Natural Gas Gets Clubbed

From: RedState

With the shale gas boom in full swing, gas prices are at 10-year lows. We have the realistic prospect of abundant domestic supplies of a clean-burning fuel for the foreseeable future, who doesn’t like natural gas?

Ask the Sierra Club. This week, the venerable environmental organization announced its “Beyond Natural Gas” initiative, to go along with their “Beyond Coal” and “Beyond Oilcampaigns. Of course, they hate nuclear energy too.

“Fossil fuels have no part in America’s energy future – coal, oil, and natural gas are literally poisoning us. The emergence of natural gas as a significant part of our energy mix is particularly frightening because it dangerously postpones investment in clean energy at a time when we should be doubling down on wind, solar and energy efficiency.”
—Robin Mann, Sierra Club President

The Sierra Club has over a half-million members (down from 600,000) and an annual budget of $100 million. They are arguably the most influential environmental lobby in the country. People take them seriously, and politicians listen.

With their opposition to fossil fuels and nukes, the Sierra Club takes 91% of our current energy sources off the table (see EIA chart at the end of the post). And most of the remaining 9% they’re not too crazy about.

Youthful naiveté has an endearing quality. If their proposal were merely impractical, it would be naive. The Sierra Club is not naive. Their plan is physically and economically impossible. They have a willfully foolish, craven and destructive agenda. They are not looking for solutions. They wish an end to our industrialized civilization. They wish us to return to mud huts. There are responsible environmental organizations. It should be an embarrassment that anyone should give the Sierra Club a nickel.

The Sierra Club’s ultimate goal, not surprisingly, is to save the planet from Global Warming. To that end, they wish to curtail 90% of carbon dioxide emissions by 2050thirty-eight years from now.

How will they do it? In Robin Mann’s words: “[W]e should be doubling down on wind, solar and energy efficiency.”

Point #1: Everyone is for energy efficiency, and it happens naturally due to economics and technical advances. But “energy efficiency” is a strategy to use existing fuels more efficiently, not replace them. That means the only technologies on the table are wind and solar. So that leads to …

Point #2: This is not “doubling down”, it’s going “all in“. All in on a sucker’s bet. That’s because wind and solar would have to grow by a factor of 50 times their contribution in 2011. Not “grow by 50%” — 50 times. Even if we suddenly developed the will to do it, there’s not enough money/resources in the known universe to make it possible. And if we did it, what about the Chinese and the rest of the world? And what would be the environmental consequences of making the conversion?


See that little pink bar, way on the right? The Sierra Club loves that. Everything else; not so much. Not at all, in fact. And it’s even worse than that chart makes it appear — this is a graph of domestic sources. In addition to the 78 quads depicted here, we import another 20. And Geothermal has limited growth potential. So that little pink bar needs to grow from a value of 2, to 100.
Or more than 100, because the population is going to grow by 2050. And since wind and solar are not primary transportation sources, we’d need to generate even more to account for efficiency losses.

This radicalism can be understood in the context of a recent reorganization:

Carl Pope, who has led the Sierra Club for much of the last two decades, is planning to leave the organization next year as it struggles to redefine its mission in a tough economy, the organization said Friday. … Mr. Pope, 66, stepped down as executive director last year after 17 years, turning the job over to Michael Brune, 40, who came to the Sierra Club from the Rainforest Action Network and Greenpeace, younger and politically more aggressive groups. Mr. Pope has held the title of chairman since Mr. Brune arrived and will remain a consultant to the club until the end of next year.

Has the Sierra Club jumped the shark? That happened long ago. My friend, with this natural gas pronouncement, the Sierra Club gave the shark a lap dance. And had its love child.

The Wall Street Journal reminds us that not long ago, the Sierra Club and natural gas were BFFs (to the tune of $26 million from Chesapeake Energy, never a shrinking violet when it comes to advancing its own interests):

“The political irony is that not too long ago the Sierra Club and other greens portrayed natural gas as the good fossil fuel. The Sierra Club liked natural gas so much (and vice versa) that from 2007-2010 the group received $26 million in donations from Chesapeake Energy and others in the gas industry, according to an analysis by the Washington Post. Some of that money was for the Beyond Coal campaign. …”

But now that the hydraulic fracturing and shale revolution has sent [wellhead] gas prices down to $2.50 [from $8 or more per million BTU in 2008], the lobby fears natural gas will come to dominate U.S. energy production. At that price, the Sierra Club’s Valhalla of wind, solar and biofuel power may never be competitive. So the green left has decided it must do everything it can to reduce the supply of gas and keep its price as high as possible.

The Purposeful Ruination of America

As has been stated many times in the past; The United States can not be defeated by any military or opposing force outside its borders. It must be self-inflicted from within its own borders by its own people.

The following video is a testament to the fine job we are doing.

Profits are Obscene

Six House Dems Would Confiscate Oil Company Profits
by Steve Maley

Six House Democrats, led by Rep. Dennis Kucinich (D’OH), have filed a bill aimed at controlling gasoline prices. Styled the “Gas Price Spike Act”, H.R. 3784 would establish a “Reasonable Profits Board” which would have the power to confiscate 100% of oil company profits above a level that they deem to be “reasonable”.

I know: “You had me at ‘Kucinich’.”

Which is which?

Which is which?

Kucinich is either a naive fool, a craven panderer to his electorate, or a throwback to Soviet-style central planning. That he could find five other elected nitwits (Reps. Woolsey, Langevin, Conyers, Fudge and Filyers) to put their names on such an anti-capitalist, unconstitutional fantasy is an indication that the Far Left Wing of the Democratic Party has left the ranch.

Consider, too, what it says about “Republican” presidential candidate Rep. Ron Paul (R-TX), who recently declared that he would consider Kucinich for a cabinet post in a Paul Administration.

Paul said his libertarian political philosophy helps him connect with some on the far left — including Kucinich, who shares Paul’s general anti-war stance.

Paul joked that if he brought the Ohio congressman aboard in his administration, he might have to create a “Department of Peace.”

“You’ve got to give credit to people who think,” he said.

The Gas Price Spike Act, H.R. 3784, would apply a windfall tax on the sale of oil and [natural] gas that ranges from 50 percent to 100 percent on all surplus earnings exceeding “a reasonable profit.” It would set up a Reasonable Profits Board made up of three presidential nominees that will serve three-year terms. Unlike other bills setting up advisory boards, the Reasonable Profits Board would not be made up of any nominees from Congress.

The bill would also seem to exclude industry representatives from the board, as it says members “shall have no financial interests in any of the businesses for which reasonable profits are determined by the Board.”

Oil companies would only be able to make less than a reasonable profit without penalty. Anything over 105% of reasonable would be taxed at 100%. Proceeds of the confiscation would be dedicated to tax credits for high-milage vehicle purchase and mass transit subsidies for the poor.

Peeling back the layers of stupidity in H.R. 3784 would be akin to peeling an artichoke. In the interest of time, I will cut to my central point.

Implicit in the very suggestion that a Windfall Profit Tax is called for is the notion that somehow the oil companies are able to manipulate the price of oil, and hence, gasoline.

Gasoline prices are at historically high prices. Despite the spike above $4.00 per gallon in 2008, you actually paid 10% more at the pump in 2011.

When we refer to the industry as “oil and gas”, we mean “oil and natural gas”, not oil and gasoline. All oil companies make a substantial fraction of their revenue — many more than half — from natural gas.

The price of natural gas has plunged to 10 year lows recently as a result of warm winter temperatures, slack industrial demand and burgeoning supplies.

Natural gas prices have fallen to levels that make it difficult to justify drilling for more. Many of the new supplies of gas that come on will be incidental to the successful search for oil.

I challenge anyone who believes that oil companies control the price of oil and gasoline to explain how they do it, and why they seemingly have no control of natural gas.