Tag Archives: Oil and Gas

Does Joe Biden oppose fracking? Will he shut down the oil and gas industries?

Far-left CNN fact-checks Joe Biden on fracking
Far-left CNN fact-checks Joe Biden on fracking

A very interesting thing happened after the debate on Thursday. Far-left CNN decided to fact-check Trump’s claim that Biden said on video that he wanted to ban fracking. Far-left CNN ruled Trump’s statement “correct”. During the debate, Biden also admitted that he wanted to eliminate all fossil fuel usage, including cars that use gas. Let’s take a look at Biden’s exact words.

Here’s the CNN fact check:

The Federalist reports:

Despite Biden and his vice-presidential nominee Kamala Harris’s insistence that Biden never said he opposed fracking, Biden has repeatedly condemned fracking and the fossil fuels industry.

“We would work it out. We would make sure it’s eliminated,” Biden said about coal and fracking from the Democratic presidential debate stage just a few months ago.

“We are going to get rid of fossil fuels,” he also promised from the podium at a New Hampshire rally.

Harris, a proud co-sponsor of the Green New Deal, which would ban fracking, has also been vocal about her position.

Regarding shutting down the oil and gas industries, The Federalist reports:

Democratic Presidential Nominee Joe Biden admitted during Thursday night’s final presidential debate that he going to end the oil industry if elected president.

“Would you close down the oil industry?” President Donald Trump pressed just before their closing statements.

“I would transition from the oil industry, yes,” Biden replied.

When asked by debate moderator Kristen Welker to clarify his statement, Biden claimed that he wants to shut down the oil industry because it “pollutes significantly” and needs to be “replaced by renewable energy over time.”

There are many problems with renewable energies, and you can find out all about them by looking at places that have tried to switch over to those energy sources.

Switching to Renewable Energy

Let’s start with California. California has long been at the forefront of converting their energy production to “green” sources.

Here’s an article from Forbes that talks about their results:

At the Democratic National Convention this week, presidential and vice-presidential candidates Joe Biden and Kamala Harris will make the case for spending $2 trillion, or $500 billion per year, to transition the U.S. away from fossil fuels toward renewables like solar and wind.

[…]California’s big bet on renewables, and shunning of natural gas and nuclear, is directly responsible for the state’s blackouts and high electricity prices.

“We will be forced today to ask utilities to cut off power to millions today, and tomorrow, and beyond,” said Stephen Berberich, the President and CEO of California’s Independent System Operator, CAISO, on a Monday morning conference call. “Demand will greatly exceed supply.”

The immediate cause of California’s blackouts is a mismatch between electricity supply and demand.

[…]The underlying reason blackouts are occurring is because California lacks reliable, in-state supply. And the reason for that is California has been closing both natural gas and nuclear power plants.

[…]Despite these capacity shortfalls, the state is moving ahead with plans to remove 2,200-MW of reliable electricity from the grid.  That’s the amount of power produced by Diablo Canyon nuclear power plant, which will be closed in stages in 2024 and 2025.

So, Green New Deal works great… if your goal is to feel good about yourself, and make emotion-driven people like you. But it isn’t very good at generating an abundance of low-cost electricity to power businesses. And it isn’t very good for poor people, who prefer to pay less for their electricity.

Well, how about Germany? They closed down their nuclear power plants in favor of wind and solar. It didn’t work.

Daily Caller explains:

Germany’s power grid almost collapsed in January due to poor performance from wind turbines and solar panels, according to data from a major trade union.

Wind and solar power plants under-performed in January, 2017, because of cloudy weather with little or no wind, setting the stage for massive blackouts.

[…]Green energy approaches failed to meet Germany’s stated energy goals, even after spending over $1.1 trillion. The country’s “Energiewende” plan to boost wind and solar production to fight global warming hasn’t significantly reduced carbon dioxide (CO2) emissions and may have actually caused them to go up.

[…]Due to the inherent unreliable performance of wind power and political opposition to nuclear power plants, Germany has been forced to return to coal to generate electricity. Coal now provides 44 percent of  Germany’s power,  This shift caused Germany’s carbon dioxide (CO2) emissions to actually rise by 28 million tons each year following the policy shift.

All of Germany’s subsidies and support for green energy have sharply increased power prices, with the average German paying 39 cents per kilowatt-hour for electricity. The average American only spends 10.4 cents per kilowatt-hour by comparison.

So, you get less electricity produced, more emissions, and elctricity prices go up. Just like in California.

Well, third try is the charm. How about Canada? They’ve gone Green New Deal for more than a decade. How is that working for them?

The National Post reported this in 2016:

Back in 2010, deep green environmentalist Rick Smith, then head of Environmental Defence Canada, hailed Ontario’s Green Energy and Green Economy Act regime as a cost-free operation that would catapult the province into the big leagues of renewable energy. Through fat subsidies and high prices offered to wind, solar and other renewable industry players, jobs and growth would boom and Ontario would be free of its dirty coal plants. It was the End of Coal, the government said. The birth of a renewable miracle.

Now, Canadians are paying more:

The doubling of electricity prices since 2005 is big politically, but it is just the top-line item on a long list of problems, misconceptions and outright fabrications that lurk within the Liberal government’s decade-long pursuit of radical greenism.

Because they didn’t listened to engineers… they listened to their hearts:

Ontario’s Society of Professional Engineers has issued more than half a dozen critical reports on the Liberals’ tendency to let green talk and politics override sound policy. Instead of following the expert advice of engineers and people who understand the intricacies of electricity production and distribution, the government took to issuing directives right out the Premier’s office.

Now, I know some people on the secular left are going to disagree with these facts. But they don’t have facts to counter these facts. There isn’t a single country that has gone Green New Deal that has lower electricity prices and a net increase in jobs.

We have to do what works. What works is more natural gas (fracking) and more nuclear power.

Incoming Kentucky Governor to EPA: we will not comply with your regulations

This is why I think that the real conservatism is always with the governors. When Republicans go to Washington, they often get so squishy that they are no use. If you’re looking for real conservative actions that produce real results, look to the governors. They get things done.

Video:

Here’s the article from The Blaze. (H/T ECM, who was suitably impressed)

Excerpt:

Kentucky Gov.-elect Matt Bevin said in an appearance on The Glenn Beck Radio Program Friday that he will push back against the Environmental Protection Agency’s efforts to regulate the coal industry, telling the EPA to “pound sand.”

Bevin’s comments came after Glenn Beck asked, “Now that you’re in, President Obama has said that he’s going to destroy the coal industry. Kentucky is a coal state. What are you going to be doing specifically to push back on that?”

In August, President Barack Obama unveiled his coal policy in partnership with the EPA, granting the agency authority over what is traditionally a state responsibility.

According to Sam Batkins, director of regulatory policy at American Action Forum, the policy will cost $2.5 trillion and 125,800 jobs, along with shuttering 66 power plants.

Bevin, a Tea Party favorite who became only the second Republican in four decades to win Kentucky’s governorship Tuesday, vowed to stand against the EPA when it comes to protecting his state’s large coal industry.

“Why it is that we in Kentucky — that sit on two extraordinary basins, the Illinois basin and the Central basin, an abundance of this — how are we not participating in something that the world wants more of than they ever have?” Bevin asked. “And so, from my way of thinking, we will tell the EPA and other unelected officials who have no legal authority over us as a state, to pound sand.”

Bevin, a self-described “staunch conservative,” told Beck he believes the 10th Amendment is “one of the most powerful tools” and that power not expressly given to the federal government is the responsibility of the states.

The incoming Kentucky governor said the EPA has “no authority” and that its only recourse would be to “take us to court.” Bevin said that, in the past, the agency has “bribed us with our own money,” but he insisted that will not happen anymore under his leadership.

“The EPA, for example, they don’t have an enforcement arm,” Bevin said. “They use federal dollars. They use our own money. They bribe us with our own money to stick it to ourselves. And we will not do that anymore in the state of Kentucky.”

Recall that coal is cheap to produce compared to more politically correct energy sources like wind and solar:

Cost of renewable wind and solar energy
Cost of renewable wind and solar energy

Now, if the people of America really want to do something to draw America off of coal, then we should focus on nuclear power, instead of wasting money on solar and wind. But of course, the Democrats oppose nuclear power, too – despite the facts that scientists are in favor of it.

The left-leaning Pew Research reports:

About half (51%) of Americans favor building more nuclear power plants to generate electricity, while 42% oppose this. Among the general public, a greater percentage of men (60%) than of women (43%) favor building additional nuclear power plants. More college graduates (59%) favor building nuclear power plants than do those with a high school education or less (46%). And larger shares of Republicans (62%) than independents (52%) or Democrats (45%) support expanding the use of nuclear power to generate electricity.

When it comes to nuclear power, the views of scientists are closer to those of Republicans than Democrats nationwide. Seven-in-ten scientists favor building more nuclear power plants to generate electricity, while 27% are opposed. Among scientists, majorities in every specialty favor building more nuclear power plants, but support is particularly widespread among physicists and astronomers (88% favor). As with the public, far more men (76%) than women (55%) support the expansion of nuclear power.

We are bankrupting the country wasting money on green energy production that is not cost effective, and Democrats are opposed to clean energy production that is cost effective: fracking and nuclear. Then they complain about coal and try to regulate it out of existence. Unless and until Democrats come around on fracking and nuclear power, then they should not be regulating coal out of existence. All that will do is raise energy prices for all of us, which is exactly what we see happening in Germany. They are further along the green energy road, and we must learn from their mistake.

Socialist party wins majority in Canada’s most conservative province

Orange = NDP, Green = Wildrose, Blue = Conservative
Orange = NDP, Green = Wildrose, Blue = Conservative

This article from Reuters explains what happened.

It says:

The left-wing New Democrats won election in the Canadian province of Alberta on Tuesday, ending the 44-year run by the Progressive Conservatives amid promises to review oversight of the oil and gas sector in the home of Canada’s oil sands.

At the end of a month-long campaign, the New Democratic Party (NDP), which has never held more than 16 seats in the 87-seat provincial legislature, will lead a majority government. It held a commanding lead in early results, leading or elected in 54 seats at 9 p.m. local time while the Conservatives were ahead in just 13, according to CBC TV.

The NDP is expected to be far less accommodative to the Western Canadian province’s powerful energy industry.

NDP Premier-elect Rachel Notley has proposed reduced support for pipeline export projects and a review of oil and gas royalties in the resource-rich province, and energy shares on Canadian stock markets are expected to react negatively to her party’s victory.

The NDP had promised to hike corporate tax rates by two percentage points to 12 percent if elected, but its promise to review the amount of royalty payments due the province from oil and gas production made some investors nervous.

Alberta’s oil sands are the largest source of U.S. oil imports.

The Conservatives had won 12 straight elections, but support for rookie Premier Jim Prentice plunged during the campaign and right-wing voters split support between the Conservatives and the younger, more conservative Wildrose Party, which appeared on track to be the official opposition.

The Alberta “Progressive Conservatives” are almost as leftist as the NDP. The only real conservatives in Alberta are the Wildrose.

This Canadian Press looks at specific NDP policies:

The NDP have won a majority in Alberta. What could Alberta look like moving forward? Leader Rachel Notley campaigned on having the wealthy pay more to fund better health care and education. Here’s a look at some of the party’s key platform planks:

— A Resource Owners’ Rights Commission to review the royalties oil companies pay to the province with any amount earned above the current rates going into savings.

— A boost in the corporate tax rate to 12 per cent from 10 per cent and an increase in the minimum wage to $15 and hour by 2018.

— More tax brackets on high earners than the Tories are proposing: A 12 per cent tax rate on income between $125,000 to $150,000; 13 per cent on income between $150,000 to $200,000; 14 per cent between $200,000 and $300,000 and 15 per cent over $300,000. The NDP also plans to roll back the Tory health levy.

— The creation of 2,000 long-term care spaces over four years.

— A ban both corporate and union donations to political parties.

That last one looks like a conservative policy, since big corporations and unions are both leftist. So there’s a silver lining to this cloud. I’m sorry for my Canadian friends who will have to live with this, but the mistake was made last election, when they chose the Progressive Conservatives over Wildrose. One thing is for sure, Alberta supplies a lot of our oil here, so this NDP win will raise oil prices, and it’s going to put pressure on American families. Maybe we should be drilling for our own oil?

New study: federal control of land hurts job growth in oil and gas industry

The Daily Signal reports on a new study from the Heritage Foundation.

They write:

Current government regulations imposed by the Bureau of Land Management are harming energy production and holding back the U.S. economy, a new study reveals.

“While federally owned lands are also full of energy potential, a bureaucratic regulatory regime has mismanaged land use for decades,” write The Heritage Foundation’s Katie Tubb and Nicolas Loris.

The report focuses on the Federal Lands Freedom Act, introduced by Rep. Diane Black, R-Tenn., and Sen. James Inhofe, R-Okla. It is designed to empower states to regain control of their lands from the federal government in order to pursue their own energy goals. That is a challenge in an oil-rich state like Colorado.

“We need to streamline the process as there are very real consequences to poor [or nonexistent] management,” Tubb, a Heritage research associate, told The Daily Signal.

“Empowering the states is the best solution. The people who benefit have a say and can share in the benefits. If there are consequences, they can address them locally with state and local governments that are much more responsive to elections and budgets than the federal government.”

Emphasizing the need to streamline the process, Tubb pointed to the findings in the new report.

“The Bureau of Land Management estimates that it took an average of 227 days simply to complete a drill application,” Tubb said.

That’s more than the average of 154 days in 2005 and more than seven times the state average of 30 days, according to the report.

The report blames this increase in the application process on the drop in drilling on federal lands.

“Since 2009,” Tubb and Loris write, “oil production on federal lands has fallen by nine percent, even as production on state and private lands has increased by 61 percent over the same period.”

Despite almost “43 percent of crude oil coming from federal lands,” government-owned lands have seen a 13-point drop in oil production, from 36 percent to 23 percent.

So, if we were interested in more job creation (and lower gas prices) then what we would be doing is letting oil and gas companies hire more people and extract more oil. Streamlining the process for new new drilling permits would help a lot. Right now, we still have a very low level of labor force participation. If we want companies to hire more people, we need to make it easier for them to do it. That means a less anti-business climate.

Technological advances make the Keystone XL pipeline safer than alternatives

My Dad loves to read Fox News, and he sent me this article about the technology behind the Keystone XL pipeline. We got into a good discussion on this article, too. My Dad used to be a big believer in big government, but now he only cares about what problems the private sector can solve.

The article says:

The Obama administration continues to block the controversial Keystone XL pipeline that would transport nearly 35 million gallons of oil a day from Canada to the U.S., citing environmental concerns as the reason. But according to pipeline advocates, it would use the latest technology and best safety features to prevent spills.

Advanced steel is part of it. The current part of the Keystone pipeline that already exists uses 2,638 miles of hardened steel built to “withstand  impact from a 65-ton excavator with 3.5-inch teeth,” according to TransCanada, the company behind the Keystone pipeline.

The steel is also coated with alloys to prevent it from wearing out.

“They use all kinds of methodologies to reduce friction. Corrosion inhibition is pretty sexy stuff in this business,” Eric Smith, associate director of Tulane University’s Energy Institute, told FoxNews.com

Pumping stations are another critical part. All along the pipeline, pumps move the oil using centrifugal force: a motor spins and forces oil to the edges of the pump, which causes more oil to rush forward to take the place of the oil pulled to the edges.

Each pump has 6,500 horsepower – meaning that the pump exerts an amount of power roughly equivalent to that of 6,500 horses. Total pumping power on the existing pipeline is nearly half a million horsepower, according to TransCanada.

Another critical technology is leak detection systems. The existing Keystone pipeline, for instance, has sensors that collect data from 20,000 different points along the pipeline.

If a leak occurs anywhere along the pipeline, the pressure in the pipeline changes, and TransCanada notes that such changes travel through the pipeline at the speed of sound and so can be detected nearly instantly.

The company adds that the pipeline has “fail-safe” mechanisms that automatically reduce oil pressure in the pipeline to safe levels.

TransCanada also has airplanes monitor the pipeline from the sky, using both the eyes of human pilots and a “Laser Spectroscopy Unit” that shoots a laser near the pipeline and then analyzes the reaction of whatever material is hit by the laser beam. TransCanada says this is “capable of identifying tiny methane leaks at patrol altitudes.”

The human pilots also catch things. TransCanada reports that one of its pilots once noticed that a circus in Kansas had tethered an elephant to a pipeline stake, which posed a potential threat.

All the layers of security help, say experts.

“It’s a belt-and-suspenders kind of approach. You just don’t want even minute leaks,” Smith said, adding that pipelines are the safest way of moving oil across land.

Pipelines are actually much safer than transporting the oil by train, which is the method favored by environmentalist opponents to Keystone XL:

According to a 2006 study by Environmental Research Consulting using Department of Transportation data, pipelines have spilled far less than trucks or railroads per ton of oil transported.

Critics of President Obama’s delay of the Keystone XL construction say the holdup actually makes everyone less safe, as oil producers instead rely on comparatively dangerous railroads for transportation. From 2008 to 2013, the amount of oil transported by rail skyrocketed from 9,500 carloads in 2008 to 41 times that – 407,642 – in 2013.

My big point to my Dad about this is how the private sector responds to the desires of customers on their own, developing solutions for the people who they expect to buy their products. The government spends 2 billion on the Obamacare web site, and forces people to use it. They can never develop anything people actually want to buy. Government just taxes, regulates and restricts the businesses who seek to solve problems for customers.

It’s the private sector businesses who are the real heroes to customers – making the things that we want and need and competing with other businesses to sell the most quality at the lowest price. They even find solutions to our concerns about the environment, if we let them, because that is part of pleasing the customer, too. If we had to wait on public school teachers, politicians, Hollywood clowns and academics to innovate, we would be waiting a long time indeed. I stand with private sector business, and the free-market system in general.

UPDATE: Holy snouts. For the first time in 6 years I am actually proud of Obama for doing something:

The Obama administration has opened a new front in the global battle for oil market share, effectively clearing the way for the shipment of as much as a million barrels per day of ultra-light U.S. crude to the rest of the world.

The Department of Commerce on Tuesday ended a year-long silence on a contentious, four-decade ban on oil exports, saying it had begun approving a backlog of requests to sell processed light oil abroad. It also issued a long-awaited document outlining exactly what kinds of oil other would-be exporters can ship.

The administration’s first serious effort to clarify an issue that has caused confusion and consternation in energy markets for more than a year will likely please domestic oil drillers, foreign trade partners and some Republicans who have urged Obama to loosen the export ban, which they see as an outdated holdover from the 1970s Arab oil embargo.

The latest measures were wrapped in regulatory jargon and couched by some as a basic clarification of existing rules, but analysts said the message was unambiguous: a green light for any company willing and able to process their light condensate crude through a distillation tower, a simple piece of oilfield kit.

“In practice this long-awaited move can open up the floodgates to substantial increases in exports by end 2015,” Ed Morse, global head of commodities research at Citigroup in New York said in a research note.

[…]By opening the door to U.S. crude exports, the administration is offering a bit of relief to some domestic drillers that have said that they are forced to sell their shale oil at a discount of as much as $15 a barrel versus global markets as fast-rising domestic supplies overwhelm local demand.

Let’s hope Obama signs the Keystone XL pipeline in the new year, too. That will help people so much and hurt our enemies, Russia, Venezuela and Iran. There are ways to fight wars without firing a shot, and this is how you do it – he looks like Ronald Reagan, now. Well done, Barack Obama! Finally!