Institute for Energy Research

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.

Field Of Dreams Economics

Washington- Today, President Obama spoke at an event for his Clean Cities program which gives taxpayer dollars to local governments and large corporations that use alternative fuels for some of its transportation. In response, Thomas Pyle, president of the Institute for Energy Research, issued the following statement:

The Green Regulation Machine

When regulators find out their researcher has been lying about his credentials, you would think that would make them question his work. This is especially true when peer-reviewed papers directly contradict the report’s findings. But that is not the case in California with the Air Resources Board as Reason.tv explains on this video:

Obama Needs to go Back to Energy School

Two days ago President Obama unveiled his "Blueprint for a Secure Energy Future" [.pdf] in a speech at Georgetown University. It's unfortunate that the young impressionable minds were subjected to the talk, as it was chock-full of economic nonsense. In the future we recommend Georgetown look to Harvard for a more suitable public speaker.

Secretary Salazar Discovers That Sun Doesn’t Shine At Night

WASHINGTON- The White House continues to dust off old arguments in an attempt to keep taxpayer-owned resources in the Outer-Continental Shelf and on federal lands under lock and key. Today, a report from the Department of the Interior reports that millions of acres that have been leased are not producing oil or being explored.

Old Whine in New Bottles

WASHINGTON- Today, President Obama unveiled his new energy plan to decrease America’s imports of oil by one third over the next ten years. In response, Thomas Pyle, president of the Institute for Energy Research, issued the following statement:

EPA Pushes Ethanol on American Consumers

As if our current ethanol requirements are not enough, the Environmental Protection Agency (EPA) has upped the amount of ethanol that can be blended into gasoline from 10 percent to 15 percent for vehicles of model year 2001 and newer. Some American consumers are astute enough to recognize that their mileage per gallon of gasoline declined with the 10 percent blend currently in use, thereby increasing the frequency of fill-ups. Now that trend will be increased if EPA has its way. Ethanol is 34 percent less efficient than gasoline, does little to decrease our greenhouse gas emissions, is heavily subsidized, and has been accused of increasing food prices both directly and indirectly through livestock feed costs.

Ending Permitorium Could Lower Oil Prices More Than Reducing SPR

Believe it or not, there apparently is a consensus among most policymakers that lower gasoline prices would be a good thing for Americans, and that increased access to oil is the way to achieve them. The only difference is, some officials only want certain kinds of oil to be used to help Americans in this fashion.

Drill, Drill, Drill (but only in Brazil)

President Obama making the case for offshore oil development in Brazil while the Gulf of Mexico remains in limbo.

The Obama Administration Is Slowly Reissuing Offshore Drilling Permits

The Obama administration would like you to think that major strides have been taken to increase drilling in the Gulf of Mexico. But, that is hardly the case. The administration has been touting the four drilling permits it has issued, but in reality, but these are not new permits--they have only reissued four permits that it suspended last year. The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) also touted its approval of Shell's supplemental exploration plan in the Gulf of Mexico. But due to the way the approval process was set up by BOEMRE, it is very likely environmental groups will sue the plan before any work actually occurs. These approvals are simply a mere drop in the bucket compared to what drilling and oil production could be garnered in the Gulf. We will applaud the administration's actions when new work is actually occurring in the Gulf of Mexico.

Japan’s Nuclear Accident has Some Countries Reviewing Nuclear Plant Safety

The earthquake and tsunami that recently hit Japan knocked out the back-up power that runs the cooling system on several of Japan’s nuclear reactors, exposing fuel rods, and damaged components to several of the reactors. The Japanese have worked tediously to avoid a full meltdown by cooling the control rods with seawater from the Pacific Ocean and deploying helicopters and fire trucks to more effectively disperse water on the units. Japan’s reactors were tested to withstand an earthquake of a 7.9 magnitude. Unfortunately, the earthquake that struck last Friday was of a 9.0 magnitude.

The Oil From Ipanema

WASHINGTON- Now that gas prices are topping $4 per gallon, President Obama is touting the benefits of increased oil exploration and production . . . in Brazil. While his administration works to decrease American energy production, President Obama encouraged Brazilians to become a “new, stable source of energy” for the U.S. In response, Daniel Kish, vice president of policy at the Institute for Energy Research, issued the following statement:

It’s Deja vu All Over Again

WASHINGTON- The rising price of gasoline has triggered a rite of passage in Washington – cries of excessive speculation and price gouging. Yesterday, Rep. Tim Bishop (D-NY) proposed setting federal price caps on gasoline. Today, a group of Democrat lawmakers put forward a proposal to tap the Strategic Petroleum Reserve. In response, Thomas Pyle, president of the Institute for Energy Research, issued the following statement:

Mr. President, Stop Misleading the American People

WASHINGTON- In today’s press conference, the President boasted of record high domestic oil production. Once again, President Obama is spinning the facts in order to deflect the blame for the rising price at the pump. In response, Thomas Pyle, president of the Institute for Energy Research, issued the following statements:

Tilting at Turbines

Obama Administration Pushes Electric Vehicles

"We can break our dependence on oil...and become the first country to have one million electric vehicles on the road by 2015," President Obama said in his January 2011 State of the Union address. Is the Obama Administration's goal of one million electric vehicles on the road by 2015 a way to break our dependence on oil? Is it a worthy goal? Is it doable? To get to the target, the Obama Administration wants to change the current $7,500 tax credit to an up-front rebate to entice consumers to purchase these vehicles. However, even with these huge rebates, electric vehicles are more expensive than gasoline and diesel-fueled vehicles due to expensive batteries that have yet to become cost competitive and due to vehicle characteristics that are subpar due to low vehicle mile range between charges, space limitations, and lack of infrastructure to recharge.