“Great are the powers of electricity,” commented a newspaper story in the late 19th century about the fascinating new energy source. “It makes millionaires. It paints devils’ tails in the air and floats placidly in the waters of the earth. It hides in the air. It creeps into every living thing.” (1)

Electricity is the most utilitarian of energies and the master form of the master resource, as explained below by leading experts and even some critics of energy. Just ask residential users, commercial establishments, or the manufacturing facilities if they want to pay more or less for power.

And so it was distressing to hear Barack Obama in a moment of ‘green’ candor declare that electricity prices would “skyrocket” under a cap-and-trade program to limit carbon dioxide (CO2) emissions.  In his exact words and phrasing from November 2008:

You know, when I was asked earlier about the issue of coal, uh, you know — Under my plan of a cap and trade system, electricity rates would necessarily skyrocket.

[Editor note: The other posts in this series are The Great Energy Resource Debate (Part I: Peak Oil was … is here!) and The Great Energy Resource Debate (Part III: Pessimists Turn Optimistic!). Part IV will look at the theoretical case for resource expansionism in light of the preceding posts.]

[Editor note: Part I

http://www.masterresource.org/2011/06/great-resource-debate-iii-new-optimists/

“All oil and gas resources should be carefully husbanded—i.e. extracted as late and as slowly as possible. Our descendents will be grateful. We, too, shall need a long bridge to the future.”

– Amory Lovins, World Energy Strategies: Facts, Issues, and Options (New York: Friends of the Earth International, 1975), p. 127.

Yesterday’s post provided quotations from a variety of sources espousing a pessimistic, closed view of the mineral resource world as it pertains to oil, gas, and even coal.…

For two years now, I’ve made a case that climate alarmism – which I define as the reflexive tendency to assume worst-case scenarios generated by climate models are true (and warrant public policy based on that belief) – is in a death spiral.

Climate alarmists, I documented, were losing their fight for legislation, regulation, and public opinion. It’s clear that I was right on at least two counts: nobody thinks legislation to control greenhouse gases is on the horizon, and President Obama won’t even talk about climate change, preferring to hide the ball in talk about “clean energy,” instead.

The public is also turning away: a new Gallup poll, conducted in 111 countries, found that fewer Europeans and Americans consider climate change a serious threat than they did before.…

The U.S. Senate Energy Committee has recently issued a white paper about a proposed Clean Energy Standard (CES). If enacted, the CES would profoundly affect the future of all energy matters in the U.S. The committee is having a short public comment period, which ends on Monday April 11th.

They are looking for inputs on six aspects of this proposed measure. Reading over the white paper (see Appendix below), I am encouraged that they are at least asking some good questions. As such I am hopeful that they get intelligent responses to balance out those that will inevitably come from rent-seekers.

Since I am advocating the Big Picture approach, my strategy is going to respond to the Executive Summary part only (and then elaborate a bit on an Additional document).…