In its April 4 issue, C&E News said Pres. Obama last week laid out his energy plan. It consists of moving the US away from foreign oil, producing more domestic oil, and developing clean energy products and markets. He also vowed to fight for for sustained government energy R&D spending in the face of federal budget battles.
This so-called plan does not make a lot of sense, in consideration of the fact that for years Obama has been restricting production of oil in the US through denial of drilling permits. When he says "clean energy products", he refers to energy sources which do not liberate CO2. He and the EPA previously decided CO2 is a pollutant in the atmosphere, which it is not. The purpose of that definition on CO2 wives to promote solar and wind energy. A significant aspect is to tax anything that produces CO2 in order to increase government revenues and further increase the size of government.
Fighting for sustained government energy R&D is also ridiculous. With the billions of dollars previously spent on energy R&D at the government level, nothing has been developed to show any significance, other than the political policy of promoting wind and solar energy and inhibiting oil production in the United States. The President of the National petrochemical & Refiners Association said, "The President [Obama] is burdening the American taxpayer with billions upon billions of dollars in taxes to subsidize ethanol, electric cars and other energy ideas that can't survive in the free market."
Covers energy sources, economis of energy, fossil fuels, solar and wind, government and private programs
Monday, April 25, 2011
Good News for Energy in the US
There is good news!
Sometime ago private industry developed a process for production of significant quantities of natural gas by cracking shale deposits in the northwestern part of the US. This has led to a significant increase in the availability of natural gas with the corresponding reduction in price .
C&E News reports in the April 4 Issue that Chevron Phillips is considering would get Chevron Phillips is considering construction of a 2.5 billion pound per year cracker and new derivatives plant. Ineos Oxide is considering a 1.3 billion pounds per year ethylene oxide plant and associated derivatives, including ethylene glycol.
Chevron Phillips' CEO said that he wants to capitalize on the advanced feedstock position that shale gas brings to the chemical industry in the US. Ineos Oxide's CEO said the US is an obvious location to consider its next expansion.
US jobs will be created in the shale cracking production of natural gas, in addition to the new jobs in the subsequent use of the gas in petrochemical production. The industry will also bring about a significant increase in the dollar volume of American-made products.
Another significant aspect is that the federal government had no part in this development, even though it spends billions of dollars on energy research. The only good thing we can say about the federal government is that it was unable to impede this development, because the shale deposits are on non--government-owned land.
Sometime ago private industry developed a process for production of significant quantities of natural gas by cracking shale deposits in the northwestern part of the US. This has led to a significant increase in the availability of natural gas with the corresponding reduction in price .
C&E News reports in the April 4 Issue that Chevron Phillips is considering would get Chevron Phillips is considering construction of a 2.5 billion pound per year cracker and new derivatives plant. Ineos Oxide is considering a 1.3 billion pounds per year ethylene oxide plant and associated derivatives, including ethylene glycol.
Chevron Phillips' CEO said that he wants to capitalize on the advanced feedstock position that shale gas brings to the chemical industry in the US. Ineos Oxide's CEO said the US is an obvious location to consider its next expansion.
US jobs will be created in the shale cracking production of natural gas, in addition to the new jobs in the subsequent use of the gas in petrochemical production. The industry will also bring about a significant increase in the dollar volume of American-made products.
Another significant aspect is that the federal government had no part in this development, even though it spends billions of dollars on energy research. The only good thing we can say about the federal government is that it was unable to impede this development, because the shale deposits are on non--government-owned land.
Friday, April 15, 2011
Intentional Weakening of US Financial Power Through Energy
EIN News says, "Russian Stakeholders Ask That BP-Rosneft Arctic Deal Be Done Via Joint Venture TNK-BP A group of Russian billionaire shareholders in oil company TNK-BP said Friday they want BP's pending Arctic exploration deal with Rosneft to be conducted through the Russian-British joint venture. The demand contradicts earlier reports that the Russians wanted to sell their stake in TNK-BP. (washingtonpost.com)".
The Russians and Brits are working with BP to extract oil from the Arctic, while we sit on our hands.
Obama and Salazar want our gasoline prices to increase, which is happening, in order that solar and wind can compete with oil on the US market. They accomplish this by denying oil drilling permits in the US.
Subsidizing inefficiency seems like a wonderful way to redistribute world wealth to the disadvantage of the average US citizen.
The Russians and Brits are working with BP to extract oil from the Arctic, while we sit on our hands.
Obama and Salazar want our gasoline prices to increase, which is happening, in order that solar and wind can compete with oil on the US market. They accomplish this by denying oil drilling permits in the US.
Subsidizing inefficiency seems like a wonderful way to redistribute world wealth to the disadvantage of the average US citizen.
Thursday, April 14, 2011
India Has Been a Route to Oil Supply Than US
EIN News says, "India to Get 25% in Kazakh Oilfield India will mark another milestone in its energy security journey when it signs an agreement sometime this week to secure a 25% stake in the Satpayev oil field on the Caspian Sea. With its huge dependence on oil imports, India has been seeking stakes in overseas oil blocks to secure energy supplies. (hindustantimes.com)".
Kazakhstan is the ninth largest country in the world. It is located between Russia to the north and Iran to the south.
With India's purchase of a 25% interest in the Satpayev oilfield, it is implied that production is occurring or is imminent. India likely expects to draw oil from the region and make it available to Indian citizens.
Do we have an analogy with US oil?
India must buy a stake in a foreign country and is quite likely to obtain oil.
The US has its own intercontinental oil reserves, but it's government is unwilling to allow that oil to be supplied to its citizens in the desired quantities.
Kazakhstan is the ninth largest country in the world. It is located between Russia to the north and Iran to the south.
With India's purchase of a 25% interest in the Satpayev oilfield, it is implied that production is occurring or is imminent. India likely expects to draw oil from the region and make it available to Indian citizens.
Do we have an analogy with US oil?
India must buy a stake in a foreign country and is quite likely to obtain oil.
The US has its own intercontinental oil reserves, but it's government is unwilling to allow that oil to be supplied to its citizens in the desired quantities.
Thursday, April 7, 2011
President Obama Responsible for High Gasoline Prices
EIN News says, "White House Fears Gas Prices Could Tank U.S. President Obama Rising prices at the pump are a new political obstacle to the president's reelection. He is trying to defuse the situation by reassuring the American people he has a plan to draw down costs. (latimes.com)".
An obstacle to reelection is a reasonable retribution. We can also say that he has committed political suicide.
President Obama and Ken Salazar have done everything they could to raise prices of gasoline in the US. In fact, Ken Salazar made a public statement that increasing gasoline prices was one of his objectives
An obstacle to reelection is a reasonable retribution. We can also say that he has committed political suicide.
President Obama and Ken Salazar have done everything they could to raise prices of gasoline in the US. In fact, Ken Salazar made a public statement that increasing gasoline prices was one of his objectives
Wednesday, April 6, 2011
Oil Revenues Go to Those Who Place Themselves in a Favorable Position
EIN News says, "For Oil Companies, Upheaval in Arab World, Japan Means a Gusher With allied warplanes bombing Libya, Saudi troops in Bahrain, and fleets of Japanese nuclear reactors idled by earthquakes and a tsunami, the price of a barrel of West Texas Intermediate-grade crude oil has soared in the past three months - up $16 to a towering $106.79 a barrel. (washingtonpost.com)".
Good news for West Texas! Texas has fortunately some belowground reserves, which at this oil price can afford to be tapped. It would also be nice if Texas could tap deepwater reserves in the Gulf, but this is prohibited by our Federal Government. Rather, the Obama Administration is encouraging Brazil to tap reserves in the Atlantic and Cuba to tap reserves in the Gulf off Florida.
California and Florida have shot themselves in the foot by not harvesting oil off their coasts. Federal government limitations should not have been an excuse. They had the right to seriously object to any restrictions.
Good news for West Texas! Texas has fortunately some belowground reserves, which at this oil price can afford to be tapped. It would also be nice if Texas could tap deepwater reserves in the Gulf, but this is prohibited by our Federal Government. Rather, the Obama Administration is encouraging Brazil to tap reserves in the Atlantic and Cuba to tap reserves in the Gulf off Florida.
California and Florida have shot themselves in the foot by not harvesting oil off their coasts. Federal government limitations should not have been an excuse. They had the right to seriously object to any restrictions.