At the NARUC Winter Meeting in Washington D.C. last week, a Study Group composed of regulatory commissioners, consultants, government and university economists, and non-profit association sponsors released their energy research report: ANALYSIS OF THE SOCIAL, ECONOMIC AND ENVIRONMENTAL EFFECTS OF MAINTAINING OIL AND GAS EXPLORATION AND PRODUCTION MORATORIA ON AND BENEATH FEDERAL LANDS
(Assessment of the Combined Relative Impacts of Maintaining Moratoria and Increased Domestic Onshore and Offshore Oil and Gas Resource Estimates).
The just released study, prepared by Science Applications International Corporation (SAIC) and subcontractor Gas Technology Institute (GTI), makes a resounding case for the federal government to consider exploration and production on land and offshore for the common good. And far from being an ‘industry group’, the ‘Moratoria Study Group’ represented a formidable national body of public and private energy experts whose study found that consumers, the national economy, vast new employment potential and national defense could benefit from plentiful, affordable and reliable domestic energy resources.…
Continue ReadingSo let me see if I have this right – President Obama’s budget proposes to increase taxes on oil and gas by $36.5 billion over the next ten years, while laying out even larger sums for more politically favored energy sources – especially wind and solar. And the reason advanced for this is that these “subsidies [sic] are costly to the American taxpayer and do little to incentivize production or reduce energy prices.”
Neither of the claims in this statement is true. In fact, they are the opposite of truth. The oil and gas industries are major sources of revenues for governments at all levels in the US, and production incentives have contributed to a stunning turnaround in the country’s natural gas supplies – with higher production and lower costs a major feature.…
Continue ReadingWhat a difference 12 months makes. Almost exactly one year ago, the popular, newly minted president, Barack Obama, was telling Congress that he wanted “legislation that places a market-based cap on carbon pollution and drives the production of more renewable energy in America.”
The Democrats, fully confident of their new president and their grip on both houses of Congress, were certain that they could pass yet another big energy bill that would finally push hydrocarbons off their pedestal and replace them with wind turbines, solar panels, and every other type of alternative energy.
An Unstimulated Economy
But a lot has happened since Obama delivered his first State of the Union address. The global economy has continued to show lackluster growth. And perhaps most important: unemployment rates in the U.S. remain stubbornly high and are expected to stay high for at least the next two years.…
Continue Reading