Institute for Energy Research

The Wind Experience

According to the Global Wind Energy Council, the world now has 197 gigawatts of installed wind capacity with the largest amount in China (45 gigawatts), followed by the United States (40 gigawatts). Europe, led by Germany (27 gigawatts), has the largest regional share of the total, 44 percent, followed by Asia with 31 percent. But the issue of much of this capacity is useable and benefiting the electricity grid and jobs is another question entirely. European countries have found that subsidies, set asides, and special treatment for renewables cost the country job losses in other sectors. Denmark, a country that generates 20 percent of its electricity demand from wind, can only use half that amount and must export the remainder to Norway and Sweden whose hydroelectric power can serve as a storage device. In the United Kingdom, wind farms were paid 900,000 pounds to disconnect their units for one night because the electricity was not needed. In China, the wind expansion was so great that many wind units were sitting idle because they were not connected to the grid. Add to that, noise pollution, property devaluation, frozen turbine blades, bird kills, and the cost of revamping the electric grid starts to make one wonder whether wind power was the correct course of action and what its future entails.

Are Energy Prices Too Low?

"Electricity prices in America are low," stated Richard Caperton of the Center for American Progress. What he really means is that electricity prices are too low for our own good and need to be further taxed.

We Have To Do Something About These Soaring Gold Prices

WASHINGTON- With gold prices reaching record heights in April, gold mining companies are reporting huge profits. 79 percent of all gold mined in the U.S. comes from Nevada, where the state’s senior senator, Harry Reid, is a stalwart defender of the industry. But with the soaring price of gold, the U.S. government still allows the gold mining industry to take advantage of deductions in the tax code. These subsidies must end.

Hydraulic Fracturing—Is It Safe?

Less than a decade ago, natural gas prices in the United States were among the highest in the world. However, in the last five years, domestic natural gas reserves have grown 30 percent due to technological advances in the use of hydraulic fracturing,[1] a drilling method that is coupled with directional drilling to access underground reservoirs of oil and gas. This technological breakthrough had an immediate impact on natural gas prices, causing them to plummet and remain low to the present time.

Solar Equipment Manufacturer in Trouble Due to Low Demand

"Uncertainty around subsidies in Europe has hurt demand in recent months, and the "sluggish demand has unexpectedly continued early into the second quarter,"" Evergreen Solar company CEO Michael El-Hillow said.

Oil Prices, Speculators, and the Fed

As gasoline prices continue to rise, government officials realize they had better find someone to blame to divert the public's anger. President Obama just a few weeks ago joked about the complaints, but apparently his advisors told him to be more sensitive to hurting motorists. Now the message from the White House is the familiar slogan: high gas prices are the fault of speculators and greedy oil companies.

China Plans to Exploit its Shale Gas Resources

"America's shale gas production alone has exceeded that of total Chinese gas output. That gives us a lot of confidence," said Zhang Dawei, deputy director of the Strategic Research Center for Oil and Gas in the Ministry of Land and Resources.

Chickens are Coming Home to Roost for Obama Energy Plan

Earlier this week, Director of BOEMRE, Michael Bromwich, claimed that increasing energy exploration and production in the U.S., the world's third largest oil producing nation, "would not have a material effect on gas prices." Apparently unaware of the principle of supply and demand, Bromwich claimed that "you can't drill your way to lower oil prices."

Obama Pushing Hard For Higher Energy Taxes

There's an interesting shell game playing out in Washington. Last night, Speaker Boehner seemed to imply that oil companies are not paying their 'fair share' in taxes. While his spokesman is ferociously back-peddling on the statements, President Obama immediately jumped on the comments. Today, he sent a letter to the House and Senate asking lawmakers to join himself and Speaker Boehner in stripping the oil and gas industry of the ability to deduct business expenses from their taxable income, an ability granted to every other American industry.

The Administration’s War on Affordable Energy is Being Paid at the Pump

Oil price keep climbing, and sadly the administration keeps denying Americans access to our domestic energy resources. Shell Oil Company has been trying to develop the estimated 27 billion barrels of oil in the Artic, but has been unsuccessful because Environmental Protection Agency retroactively withdrew the last permit Shell needed.

Energy Policy: Atlas Can Shrug

With the movie Atlas Shrugged, Part I playing in several hundred theaters across the nation, attention has turned to a book published in 1957 that many see as relevant to today’s economic and political policies. Energy policy is no exception.

One Year Later, Gulf is Still Hurting

One year ago, the Deepwater Horizon explosion sent shock waves through the Gulf coast community. This devastating tragedy should not soon be forgotten. But, what can we learn from it?

Administration actions designed to increase the cost and reliability of energy

2009

February 4^th -- Withdrew areas offered for 77 oil and gas leases in Utah that could cost American taxpayers millions in lost lease bids, production royalties, new jobs and the energy needed to offset rising imports of oil and gas. February 10^th -- Delayed for six months the development of the new 5-year leasing program for offshore drilling that would have created new jobs, produced more American-made energy, and made us less dependent on foreign oil.

IER Presents the American Energy Act

Over the last year, we have continually and appropriately criticized the Department of Interior for dragging their feet with respect to the issuance of permits for both shallow water operations and deep water operations in the Gulf of Mexico in the wake of the tragic, idiosyncratic Macondo spill last April.

Will Fuel Economy Mandates Increase Car Company Profits?

A recent report put out by Ceres and Citi Investment Research concludes that even the strictest new fuel economy standards under consideration will not only reduce carbon emissions but will also allegedly boost the profits of American vehicle manufacturers.

Hearing on The American Energy Initiative

The Institute for Energy Research (IER) is a non-profit organization that conducts historical research and evaluates public policies in energy markets. IER articulates free market positions that respect private property rights and promote efficient outcomes for energy consumers and producers. IER staff and scholars educate policymakers and the general public on the economic and environmental benefits of free market energy. The organization was founded in 1989 as a public foundation under Section 501(c)(3) of the Internal Revenue Code. Funding for the institute comes from tax-deductible contributions of individuals, foundations, and corporations.

The Significance of Spare Oil Capacity

As crude oil prices continue their upward march, American motorists are understandably anxious to know the reasons. In previous posts I have explained the role of the Federal Reserve’s loose monetary policy.

A Majority of the House and Senate Vote to Limit EPA’s Regulations

Last week, both the House and Senate voted on legislation to stop the Environmental Protection Agency (EPA) from regulating carbon dioxide emissions. The House passed the Energy Tax Prevention Act (H.R. 910) by an overwhelming bipartisan majority. The Senate, however, was unable to pass similar legislation, even though over the course of various votes a total of 64 Senators voted to limit EPA’s authority in one way or another.

Bay of Oil?

On the heels of the President’s recent visit to Brazil where he announced that he’s all in favor of helping their country develop its oil and gas drilling, we now read news about Cuba seeking their own energy independence. And it makes one wonder, has the United States traded economic systems with Cuba?

Renewables Supporters Miss the Point of Scotland Study

A recent study found that each renewable job “created” in Scotland as the result of government support came at the expense of 3.7 jobs elsewhere in the economy. Sadly, even in the homeland of Adam Smith, the critics of the study don’t even understand the economic problems involved with subsidies and preferential treatment. They simply repeat their mantra that green is good, oblivious that their preferred programs destroy jobs and lead to lower wages.