“Sen. Sanders calls us criminal and Vice President Biden says he would put us in jail, but it would be criminal not to produce the life-sustaining energy that enables a healthy, safe and modern lifestyle.”

– Kathleen Sgamma, Western Energy Alliance, February 24, 2020

The Western Energy Alliance just placed a full-page advertisement in the New York Times with Super Tuesday in mind in which 54 oil and gas executives challenged those calling their livelihood and industry criminal.

It is high time that the major integrated oil and gas companies, not just the independents, play offense rather than defense. Seize the moral high ground and do not appease the disgruntled, obstructionist critics (those with “termite aspirations”).

A half-century ago, Ayn Rand warned business leaders to lead, not capitulate. Remember Exxon’s great value-creator (1993–2005) Lee Raymond?…

“Coal-fired power plants are closing, unable to meet EPA environmental guidelines. Nuclear plants are aging and beset by mounting losses, driven by negative pricing from subsidized wind systems. Without a return to sensible energy policies, prepare for higher prices and electrical grid failures.”

Americans take electricity for granted. Electricity powers our lights, our computers, our offices, and our industries. But misguided environmental policies are eroding the reliability of our power system.

A Close Call This Winter

Last winter, bitterly cold weather placed massive stress on the U.S. electrical system and the system almost broke. On January 7 in the midst of the polar vortex, PJM Interconnection, the Regional Transmission Organization serving the heart of America from New Jersey to Illinois, experienced a new all-time peak winter load of almost 142,000 megawatts.…

“Today, many governments give special treatment to a favored few businesses that eagerly accept those favors. This is the essence of cronyism…. One obvious example of this involves wind farms. Most cannot turn a profit without the costly subsidies the government provides.”

– Charles G. Koch, “The Importance of Economic Freedom.” August 17, 2012.

William Simon, the top energy regulator in the Nixon’s Federal Energy Administration, was surprised. Oil company head after head was visiting his office to demand this or that to alleviate their shortages of oil or get more entitlements credit for their refineries. But Koch Industries had come by to just ask the federal government to leave them alone—to allow price signals to allocate crude oil and petroleum products. It was a meeting that Simon would not forget.…

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.