The Unregulated Podcast #69: Six More Weeks

This week on The Unregulated Podcast Tom Pyle and Mike McKenna discuss Punxsutawney Phil’s batting average, major February thirds from history, Biden’s increasing ridiculous appointment picks, and more.

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Key Vote NO on H.R. 4521

The American Energy Alliance urges all members to oppose H.R. 4521 the vehicle for the America COMPETES Act. While some parts of this legislation, especially those focused on China’s human rights violations, may be laudable, the larger package hijacks these important issues in an attempt to jam through significant green spending that could not pass through the normal legislative process.

The billions of dollars for the so-called Green Climate Fund are especially egregious. US taxpayer dollars should not be going to a global environmental slush fund that will be used to fuel corruption and anti-energy policies around the world. The subsidies for solar manufacturing included in the legislation recall the most wasteful parts of the 2009 stimulus when billions of dollars were thrown at uncompetitive sham companies like Solyndra. Other provisions would encourage the export of some of America’s most harmful environmental policies to other countries. In those countries as in the US, the harms of these policies fall hardest on the poor, who can least afford the higher energy costs that these environmental policies cause.

Legislation ostensibly about competition with China should not be hijacked by green ideology. The AEA urges all members to support free markets and affordable energy by voting NO on H.R. 4521. AEA will include this vote in its American Energy Scorecard.

Propagandists Run With Flawed Stove Study

Based on a study of a paltry 53 homes in California, researchers with Oakland-based Physicians, Scientists and Engineers for Healthy Energy (PSEHE) and Stanford University estimated that stoves emit between 0.8 and 1.3 percent of the natural gas they consume as unburned methane with three-quarters of these emissions occurring when the devices are shut off, suggesting leaky fittings and connections with gas service lines. The flawed research is to support banning natural gas appliances, as some cities in California and elsewhere have done for new buildings, as well as others debating converting existing buildings that consume natural gas to electricity, despite the extremely high costs to do so. The current study draws its conclusions by incorporating inflated methane emissions and claiming health impacts from emissions of nitrogen dioxide, a federally regulated pollutant.

There are numerous problems with the study—from sealing off the cooking room when taking measurements in their “laboratory”—to assuming that the leaks, if there are leaks, would have no odor. The following refutes their premises and conclusions.

Issue 1: The researchers set up an unrealistic environment 

The researchers encased the tested kitchen area in plastic sheets, sandbags, and painter’s tape – which in no way represents the kind of kitchen in which normal people cook. Sealing the room with plastic also meant sealing any ventilation to the exterior. Instead of using the “ductless” range hoods, which many homes had, the researchers used indoor fans to circulate air at selective locations and speeds to, supposedly, not interfere with the burners. Vented hoods have a high degree of effectiveness when overhanging the stove, and their counterpart, the “ductless” range hoods, feature activated carbon filters to remove particulate matter and pollutants from recirculated air. The sealed off room and the circulating fans are not representative of how Americans cook in their kitchens. It is more akin to measuring air quality produced by automobiles by attaching a hose to a tailpipe and directing it into a closed passenger compartment of an auto.

There are also issues with natural gas stove technologies that should be taken into consideration – but were not—when doing this analysis. The researchers found that stoves with pilot lights produce larger amounts of methane because they require constant natural gas stream with delays in ignition between steady-off and steady-on states. Newer natural gas appliances, however, do not have these inefficient pilot lights. Further, as of 2009, the U.S. Department of Energy issued a “no standing pilot light” rule, which prohibited standing pilot lights in gas cooking products.

The above may be some of the reasons why in two of the scenarios—the stove steady-state-off and cooktop steady-state-on scenarios—five stoves (nine percent of the sample size) emitted half of all measured emissions.

Issue 2: Inappropriate health comparison

In order to make the claim that gas stoves are harmful to health, the researchers compared nitrogen dioxide (NO2) emissions readings over the course of a few minutes to the average one-hour outdoor National Ambient Air Quality Standard (NAAQS) for NO2. The researchers did not acknowledge that the “1-hour national standard” is an outdoor standard, and is also an average, although they do admit that “there are no indoor standards.” Thus, the research team erred by comparing a peak reading in a small sample to an average outdoor standard. It is meaningless to compare a maximum to an average.

Further, since the researchers excluded ventilation, they distorted the measurement even more. When ventilation is included, concentrations of pollutants from cooking burners are reduced by 55 percent.

Last year, a study on this same topic called out a separate research team at UCLA for making the exact same claim.

“For comparison to NAAQs and CAAQs, the UCLA Report compared peak (maximum) concentrations directly to 1-hour NAAQs and CAAQs. The comparison of maximum peak concentrations to a 1-hour standard is not correct and certainly not relevant for assessing health risks. The 1-hour NAAQS and CAAQS represent health effects thresholds associated with 1-hour time averaged exposures. It is meaningless to compare a maximum to an average.”

The UCLA study was funded by the Sierra Club and was not peer-reviewed. This same fundamental error, however, occurs in the Stanford study, which was peer-reviewed. Clearly, dishonest claims should be dismissed when researchers and reviewers cannot be honest and must rely on sleight of hand and confusion to make claims regarding gas stoves and health in pursuit of a policy goal of banning gas stoves.

Issue 3: Researchers do not understand natural gas use in homes

The authors of the study told E&E News that the “larger than we thought” gas leaks they found could be happening in homes without residents knowing it. Their reasoning was amazing:

“The leaks were probably occurring on pipe fittings located in the kitchen itself and could be too small to perceive by smell, allowing them to drag on without being detected, since methane doesn’t give off a smell, Lebel and a co-author, Stanford professor Rob Jackson, told E&E News.”

The statement makes no sense because natural gas that enters transmission and distribution lines that go into houses must be odorized as a safety mechanism. Even though methane may be odorless in its natural state, most people associate a rotten eggs smell with natural gas. The odor occurs because the utility is required by law to add mercaptan to the gas stream so residents will be able to detect gas leaks.

Equally alarming was the suggestion by one of the researchers that people should fix their fittings on their own to ensure no leaks are evident. If residents have any reason to believe they may be experiencing leaks, they should call a licensed professional. Telling people to pull out their own stove to tinker with the connectors reflects a lack of understanding of how natural gas appliances function in the home, and in fact, could lead to catastrophic accidents

Issue 4: Activist involvement

The lead author, Eric Lebel, is affiliated with PSE for Healthy Energy, an organization funded by the Park Foundation, which also supports anti-fossil fuel groups and interests across the country. Years ago the head of the Park Foundation bragged that the organization was funding an “army” to oppose fracking.

The PSEHE’s Executive Director wrote a memo in 2012 laying out a strategy for making questionable health claims about fracking.

Issue 5: The natural gas industry has actively invested in reducing emissions

According to the American Gas Association, the natural gas industry has committed to investing nearly $30 billion each year to modernize the gas system and is investing $3.8 million every day to help customers and communities reduce their carbon footprint. Pipeline replacement projects have reduced emissions from the natural gas distribution system 69 percent since 1990 as pipes that may no longer be fit for service are being replaced with ones made from more modern materials, which increases safety and reduces emissions. Natural gas utilities have offset over 13.5 million metric tons of carbon dioxide emissions from 2012 to 2018—the equivalent to removing 2.9 million cars off the road for a year.

Conclusion

While combustion emissions from gas ranges, ovens, and cooktops can contribute some emissions, there are no documented risks to respiratory health from natural gas stoves from the regulatory and advisory agencies and organizations responsible for protecting residential consumer health and safety. Federal agencies such as the Consumer Product Safety Commission and the Environmental Protection Agency closely monitor and have evaluated homes with natural gas piping and natural gas appliances and have not taken any action to limit their use due to methane emissions as this study would suggest.

Nationally, more than one-third of households—about 40 million homes—cook with natural gas. To have all these households switch to electricity would be an enormous undertaking with huge costs and massive increases in demand for more electricity. Higher energy costs force homeowners to keep their homes at unsafe temperatures and greatly impact lower income residents who do not have sufficient income to meet their basic needs, particularly amongst rising prices. Further, natural gas is the main fuel used to generate electricity in the United States. Approximately 40 percent of our nation’s electricity comes from natural gas. But using natural gas to make electricity, rather than delivering it directly to a home or business is significantly less efficient. Converting natural gas into electricity only maintains 36 percent of usable energy from production to customer. Homes that use natural gas for heating (about 50 percent of U.S. homes), cooking, and clothes drying emit 37 percent fewer total carbon dioxide emissions than homes using electricity.

Attempts to force government policy changes on the basis of flawed studies performed in unnatural conditions mislead the public, and should be called out when they are cited by proponents of such changes.


*This article was adapted from content originally published by the Institute for Energy Research.

AEA, CEI Send Joint Letter Opposing Confirmation of Sarah Bloom Raskin to the Federal Reserve


The confirmation of the Biden administration’s choice for Vice-Chair of the Federal Reserve would be a recipe for financial instability.


WASHINGTON DC (February 1, 2021) – The American Energy Alliance (AEA), the country’s premier pro-consumer, pro-taxpayer, and free-market energy organization, joined with the Competitive Enterprise Institute (CEI) in opposition to the confirmation of Sarah Bloom Raskin to the Federal Reserve.

This Thursday, the Senate Banking Committee will hold a confirmation hearing to consider the nomination of Ms. Raskin to be Vice Chairman for Supervision and a Member of the Board of Governors of the Federal Reserve System.

AEA President Thomas Pyle issued the following statement:

“The world is witnessing an energy crisis. On one hand, the White House has begged OPEC and Russia to supply additional oil on global markets and on the other hand he nominated Ms. Raskin who has stated that “even in the short term, fossil fuels are a terrible investment.” It is unclear why fossil fuel production is fine when it occurs in the OPEC countries or Russia, but not in the United States.

Investing in conventional energy — the source of 79 percent of energy consumption in the United States — is not a terrible investment, it is necessary to keep the lights on, keep our houses warm, and keep our transportation system moving.

Ms. Raskin endorses using the powers of the Federal Reserve outside of its statutorily-defined role. Anyone confirmed by the Senate should be committed to executing the law, rather than to pursuing a personal vendetta against certain types of energy.”

If Ms. Raskin is successful siphoning away necessary investments in fossil fuels we will see even higher energy prices and even more offshoring of energy intensive industries. If President Biden wants a stronger economy, he needs withdraw the nomination of Ms. Raskin. If he refuses to do so, the committee should vote against her confirmation.”


Myron Ebell, Director of CEI’s Center for Energy and Environment, issued the following statement:

“The Senate should not confirm Ms. Raskin to the Federal Reserve, where she appears eager to misuse the Fed’s considerable authority to try to destroy the coal, oil, and gas industries.”

John Berlau, CEI’s Director of Finance Policy, issued the following statement:

“As late as 2020, Sarah Bloom Raskin called for the Fed to actively discriminate against oil, gas, and coal firms in its lending programs. If confirmed as Vice Chair for Supervision, she could force banks to deprive these sectors of financial services to the detriment of the economy as a whole. The Senate must reject her nomination and stand up for ordinary American consumers, investors, and entrepreneurs still reeling from the pandemic and the onslaught of inflation.”


A full copy is available for download below. Here are some excerpts of the joint letter:

Ms. Raskin endorses using the powers of the Federal Reserve outside of its statutorily-defined role. Anyone confirmed by the Senate should be committed to executing the law, rather than to pursuing a personal vendetta against certain types of energy.

Ms. Raskin was incorrect when she stated in May 2020 that “even in the short term, fossil fuels are a terrible investment.” The stock prices of many oil companies have doubled since then. The stock price of Peabody Energy, the largest private coal company in the world, has tripled since then. Generally, fossil fuels have become a great investment in the brief time period since Ms. Raskin claimed they were a terrible investment.

Ms. Raskin’s terrible investment advice is one reason why the Federal Reserve should not be in the business of trying to pick winner and loser industries. The Federal Reserve Act did not charge the Federal Reserve with trying to pick winners and losers and there is no reason to believe it would choose wisely.

We urge President Biden to withdraw the nomination of Ms. Raskin, and if he does not do so, we urge the committee to vote against her confirmation. Congress has charged the Federal Reserve with maintaining a stable environment for the effective operation of the financial system, but this is very different from actually directing the flow of capital as Ms. Raskin would like to do. Ms. Raskin’s confirmation would be a recipe for financial instability.


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The Unregulated Podcast #68: Room for Improvement

On this episode of The Unregulated Podcast, Tom Pyle and Mike Mckenna discuss the cringe-inducing incompetence in the West Wing and the administration’s efforts to push through its “signature” legislation.

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Biden Abandons American Miners & Embraces Dependence On Chinese Minerals

President Biden’s Department of the Interior revoked existing federal leases for Twin Metals Minnesota to mine copper, nickel, cobalt, and platinum-group elements in the Superior National Forest. These metals are needed for President Biden’s program for electric vehicles and renewable energy technologies. Electric vehicles, for instance, use twice as much copper as vehicles with internal combustion engines. Instead of producing these metals domestically, President Biden wants to be dependent on imports. Biden is choosing foreign sourced minerals, including mines that use child slave labor, over domestic mines and a union workforce that follows the best labor and environmental standards in the world in order to kowtow to environmentalists who want to ban mining in the United States. With less worldwide production of these metals and growing demand for them, their prices will skyrocket and be passed onto consumers who will eventually be forced into buying the products as auto manufacturers are planning to manufacture only electric vehicles in the future.

To reach a green energy future, the International Energy Agency (IEA) found that the world needed to massively increase its production of minerals—forecasting needed growth of graphite, cobalt, nickel, copper, graphite, and lithium by between 20 and 40 times by 2040. As the IEA explains, “In climate-driven scenarios, mineral demand for use in EVs and battery storage is a major force, growing at least thirty times to 2040. Lithium sees the fastest growth, with demand growing by over 40 times in the SDS [Sustainable Development Scenario] by 2040, followed by graphite, cobalt and nickel (around 20-25 times). The expansion of electricity networks means that copper demand for power lines more than doubles over the same period.”

Twin Metals Tax Revenues and Jobs

Mining projects bring new investments as well as millions of dollars in tax revenues and create thousands of jobs. Since 2010, Twin Metals Minnesota has invested more than $450 million into the Minnesota economy. The Twin Metals project, once operational, would directly employ 750 people long-term. Furthermore, approximately two spinoff jobs are created in other industries for each mining job. These spinoff jobs stabilize communities by providing new employment opportunities in manufacturing, retail, restaurants and green energy. The Twin Metals Minnesota project will generate more than 1,500 indirect and induced jobs in goods and services and other sectors.

Background

In December 2016, the Obama administration declined to renew the two leases for Twin Metals, after a legal opinion from the Department of Interior held that Twin Metals did not have an automatic right to renew those leases, which date back to 1966. But the following year, the Trump administration indicated that the government did not have the power to deny Twin Metals its leases. The Bureau of Land Management subsequently reinstated the leases and then renewed them for an additional ten years. With those leases, Twin Metals formally proposed its mining plans in 2019, which began a multi-year environmental review and permitting process by state and federal regulators. But Wednesday, a new legal opinion was released that overturns the Trump administration’s actions. Twin Metals is expected to challenge the opinion and defend its existing mineral rights.

Conclusion

The Twin Metals project would create hundreds of high-paying jobs, contribute billions of dollars to the regional economy and provide important metals that are needed to build wind turbines, electric vehicle batteries and other technologies critical to a green economy that President Biden insists on pushing on the American people despite its cost and dependence on imports. Rather than ensuring the United States has the supply chain needed for his green economy, Biden is pushing forward haphazardly to undermine jobs and increase prices for Americans while using taxpayer funds to pay for tax credits for his favorite projects, such as electric vehicles. He already destroyed jobs in the oil and gas industry and now he is destroying them in mining. President Biden has an opportunity to strengthen U.S. industry and instead he is working to further cement China’s dominant position in minerals processing.


*This article was adapted from content originally published by the Institute for Energy Research.

Biden Opens New Front in War on Domestic Energy with Revocation of Twin Metals Leases

The administration seeks further restrictions on the development of America’s energy security.

WASHINGTON DC (January 27, 2022) – The American Energy Alliance (AEA), the country’s premier pro-consumer, pro-taxpayer, and free-market energy organization, blasted the decision by the Biden Administration to revoke existing mineral leases for the Twin Metals mine in Minnesota’s Superior National Forest, that would supply copper, cobalt and nickel for America’s economy and provide thousands of good-paying union jobs for American workers.

AEA President Thomas Pyle issued the following statement:

“From his very first day in office, President Biden has worked to make energy harder to produce in America. While he has worked to cut off our oil and gas production here at home, he begs Vladimir Putin and OPEC for more oil. While he kills pipelines here at home, he happily lifted sanctions, supported by a bipartisan group of elected representatives, for a Russian pipeline in Europe.

Now he is broadening his reach, depriving Minnesotans of the opportunity for generations of jobs producing the copper, cobalt, and that nickel Biden says will play a part in his Green New Deal. By canceling these leases, President Biden is choosing Chinese and other foreign-sourced materials, including mines that use child slave labor, over unionized American workers. His actions show that he is either incapable of connecting the dots between energy security and national security or he simply doesn’t care.”


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Biden Abandons Israeli Pipeline In Favor Of Russian Gas Via Ukraine

President Biden is withdrawing U.S. support for the EastMed pipeline that would bring natural gas from Israel to the European continent. Europe is currently in an energy crisis with record prices for natural gas and electricity, potential rolling blackouts, low supplies of natural gas, millions of citizens in energy poverty and increasing coal consumption, which the continent has wanted to end. Increasing reliance on intermittent renewable sources that have not produced to their potential has put pressure on other sources the Europeans have discouraged. The result of Biden’s most recent decision is making Europe even more dependent on Russia for its natural gas. Currently, Western Europe gets over 40 percent of its natural gas from Russia via a pipeline that runs through Ukraine. Russia wants to activate its Nord Stream 2 pipeline that runs under the Baltic so that it can avoid the current route through Ukraine.

Biden gave Russia the go-ahead in July for the continued construction of Nord Stream 2, which Russia predicted could go on-line by the end of the year. Rather than helping an ally, Biden is helping Russia dominate Europe’s energy system and gain economic strength in doing so. The only explanation that Biden’s administration has given to withdrawing support is: “Washington’s interest is now switching to renewable energy sources.” While the White House is using its dogged support for the switch to renewable energy to justify its decision, the European Commission drafted legal text that pronounces natural gas and nuclear power as “transitional” green energy sources to be used to bridge countries away from coal toward technologies like wind and solar.

EastMed Gas Pipeline

The EastMed Gas pipeline is a 1,180-mile undersea pipeline project from Israel to southern Europe, set to be completed by 2025, which, when completed will ease Europe’s dependence on Russia and Turkey, which serves as a hub for oil and natural gas. The pipeline will reach depths of 3 kilometers, and have a capacity of 10 billion cubic meters per year. Construction of the pipeline is expected to cost approximately €6 billion ($6.86 billion). The pipeline is being developed by IGI Poseidon S.A., a 50-50 joint venture between the Greek gas utility DEPA and the Italian gas utility Edison. The EastMed Pipeline accord was signed in Athens by the leaders of Greece, Cyprus, and Israel on January 2, 2020.

Source: Euronews

Biden’s Political Decision

Biden is not only catering to Russia regarding the EastMed pipeline decision but also to Turkey, who is offended that it was left out of the EastMed pipeline accord. Turkey believes that it should be part of the pipeline project amid claims over natural gas in the east Mediterranean. Turkish president Erdogan declared that any future eastern Mediterranean “gas project must include Turkey. This business cannot be done without Turkey. Because if [gas] is to be transferred to Europe from here, it will only happen through Turkey.” According to an expert, the Biden administration is “attributing huge significance to Turkey,” and its future after Erdogan.

Biden’s Inconsistencies

MedEast is the second major pipeline that the Biden administration has put a damper on: the first being the Keystone XL pipeline that would bring oil from Canada and North Dakota to the Gulf States. Canadian oil is heavy oil needed for U.S. refineries that retooled decades ago when U.S. light oil production was declining. Keystone XL would also provide more oil to the United States from an ally rather than being dependent on OPEC and Russia for oil. For several months since the pandemic began, Russia was the number 2 supplier of oil to the United States, competing with Mexico for that distinction. When Biden blocked the Keystone XL pipeline by canceling its Presidential permit, he blocked a project that went over and above existing standards to address issues such as carbon emissions, safety standards, and cooperation with indigenous people impacted by the pipeline.

Biden’s Keystone XL and MedEast pronouncements both overturn decisions made by President Trump. When Joe Biden agreed to set aside U.S. objections to the controversial Russian undersea Nord Stream 2 pipeline, he reversed former President Trump’s policy of opposing the project due to security concerns. The 760-mile Baltic Sea pipeline allows direct Russian natural gas supply to Germany and other western European countries and allows Russia to dominate the European energy market, making Putin a power player in continental Europe, where Russia already supplies over 40 percent of its natural gas.

Conclusion

President Biden continues to overturn decisions made by President Trump regarding energy policy. In the most recent case, he has withdrawn U.S. support for the EastMed gas pipeline project, which would transport natural gas from Israel to Europe via the Mediterranean Sea when completed in 2025. The project would remove some of the continent’s dependency on Russia for natural gas supplies that Russia has used as a geopolitical tool at times in the past. Biden’s announced reasoning is that the focus in Washington is now on renewable energy, despite the European Commission seeing the necessity to allow natural gas to be deemed a “transitional green energy source”. Biden has shown huge inconsistency on his pipeline decisions, with one major exception—they all overturn decisions made by President Trump.

Tom Pyle to Congress: How it Started, and How it’s Going

Wednesday, January 19, AEA president Tom Pyle provided testimony before a joint forum held by the Congressional Western Caucus and Oversight & Reform Republicans titled: Holding the Biden Administration Accountable for Skyrocketing Prices & Failing Energy Policies.

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The Unregulated Podcast #67: Clean Up on Aisle Psaki

On this episode of The Unregulated Podcast Tom Pyle and Mike McKenna discuss the longest press conference in presidential history and how the world has reacted to Biden’s ramblings.

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