Linking The Energy Industry

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Comment by Vincent Wright on January 3, 2009 at 10:40pm

FYI: We've added a news feed entitled "Gas Marketers" to the Linking The Energy Industry homepage: http://mylinkingpowerforum.ning.com/group/LinkingTheEnergyIndustry

Comment by Fred Beisser on January 3, 2009 at 10:37pm

Lucas,

Looks like this came directly from a fact sheet at www.barackobama.com. It contains some very expensive propositions as I see things.

My solution to most of these concepts (or are they going to be forthcoming regulations?) is to let the free market make the needed corrections. In the past several months we saw how the increased price of gasoline reached a tipping point and consumption came down far enough to move petroleum prices from US$150/barrel back down to US$40/barrel. Seems to work, doesn't it. And that happened without any lid on energy price speculation which works in both directions, price increases as well as decreases.

Shortly it seems that we will have Congress managing the "Big-3 Automakers" and probably just as inefficiently as they directed Fannie Mae and Freddie Mac. My sense of things is that Congress/SecTreas will require production of green cars for which there will not be sufficient demand and they will sit on sales lots just like the giant SUVs...cost of production will make them too expensive for the average car buyer, so no demand. Without demand there will be virtually no sales.

We can eliminate petroleum imports from the Middle East and Venezuela very easily by removing the roadblocks to increasing production in our available domestic petroleum reserves both on shore and off shore....there has to be a point where the needs of the human race exceed that of animals or whatever it is that environmentalists feel they need to protect at the expensive of 300 million humans in the USA. The strategic petroleum reserve presently represents less than two months of consumption so while it may have a very short-term impact on daily pricing, over the long haul I don't see that it changes habits or prices on a permanent basis...but for a few weeks it would probably feel good to many folks and make great news.

Fuel economy standards. From what I see in Europe, the open market seems to provide a solution...better gas mileage in general there than here. And, since you live in Switzerland, I am sure you see that also. Of course Europeans' use of vehicles is a bit different than ours. If "Advanced Vehicles" are the solution, they really do not need a tax credit...parallel example is the E-85 ethanol that contains 25% or so less energy per gallon of fuel and is subsidized by the federal government. Folks here in the USA tend to turn to flex fuel when the price of gasoline exceeds the price of E-85...if they can find it. Generally available only in the mid-West near the corn belt. But E-85 should stand on its own rather than get government support.

What is a "use it or lose it" approach to oil and gas leases? We already have that in every lease that I have seen....get the energy coming out of the ground within the lease time parameters or the lease expires. Things have been this way for a long time.

What is "promote responsible domestic production of oil and natural gas?" I believe you will find that most producers want as little damage to the land above the minerals/energy as possible to minimize their production costs. Excessive damage results in increased payments to landowners and decreased profits to producers. But, think about all those environmentalists who don't wish to see gas production where the sources occur...in remote areas with wildlife populations or just barren landscapes. Does a human need not exceed that of an animal?

I certainly agree with accelerating the construction of the Alaska natural gas pipeline....that facilitates moving product which in turn enhances the interest in developing and harvesting available reserves that will last a long time according to most estimates. We already have clean coal technology available, just not as widely accepted as it deserves to be (See Evergreen Envergy Inc.). And, the use of coal to fuel power plants gets strong support out here in the "Wild West" of the Rocky Mountains....even with the EPA required scrubbers and other filters that capture particulate emitted in the process. Just ask Stan Lewandowski, the CEO of the Intermountain Rural Electric Association here in Colorado. It is economical and the available reserves exist....can continue to help maintain lower energy prices for all consumers for a long time. And of course we want the cheapest cleanest fastest energy sources...for power plants that would be natural gas...or, even better, nuclear power which produces the majority of electricity in France. Even Germany is rethinking its position on this. Neatly replaces fossil fuel sources also, doesn't it.

Why would the USA want to be a leader on climate change...as you most likely know, the new president of the European Union believes that climate change is a dangerous myth, contrary to Al Gore's claims that are contradicted by many scientists from Denmark to the USA to Australia. That is not to say that we should indiscriminately destroy the environment around us, but one should take a reasoned approach to climate change. We have heard so much about "global warming" in recent years, but without greenhouse gases, we would be in a form of ice age. They are essential to maintaining the current temperature of the earth.

I believe the New Energy Plan for America needs some cost analysis to determine if the USA can afford it or not.

Fred

Comment by Lucas Wyrsch on January 3, 2009 at 5:03pm

The future is bright!
The Obama-Biden Plan
The energy challenges our country faces are severe and have gone unaddressed for far too long. Our addiction to foreign oil doesn't just undermine our national security and wreak havoc on our environment -- it cripples our economy and strains the budgets of working families all across America. Barack Obama and Joe Biden have a comprehensive plan to invest in alternative and renewable energy, end our addiction to foreign oil, address the global climate crisis and create millions of new jobs.

The Obama-Biden comprehensive New Energy for America plan will:

Help create five million new jobs by strategically investing $150 billion over the next ten years to catalyze private efforts to build a clean energy future.
Within 10 years save more oil than we currently import from the Middle East and Venezuela combined.
Put 1 million Plug-In Hybrid cars -- cars that can get up to 150 miles per gallon -- on the road by 2015, cars that we will work to make sure are built here in America.
Ensure 10 percent of our electricity comes from renewable sources by 2012, and 25 percent by 2025.
Implement an economy-wide cap-and-trade program to reduce greenhouse gas emissions 80 percent by 2050.
Energy Plan Overview
Provide Short-term Relief to American Families
Crack Down on Excessive Energy Speculation.
Swap Oil from the Strategic Petroleum Reserve to Cut Prices.
Eliminate Our Current Imports from the Middle East and Venezuela within 10 Years

Increase Fuel Economy Standards.
Get 1 Million Plug-In Hybrid Cars on the Road by 2015.
Create a New $7,000 Tax Credit for Purchasing Advanced Vehicles.
Establish a National Low Carbon Fuel Standard.
A "Use it or Lose It" Approach to Existing Oil and Gas Leases.
Promote the Responsible Domestic Production of Oil and Natural Gas.
Create Millions of New Green Jobs

Ensure 10 percent of Our Electricity Comes from Renewable Sources by 2012, and 25 percent by 2025.
Deploy the Cheapest, Cleanest, Fastest Energy Source – Energy Efficiency.
Weatherize One Million Homes Annually.
Develop and Deploy Clean Coal Technology.
Prioritize the Construction of the Alaska Natural Gas Pipeline.
Reduce our Greenhouse Gas Emissions 80 Percent by 2050

Implement an economy-wide cap-and-trade program to reduce greenhouse gas emissions 80 percent by 2050.
Make the U.S. a Leader on Climate Change.