Institute for Energy Research

Is 80 Percent Renewable Energy by 2050 Possible?—Depends on Who Is Making the Forecast

The Intergovernmental Panel on Climate Change (IPCC) is forecasting that renewable energy could reach almost 80 percent globally by 2050 if the right government incentives and policies are provided. That scenario is just one of 164 scenarios in the IPCC report, but it is being highlighted by the IPCC and the news media even though the assumptions behind it are very unlikely for several reasons.

Energy Fact of the Week: Coal—Will It Stay or Will It Go Now?

This blog was written by Steven Hayward and originally published on “The Enterprise Blog” American Electric Power’s announcement last week that it will soon begin shutting down one quarter of its coal-fired power plants, combined with the news that replacing just a fifth of coal-fired power in Illinois could raise utility rates by as much as 65 percent over the next six years, is making the long-simmering issue of coal suddenly red hot. If the Illinois projections are true, it also appears to give the lie to the refrain that cap and trade, or other efforts to phase out coal, would be cheap and easy. On the other hand, there is something slightly odd about this story, as natural gas-fired power is now very competitive with coal on price. Shouldn’t we be able to replace coal with gas at a more reasonable cost than these news stories seem to suggest?

Does Ethanol Make Gasoline Cheaper?

The federal mandate to blend corn-based ethanol into the U.S. vehicle fuel mix is an economically absurd practice. On a level playing field, conventional gasoline would be used for the foreseeable future, as it is the most efficient method (all things considered) to deliver energy to U.S. vehicles. At most ethanol would have a small share of the market in the absence of federal government support.

BP Statistical Report Shows U.S. Largest Non-Hydro Renewable User in the World

According to the recently released BP Statistical Review of World Energy, the United States ranked number one in 2010 as the largest user of non-hydro renewable technologies in the world, far above the next largest users--Germany, Spain, and China. The U.S. share of world renewable energy consumption was 25 percent in 2010, followed by Germany at 12 percent, and Spain and China with 8 percent each.

It’s Time to Put an End to Federal Favors for Ethanol

On Tuesday, the United States Senate is scheduled to vote on an amendment offered by Senator Tom Coburn to eliminate both the blenders' tax credit for ethanol (45 cents a gallon, a little more than $6 billion per year cost to the Treasury), as well as the tariff on imported ethanol (54 cents a gallon, mostly directed at keeping Brazilian sugar-based fuel out of the United States).

On a Btu Basis, Renewable Subsidies are 49 Times Greater than Fossil Fuel Subsidies

The Congressional Research Service (CRS) recently performed two studies evaluating fossil fuel and renewable energy subsidies--one in April and one in May. From those studies, in 2009:

Bernanke Denies Culpability in Oil Prices

This blog post is available as a PDF here. In a speech on June 7 in Atlanta at the International Monetary Conference, Fed chair Ben Bernanke downplayed the U.S. central bank's role in rising oil and gasoline prices. Inasmuch as I recently testified before a Congressional subcommittee saying that Bernanke's policies have been (partially) to blame, I want to point out the weaknesses in Bernanke's attempt to shift the blame. Nobody can know exactly how much the Fed has boosted the pain at the pump, but it's probably much worse than Bernanke is willing to admit.

Schadenfreude

WASHINGTON--Today, President Obama welcomes Angela Merkel, the Chancellor of Germany. Merkel has made news recently for vowing to shut down her nation's 17 nuclear power plants by 2022 and replace their energy output with renewable power facilities.

OPEC 1 – America 0

Last year, the Obama Administration placed a moratorium on drilling in the Gulf of Mexico. After that ban was lifted, they left a permitorium in place so that American energy companies were still unable to return to work in the Gulf.

The CFTC Cracks Down on Speculators

On May 24 the Commodity Futures Trading Commission (CFTC) filed lawsuits against oil traders, alleging that they manipulated the oil markets in early 2008 while harming consumers and personally pocketing $50 million. The case is unusual because the CFTC usually goes for the easier route of charging attempted manipulation of markets; actual manipulation has only been successfully proven on one previous occasion.

The Polka Plan

It is ironic that President Obama happens to be in Poland on the one-year anniversary of the U.S. offshore drilling moratorium, imposed by his administration in the wake of the BP Deepwater Horizon incident. The irony lies in the fact that Polish Foreign Minister Radoslaw Sikorski has applauded his country’s plans to utilize its bountiful amount of shale gas to help get the country’s economy back on track, stating that “this is a great chance for Poland to strengthen its energy security and its position overall.” In contrast, President Obama, his administration, and many of the Democratic members of Congress reject the idea of drilling for natural gas using new technology, no matter how economically beneficial, and no matter how many studies prove it safe.

The Administration’s Ugly Prediction for Coal Generation and Electric Rates

"Under my goal of a cap-and-trade system, electricity rates will necessarily skyrocket." President Barak Obama "Coal is my worst nightmare." Secretary of Energy Steven Chu

Environmental Advocate Nominated to be Next Commerce Secretary

On May 31, President Obama announced the nomination of John Bryson to succeed Gary Locke as Secretary of the Department of Commerce. If confirmed by Congress, Mr. Bryson will be the head of the U.S. agency tasked with promoting economic growth.

Energy Freeze in Gulf Prompts Hot Air From Bromwich

WASHINGTON- Yesterday, Michael Bromwich, Director of the Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE), testified before the House Committee on Oversight and Government Reform. As has seemed to become his custom, Mr. Bromwich spent his time desperately attempting to provide cover for the Obama Administration's anti-energy agenda.

UCS’s Flawed Economic Reasoning

Last week, I received a request from the Union of Concerned Scientists to sign aletter asking the government to impose even higher miles-per-gallon standards on cars. The letter explains:

Another Offshore Wind Project in Trouble

Cape Wind, off the coast of Cape Cod, Massachusetts is in trouble trying to find buyers for its high cost electricity. But Cape Wind isn't the only offshore wind project in dire straits. Now, an offshore wind project 13 miles off the Delaware coast is in jeopardy because of possible federal budget cuts and a lack of sufficient buyers for viability. Further, utilities in Georgia, who had been considering offshore wind projects, have determined that the cost is too high.

IER’s Bob Murphy Testimony on the Federal Reserve and Energy Markets

1. About IER

The Institute for Energy Research (IER) is a not-for-profit organization that conducts intensive research and analysis on the functions, operations, and government regulation of global energy markets. IER maintains that freely-functioning energy markets provide the most efficient and effective solutions to today's energy and environmental challenges and, as such, are critical to the well-being of individuals and society.

Voices of the Gulf

IER Launches Gas Prices Site

WASHINGTON- In order to address the issue of rising gas prices, today the Institute for Energy Research launched a special Gas Prices webpage that explains the fundamentals of gas prices, why they have remained so high, and how to bring prices down dramatically.

High Gas Prices are Part of the Plan

It is not too difficult to understand President Obama's point of view on energy. When he first took office, he was given the opportunity to select a new Secretary of Energy. He chose Steven Chu, who had just been quoted in the Wall Street Journal saying that "somehow we have to figure out how to boost the price of gasoline to the levels in Europe." Currently, a gallon of gasoline in Europe will set you back over $8.