Tag Archives: energy

Mistaken Emphasis

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Oil and gas companies are worried that, in the process of reducing the Federal employee work force, too many regulators who issue the permits these companies need to begin work on a project are being fired, and so the permits are being delayed.

Some companies are asking the administration not to lay off key personnel who deliver permits at federal agencies….
[C]ompanies receive permits to drill on US lands from Interior’s Bureau of Land Management, licenses to export liquefied natural gas from the Energy Department, and permits to build interstate natural gas pipelines from the Federal Energy Regulatory Commission.

This isn’t the problem the executives make it out to be. The regulators in those entities are not independent satraps who act entirely on their own recognizance. They do not issue the permits or reject them in their own name; they act in the name of their respective Department or agency heads, and those agency heads are not independent satraps, either; they act in the name of their respective Department Secretaries. As such, the agency heads are fully capable of issuing/rejecting permits, and ultimately the Secretaries are fully capable of overruling their subordinate agency heads and issuing/rejecting the permits themselves.

Of course the Leftists and a large collection of fee-seeking lawyers will jump on this with litigation, but ultimately the agency and Secretary actions should be upheld.

Still, they can’t act entirely alone. Matt Schatzman, NextDecade CEO wants those agencies to hire more workers and cut red tape so the industry can start more projects as quickly as possible. It’s not necessary to have both of those. More hires is not necessary in any event; legislation is: require permits to be issued or rejected withing 30 days of the initial application, or the permits are deemed issued. Require the regulators to defend in concrete, measurable, publicly accessible terms their rejection within two weeks of their rejection, or the permit is deemed issued.

Blame Ducking

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It’s not blame shifting or blame casting, even though it might seem so. Those are just tools, though, employed in the cause of ducking blame. Pennsylvania’s Progressive-Democrat governor, Josh Shapiro, has provided the latest version.

Electricity rates are spiking in the State over which he rules. PJM Interconnection, the State’s largest power provider, has approved 38 GW of new generation, but the generators are not being built: high interest rates and inflation, not Shapiro’s fault but demonstratively that of his party’s actions at the Federal level, have made the building too costly, even with the plethora of green subsidies.

Shapiro has, though,

pitched an energy plan to fast-track the construction of renewables and a cap-and-trade program that would effectively subsidize them by punishing fossil fuels. Such policies would likely lead to the retirement of more base-load fossil fuel generators….

And that restriction on energy supply can only further drive up energy prices for Pennsylvanians. This sort of thing already has done so, in fact, hence the present spike for the State’s citizens.

Now Shapiro is blaming PJM for those rising prices while ducking away from his own green policies, and his party’s national-level policies, that are the actual cause of the straits in which Pennsylvania’s citizens find themselves.

This is the Progressive-Democrat mantra: it’s not their fault; it’s never their policies. It’s always and everywhere someone else’s fault.

One More Reason…

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…to stop doing business in New York. This time, it’s the State’s move to tax energy producers who sell their fossil fuel products in the State on the risible basis of those producers’ (global) CO2 production over the years 2000 through 2018. Never mind that, as the Wall Street Journal‘s editors put it,

It’s impossible to determine a company’s contribution to climate change since the effects of CO2 emissions on temperature and natural disasters are mediated by myriad variables.

New York’s bureaucrats will make their assessments anyway, and those assessments will be, of necessity, wholly arbitrary. Then there’s this, too, which New York’s government personages consider irrelevant:

Most fossil-fuel emissions stem from their combustion rather than production….

The fossil fuel energy producers shouldn’t waste time litigating this in court, even though they’d likely win given the plethora of court decisions that hold moves like New York’s illegal.

These folks should simply stop selling their products in New York, and that should include no longer selling their products to utilities that provide electricity- and natural gas-related energy in New York. They’ll save more money that way, money that could be used for innovation and better fossil-fuel-related products for their other customers.

Nor will New Yorkers be harmed by the withdrawal. They have plenty of energy flowing from all those “green” and “renewable” energy sources. And those nuclear reactors on the horizon. The State government’s personages assure us so.

More Progressive-Democrat Lies

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This time by Jennifer Granholm, Energy Secretary for the Progressive-Democrat President Joe Biden. The Wall Street Journal‘s editors are too timid polite to characterize her claims as anything other than “she’s wrong,” but as one of those So Much Smarter Than Us, Granholm knew and knows better; she is lying to us. Here are the unhappy totals (sorry, Jack Brickhouse), prompted by a just-released DoE report on the effects of exporting liquified natural gas.

  • Granholm: exporting more LNG would boost US natural gas, electricity, and product prices.
  • Her Lie Exposed: US gas prices are hovering near record lows even as exports have surged. That’s because growing US production has more than offset domestic demand.
  • G: more US exports aren’t needed since the world will soon be awash in gas.
  • L: Europeans and Japanese disagree, and the DOE study stresses that “US LNG has played a role in enhancing supply security for markets looking to reduce coal in their energy mix while prioritizing both renewables and gas.”
  • G: US LNG would “displace more renewables than coal globally.”
  • L: The study finds that US LNG would mostly displace fossil fuels and at most increase global CO2 emissions cumulatively by 0.05% through 2050.

This is yet another reason why we wouldn’t have nice things under the reign of the Progressive-Democratic Party.

Drilling and Restrictions

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President-elect Donald Trump (R) wants to greatly relieve, if not eliminate, Federal restrictions on oil and natural gas producers so they can “drill, drill, drill.” Lots of folks, including shortsightedly, lots of major (and not so major) oil and gas producer executives think that’s a bad idea.

But some donors grimace when they hear Trump promise that under his watch, crude-oil producers would open the floodgates. He has also promised to cut Americans’ energy costs by 50% or more.
Oil backers’ skepticism stems from the fact that Wall Street has successfully pressured chronically indebted frackers to stop burning through cash, and return it to shareholders via buybacks and dividends instead of reinvesting it to frack more wells.
“Our stocks will be absolutely crushed if we start growing our production the way Trump is talking about it,” said Bryan Sheffield, a Texas oilman who contributed more than $1 million to Trump’s latest campaign.

That argument is a bit of a non sequitur, and so it presents no reason to not remove the restrictions. The removal wouldn’t force the oil and gas producers to drill with abandon or to increase drilling or to drill at all. It would, however, let the producers adjust their drilling from sound business reasons rather than be confined to Government’s political reasons for any adjustment.