energy

Post image for Reviews of the Cornell Natural Gas Study

As was widely reported this week,  a new study has just come out concluding that, compared to coal, shale gas fracking is anywhere from just as bad to much worse in terms of greenhouse gas emissions. Despite the holy-grail of peer-revision, there appear to be some very obvious methodological problems and reliance on very poor data (which the researchers have admitted, and wish they had access to better information).

Here is a piece of a review from Matt Ridley, entitled “Black Propaganda.” (Read the whole thing):

So, in other words, shale gas has greater global warming potential than coal only if you rely on lousy data, misunderstood accounting categories, quadrupled assumptions about methane’s relative greenhouse potential — and then only in the short term, when people like Black are always telling us it is the long term we should worry about.

A review from Michael Levi of CFR (again, the whole thing is worth reading):

First, the data for leakage from well completions and pipelines, which is where he’s finding most of his methane leaks, is really bad. Howarth used what he could get – figures for well completion leakage from a few isolated cases reported in industry magazines, and numbers for pipeline leakage from long-distance pipelines in Russia – but what he could get was very thin. There is simply no way to know (without access to much more data) if the numbers he uses are at all representative of reality.

Second, Howarth’s gas-to-coal comparisons are all done on a per energy unit basis. That means that he compares the amount of emissions involved in producing a gigajoule of coal with the amount involved in producing a gigajoule of gas. (Don’t worry if you don’t know what a gigajoule is – it doesn’t really matter.) Here’s the thing: modern gas power generation technology is a lot more efficient than modern coal generation, so a gigajoule of gas produces a lot more electricity than a gigajoule of coal. The per kWh comparison is the correct one, but Howarth doesn’t do it. This is an unforgivable methodological flaw; correcting for it strongly tilts Howarth’s calculations back toward gas, even if you accept everything else he says.

One last comment: I worry about what this paper says about the peer review process and the way the press treats it. This article was published in a peer-reviewed journal that’s edited by talented academics. It presumably got a couple good reviews, since its time from submission to publication was quite short. These reviewers don’t appear to have been on the ball. Alas, this sort of thing is inevitable in academic publishing. It’s a useful caution, though, against treating peer review as a mark of infallibility, as too many in the climate debate – both media and advocates – have done.

The weak data and unorthodox methodology should make one question its ultimate conclusion, and it doesn’t help that the author is apparently an anti-fracking advocate. The EPA has already called this study an “important piece of information” and it has been reported on without mentioning the critiques in a number of media outlets (and here). Some outlets were better:

Mark D. Whitley, a senior vice president for engineering and technology with Range Resources, a gas drilling company with operations in several regions of the country, said the losses suggested by Mr. Howarth’s study were simply too high.

“These are huge numbers,” he said. “That the industry would let what amounts to trillions of cubic feet of gas get away from us doesn’t make any sense. That’s not the business that we’re in.”

Most business models don’t include plans to allow billions of dollars of your product to escape into the atmosphere.

 

 

Post image for An Assault on Coal Exports

Not content with destroying coal in the United States, there are ongoing assaults on allowing U.S. companies to export coal. It’s one thing to destroy coal in favor of more expensive energy in an advanced economy where consumers have more disposable income to absorb the blow of rising energy costs, but to deny developing countries access to electricity is an absurd form of “liberalism.” See a recent GW.org post on similar plans at the World Bank to discontinue funding coal-fired power plants.

China and other developing countries might be flirting with solar panels and windmills (mostly to sell them to the United States), but these renewables aren’t going to actually power any significant portion of their ever growing demand for energy anytime soon. And remember, despite the fact that you might want to protect the environment, you might not feel that way if you’ve never driven a car or turned on a light switch. As this report notes:

China, on the other hand, has emerged as a leader in developing clean, renewable energy, but its demand for coal is still staggering, and growing, and China is predicted to build 2,200 new coal-fired electric plants by 2030.

The report is full of suspicious economic analysis, like the idea that shutting down coal exports (economic activity) can somehow help our country reach long term prosperity because the funds could be used for investments to focus on diversifying our economy, whatever that means. Ending coal exports would somehow help our economy’s diversification. Note that coal exports would also help lower the trade deficit, which groups like CAP seem worried about.

It’s not completely clear to me that the port being used for exports is being subsidized by any governmental bodies (hopefully its not), but they don’t specifically mention any subsidies, so I suspect its mostly being completed with private sector money. Perhaps the authors think our omniscient government should confiscate those private dollars and pick their own pet project instead.

Finally, we get to the real question:

Though Washington state officials are considering the effects of climate-change-causing emissions stemming from shipping the coal across the western United States, there are no legal requirements to consider the carbon pollution from burning the coal half a world away.

Can we also control the climate policies of other sovereign nations? Liberals have proudly discussed the possibility of a carbon tax on imports from countries that have not adopted emission reductions strategies, but they have yet to publicly propose an export ban or tariff on coal. Perhaps its in the pipeline.

Finally, from a Washington-state based blog:

Certainly not least among our concerns should be the moral decision of whether to feed the growing coal addictions of other countries even as we combat climate change by gradually eliminating large-scale sources of carbon dioxide emissions in the U.S

Breathe easy, Seattle. Coal exports will certainly be helping some of the 1.4 billion people on this earth who don’t have access to any electricity at all.

Post image for Senate Committee Passes Energy Efficiency Standards

Today the Senate Energy and Natural Resources Committee marked up and approved S. 398, a bill that establishes new efficiency standards for a variety of consumer products: air conditioners, refrigerators, freezers, washers, dryers, outdoor drinking water dispensers, dishwashers, and a number of other appliances. You can certainly trust Congress to micromanage the optimal amount of energy used by hundred’s of complex small appliances across different industries.

This bill saw national media coverage earlier this year when Senator Rand Paul ranted about efficiency standards that have effected toilets and will soon effect light bulbs. It’s infuriating that energy bureaucrats can claim that they are in favor of allowing consumers to choose whichever bulb they want, when they are setting bulb efficiency standards that will ban the traditional incandescent bulb. At least be honest about your desire to restrict the choices of consumer and our freedoms.

Politico covered today’s hearing and Paul was unsurprisingly one of the few dissenters. This time Senator Paul offered an amendment that would make the energy efficiency standards voluntary, which failed 16-6 in committee. Here is a short video from Paul’s office covering the hearing.

Consumers should be wary when business gets together and supports these types of standards, though the environmentalists often use this as evidence that only ‘crazies’ oppose such bipartisan, “sensible” legislation. These regulations will increase the cost of these appliances (and the profitability of them), create new competition-crushing barriers to entry, and often bring unexpected consequences (and here). Recall that a number of oil and energy companies supported the Waxman-Markey bill after it went through the Congressional pork factory.

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Post image for HuffPo Pessimism on Obama’s Energy Targets

At The Huffington Post, Jeffrey Rubin writes: “Only a Recession Can Deliver Obama’s Energy Targets.”

Unfortunately, we have heard this song many times before. In 1973, President Richard Nixon unveiled “Project Independence” in response to the OPEC oil embargo that was triggered by the Arab-Israeli war. President Jimmy Carter called the need to lessen U.S. dependence on Middle Eastern oil the moral equivalent of war in response to the supply disruptions that followed the Iranian Revolution. President George Bush Jr. referred to America’s dependence on foreign oil as nothing short of an addiction.

Over the past four decades, U.S. presidents have waxed eloquent about the need to reduce the country’s dependence on imported oil. Yet the U.S. economy still relies on imports for more than 50% of the 19 million barrels of oil burned every day. As a result, the U.S. remains as vulnerable to soaring oil prices as it was during the OPEC shocks in the 1970s.

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Post image for Ethanol: Coburn, ATR, WSJ

There is an ongoing ethanol spat between Senator Coburn (R-OK) and Grover Norquist, President of Americans for Tax Reform. The dispute is over conservative support for a bill that would repeal the ethanol tax credit, which has the effect of raising an industry specific tax. Americans for Tax Reform comes down hard on any effort to increase taxes. The Wall Street Journal added their two cents in favor of Senator Coburn:

Our readers know Mr. Norquist as the plucky author of the no-new-taxes pledge, which has helped to make tax increases a red line in Republican politics. In a letter to Mr. Coburn, a deputy of Mr. Norquist writes: “Repealing the ethanol credit is the right thing to do, but other taxes must be reduced in the same legislation by at least this much to prevent a net tax increase.”

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Post image for Can Obama End Our “Addiction” to Foreign Oil?

In his speech earlier this week, President Obama took a brave and unprecedented stand against our nations reliance on foreign petroleum imports:

Now, here’s a source of concern, though. We’ve known about the dangers of our oil dependence for decades. Richard Nixon talked about freeing ourselves from dependence on foreign oil. And every President since that time has talked about freeing ourselves from dependence on foreign oil. Politicians of every stripe have promised energy independence, but that promise has so far gone unmet.

I talked about reducing America’s dependence on oil when I was running for President, and I’m proud of the historic progress that we’ve made over the last two years towards that goal, and we’ll talk about that a little bit. But I’ve got to be honest. We’ve run into the same political gridlock, the same inertia that has held us back for decades.

That has to change. That has to change. We cannot keep going from shock when gas prices go up to trance when they go back down — we go back to doing the same things we’ve been doing until the next time there’s a price spike, and then we’re shocked again. We can’t rush to propose action when gas prices are high and then hit the snooze button when they fall again. We can’t keep on doing that.

The United States of America cannot afford to bet our long-term prosperity, our long-term security on a resource that will eventually run out, and even before it runs out will get more and more expensive to extract from the ground. We can’t afford it when the costs to our economy, our country, and our planet are so high. Not when your generation needs us to get this right. It’s time to do what we can to secure our energy future.

Richard Nixon wasn’t the only one. As Jon Stewart pointed out last summer, the last eight administrations have warned against the alleged dangers of importing petroleum and provided a number of solutions to massively restructure the economy, none of which were successful. Stewart comments, “Fool me once, shame on you. Fool me twice, shame on me. Fool me eight times, am I a ****ing idiot?”

And yet we appear to be idiots, and more money will  be spent chasing pipe dreams with taxpayer money. The New York Times, today, congratulated Obama’s willingness to take on such a tough challenge and blamed the lack of progress on, wait for it, Republicans:

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Post image for Obama Decries Gimmicks and Slogans with “Win the Future” in Background

Let’s acknowledge the irony here. From a copy of Obama’s prepared remarks today at Georgetown University discussing his administration’s energy plan:

 

But here’s the thing – we’ve been down this road before.  Remember, it was just three years ago that gas prices topped $4 a gallon.  Working folks haven’t forgotten that.  It hit a lot of people pretty hard.  But it was also the height of political season, so you had a lot of slogans and gimmicks and outraged politicians waving three-point-plans for two-dollar gas – when none of it would really do anything to solve the problem.  Imagine that in Washington.

The truth is, of course, was that all these gimmicks didn’t make a bit of difference.  When gas prices finally fell, it was mostly because the global recession led to less demand for oil.  Now that the economy is recovering, demand is back up.  Add the turmoil in the Middle East, and it’s not surprising oil prices are higher.  And every time the price of a barrel of oil on the world market rises by $10, a gallon of gas goes up by about 25 cents.

President Obama is decrying gimmicks and slogans (as he should be), noting their inability to achieve anything, with his newest slogan “Win the Future” in the background.

“WTF” indeed.

Post image for Washington Post Chides Obama Over Energy

In an editorial cleverly titled, “Drill, Brazil, Drill says the U.S.The Washington Post joined in the growing public displeasure over President Obama’s public support for the Brazilian oil industry, which seems to be rising at the expense of administration support for the oil industry in the United States.

As CEI’s Myron Ebell pointed out last week:

This is the same President who has spent the last two years doing everything he can to reduce oil production in the United States.  Cancelled and delayed exploration leases on federal lands in the Rocky Mountains; the re-institution of the executive moratorium on offshore exploration in the Atlantic, the Pacific, most Alaskan waters, and the eastern Gulf of Mexico; the deepwater permitting moratorium and the de facto moratorium in the western Gulf.  The result is that domestic oil production is about to start a steep decline.

The editorial also mentions the tariff on ethanol. Trade restrictions are bad policy. However, the case for Brazilian ethanol is slightly more complicated than that. If Brazilian ethanol were imported to the U.S., it might displace some ethanol production that is occurring in the U.S. as historically Brazilian ethanol has been cheaper. This would be fine.

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Post image for President Obama Endorses More Oil Production—in Brazil

The most astonishing event this week was President Barack Obama endorsement of more oil production—in Brazil.  In a speech to a CEO Business Summit in Brasilia, the President said:

By some estimates, the oil you recently discovered off the shores of Brazil could amount to twice the reserves we have in the United States.  We want to work with you.  We want to help with technology and support to develop these oil reserves safely, and when you’re ready to start selling, we want to be one of your best customers.  At a time when we’ve been reminded how easily instability in other parts of the world can affect the price of oil, the United States could not be happier with the potential for a new, stable source of energy.

This is the same President who has spent the last two years doing everything he can to reduce oil production in the United States.  Cancelled and delayed exploration leases on federal lands in the Rocky Mountains; the re-institution of the executive moratorium on offshore exploration in the Atlantic, the Pacific, most Alaskan waters, and the eastern Gulf of Mexico; the deepwater permitting moratorium and the de facto moratorium in the western Gulf.  The result is that domestic oil production is about to start a steep decline.  An article on Red State by Steve Maley summarizes the future effects of the Obama Administration’s war against oil.

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Post image for Iain Murray on Japan’s Nuclear Crisis

CEI’s Iain Murray has an op-ed in The Washington Times today explaining what can be learned from the ongoing nuclear crisis in Japan.

Here’s an excerpt:

Without this vigorous defense of nuclear, the Obama energy plan will have a massive hole at its core – one that cannot be filled by wind and solar power any more than it can be filled by fairy dust. The obvious answer is for the administration to stop its war on coal, but that is unlikely. The only other plausible choice is natural gas, derived by hydraulic fracturing – a procedure that environmentalists are already trying to ban. If they want to keep their plan going in any workable form, the president and Mr. Chu need to tell Americans unequivocally where their future power is going to come from, and push back against ideological environmentalists who are trying to ban practical sources of energy.

Read the rest here.