Ed note: With the 20th anniversary of Enron’s collapse in the news, the underside of the company’s climate/energy strategy deserves another look. (Bradley’s personal experience is recounted here.)

This week, a Hall of Shame business memo turned 24 years old. Dated December 12, 1997, it was written from Kyoto, Japan, by Enron lobbyist John Palmisano in the afterglow of the Kyoto Protocol agreement.

Global green planners were euphoric that, somehow, someway, the world had embarked on an irreversible course of climate control (and thus industrial and land-use control). But Kyoto predictably failed, expired, and the Paris climate accord of 2015 teeters, with COP26 turning into a “let’s talk next year” at COP27.

Palmisano’s memo cites the benefits for first-mover ‘green’ Enron. Enron, in fact, had no less than six profit centers tied to pricing carbon dioxide (CO2)–and seven if CO2 were capped and traded.)…

“But in the nearly 4,000-page study, skeptics note, the term “low confidence” — jargon for findings where there is conflicting evidence — occurs almost 1,400 times. The term “likely” — which could mean a degree of certainty as low as 66 percent — appears thousands of times, including as to whether major hurricanes have increased in frequency since the 1980s.” (Jim Osborne, Houston Chronicle below)

The title of the featured story is loaded. The interview started from the premise of climate alarmism. But one Jim Walzel, 84 years young, did just fine in making the point that climate science is quite unsettled and not indicative of crisis–just like previous scares he has witnessed in his long lifetime.

James Osborne’s “These skeptics believe in climate change. Why is it so hard to convince them catastrophe is coming?”…

“In terms of affordability, availability and scalability – methanol and ethanol are the best prospects to [displace oil in transportation] quickly.”

– John Hofmeister, quoted in “Q&A: He Ran Shell Oil Co. – and He Thinks We Use Too Much Crude,” Houston Chronicle, September 19, 2014.

“Retired Shell Oil President John Hofmeister will say practically anything to get quoted in the news media, presumably in the hope of raising his public profile.” (John Donovan, 2016)

It was with some relief that I learned about the passing of a 1) oil executive who never should have been one; 2) mega-promoter who shamed his profession with vitriolic messaging; and 3) thorn in the side of free-market energy education.

Background

John Hofmeister (1948–2021) combined flawed views on energy with ultra-political correctness. How Royal Dutch Shell could have promoted its human resources director (1997–2005) to run Shell Oil Company (2005–2008) is a story of how one contra-capitalist act leads to another.…

Ed. note: This two-part series addresses repeated media errors about the role of Charles Koch in the formation of the Institute for Energy Research (IER) in 1989. Part I yesterday covered the history of the Institute for Humane Studies–Texas, the forerunner to IER. Part II below reviews the formation and early history of IER, then based in Houston, Texas.

Q1. Roger Donway: First, briefly summarize the major point of Part I yesterday on the founding of the Institute for Humane Studies–Texas (IHS–Texas), the predecessor to the Institute for Energy Research (IER).

A1. Robert Bradley Jr.: IHS–Texas was a classical liberal organization focused on education, with Greg Rehmke focused on high school debate and the both of us on summer seminars for business people. Energy was part of it to the extent that I lectured, given my specialization, on oil and gas history and related public policy.