Institute for Energy Research

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.

Speculators and the Gas Price Blame Game

John Stossel recently wrote an intriguing op-ed about the perception that speculators are the cause of the spike in oil prices. Indeed, the sentiment is widespread among the populace--a new CNN/Opinion Research Corporation survey that came out last week indicated that 59 percent of respondents said oil speculators deserved a "great deal" of blame for gas prices, with an additional 31 percent believing that they deserved "some blame."

Democrats Take Aim at Tax Deductions for “Big Oil”

On Wednesday the Senate is expected to hold a vote on a bill that some Senators claim would raise an additional $20 billion over ten years by removing tax deductions for the five largest private oil companies.

Technically Recoverable Shale Gas Resources Jump 134 Percent

The Energy Information Administration's estimates of technically recoverable shale gas resources have jumped 134 percent in one year. In the Annual Energy Outlook 2010, technically recoverable shale gas resources were estimated to be 368 trillion cubic feet. In the Annual Energy Outlook 2011, the estimate shot up to 862 trillion cubic feet. The increase in shale gas brings total U.S. recoverable natural gas resources to 2,629 trillion cubic feet. This is a welcome change because as little as 10 years ago, analysts and politicians said that the United States could not drill its way out of a natural gas shortage. [ii]But, with new technology and investment, we did just that.

Solar Power: Two Worlds

Two headlines in this week’s press underscore the two worlds of solar power—one economical/commercial and the other uneconomical/government-dependent.

Getting a Lot of Mileage From Taxing Drivers

Beleaguered drivers who think electric cars are the solution to high prices at the pump may have been shocked to learn that the Obama Administration is developing strategies for wringing more tax dollars out of them. On May 5 details were leaked of a "VMT" (vehicle miles traveled) tax. The government doesn't want to give motorists the ability to escape the hefty taxes already imposed on gasoline.