Remember all this? America is running out of natural gas. Prices will soar, making imported liquefied natural gas (LNG) and T. Boone Pickens’ wind farm plan practical, affordable and inevitable. Well, reality intervened. We are having an energy transformation, but just the opposite of what the non-market energy planners predicted.

Shale Gas Revolution

Barely two years later, America (and the world) are tapping vast, previously undreamed-of energy riches – as drillers discover how to produce gas from shale, coal and tight sandstone formations, at reasonable cost. They do it by pumping a water, sand and proprietary chemical mixture into rocks under very high pressure, fracturing or “fracking” the formations, and keeping the cracks open, to yield trapped methane.

Within a year, U.S. recoverable shale gas reserves alone rose from 340 trillion cubic feet to 823 tcf, the Energy Department estimates.…

Congress is rightfully concerned about closing the huge, systemic budget deficit. In this climate, eliminating Section 1603 grants for politically correct renewable energy should be considered an easy target.

By way of background, this particular subsidy came about due to persistent pressure from lobbying groups like American Wind Energy Association (AWEA). Their main argument is that these grants will promote jobs and economic benefits. Of course, as lobbyists this is what they are paid to say. But in these times of more focused financial prudence, we need to critically look at such expenditures in a more objective light — especially since we are talking about some five billion dollars.

The 1603 Grants should be cancelled entirely. In my view the best way to see how ineffective these expenditures are is to consider what the alternatives are for this same money.…

Several months ago, renewable energy advocates hailed a poll as unquestionably demonstrating the public’s support of renewable energy resources. However, answers to follow-up questions showed that the public’s willingness to pay for increased renewable energy is lukewarm at best. Therein lies the fickle support for government-dependent energy path that shines is one thing in the abstract and another in the real world.

The Financial Times/Harris poll, conducted online by Harris Interactive, surveyed household members who pay the energy bill each month in France, Germany, Great Britain, Spain, Italy, and the U.S. between September 15 and 21, 2010. They were asked three questions about their support of renewable energy.

Question 1: More Wind

The first question was, “How much do you favour or oppose a large increase in the number of wind farms in [your country]?”…

[Editors note: This four-part post examines the innovation and creative destruction of the early oil market. It was originally published by The Objective Standard.]

The most important and most overlooked energy issue today is the growing statist threat to global energy supply.

There is no substitute for available, affordable, and reliable supply. Cheap, industrial-scale energy is essential to building, transporting, and operating everything we use, from refrigerators to Internet server farms to hospitals. It is desperately needed in the undeveloped world, where 1.6 billion people lack electricity, which contributes to untold suffering and death. And it is needed in ever-greater, more-affordable quantities in the industrialized world: Energy usage and standard of living are directly correlated.1

Every dollar added to the cost of energy is a dollar added to the cost of life.…