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Category — Perry, Rick (Tx. Gov.)

Perry’s Energy Speech: Part II (EPA vs. abundant energy)

“The third part of my plan is to reform the bureaucracy, in particular the EPA, so that it focuses on regional and cross-state issues, providing scientific research, as well as environmental analysis and cost-comparison studies to support state environmental organizations. We will return greater regulatory authority to the states to manage air and water quality rather than imposing one-size-fits-all federal rules.”

- Gov. Rick Perry,  Energizing American Jobs and Security, October 14, 2011.

Part I yesterday described Governor Rick Perry’s call for greater oil and gas resource access to government land to help create economic and job growth–and open-ended opportunity given technological developments.

Indeed, ‘peak oil’ and ‘peak gas’ concerns have been waylaid by reality. At a recent conference of the U.S. Association for Energy Economics in Washington, D.C., it was clear that energy economists believe that demand for petroleum will not fall around the globe for many years, decades, and possibly centuries to come.

Therefore, if we do not produce it here, production will occur by countries, such as China and Venezuela, that do not currently have the resources we do to efficiently drill for oil and take care of our beautiful planet. Moreover, many of these countries are not friendly to us and will use the funds in a way that may not be helpful for future peace and prosperity.

EPA’s Ram: The ‘Precautionary Principle’

Governor Perry is correct that individual states are better prepared to decide on public policy initiatives that reflect the needs of their citizens. Allowing for a competitive environment between states will bring about innovation and quality energy production that is beneficial to the states and the nation.

Regulations put in place by the U.S. Environmental Protection Agency (EPA) are based on the precautionary principle, which is defined at dictionary.com as follows:

In environmental matters, the theory that if the effects of a product or actions are unknown, then the product should not be used or the action should not be taken.

This better-safe-than-sorry principle, however, does not take into account the real costs, which include opportunity costs, to the economy and society. Therefore, making policy based on the precautionary principle is misguided and could do more harm than good in reducing greenhouse gas emissions and providing healthier outcomes for citizens. [Read more →]

October 18, 2011   6 Comments

Perry’s Energy Speech: Part I (Real Energy, Real Jobs–but what about the governor’s windpower baggage?

Texas Gov. Rick Perry is swimming upstream in his quest for the Republican nomination for President of the United States, primarily from his weak performances during several debates. To improve his odds, last Friday he gave his first policy speech, titled Energizing American Jobs and Security.

Energy is that important. And it is a breath of fresh air that Perry’s analysis and prescription is 180 degrees from President Obama’s government-knows-best approach to energy and energy/environment.

Four Objectives

The Governor’s plan focused on four objectives that promise economic growth and numerous jobs in America. In Perry’s words:

  • “First, we will open several American oil and gas fields for exploration that are currently off limits because of political considerations.”
  • “It is equally important that we take a second step: eliminate activist regulations already on the books and under consideration by the Obama Administration.”
  • “The third part of my plan is to reform the bureaucracy, in particular the EPA, so that it focuses on regional and cross-state issues, providing scientific research, as well as environmental analysis and cost-comparison studies to support state environmental organizations. We will return greater regulatory authority to the states to manage air and water quality rather than imposing one-size-fits-all federal rules.”
  • “The fourth component of my plan is to level the competitive playing field among all energy producers. As the governor of the nation’s leading producer of wind energy, I clearly believe there is an important role for green sources of energy as a part of our generation mix. The fact is, every energy producer receives incentives and subsidies that cost taxpayers and distort the marketplace.”

He finished his address by stating that his plan is focused to “Make what Americans buy, buy what Americans make, and sell it to the world.”

I agree with these proposals. In particular, getting rid of all energy subsidies and tax incentives across the boardwill allow the market to direct the allocation of resources to energy sources that are profitable without government intervention. [Read more →]

October 17, 2011   11 Comments

Governor Rick Perry (R-TX), T. Boone Pickens, and the Enron Legacy of Windpower

Last December, Texas governor Rick Perry, speaking at a Houston fundraiser, sadly noted how President George W. Bush had lost his way in Washington, D.C. His good friend had compromised his principles and left the nation in a lurch, however unintentionally.

But then the governor launched into his Texas-is-great stump speech that included kudos to windpower, a new large industry (no) thanks to a legislative mandate requiring that Texas electricity retailers purchase qualifying renewable energy. (Wind is the most economical of the qualifiers.) The 1999 mandate, enacted with the crucial help of Enron lobbyists, was increased in 2002 with a powerful wind lobby at work. And so at  the point of a gun, Texas became the leading windpower state in the country, passing California along the way.

So it was not surprising that last Saturday night Gov. Perry handed T. Boone Pickens the 2009 Texan of the Year Award at a ceremony in New Braunfels, a town of 50,000 in the Texas Hill Country. [Read more →]

March 24, 2009   12 Comments