of gas continues to rise, the White House is considering a short-term response and ignoring the implications of its failed energy policies,” said Rep. Tom Price (R-Ga.), the chairman of the House Republican Policy Committee…“The Strategic Petroleum Reserve was created to offer relief should there be a temporary disruption in the supply of crude oil, like a devastating hurricane or a blockade of oil imports.  It was not intended to be a tool to manipulate the market or provide political relief,” he added in a statement…Bill Daley, President Obama’s chief of staff, said Sunday that the president is considering tapping the reserve. But the White House emphasized Monday that rising oil costs will not be the “sole factor” in whether the administration taps the 727-million barrel stockpile.

One crop to rule them all — which GOP candidate will do the right thing and stand up to King Corn? The Hill (3/7/11) reports: Corn is king in Iowa, but ethanol is a close second, and Republicans seeking to unseat President Obama must balance conservative demands to slash subsidies with the popularity of price supports in Iowa… Support for ethanol subsidies has long been seen as a requirement to winning support in Iowa. Sen. John McCain (R-Ariz.), for example, shifted from opposing the subsidies in 2000 to supporting them by 2008, but still ended up losing to former Arkansas Gov. Mike Huckabee (R), partly because of his past opposition to farm subsidies… The GOP presidential field faces a huge challenge in handling ethanol subsidies in the Tea Party era ahead of Iowa’s first-in-the-nation 2012 caucuses.

Dominoes: At what point is our government going to realize we don’t need to depend on dictators for our energy supplies? Wall Street Journal (3/8/11) reports: Big oil companies and Wall Street banks have stopped trading crude with Libya in response to sanctions against the country, threatening a near-shutdown of exports from the North African country and driving oil prices even higher… Morgan Stanley, which buys Libyan oil for its clients, has stopped buying because of sanctions announced last month, according to a person familiar with the matter. ConocoPhillips Co. said it isn’t exporting any of the 46,000 barrels a day of oil it normally produces in Libya. Exxon Mobil Corp. also said it is complying with the sanctions against Libya. A person familiar with BP PLC said the company wasn’t currently doing any new trading deals in Libya… These moves are putting further strains on an already-volatile oil market, threatening to send gasoline prices higher around the world. Oil is already trading at its highest level in 2½ years as antigovernment protests sweep further across the Middle East, and worries increase that disruptions could spread from Libya to bigger producers like Saudi Arabia and Iran. Crude futures rose $1.02 per barrel, or 1%, to $105.44 at the New York Mercantile Exchange on Monday.

Two thousand words on miracles of geothermal and this was said in passing: ‘The monthly electric will bill go up, of course’.  At least the cat has fur, but we’ll need a snuggie to keep warm. New York Times (3/7/11) reports: Five years ago, my husband and I walked out of what was left of our historic house after a propane explosion. As the house caught fire, the cat jumped out to safety, too. When we rebuilt, we wanted to avoid burning fossil fuels in our new home, and I remembered reading an article about an architect who drilled geothermal wells to heat and cool his Lower Manhattan town house… Many people think geothermal energy means tapping the power of geyserlike hot springs from miles underground to turn turbines and generate electricity. They may also associate it with minor earthquakes like those that halted major geothermal deep-drilling projects in northern California and in Switzerland late in 2009… “Cost savings are specific to the area of the country, and depend on whether you are competing with natural gas or propane or electric resistance,” said Gordon Bloomquist, a retired senior scientist at Washington State University, who has studied, designed and done troubleshooting on hundreds of geothermal projects.

Chu has a moment of zen — energy created at home is wealth creation — but it lasted as long as a Volt battery charge Scientific American (3/7/11) reports: “You might ask, what will the price of oil be? And the answer is, we don’t know.”…That’s Steven Chu musing on oil at the second annual summit of ARPA-e in Washington, D.C. on March 1. Chu, for one, hopes we don’t hit the snooze button again. “Our national security is very dependent on our energy security. So, and I want to stress this, energy we create at home is wealth creation at home.”… Chu is a man who knows a lot, Nobel laureate in physics, our nation’s 12th secretary of energy. But given the world’s increasing thirst for oil—and the demand for energy more generally—guessing black gold’s future price is a speculator’s game

In the Pipeline: 3/7/11

IER’s Tom Pyle explains why it makes dollars and sense to resume drilling in the Gulf of Mexico Washington Examiner (3/6/11) reports: Interior Secretary Ken Salazar recently announced that the proposed $12 billion Department of Interior budget would make painful cuts and “do more with less.” While Interior worries about its own internal costs, the department’s leaders continue to lock up significant income, revenue and jobs through the Obama Administration’s ongoing de facto moratorium on offshore drilling permits…The Interior Department’s Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) imposed two blanket moratoriums on deepwater offshore activities following the April 2010 Macondo well blowout at the Deepwater Horizon site…But even after Salazar formally lifted the second moratorium on Oct.12, 2010, new permits have yet to be processed and little to no deepwater drilling has resumed. Salazar announced the issuance of one deepwater permit last week…Even that decision, however, was consistent with the politicization of the permitting process, as it came just before Salazar was scheduled to testify on Capitol Hill to answer questions about BOMERE’s complete agency inaction.

No Mr. President, be careful what you wish for — green dreams can lead to gas nightmares The Hill (3/5/11) reports: The Obama administration delivered a warning late Friday to a federal judge who’s demanding Interior Department action on deepwater drilling permit applications: Be careful what you wish for… Interior appealed the orders late Friday and asked for a stay…In their filing, Justice Department lawyers say that Judge Martin Feldman’s orders could thwart the “efficient development of oil and gas resources on the Outer Continental Shelf, as well as potentially harm the near-term interests of the operators who submitted the subject applications.”…The Interior Department challenged a Louisiana judge’s orders that require decisions on several industry applications later this month, warning that the court’s mandate could force Interior to “deny the applications outright” and divert resources from review of other permit requests.

IER’s Dan Kish talks gas prices in light of the Obama Administration’s war on affordable and reliable energy Wall Street Journal (3/4/11) reports: Onshore? Interior Secretary Ken Salazar has revoked oil-and-gas leases. The EPA is suffocating the coal industry with regulation. One of the president’s only clear State of the Union proposals was to raise taxes on oil and gas. The White House’s energy policy, says Dan Kish of the Institute for Energy Research, is “embargoing our own energy supplies to drive up their costs…”The Obama administration has its share of headaches: a possible government shutdown, Arab unrest, the union uprising. The real migraine may be a firestorm over gasoline prices…Oil last week topped $100 a barrel, and gas has hit $4 a gallon in pockets of the country. The price is expected to keep heading up. This pain is being felt by a public still dazed by recession.

Who says green energy doesn’t create jobs? Larry Eisenberg wasted $10 million on blueprints for renewables, but don’t worry he has $5.7 billion more in tax payer money to ‘invest’ Los Angeles Times (3/6/11) reports: As head of a $5.7-billion, taxpayer-funded program to rebuild the college campuses, Eisenberg commanded attention. But his plan for energy independence was seriously flawed…He overestimated how much power the colleges could generate. He underestimated the cost. And he poured millions of dollars into designs for projects that proved so impractical or unpopular they were never built…These and other blunders cost nearly $10 million that could have paid for new classrooms, laboratories and other college facilities, a Times investigation found…The problems with Eisenberg’s energy vision were fundamental. For starters, there simply wasn’t room on the campuses for all the generating equipment required to become self-sufficient. Some of the colleges wouldn’t come close to that goal even if solar panels, wind turbines and other devices were wedged into every available space.

George Will warns of the gravy train — it’s all about central planning and control over the individual Wall Street Journal (3/5/11) reports: Generations hence, when the river of time has worn this presidency’s importance to a small, smooth pebble in the stream of history, people will still marvel that its defining trait was a mania for high-speed rail projects. This disorder illuminates the progressive mind…Forever seeking Archimedean levers for prying the world in directions they prefer, progressives say they embrace high-speed rail for many reasons—to improve the climate, increase competitiveness, enhance national security, reduce congestion, and rationalize land use. The length of the list of reasons, and the flimsiness of each, points to this conclusion: the real reason for progressives’ passion for trains is their goal of diminishing Americans’ individualism in order to make them more amenable to collectivism…To progressives, the best thing about railroads is that people riding them are not in automobiles, which are subversive of the deference on which progressivism depends. Automobiles go hither and yon, wherever and whenever the driver desires, without timetables. Automobiles encourage people to think they—unsupervised, untutored, and unscripted—are masters of their fates. The automobile encourages people in delusions of adequacy, which make them resistant to government by experts who know what choices people should make…Time was, the progressive cry was “Workers of the world unite!” or “Power to the people!” Now it is less resonant: “All aboard!”

Rail projects are expensive and inflexible, but Bus Rapid Transit is much more affordable. Guess which one the President (or greens) supports? New York Times (3/6/11) reports: B.R.T. is far less expensive than light rail, which has been coveted by many U.S. cities with growing populations. And many cities can forget about building new underground trains. Costs for building B.R.T. can run $1 million per mile, or per 1.6 kilometers, compared with $1 billion per mile for subways…For decades, most U.S. commuters have maligned buses as noisy, dirty and much slower than cars in city traffic, since they make many stops…But about 120 cities in developing economies from Colombia to China that have invested in high-technology systems known as bus rapid transit, or B.R.T., have taken the transport mode to a higher level.

IER’s Dan Kish explains the connection between Alaska and Libya — turns out size does matter Human Events (3/3/11) reports: As Americans watch the price of gasoline skyrocket and average families wonder how they’re going to make it to the end of the month, we are reminded that because of our short-sighted energy policies, what happens in Libya and elsewhere in the Middle East affects the very economic strength of the United States.  We could do much to reduce the effect of foreign entanglements on family budgets and the price of everything from food to clothing to government itself, but the government deliberately and publicly stands in the way of reducing our dependency.  As Ronald Reagan said, “Government is not the solution to our problem, it is the problem.”…The revolt in Libya has raised serious questions about Libya’s ability to export about 1.4 million barrels of oil per day to the world.  Meanwhile, the largest pipeline in America—the trans-Alaska pipeline system or TAPS—is currently using less than one-third of its original capacity, meaning that if our government would allow it, Alaska could send 1.4 million barrels more per day to consumers in the U.S.  Alaska is hugely rich in energy resources, but unfortunately the government owns most of the land and all of the offshore waters, and it won’t permit development of new resources.


In the Pipeline: 3/4/11

Don’t worry, there’s always oil in the reserve and also onshore, offshore, and the 97 percent of federal lands we can’t explore Fuel Fix (3/3/11) reports: U.S. oil prices closed above $100 a barrel Wednesday for the first time in more than two years, and might be higher still if the giant storage tanks in this small prairie town northeast of Oklahoma City weren’t so full…Here, at the nation’s main hub for oil storage and distribution, bulging stockpiles of crude are acting as a partial buffer to Middle East turmoil that’s driven international oil prices much higher…At the moment, about 11 percent of the nation’s oil inventory is parked in Cushing, nearly double where it stood a few years ago…However, all that oil hasn’t shielded Americans from paying higher gasoline prices, for several reasons. While the price of the benchmark West Texas Intermediate crude at Cushing hasn’t soared as high as comparable oil elsewhere, it’s still well above its price just a few weeks ago, and the price of crude is the main component of prices at the pump…Whatever its price, the oil at Cushing represents just a small fraction of the nation’s total demand, and crude stored in the town doesn’t have an easy path to all the refineries that might otherwise welcome its lower cost.

Is there room for one more on those coattails? Republicans grab hold of rising gas prices to attack the Obama Administration Los Angeles Times (3/3/11) reports: As Republicans continue to cast about for ways to weaken President Obama in advance of next year’s elections, it appears they believe they have found one solid line of attack: rising gas prices…The average cost of a gallon of gas has been rising over the $3 mark all year, hitting $3.39 this week. On Wednesday, the price for a gallon of crude oil surpassed $100 a barrel on the world markets. Unrest in the Middle East, particularly in the oil-rich state of Libya, as well as rising international demand, has many analysts believing gas in the U.S. could hit $4 a gallon by summer…If that occurs, it may prove to be another test for Obama’s presidency. Earlier this week, Federal Reserve Chairman Ben Bernanke, testifying before Congress, called rising prices “a threat” to the economy’s recovery, although he suggested that the result would be a modest increase in consumer prices, not rampant inflation…But President George W. Bush faced a similar spike in 2008, part of an economic downturn that helped erode whatever remaining popular support he enjoyed as his second term wound down. And, of course, an energy crisis, along with long lines at gas pumps, became synonymous with the final years of Jimmy Carter’s presidency.

I suppose lawyers are green jobs — they are making a lot of money off of CA cap and tax program Wall Street Journal (3/2/11) reports: California’s cap-and-trade program is being threatened by groups of local residents, even after the ambitious climate plan survived an electoral challenge in November…Communities For A Better Environment, California Communities Against Toxics, Society For Positive Action and other groups and individuals have sued state regulators, claiming the climate plan won’t reduce pollution. The plaintiffs argue that industrial facilities should cut their actual emissions, rather than trade rights to pollute…”All the evidence showed that cap-and-trade programs have failed environmental justice communities,” said Alegria de la Cruz, an attorney with the Center on Race, Poverty & The Environment, who is representing the plaintiffs. Ms. De la Cruz said the Air Resources Board must “do some deep thinking on alternatives to the cap-and-trade system.”…The status of the cap-and-trade program, which is part of a plan to lower greenhouse-gas emissions to 1990 levels within a decade, was thrown into doubt after Superior Court Judge Ernest Goldsmith agreed with the plaintiffs in a Jan. 27 ruling. He said the Air Resources Board, which is tasked with lowering air pollution, hadn’t conducted an adequate environmental review before it approved the plan…Judge Goldsmith is scheduled to issue a final ruling in the next few weeks.

He shot the cap and tax bill, maybe he will shoot Employment Prevention Agency regulation on GHG’s The Hill (3/3/11) reports: Sen. Joe Manchin (D-W.Va.), a vocal critic of the Environmental Protection Agency, has signed on as a co-sponsor of Republican legislation to permanently block the agency’s climate rules…The addition of Manchin, who is up for reelection in 2012, as a co-sponsor means that the authors of the bill have been able to get at least some Democratic support in both the House and the Senate. Forty-three Senate Republicans sponsored the bill..The Hill reported earlier Thursday that three House Democrats signed on to the legislation. Reps. Collin Peterson (D-Minn.), the ranking member on the House Agriculture Committee, and Nick Rahall (D-W.Va.), the ranking member on the House Transportation and Infrastructure Committee, have are both original co-sponsors. Rep. Dan Boren (D-Okla.) also signed on to the legislation…House Energy and Commerce Committee Chairman Fred Upton (R-Mich.) and Rep. Ed Whitfield (R-Ky.), chairman of the panel’s energy subcommittee, authored the House version of the bill, while Sen. James Inhofe (R-Okla.) introduced the Senate version of the legislation…The bill has a good chance of passing the House, but will face major hurdles in the Senate.

In the Pipeline: 3/3/11

Sing along! 10,000 Volts on the lot, 10,000 Volts. Take one down, drive it around, 9,999 Volts on the lot Auto Blog (3/2/11) reports: Peruse Chevrolet’s February sales release, and you ‘ll notice one number that’s blatantly missing: the number of Chevy Volts sold. The number – a very modest 281 – is available in the company’s detailed data (PDF), but it certainly isn’t something that GM wants to highlight, apparently. Keeping the number quiet is a bit understandable, since it’s lower than the 321 that Chevy sold in January…Nissan doesn’t have anything to brag about here, either (and it didn’t avoiding any mention of the Leaf sales in its press release). Why? Well, back in January, the company sold 87 Leafs. In February? Just 67. Where does that leave us? Well, here’s the big scorecard for all sales of these vehicles thus far:

* Volt: 928     * Leaf: 173

Ouch. The big questions, of course, revolve around one word: “Why?” Is ramping up production and deliveries still a problem? Is demand weak? Are unscrupulous dealers to blame? When will sales start to climb? And what are these numbers doing to plug-in vehicle work at other automakers? We don’t know all the answers, but for more on February auto sales, click here.

It’s the gas prices, stupid. Obama Administration realizes they can peddle green energy if fossil fuels are expensive and volatile Associated Press (3/2/11) reports: Mississippi Gov. Haley Barbour, a potential presidential contender, accused the Obama administration Wednesday of favoring a run-up in gas prices to prod consumers to buy more fuel-efficient cars…But the recent rise in gasoline prices has been primarily driven by unrest in the Middle East, particularly Libya, where protests have diminished crude oil production…Barbour cited 2008 comments from Steven Chu, now President Barack Obama’s energy secretary, that a gradual increase in gasoline taxes could coax consumers into dumping their gas-guzzlers and finding homes closer to where they work. Chu, then a Nobel Prize-winning professor, argued that higher costs per gallon could force investments in alternative fuels and spur cleaner energy sources…”This administration’s policies have been designed to drive up the cost of energy in the name of reducing pollution, in the name of making very expensive alternative fuels more economically competitive,” Barbour said during a U.S. Chamber of Commerce breakfast across the street from the White House.

Kenny “No Permits” Salazar says he needs more money if Congress wants more drilling; And next week on The Sopranos, Paulie Walnuts not so subtly reminds Phil Leotardo that his crew is late on their interest payments. The Hill (3/2/11) reports: Interior Secretary Ken Salazar said Wednesday that accelerating the pace of offshore oil drilling permit approvals will be heavily dependent on receiving more funding…The department is asking Congress for a major cash infusion for offshore oil-and-gas oversight, in part to substantially increase the staff for reviewing permits at a time when Interior is requiring drillers to meet toughened safety standards…Asked by a reporter when the pace of permitting might return to levels seen before the blowout of BP’s Macondo well last year, Salazar replied: “So much of it depends on this budget. If we can’t get the horsepower to be able to process permits under what now is a greater degree of scrutiny, we may never return to the pre-Macondo rate of permitting.”…He spoke to reporters after testifying before the Senate Energy and Natural Resources Committee. Interior is under heavy political pressure from Republicans and some Democrats to speed up permitting for both deepwater and shallow-water projects.

Speaking our language: Senator Inhofe wants to cut green tape and put Americans back to work. Unlike most U.S. Senators, we know he means it. Fuel Fix (3/2/11) reports: Sen. James Inhofe, R-Okla., said Wednesday that regulating greenhouse gas emissions should not be an EPA priority…“If we want to make strides in improving public health, we won’t do it by regulating carbon dioxide,” Sen. James Inhofe, R-Okla., said in a prepared statement during a Senate hearing on President Obama’s proposed 2012 budget for the agency. “It’s not a real pollutant—despite what EPA says.”…Instead, he said, more attention should be aimed toward regulating “real pollution,” such as sulfur dioxide and particulate matter…The EPA’s GHG regulation is a “carbon regime” that needs to be eliminated, Inhofe said…Earlier this week, the senator released the Energy Tax Prevention Act of 2011, legislation that would permanently block the EPA from regulating greenhouse gas emissions from stationary sources. Inhofe and the co-author of the bill, House Rep. Ed Whitfield, R-Ky., said they have been working with moderate Democrats in recent weeks to win some bipartisan support…Arguing in favor of the EPA, Sen. Barbara Boxer, D-Calif., defended the federal agency’s decision to set emission limits on the greenhouse gases blamed by many scientists for global warming. EPA “can act to protect to public from all pollution—including pollution related to climate change,” she contended.

There’s more than one way to skin a cat—Rep. Peterson signs on with Rep. Whitfield’s REINS Act and EPA’s Alaska Freeze convinces Senator Murkowski to finally put the bit in the runaway horse’s mouth. Politico (3/2/11) reports: House Republicans can claim “bipartisanship” in their bid to handcuff the EPA’s climate change rules…Rep. Collin Peterson (D-Minn.) told POLITICO on Wednesday that he will be co-sponsoring the legislation from House Energy and Commerce Committee Chairman Fred Upton (R-Mich.) and Rep. Ed Whitfield (R-Ky.) that puts a freeze on EPA’s regulatory agenda for major industrial polluters like power plants and petroleum refiners…”The EPA needs to be reined in,” said Peterson, the top Democrat on the House Agriculture Committee and a frequent critic of the agency…Upton and Whitfield, the chairman of the Energy and Power Subcommittee, have been offering small changes to their bill in their courtship of moderate and conservative Democrats like Peterson. Support from House Democrats, they hope, will put pressure on Senate Democrats and the Obama White House to accept their legislation…”We want to get as many as we can, and we have reason to believe we’ll have a number of Democrats,” Whitfield told reporters…House GOP aides were still trying to put a full list together of House Democratic co-sponsors as of late Wednesday and couldn’t confirm additional names. But the field of potential Democrats numbers around 13, considering the list of lawmakers who crossed the aisle during last month’s floor vote on anti-EPA language attached to the fiscal 2011 spending bill.