Category Archives: energy

An Energy Crisis

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New England may face one this winter. Too many who should know better are laying this prospect off to Russia’s invasion of Ukraine.

There are more proximate origins of the risk. One is the Biden administration’s naked war on our nation’s overall domestic energy production industry, including canceling pipeline projects in progress and denying permits for other pipelines—including one from Canada down into New England—canceling drilling leases and slow-walking permits (or outright denying them) to drill on other leases, withdrawing Federal lands from any sort of fossil fuel exploration or development, and on and on.

But that is only backdrop, and corrections to those failures would have no immediate effect on New England’s risk.

A more immediate origin is the domestic blockade of energy to New England, which consists of two barriers. One is ex-Governor Andrew Cuomo’s (D) decision to block a natural gas pipeline from Pennsylvania to New England, a pipeline that would have transited New York, coupled with Cuomo’s decision to deny development from within New York of the Marcellus Formation, a shale formation rich in, among other things, natural gas. These decisions have been upheld, and enthusiastically so, by current New York Governor Kathy Hochul (D). New England’s energy needs be damned.

The other barrier from the blockade is the Jones Act, a century-old law that in pertinent part mandates that goods (for instance, oil and natural gas) carried from one American port (vis., a Gulf Coast refinery) to another American port (vis., Portsmouth, NH, or Portland, ME) must be via an American freighter.

These barriers already have combined to force New England to buy its natural gas from…Russia. Which is the only way the barbarian’s invasion of Ukraine enters into the problem at all.

Immediate and mid-term solutions should be obvious: waive the Jones Act restrictions on energy shipments into New England, something well within the authority of President Joe Biden (D). Given the state of American ship building capacity, this cabotage aspect of the Act should be rescinded altogether, but that would require Congress to do.

Another, more mid-term, solution would be for New York to get out of the way of exploitation of Marcellus and to allow pipeline shipments of natural gas into New England from Pennsylvania. That, though, will require replacement of the Progressive-Democratic Party-run State government with a more balanced and Conservative and Republican Party-run government.

Manchin’s Permit Reform Legislation

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It’s in serious jeopardy from House Progressive-Democratic Party members—70 of them—and Senator Joe Manchin (D, WV) hasn’t even released the language of his permit reform proposal (but West Virginia’s other Senator, Republican Senator Shelly Moore Capito, has released hers). Despite this, Manchin blames Republicans for the jeopardy.

On top of that, Manchin says he’ll release his proposal in the coming days.

This, of course, is nonsense. Manchin, responsible Senator that he is, has had his proposal written since early in the days when he was negotiating with Senate Majority Leader Chuck Schumer (D) the price for which Manchin would sell his vote on the Progressive-Democratic Party’s then-latest spendthrift bill.

Manchin has no reason at all for withholding his proposal from public scrutiny for so long, much less from the other party’s scrutiny before demanding their vote on it.

Inflation? What Inflation?

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President Joe Biden (D) and his White House spokesmen have been bragging about what a strong economy we have.

Even CNN waved the BS flag at that. Here’s how strong our economy really is.

The Labor Department on Tuesday reported its consumer-price index rose 8.3% in August from the same month a year ago [albeit down slightly from the prior two months’ year-on-year inflation]

And

[C]ore CPI, which excludes often volatile energy and food prices, increased 6.3% in August from a year earlier, up markedly from the 5.9% rate in both June and July

And

Food prices continued to climb sharply this past month, rising 0.8% in August from July, as did those for new vehicles leapt 0.8%. Prices also rose last month for medical care, education, electricity, and natural gas

Inflation in energy cost is especially troublesome. That’s the price of heating and cooling our homes, our places of business, our schools, how we power our industrial facilities. The impact on our health and finances from that exacerbates our demand for/need for medical care.

That inflation is made the worse by the growth in wages that’s been occurring since inflation took off with Biden’s ascension to office (if not since his election). Wage growth had been at half the rate of inflation, meaning us Americans’ income actually had been shrinking relative to the prices we face. But last month, despite that 8.3%/6.3% inflation, our wages grew…not at all.

Median household income was essentially unchanged last year on an inflation-adjusted basis….

Our wage dollar buys ever less in the Biden version of a strong economy.

Biden and his Progressive-Democratic Party are either wholly unaware of the real economy us average Americans face, or they’re blatantly lying about the situation.

Meanwhile, they partied on the White House lawn the day those numbers were released, celebrating this wonderful news.

Remember their obliviousness or their dishonesty this fall.

Logistics Matters…

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…far beyond the process of getting soldiers and consumables to a battlefield and to the battlers.

In the aftermath of Germany’s—and much of Europe’s—considered decision to make themselves dependent on Russian natural gas and Russian President Vladimir Putin’s equally considered decision to limit and cut off natural gas supplies to Europe to try to coerce behaviors acceptable to Putin, Germany, et al., are (re)discovering the need for better logistics and logistical execution.  The lessons are available to the US, too, if the government is willing to learn.

Europe’s energy crisis has unleashed a global battle over natural-gas tankers….

And [emphasis added]

European countries ramped up their purchases of liquefied natural gas from the US, Qatar, and other sources this year as Russia cut supplies to the continent. They are competing with peers in South Korea and Japan—where gas demand has surged during a heat wave—for a finite amount of supply ferried by a limited number of vessels.

LNG-capable tankers are long-lead items that take specialized equipment to keep the natural gas cooled and under pressure. They’re also expensive, hence the interest in only limited inventories of such ships—they’re expensive even simply to have, if they’re just sitting around in port unused.

It’s not just the complexity of the ships, though, that contribute to the present long-lead times.

Shipmakers in South Korea, the world’s biggest producer of LNG tankers, don’t have free capacity for new orders until 2027[.]

However, the wonders of Europe have known for some time that they needed more LNG tankers.

LNG and the tankers that carry the fuel were in high demand even before the conflict, as extreme weather curtailed hydropower, and many economies sought to ditch coal to reduce carbon emissions.

The complexity of these logistics is further illustrated by this little fillip: the price of steel is rapidly rising, an accelerated increase driven by demand from a broad reach of needs in addition to simply making boats.

The lessons for the US?

The need for more natural gas (and oil) production, more flexible production, better and expanded distribution grids to refiners, and in the present context, expansion of port facilities able to convert natural gas to liquid natural gas and then to transfer that LNG to LNG-capable tankers.

And maybe build some of our own LNG tankers. And get rid of the Jones Act.

Food or Fuel?

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That’s the choice being forced on Americans by the push for “clean” fuel for our cars, even as the Left and the Progressive-Democratic Party push for elimination of gasoline-burning cars. Dave Loos, Illinois Corn Growers Association’s Director of Biofuels and Research, actually is proud of that diversion of food to fuel.

Illinois has 13 ethanol plants that can produce 1.6 to 1.7 billion gallons of ethanol annually.

A bushel of corn produces 2.8 gallons of ethanol. That’s roughly 590 million bushels of corn diverted from food in Illinois alone. Illinois corn farmers produced 2.13 billion bushels of corn in 2019. The equivalent (because it’s not only Illinois corn in those plants) of more than 27% of Illinois’ corn production is diverted away from food production in Illinois’ plants.

Food or fuel? Food—corn—diverted from Americans’ tables and from ranchers’ animal feed (and so diversion of meat from Americans’ tables) is being sacrificed to produce ethanol for vehicles that are intended to not exist in any great number in a few short years.

And this doesn’t address the environmental and economic damage done by the Renewable Fuel Standard—the Federal government’s ethanol mandate. From Environmental outcomes of the US Renewable Fuel Standard, published in the Proceedings of the National Academy of Sciences last winter:

[T]he RFS increased corn prices by 30% and the prices of other crops by 20%, which, in turn, expanded US corn cultivation by 2.8 Mha (8.7%) and total cropland by 2.1 Mha (2.4%) in the years following policy enactment (2008 to 2016). These changes increased annual nationwide fertilizer use by 3 to 8%, increased water quality degradants by 3 to 5%, and caused enough domestic land use change emissions such that the carbon intensity of corn ethanol produced under the RFS is no less than gasoline and likely at least 24% higher.

That’s an example of the irrationality of Left and of their politicians.