Institute for Energy Research

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.

Expensive Offshore Wind in Need of Customers

Now that Ted Kennedy is no longer able to halt the Cape Wind project in the waters off of Cape Cod, the Department of Interior has approved the permit that had been moving slowing through the process for the past decade. However, only half of the project’s planned power output has a customer.[0] Why?

Arnold: Obama’s New Energy Czar?

As you know the Governator will be out of a job soon, and reports of Carol Browner’s imminent promotion to Deputy Chief of Staff suggest the energy czar position could become open for Arnold.

Jim Hansen Needs to Brush Up on Economics

James Hansen is NASA's chief climate scientist. He recently testified for the defense in the trial of 20 climate activists convicted of "conspiracy to commit aggravated trespass" on a Ratcliffe coal plant in England. Although Hansen is refreshingly candid about the impact of carbon mitigation strategies, he suffers from a basic confusion over the economics of climate change legislation.

Salazar Renews Commitment to Unreliable Energy

WASHINGTON – This afternoon, Secretary Salazar is expected to announce plans to push forward renewable energy projects on public lands. This comes on the heels of several previous, similar announcements that illustrate the Administration’s commitment to using massive government subsidies to prop up the wind and solar industries, while making it increasingly more difficult to produce affordable, reliable sources of energy on public lands. In anticipation of the announcement, Institute for Energy Research President Thomas J. Pyle released the following statement.

“Clean Energy Standards”: Making Electricity Prices Skyrocket

"The federal government is ultimately responsible for the long-term -- consistent policy" for energy companies, Secretary of Energy Chu said. "A clean energy portfolio standard is one example of a potential policy that the administration and Congress should discuss. -- In this time of fiscal austerity I propose such a standard." -- Secretary Steven Chu With each passing day, the odds of Congress passing a Renewable Electricity Standard grow more and more dim. But Energy Secretary Chu, Senator Graham and others are now promoting a similar mandate, just with a new name. Instead of a renewable electricity mandate, they are promoting a “clean energy standard” to “encourage” investments in nuclear energy, coal with carbon capture and sequestration technology, and renewable energy in the electric generating sector. But despite the happy talk about “clean energy standards,” these mandates will increase electricity prices and make our economy less competitive.

Billions More for Big Corn

Imagine you own an auto repair business and come to find out that your trusty mechanics have been running a chop shop on the side. Obviously, you have the good sense to fire your employees, but would you then let them continue to hang around for another month before changing the locks on the doors?

Lame Energy Policy from the Lame Duck Senate

WASHINGTON – In response to news that the tax compromise package the Senate will vote on Monday afternoon includes an extension of the 1603 grant program for certain renewable energy sources which originated in the stimulus and an extension of the ethanol tax credit, Institute for Energy Research President Thomas J. Pyle released the following statement:

The Cancún Agreement—Agreeing to Someday Make Difficult Decisions

The outcome of the U.N.’s climate meeting in Cancún meeting was what we expected. Media reports describe it as “A near-consensus decision” but these happy reports don’t explain that the agreement was “a near-consensus decision” to not make any difficult decisions yet.

Who needs domestic oil production? We can just get more from OPEC

One of the sad truths about the Obama administration is the indifference they have for producing energy domestically.

What are Biofuel Subsidies Good For?

There are two prominent justifications for biofuel subsidies—to reduce gasoline consumption and carbon dioxide emissions. But how much does it cost to achieve these goals? According to the Congressional Budget Office (CBO)[0], subsidies for biofuels are costly to consumers and have high abatement costs for mitigating carbon dioxide emissions.