“With a new political outlook in Washington, DC with climate and energy policy, Exxon Mobil should formally reject both cap-and-trade and a carbon tax.”

Rex Tillerson, whose confirmation hearing is scheduled for tomorrow, presided over a major public policy change while CEO of Exxon Mobil, reversing the prior policy of the principled realist Lee Raymond. Political forces, as well as a doomed attempt at appeasing its enemies (ending up in the state State Attorney General investigative war), led Exxon Mobil to reluctantly embrace a tax on carbon dioxide (CO2) emissions.

My interpretation of Rex Tillerson et al.’s (failed) policy shift finds support for “it was just PR” rather than a fundamental belief in climate peril. As such, this shift is easily reversible by Exxon Mobil’s new CEO, Darren Woods.…

“The bulk of AWEA’s presentation was designed to show how many and diverse are the offshore wind projects under way. Other than Deepwater Wind and the likely dead Cape Wind projects, all the other projects or possible projects are living on government grants and/or remain little more than speculative research projects. [AWEA head Tom] Kiernan acknowledged that the problem for offshore wind is its cost, likely three to five times that of onshore wind projects.

At last month’s National Ocean Industries Association (NOIA) annual meeting, the Offshore Renewables Committee hosted a breakout-session presentation by Tom Kiernan, chief executive officer of the American Wind Energy Association (AWEA).  With him was research analyst Celeste Wanner who presented a rundown of the status of offshore wind projects. [1]

As one would expect, Mr. Kiernan presented all the positives for wind energy – its cost has declined to where it is now competitive with coal and natural gas generated electricity, there are no emissions since there is no fuel burned to generate electricity.…

“Price controls cause shortages, and government allocation exacerbates it. This was learned the hard way during the 1970s, particularly with oil, thanks to Republican President Richard Nixon.”

George Melloan’s review of Jane Mayer’s Dark Money: The Hidden History of the Billionaires Behind the Rise of the Radical Right (Wall Street Journal, January 15, 2016) criticized her foray into energy and energy policy:

Ms. Mayer might herself benefit from an economics course. She writes that Richard Nixon imposed economic controls on oil and gas in 1971 to “address the energy crisis.” The Nixon price controls helped to cause the energy crisis.

Intrigued, I bought Dark Money to see exactly what she said.  Here is the passage from Mayer (p. 91) referenced by Melloan:

The fossil fuel industry’s fondest wishes were also fulfilled.

“The renaissance has gone bad. Nuclear power is repeating the construction cost disaster of the previous round of such building in the 1970s and 1980s.”

“The advanced designs and refined techniques [at Plant Vogtle] resulted in a mess of continuing cost overruns and schedule delays.  Now Georgia Power says all the problems are to be expected in a first-of-kind project.”

Buzz Miller, executive vice president for nuclear development at Georgia Power, wrote in the Atlanta Journal Constitution back in 2010 (September 16) in regards to his company’s Plant Vogtle nuclear expansion:

“The lessons learned at home and abroad have paved the way for a new generation of U.S. nuclear power plants that feature advanced designs, refined construction techniques, early engagement by state public service commissions, and licensing process geared to a mature technology.”