A Free-Market Energy Blog

"Nothing is more fungible than a good idea" (U.S. as global high-tech oil/gas leader)

By Steve Maley -- June 19, 2012

In 2008, Candidate Obama campaigned against Republican-era high gasoline prices. Now that pump prices are high with a presidential election looming, President Obama disclaims responsibility. “We cannot drill our way to lower gas prices,” he says.

Crude oil is a fungible commodity, the argument goes. So why should we Drill, Baby, Drill when any domestic supply we might add is a relative drop in the bucket? Nice argument, except that it could be used against having any new production. (And U.S. CO2 emissions at the margin are a drop in the bucket, right Mr. President? ) And as the economic revolution of the 1870s taught, economic value and thus prices are set at the margin.

Marginal Economics

The United States is the world’s #3 oil producer. Domestic policy decisions in the U.S.…

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"Wind Farms Canceled, Layoffs Starting" (government dependence is risky business)

By Robert Bradley Jr. -- June 18, 2012

The major federal tax and grant subsidies for windpower and other qualifying renewables are scheduled to expire at year-end. And claims of robust economics, competitiveness, and growth have given way to fear of a freer, less preferential market in 2013 and beyond. Wind’s artificial boom/upcoming bust is the risky business of political capitalism.

Last Friday’s edition of Environment & Energy Daily ran this story (sub. req.):

The American Wind Energy Association estimates that 10,000 jobs will be lost by September — primarily among manufacturers of wind turbines and components facing a dearth of orders for next year. By the end of the first quarter of 2013, the industry will have shed about 37,000 jobs without quick action on a PTC renewal, according to a widely cited study AWEA commissioned from Navigant Consulting.

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Why We Should Love the Oil Companies (Straight talk from an industry outsider)

By -- June 15, 2012

“We should never forget that the oil industry, whatever its problems (and most of those are caused by bad government policies) is the single most vital industry in the world.”

This election year, America faces many crucial legislative choices in the oil/gas industry–and the PR strategy of oil companies will certainly affect the outcome.

What should oil company executives do to improve their industry’s reputation and secure their freedom to produce the lifeblood of civilization?

Unfortunately, the conventional answer is: pretend they’re not oil companies. BP’s John Browne some years ago infamously declared his company’s aspirations to be “Beyond Petroleum”–a slogan that obviously does not aid the industry’s desire for more petroleum drilling rights. (BP, to its credit, no longer trumpets this slogan, which defaults BP back to the implicit original, British Petroleum.)…

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"Truthland:" Response to Factually Challenged "Gasland"

By Steve Everley -- June 14, 2012
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Congestion Pricing for Road Finance: Time to Replace Gasoline Taxes?

By Randal O'Toole -- June 13, 2012
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Fighting AGW Religion in North Carolina (sea-level-rise debate gets political)

By -- June 12, 2012
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Reconsidering U.S. EPA's Proposed NESHAP's Mercury Emission Rule

By Willie Soon and Christopher Monckton of Brenchley -- June 11, 2012
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Playing the Fool: Obama's Heather Zichal Goes Hydrocarbon

By Robert Bradley Jr. -- June 8, 2012
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Asian Air Pollution Warms U.S More than Our GHG Emissions (More futility for U.S. EPA)

By Chip Knappenberger -- June 7, 2012
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Wind Wipe Out? (Worst feared at AWEA convention)

By Robert Bradley Jr. -- June 6, 2012
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