Now that Congress has recessed for the end of the summer season, what are we to make of the Edible energy situation? At this point, I am getting uninterested in hearing that $four.00 gasoline is nice for me. How can it’s good when People are spending much less of their money on other goods and investing of their fuel tanks? Is it good that transportation costs have sent my food bill sky rocketing? Is it good that many People have shortened their holidays and minimize back on their entertainment spending? Is it good that the working poor are struggling between placing groceries of their residence and fueling their vehicles to get to work?
Apparently our Congressional leaders and one presidential candidate say the answer is yes. Whereas our Speaker of the House is attempting to “save the planet”, the remainder of the world is out looking for extra oil & vitality. Let’s take a look at few recent examples:
– Egypt introduced final week the start of a 9 billion dollar oil refinery and petrochemical complicated, which will be located on its north coast. The advanced is expected to start operation in 2010 and will probably be completed in 5 years. The ability will refine 350,000 barrels of oil per day.
– The Tupi deepwater oil subject is situated offshore of Rio de Janeiro, considered one of Brazil’s finest tourist destinations. Final November, the Brazilian government introduced that the location might include 5 billion to eight billion barrels of oil. The Tupi oil field is anticipated to start producing one hundred,000 barrels of oil in 2010, based on Petrobas, Brazil’s national oil company. Petrobas hopes to convey manufacturing to a million barrels a day in about ten years.
– Finland is building a 1600 megawatt nuclear power reactor. The country presently gets 28 p.c of it electricity from nuclear energy.
– Japan is working to extend its nuclear energy production of electricity from 30 p.c to 37 % by 2009 and 41 percent by 2017.
Now, moreover threatening to sue the Saudi’s and adding more taxes to oil, what has the United States government energy policy finished? Let us take a look at a few examples:
– From 2000 to 2007 domestic crude oil production fell 12.Four p.c
– Through a congressional mandate, eighty five % of the Outer Continental Shelf is off limits to oil exploration. It is estimated that the Outer Continental Shelf comprises 90 billion barrels of oil
– The Artic Nationwide Wildlife Refuge (ANWR) is estimated to have 10 billion barrels of oil; in 1995 President Clinton vetoed a invoice authorizing oil production on 2,000 acres out of 19.6 million.
– U.S. Senator Ken Salazar, Colorado, inserted language into the omnibus spending invoice last December that places a moratorium on enacting rules for oil shale development on federal lands. The Inexperienced River Formation is estimated to have as a lot as 1.1 trillion barrels of oil shale.
– As mandated by the 2007 energy bill signed by President Bush, the U.S. is now required to mix 9 billion gallons of biofuels into the gasoline supply. The mandate is met primarily with corn-based mostly ethanol. In the beginning of the biofuel mandates, corn was $2 per bushel. The price of corn now is a little bit over $6 per bushel.
It seems the extra our authorities will get involved, the worse the state of affairs turns into. And the place did common sense go? If I see that you just need water, I would not send you to a desert to seek out it. But, that is what we do with our oil exploration. Attempt to find it where we don’t know if it exists.
From 2000 to 2007 American oil companies elevated the drilling of exploratory wells by 138 p.c (on those 68 million acres of existing leases); oil production still fell to its lowest degree since 1947. The American Petroleum Institute reported that oil companies had the best second-quarter oil well activity since 1986.
The United States has efficiently developed different types of power; clear coal plants, nuclear power, natural gasoline plants, solar & wind energy. Our most efficient and cheapest forms of vitality manufacturing are underneath constant assault from the environmental motion. The U.S. uses 760 gigawatts of energy plants to meet current wants. The North American Electric Reliability Corporation (NERC) estimates that we’ll want 135 gigawatts of latest capacity in the subsequent 10 years. As of now, solely 57 gigawatts of energy plants are deliberate. Why?
– 59 coal-fired plants have been canceled in 2007 due to anticoal activist.
– U.S. manufacturing of pure gasoline is starting to decline because of environmental restrictions on exploration.
– The National Assets Protection Council (NRDC) succeeded in stopping thirteen pure gasoline power plants in southern California.
Now we have one of the best scientist, engineers and technicians on the planet. Give them the opportunity to resolve this problem and they’re going to. There are many personal firms working on new technology to convey to the market. If our government goes to select winners and losers by subsidies, many companies is not going to get into the market.
For instance, NuScale Energy, an Oregon-primarily based startup firm, is looking for federal clearance to start its project to construct a mini nuclear reactor. The reactor can energy forty five,000 houses, is sixty five ft lengthy and has no seen cooling tower. NuScale states that these reactors require no maintenance and do not have to be refueled. At the top of its useful life of about 30 years, the plant is returned to the factory.
Any such know-how must be welcomed and inspired by all. With a small footprint & no carbon emissions, these plants might replace many traditional coal and gas-fired power plants.
This situation doesn’t require a billion dollar bail out from our authorities. Nor does it require raising taxes on the oil companies. Remember, we tried the windfall earnings tax with President Jimmy Carter. That led to a 6 p.c drop within the manufacturing of oil and a 15 percent enhance in oil imports, based on the Congressional Analysis Service.
If congress would step again and allow all the power companies to explore and develop energy in a accountable way, we would not must battle with excessive power prices. Take away the entire subsidies and let the market resolve which technique of vitality is cheapest, environmentally sound and durable. American know-how is greater than able to producing environment friendly vitality and protecting the setting.
As a substitute of making an attempt to spend extra of my tax dollars, why does not congress spend extra of their time, which we pay them for, to fix the regulatory panorama of power manufacturing. Congress needs to enact some widespread sense environmental rules.
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