Shell

EPA Shuts Down Drilling in Alaska

by Brian McGraw on April 25, 2011

in Blog, Features, Politics

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Shell announced today, for now, it must end a project to drill for oil off the coast of Northern Alaska, because of a decision made by an EPA appeals board to deny permits to acknowledge that Shell will meet air quality requirements. This is not part of ANWR.

Companies that drill for oil must go through extensive permitting processes and invest billions of dollars as payments for leasing the land, exploring for possible oil fields, equipment, etc. This is all done with the understanding that assuming they follow the letter of the law, there is a chance that this investment won’t be flushed down the toilet at the end of the tunnel. It appears that in this case Shell has followed procedure and that emissions will be below any standards required by the EPA:

The EPA’s appeals board ruled that Shell had not taken into consideration emissions from an ice-breaking vessel when calculating overall greenhouse gas emissions from the project. Environmental groups were thrilled by the ruling.

“What the modeling showed was in communities like Kaktovik, Shell’s drilling would increase air pollution levels close to air quality standards,” said Eric Grafe, Earthjustice’s lead attorney on the case. Earthjustice was joined by Center for Biological Diversity and the Alaska Wilderness League in challenging the air permits.

Talk about moving the goalposts. They must have been really desperate to cancel this project given that this was the best straight-faced excuse they could muster. Not only do you have to be below the legally required emission limits but you must also not even be “close” to the limits, as defined by unelected officials, one of whom is a former attorney for the Environmental Defense Fund.

Events like this are a prime example of why many in Congress want to strip authority from the EPA. Shell had reportedly invested over $4 billion in this project. When companies make investment decisions, consideration is given to whether or not bureaucrats can make arbitrary decisions to shut the project down halfway through a multi-year process. There are many other countries with natural resource reserves who do not subject economic activity to such unpredictable insanity, and in the eye of a corporation, after an event like this these locations begin to look more preferable to dealing with the United States.

 

 

 

Al Gore: the Gift that Keeps on Giving

by Myron Ebell on August 17, 2010

in Blog, Politics

Former Vice President Al Gore is the gift that keeps on giving to opponents of global warming alarmism and energy rationing policies. He leads what I think of as the Dream Team: Gore is the public leader; James Hansen is the go-to scientist; Reps. Henry Waxman (D-Beverly Hills) and Ed Markey (D-Mass.) pushed through a cap-and-trade bill in the House that killed cap-and-trade; Sen. John McCain (R-Ariz.) was the main promoter in the Senate; when he dropped the ball, Sen. Barbara Boxer (D-Calif.) was in charge for awhile; and she has now been replaced by Sen. John Kerry (D-Mass.) with help from Sen. Lindsey Graham (R-S.C.).

I used to think that we were just incredibly lucky that the alarmist movement was led by this group of second raters.   I now realize that it isn’t luck.  Global warming alarmism attracts incompetents, know-nothings, and looney tunes.

We have missed Al Gore in the debate, but luckily Kerry and Graham were fully up to sinking cap-and-trade in the Senate (not that it had much chance anyway) without any help from the leader of the forces of darkness. So it was good to see that Gore returned this week on a conference call sponsored by Repower America (aka the Alliance for Climate Protection).

Gore on the conference call acknowledged that cap-and-trade was dead and that the alarmists had lost in 2010.  He bitterly blamed the usual suspects: Big Oil, King Coal, right-wing media, and professional deniers (I believe that is where he would put me and CEI).  This is boilerplate nonsense.  Three of the big five oil companies (BP, Shell, and Conoco Phillips) support cap-and-trade, as well as most of the big electric utilities (Duke Energy, P G and E, Exelon, PNM Resources, Entergy, etc.) and many other major corporations, such as General Electric, Dow Chemical, General Motors, and Ford Motor.  Cap-and-trade died when the American people found out that it was a colossal transfer of wealth from them to corporate special interests (see the list in the previous sentence).

Gore even said that our system of government was not working as the founders intended it to work.  In fact, in the debate over cap-and-trade the system of checks and balances in the Constitution is working exactly as the founders intended.  It has prevented an elite from hijacking the economy for its own enrichment.

I can see why Gore is bitter.  His comparatively modest investments in green energy promised to make him a global warming billionaire if cap-and-trade were enacted. Unluckily for him, the American people have said no emphatically.

[This was originally posted on Politico’s Energy Arena here.]