Oil, Power, And Congress

Flash ColumnNow that Congress has recessed for the top of the summer time, what are we to make of the power scenario? Petroleum Refining Process At this level, I am getting tired of hearing that $4.00 gasoline is sweet for me. How can it’s good when Americans are spending much less of their money on different goods and investing in their gasoline tanks? Is it good that transportation costs have despatched my meals invoice sky rocketing? Is it good that many Americans have shortened their vacations and minimize again on their leisure spending? Is it good that the working poor are struggling between putting groceries in their residence and fueling their automobiles to get to work?

Apparently our Congressional leaders and one presidential candidate say the answer is yes. While our Speaker of the Home is attempting to “save the planet”, the rest of the world is out trying to find more oil & vitality. Let us take a look at few current examples:

– Egypt introduced last week the start of a 9 billion dollar oil refinery and petrochemical advanced, which will likely be located on its north coast. The advanced is expected to start operation in 2010 and will likely be accomplished in 5 years. The power will refine 350,000 barrels of oil per day.
– The Tupi deepwater oil field is positioned offshore of Rio de Janeiro, one of Brazil’s greatest tourist destinations. Last November, the Brazilian authorities introduced that the location may comprise 5 billion to eight billion barrels of oil. The Tupi oil field is expected to begin producing one hundred,000 barrels of oil in 2010, according to Petrobas, Brazil’s national oil company. Petrobas hopes to deliver production to one million barrels a day in about ten years.
– Finland is constructing a 1600 megawatt nuclear power reactor. The nation at present gets 28 p.c of it electricity from nuclear power.
– Japan is working to extend its nuclear energy manufacturing of electricity from 30 % to 37 percent by 2009 and forty one percent by 2017.

Now, apart from threatening to sue the Saudi’s and including more taxes to oil, what has the United States authorities power policy done? Let us take a look at a number of examples:

– From 2000 to 2007 domestic crude oil production fell 12.4 percent
– By a congressional mandate, 85 % of the Outer Continental Shelf is off limits to oil exploration. It’s estimated that the Outer Continental Shelf comprises ninety 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 bill authorizing oil production on 2,000 acres out of 19.6 million.
– U.S. Senator Ken Salazar, Colorado, inserted language into the omnibus spending bill final December that locations a moratorium on enacting rules for oil shale development on federal lands. The Green River Formation is estimated to have as a lot as 1.1 trillion barrels of oil shale.
– As mandated by the 2007 vitality invoice signed by President Bush, the U.S. is now required to combine 9 billion gallons of biofuels into the gasoline supply. The mandate is met primarily with corn-primarily based ethanol. At the start of the biofuel mandates, corn was $2 per bushel. The value of corn now could be a bit of over $6 per bushel.

It appears the extra our authorities gets involved, the worse the state of affairs turns into. And the place did frequent sense go? If I see that you simply want water, I would not ship you to a desert to search out it. Yet, that is what we do with our oil exploration. Strive to find it where we do not know if it exists.

From 2000 to 2007 American oil companies increased the drilling of exploratory wells by 138 p.c (on these sixty eight million acres of current leases); oil manufacturing nonetheless fell to its lowest stage since 1947. The American Petroleum Institute reported that oil companies had the very best second-quarter oil properly activity since 1986.

The United States has successfully developed other forms of energy; clear coal plants, nuclear energy, natural gas plants, solar & wind vitality. Our most effective and cheapest forms of energy production are below constant assault from the environmental movement. The U.S. uses 760 gigawatts of energy plants to meet present needs. The North American Electric Reliability Corporation (NERC) estimates that we will want 135 gigawatts of recent capability in the following 10 years. As of now, only 57 gigawatts of power plants are deliberate. Why?

– Fifty nine coal-fired plants had been canceled in 2007 because of anticoal activist.
– U.S. manufacturing of pure fuel is starting to decline due to environmental restrictions on exploration.
– The National Sources Defense Council (NRDC) succeeded in stopping thirteen pure gas power plants in southern California.

We now have one of the best scientist, engineers and technicians on the earth. Give them the opportunity to unravel this problem and they’re going to. There are a lot of personal companies engaged on new technology to bring to the market. If our authorities goes to pick winners and losers by means of subsidies, many companies won’t get into the market.

For example, NuScale Energy, an Oregon-based startup firm, is looking for federal clearance to begin its undertaking to build a mini nuclear reactor. The reactor can energy 45,000 houses, is 65 feet lengthy and has no visible cooling tower. NuScale states that these reactors require no maintenance and do not must be refueled. At the top of its useful life of about 30 years, the plant is returned to the factory.

This kind of know-how should be welcomed and encouraged by all. With a small footprint & no carbon emissions, these plants could replace many traditional coal and gasoline-fired energy plants.

This case doesn’t require a billion greenback bail out from our government. Nor does it require elevating taxes on the oil companies. Remember, we tried the windfall earnings tax with President Jimmy Carter. That led to a 6 percent drop within the manufacturing of oil and a 15 percent increase in oil imports, in response to the Congressional Analysis Service.

If congress would step back and permit the entire energy firms to discover and develop energy in a responsible means, we would not must struggle with excessive energy costs. Take away all the subsidies and let the market determine which technique of energy is cheapest, environmentally sound and durable. American know-how is more than capable of producing environment friendly energy and defending the surroundings.

As a substitute of making an attempt to spend more of my tax dollars, why doesn’t congress spend more of their time, which we pay them for, to repair the regulatory landscape of energy manufacturing. Congress needs to enact some common sense environmental laws.