Tag Archives: Energy

News

Offshore drilling moratorium would cost 175,000 jobs per year

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From Big Government. (H/T ECM)

Excerpt:

During a 45-minute conference call with journalists from 40 major media outlets this morning, Jack Gerard shared some startling predictions about the future health of the nation’s oil and natural gas industry if the Obama Administration gets its way in adding more regulation and increasing taxes on offshore drilling in the Gulf of Mexico. The biggest one of all is enough to cause anyone to take pause:

“The administration’s moratorium, if continued indefinitely — or similar legislative proposals which would make the deep water unavailable or uneconomic — would cost this country 175,000 jobs every year between now and 2035, according to our latest analysis,” said Gerard, president of the American Petroleum Institute, a group representing some 400 oil and natural gas companies.

The story has more scary effects of a complete shutdown of deepwater drilling. One of my friends who I am staying with during my vacation says that the real number is closer to 200,000 jobs per year.

News

Obama administration modifies report by experts

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Story here at Fox News. (H/T ECM)

Excerpt:

The seven experts who advised President Obama on how to deal with offshore drilling safety after the Deepwater Horizon explosion are accusing hisadministration of misrepresenting their views to make it appear that they supported a six-month drilling moratorium — something they actually oppose.

The experts, recommended by the National Academy of Engineering, say Interior Secretary Ken Salazar modified their report last month, after they signed it, to include two paragraphs calling for the moratorium on existing drilling and new permits.

[…]In a letter the experts sent to Salazar, they said his primary recommendation “misrepresents” their position and that halting the drilling is actually a bad idea.

The oil rig explosion occurred while the well was being shut down – a move that is much more dangerous than continuing ongoing drilling, they said.

They also said that because the floating rigs are scarce and in high demand worldwide, they will not simply sit in the Gulf idle for six months. The rigs will go to the North Sea and West Africa, possibly preventing the U.S. from being able to resume drilling for years.

They also said the best and most advanced rigs will be the first to go, leaving the U.S. with the older and potentially less safe rights operating in the nation’s coastal waters.

Unbelievable. The Obama administration consulted with experts and then disregarded their policy recommendations! And the Democrats are actually setting us up for another disaster. Not to mention higher gas prices because of the reduction in supply.

Why are we not drilling in Alaska? That is much safer than offshore drilling anyway. Nuclear power would be safer still.

Commentary

What caused Silicon Valley companies to outsource jobs?

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Article from the center-right Manhattan Institute.  (H/T ECM)

Excerpt:

Silicon Valley faces a serious threat, however: the fiscal and regulatory earthquakes rocking California, which verges on becoming a failed state. Measured by per-household state and local government spending, California ranks third-highest in the nation, behind Alaska and New York. The state government is trying desperately to squeeze money out of any profitable activity to meet the crippling costs. Further, California continues to impose onerous regulations on the private sector. High taxes and stifling regulations give companies a strong incentive to move elsewhere. In this increasingly business-hostile environment, will Silicon Valley’s unique entrepreneurial spirit survive?

[…]California has piled every imaginable burden on businesses. Minimum-wage laws are among the highest in the country, and health and safety regulations are among the strictest; cities like San Francisco and San Jose require businesses to offer employees health insurance; labor laws are extremely union-friendly; environmental policies drive up energy costs—and on and on. Small firms have the toughest time in this business-toxic climate. A recent study by Sanjay Varshney, dean of the College of Business Administration at California State University in Sacramento, estimates that the cost of state regulations in 2007 reached an average of $134,122 per small business—the equivalent of one job lost per company. And it’s not just the small guys: Google, which uses colossal amounts of electricity, is building its data centers in other states or abroad, where energy is much cheaper.

Hank Nothhaft is the CEO of Tessera, a firm in the field of semiconductor miniaturization. He shows me the vacant office parks and empty lots around his company’s San Jose factory. Silicon Valley, he observes, lost more than a quarter of its computer, microchip, and communications-equipment manufacturing jobs from 2001 to 2008, and Tessera proved no exception. The company has kept some of its assembly lines and industrial operations going here, but it now produces two-thirds of its nanotechnology chips in less expensive North Carolina and in various countries overseas, with China becoming the latest contender for a production facility. Just back from a trip there, Nothhaft says that he has been offered terms he “cannot decently refuse.” Using the Internet and videoconferencing, he can manage Tessera factories around the globe without leaving his San Jose office. “The business environment is becoming awful in California,” Nothhaft complains—just by moving his headquarters to Nevada, he’d save $5 million a year in taxes.

I quoted the interesting part of the article above, the rest is just more details about the past, present and future of Silicon Valley.