Jason Barton

Professional Information and Energy News

Archive for the ‘US Energy Policy’ tag

Obama Pursues a Moderate, Pragmatic Approach During Energy Woes

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Of course times are tough. I tend to drive my car until the gas light comes on so I have to fill up less often, but then kick myself for driving so much as I watch the cost climb past $40 a tank. These are minor pains compared to the ones some folks are feeling, but even this light irritation is enough to make me want a fast change to whatever it is we’re doing, or not doing, in terms of making energy more affordable.

Patience is key. Jumping in to more drilling without taking the time to make sure it’s safe and efficient could cause as many problems, and increase total costs, as much as launching scads of new and often inefficient wind or solar projects.

Energy is expensive. Our government has helped it to be artificially cheap since early in the last century. This has lead to great advantages in our country, such as the great access most people in the U.S. have to everyday conveniences such as lights, heat, cars, buses, and airplanes. In most countries these aren’t nearly as accessible to people on, say, the bottom half of the socio-economic strata.

As Obama weathers the criticism from the right that we need to expand our use of fossil fuels, and from the left that more needs to be done to move us to alternative forms of energy, I hope that he and Secretary Chu continue their pragmatic approach, leaving the door open to more fossil fuels so long as they are safe, while also encouraging innovation and investment in alternatives.

More fence sitting, I know, but I believe this middle path is the best one.*

Obama Faces Bipartisan Criticism on Energy Policies

By Jim Angle

Published March 05, 2011

Sen. Mary Landrieu, D-La. and Senate Republican leader Mitch McConnell are questioning the Obama administration's energy policies and arguing more should be done to develop domestic sources of energy. (AP)

Sen. Mary Landrieu, D-La. and Senate Republican leader Mitch McConnell are questioning the Obama administration’s energy policies and arguing more should be done to develop domestic sources of energy. (AP)

With energy prices rising in part because of turmoil in the Middle East, lawmakers from both parties are questioning the Obama administration’s energy policies and arguing more should be done to develop domestic sources of energy.

“I don’t think the president’s position on oil and gas is as strong as it should be,” said Democratic Sen. Mary Landrieu of Louisiana, where the oil industry plays a large role in the local economy. “Oil and gas is an important industry in the United States today and it will be in the next decades.”

Many in the administration emphasize alternative forms of energy and some, including the president, have openly talked of the need for higher prices on oil and coal to make alternatives such as wind and solar more price-competitive.

Read the entire article here.

* I hope my post is fair and balanced. Not like the Fox version, but truly fair and truly balanced.

Biofuels Are Not Limited to Corn Ethanol

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It’s true that if we attempt to meet George Bush’s Renewable Fuel Standards (RFS) (36 Bgals of renewable fuels by 2022) only with corn ethanol, food prices will rise as a result. But, as has been written before on this site, the rise in food prices in 2008 had more to do with petroleum prices than with ethanol.

So, if we fail to diversify our energy matrix, food prices and much of the economy as a whole will be subject to the high volatility in petroleum prices. Developing other ways of fueling our transportation fleets, and reducing the amount we transport ourselves and our goods, will go much further in terms of protecting ourselves from this volatility than will eliminating our biofuels efforts.

I’m not a proponent of corn ethanol, but I am a big proponent of objective, accurate information. So it’s also important to note that the RFS caps corn ethanol at 15B gals in 2015 (we’re now producing about 12B gals/yr). That’s still a lot, and I’m not convinced it’s a great idea, but, ceteris paribus (it means, all things being equal–Latin is fun), food prices will not likely rise much more due to corn ethanol. The rest of the biofuels we produce to meet those federal standards are supposed to come from grasses, trees, and agriculture residues. There’s still plenty that can go wrong with that, but other issues aren’t addressed in the article below, so I’ll end here.

Thanks for reading.

ps, I both dig and am disturbed by getting information from a source that provides news only if I can profit from it.

January 28, 2011

By Kerri Shannon, Associate Editor, Money Morning

U.S. Clean Energy Investment Puts Upward Pressure on Rising Food Prices

In U.S. President Barack Obama’s State of the Union address Tuesday, he highlighted clean energy investment as a key component of America’s future, one that will be reflected in his budget proposal for fiscal 2012.

“With more research and incentives, we can break our dependence on oil with biofuels, and become the first country to have a million electric vehicles on the road by 2015,” the president said in his speech to members of Congress. “[I]nstead of subsidizing yesterday’s energy, let’s invest in tomorrow’s.”

This commitment to clean energy investment increases the importance of biofuels like ethanol, made from corn and other agricultural products. About 40% of U.S. corn is used to make ethanol, and increased ethanol production leads to higher corn and food prices.

Read the entire article here.

Written by Jason

January 31st, 2011 at 7:31 pm