Energy Policy

Open email to Sen. Cornyn (Texas):

Dear Sen. Cornyn,
    Thank you for your form letter on energy. I'm pleased to see that you and I are on the same wavelength.
    I much appreciate the fact that you did not mention carbon dioxide emissions with respect to climate change. I hate to bring it up myself, because it is an unnecessary and confusing distraction.
    The only addition that I could make to your letter would be that you will need to continue to fight hard for appropriate legislation. The Communist//Socialist Environmental Groups are strongly opposed to your position, since it is contrary to their desire to reduce US power by a reduction in the US economy. With the availability of considerable funding, they have been able to buy Democratic support, which will make very difficult your efforts to garner the necessary votes. In addition, you will face the program of overriding Pres. Obama's veto. While this is a considerable challenge, it is not an impossible undertaking, and I strongly encourage you to use your best efforts for the benefit of the US and its people.

Congress on Shale Gas Exports

The relatively new process of fracking has given the US the possibility of being a low-cost world supplier of natural gas.
US producers of shale origin natural gas desire to export it in liquefied form. Chemical manufacturers are strongly opposed to exportation, which they say will increase the domestic price and increase their costs for production of petrochemicals. Both sides try to involve Congress in this dispute for a resolution favorable to its side.
I have said previously that the owners of the natural gas have the right to dispose of it in any manner they wish, including exports, and Congress should not be involved.
The original controversy was based on an assumption that with fracking only the US would be a possible supplier of low-cost gas. That seems to have changed. Chemical and Engineering News in its April 8 issue notes that there are other foreign countries which are significant producers or potential producers of natural gas. Saudi Arabia continues to be a significant supplier. Argentina has the third largest shale gas reserves and British Petroleum is already arranging production by the fracking process. In addition, China produces light olefins from coal and intends to add 20 million metric tons of capacity by 2020. 
All of these will obviously increase natural gas availability in foreign markets and reduce foreign prices. This automatically decreases the incentive to export from the US. Again, market forces are at work
Therefore, I again strongly suggest to Congress that it should have no part in controlling export of US produced shale gas.

Keystone Pipeline

Here is another quote from an associate:

" Surely you have read many reports about the Keystone pipeline - another of Obama's "windmills".  For reasons of their own and in most cases ignorance of the facts, many "environmentalists" continue to urge Obama not to approve the pipeline.  Consider a couple of facts:

1.  The heavy crude from the Canadian tar sands has been moving regularly to the refineries on the Gulf Coast by rail.  It turns out that Warren Buffet saw an investment opportunity and took a major interest in a railroad that moves the heavy crude into the United States.

2.  The refineries on the Gulf Coast are equipped to process the heavy crude.  They were originally fitted to handle the heavy crude from Venezuela which is similar to the Canadian source.

3. Is it not a smart move to displace crude from Venezuela, which is not friendly, with crude from our friends in Canada?

The best I can say of the so called "environmentalists" is: "Ignorance is bliss".

Pres. Obama's Green Energy

The following is from an associate:

"Perhaps you have noticed that one of Obama's Man of La Mancha's "windmills" is green energy.  Purportedly, he has convinced himself that we can support our economy without hydrocarbons.  Several things have gone wrong.

1.  Solar energy via solar panels has taken a major hit in spite of federal subsidies.  Most solar panels are made in China and imported. Solar panel companies in America have essentially gone out of business.  It is reported that Chinese manufacturers are doing poorly as well as demand in Europe and North America has dropped sharply.

2.  Fisker has just announced a major layoff.  This company produces expensive electric cars, and has a $190 million loan from the Department of Energy.  It has not built a car since last July.  Its principal supplier of batteries has gone bankrupt.  The Chevy Volt has disappeared.  All this in spite of federal subsidies to those who purchase electric cars.  The only companies that are benefiting are those that make golf carts.  One sees no golf carts on the highways.

3.  There are a few wind energy producers making money, and they are in remote areas with lots of wind and not many people."