Institute for Energy Research

Washington Logic: It hasn’t worked in the States, Let’s take it National

WASHINGTON -- The Institute for Energy Research (IER) today released a comprehensive new study, The Status of Renewable Electricity Mandates in the States, which examines the status and impacts of state-based renewable electricity mandates. IER's study found that in states with renewable energy mandates, the deadlines are frequently not being met, they are expensive to consumers, and hostile to job creation. To view an interactive map that illustrates the study's findings, visit this link.

Optimism vs. Pessimism on Oil

U.C. Berkeley economist Brad DeLong has a recurring series on his popular blog where he nominates people for being the "stupidest person alive." DeLong's fans think this is quite amusing, whereas his critics might disagree. Recently DeLong nominated a trio of people who thought the world was in store for an "energy cornucopia."

For China, Coal is Still King

"The U.S. needs to maintain its lead on innovation in the energy sector given the rise of China's growing energy needs and its commitment to clean technology, according to Secretary of Energy Steven Chu. Chu likened the energy race to the "Sputnik" movement..."[0] Introduction China is currently the largest producer and consumer of coal in the world, outstripping the United States by a factor of more than 3[ii]. In fact China's growth in coal consumption is so great that it needs to import coal to satisfy its demand even though it ranks third in coal reserves in the world[iii]. China became a net importer of coal in 2009, buying almost 151 million tons[iv] from coal exporting countries, including the United States and Australia. That number is expected to increase substantially in the years to come. The Chinese use coal, the primary fuel spurring its economic growth, in most sectors of the economy, but particularly in the electric power and industrial sectors. China's economic growth is so phenomenal that it expects to have 350 million people, more than the entire population in the United States,[v] living in cities that do not yet exist within the next 15 years,[vi] which will require additional electrical capacity of an amount almost equal to the total electrical capacity of the United States.[vii]

You Can’t Make This Stuff Up

According to its web site, Range Fuels, a privately held Colorado-based company, says they "convert biomass that cannot be used for food into low carbon biofuels and clean renewable energy using emerging clean energy technologies."

A few notes on Energy Policy of the past and present Congressional Sessions

Dr. H. Sterling Burnett is a guest blogger and a senior fellow with the NCPA. With the advent of the new Congress, it seems a good time to assess the good, the bad and the ugly that occurred in the waning days of the previous Congress and to look forward, to the most pressing issue that faces the 112th Congress.

Consumers Get Screwed on Light Bulb Deal

The concept of creative destruction implies that an individual or a group of individuals discovered a better way of doing business and in turn destroys the old way of doing business. For instance, those who made light bulbs creatively destroyed the candle maker. The consumer, who demands better service at lower prices, drives this process of creative destruction. However, this lesson has been lost on California lawmakers when it comes to energy policy – and everything else for that matter – but especially when considering the compact fluorescent light (CFL).

London Calling: Deepwater Drilling Ban Unnecessary

The House of Commons Energy and Climate Change Committee issued a report this week titled "UK Deepwater Drilling--Implications of the Gulf of Mexico Oil Spill." The report draws lessons from the BP oil spill to apply to offshore drilling operations. Several recommendations are put forth that would strengthen the response to potential future events and help prevent such disasters from occurring in the first place.

Mother Nature Provides a Lesson on Scarcity

Today, Mason Inman penned an article in the National Geographic that discusses a paper which argues it is both possible and affordable to displace all fossil fuels by 2030 with renewable sources. According to the paper, the main bottleneck would be political will and the production of rare earth elements. But even if those two factors were not an issue, the logistics alone of building the necessary green energy systems is staggering.

EDF Economist Moves to National Economic Council

Earlier this month, Nathaniel Keohane replaced Harvard’s Joseph E. Aldy at the White House’s National Economic Council. Keohane’s previous post was chief economist for the Environmental Defense Fund. In his new position he will help direct environmental and energy policy, according to the New York Times’ “Green” blog.

IER: BP Spill Commission Was Flawed From the Start

Washington, D.C. – Dan Kish, Senior Vice President at the Institute for Energy Research, released the following statement in response to findings released by the National Commission on the BP Deepwater Horizon Oil Spill & Offshore Drilling:

Time Story Reaffirms Fed’s Role in Oil Spike

Last week we explained the connection between rising gasoline prices and the Federal Reserve’s “quantitative easing” programs. On the same day as our post, Time ran a piece entitled, “Is the Fed to Blame for Soaring Global Oil Prices?”

Gas Prices and Bernanke

As most Americans know, gas prices are unusually high for this time of year. Although some people blame it all on "greedy oil companies"--an explanation that begs the question of why oil companies got so greedy this Christmas--a better culprit is Ben Bernanke, chairman of the Federal Reserve.

Talk is Cheap: We Need Action on Offshore Drilling Permits

Earlier this week--after the Wall Street Journal exposed the fact that no offshore drilling permits have been issued since the moratorium was lifted in October--the Obama Administration announced that previously halted deep water drilling activity can resume.

Top 5 Energy Issues the New Congress Should Tackle

1. No subsidies. Energy subsidies do one thing--they increase the price of energy of all Americans and line the pockets of the special interests that promote these discriminatory policies. To build a stronger economy and create more jobs, we should reduce all federal energy subsidies and set-asides--the means no subsidies for oil, coal, natural gas, wind, solar, or any other type of energy.

China’s Nuclear Program: Fast and Relatively Inexpensive

China can build a Western-designed nuclear reactor in 46 months, or less than 4 years. That's quite a feat considering that it takes France almost 6 years to build one. And, it costs the Chinese 40 percent less, around $4 billion, compared to almost $7 billion for France. How do the Chinese accomplish such a task when France, a country with lots of experience, takes longer and spends more? First, there is minimal red tape, so plants are approved quickly. Second, financing of capital is available through state ownership of the industry. Third, low-cost labor is available with experience in the construction of major infrastructure projects.[0]

Oil Consumption and Prices: How High Will They Go?

Predictions for oil consumption, domestic and global, and oil prices vary, but with $3.00 per gallon gasoline prices hitting dug the holidays, the outlook for 2011 seems to be for even higher prices at the pump. Numerous reasons prevail for higher prices and higher consumption. Globally, China and some other developing countries recovered from the global recession rather quickly compared to many developed countries and are in need of even more energy to fuel their rate of economic growth. China, who recently took over the number one slot in auto sales from the United States, is continuing to see huge growth in those sales, partially spurred by government incentives for small, efficient vehicles and vehicle growth in rural areas. Further, not only is economic growth spurring additional oil consumption in China, but the country is intent on filling its strategic petroleum reserve over this decade, increasing oil demand and prices even more.

Will Lucy let Charlie Brown kick the football this time?

It was a running gag that ran throughout the Charlie Brown comic strip series: Lucy holds the football ready for Charlie Brown to kick, but yanks it away at the last moment, sending Charlie Brown tumbling through the air and landing on his back.

California’s Enron Energy, Climate Policy

California's energy/climate policy is the very one championed by Enron and Ken Lay from 1988 until the company's demise in late 2001. How ironic, because Enron was at the center of California's electricity crisis of 2000/2001, a multi-month series of rate hikes and rolling blackouts that disrupted many lives in the state and cost billions of dollars.

The True Cost of Green Jobs

Katrina Currie is a guest blogger and works with the Commonwealth Foundation. Increasingly, policies that are detrimental to the overall economy are shoved through the legislature in the name of "green jobs." The evidence refuting environmentalists' claims is mounting as countless studies show the promised benefits never come.

EIA Releases New Energy Forecast: Fossil Fuels Still Reign in 2035

The Energy Information Administration (EIA), the independent statistical agency in the U.S. Department of Energy, released their reference case forecasts from the Annual Energy Outlook (AEO) 2011 last week. The AEO contains projections of U.S. energy supply, demand, and prices through 2035 and serves as a base line for government and industry projections of future energy policies.