President Obama keeps trying to make our electric bills skyrocket. Now he’s seized on the BP fiasco as an excuse to do it. According to Obama, the Gulf of Mexico gusher proves we need billions more to subsidize green energy. That was the president’s claim in his big Pittsburgh speech.
He didn’t tell the audience about his previous admission that electric bills will “skyrocket” under his plan. Or that our government continues to block access to immense onshore oil and gas reserves that don’t require the risks of deep-sea drilling.
Obama’s exact words in 2008 were, “under my plan of a cap and trade system, electricity rates would necessarily skyrocket.” Converting fossil fuel plants, he said, “will cost money; they will pass that money on to consumers.”
If we were rapidly running out of oil, scarcity would drive up its price and make alternatives affordable without needing subsidies. But Obama left out the facts about our abundant untapped onshore reserves. As Heritage Foundation energy expert David Kreutzer notes,
“He also could have noted that billions of barrels of ‘easily accessible’ oil have been turned into ‘impossible to access’ oil by federal regulations and moratoria that block any access. There is still a lot of non-deep sea oil available off the coast of California that can be accessed from onshore. And, don’t forget, there are the 10 billion barrels in ANWR. All of this oil has been placed completely off limits by federal regulations.”
Instead, Obama’s speech simultaneously condemned overspending and denounced subsidies to big oil even as he proposed spending billions more to in new subsidies for the competitors of oil and gas.
Obama wants to eliminate tax deductions that, according to his own budget plan, “distort markets by encouraging more investment in fossil fuel production than would occur under a neutral system.” Yet he intends to distort markets even further by expanding subsidies and tax preferences for alternative energy. Those would heavily favor wind and solar as preferred by environmentalists who overstate the potential and affordability of those.
Nuclear power, however, has far more abundant potential and needs only the lifting of government barriers rather than subsidies. As noted by Heritage’s nuclear expert, Jack Spencer, “the monthly cost of producing electricity from uranium-based fuel remains slightly less than coal and substantially less than natural gas or oil” because, “Nuclear power is the least expensive form of electricity produced in the United States.”
But nuclear power is not politically correct. So another proposal is a backdoor subsidy that does not give government money directly toward alternative energy but instead dictates that utilities must generate certain levels of our electricity from sources like wind and solar (but not nuclear) – a so-called RES “renewable energy standard.”
The wind and sun are free, but the expensive equipment to harness them makes these among the costliest ways to generate electricity. RES forces utilities to use this higher-priced power and pass along the rising costs to customers. One study projects that home electric bills would rise by a third and business bills by 60 percent under proposed RES plans.
But for anyone who believes we can power America solely through windmills (even though it is costlier), dream on. This would require 55,000 square miles densely packed with nothing but windmills. That’s like emptying the entire state of Wisconsin and making it all windmills all the time. But our lights would still go dark when the wind wasn’t blowing.
Solar power is even trickier than wind power, requiring rare elements to build solar cells, plus daylight and large surface area.
According to the U.S. Department of Energy, when subsidies are allocated according to how much electricity is generated, it costs $.44 per megawatt for coal, $.25 per megawatt for oil and gas, $1.59 for nuclear, $23.37 for wind and $24.34 for solar. (This leaves out the heftiest subsidy – ethanol – because it’s not used to generate electricity.) Since DOE made that study in 2007, the non-fossil fuel subsidies have been increased; now Obama wants to raise them again.
Like them or not, fossil fuels have provided great quantities of affordable energy. Higher subsidies for alternatives will cost a lot more, but still not meet our needs.
Transcript Chronology Just On April
20 April 2010: An oil rig rented and operated by BP in the Gulf of Mexico explodes, killing 11 workers.
21 April 2010: All 115 workers are evacuated from the Deepwater Horizon offshore oil rig.
22 April 2010: The Deepwater Horizon collapses into the sea and sinks.
22 April 2010: President Obama delivers a speech on Wall Street to advocate more government intervention in the country’s financial sector, but offers no reforms for Fannie Mae or Freddie Mac, which helped precipitate the 2008 meltdown. He also delivers a speech regarding the contributions of Earth Day to environmental awareness.
Meanwhile, 200,000 gallons of oil are spilling daily.
23 April 2010: President Obama blasts the Arizona governor, state legislators, police officers and residents for backing federal laws that prohibit illegal immigration.
23 April 2010: The oil continues to flow.
24 April 2010: The president delivers his weekly radio address, which focuses on further regulation of Wall Street. He also calls upon certain segments of his original supporters — African-Americans, Latinos, Hispanics, and women — and asks them to mobilize for political action.
24 April 2010: Efforts to contain the spill are hampered by lack of resources and difficult weather.
25 April 2010: President Obama interrupts a weekend getaway to meet with the Rev. Billy Graham in North Carolina.
25 April 2010: Oil spreads across the gulf and heads toward the Louisiana shoreline.
26 April 2010: President Obama appears in a “Vote 2010” video, distributed by his political action wing Organizing for America, which serves as a stark appeal to blacks and Latinos — specifically — for their votes in November.
26 April 2010: The Coast Guard warns that the spill could become one of the worst in United States history.
28 April 2010: The President holds a rare, impromptu press conference on Air Force One, addressing “questions on the Arizona immigration law, the financial regulation bill and other issues.” Obama also prepared to make his second nomination to the Supreme Court and warns of a “‘conservative’ brand of judicial activism in which the courts are often not showing appropriate deference to the decisions of lawmakers.”
28 April 2010: large pools of oil are spotted close to the Louisiana shore line.
29 April 2010: the White House Flickr Feed is updated with a photo of the President meeting with Homeland Security Secretary Janet Napolitano and senior administration officials, including National Security Advisor Gen. James Jones, which indicates that they are urgently working the issue of the oil spill.
29 April 2010: Meanwhile, local officials, the Coast Guard and private citizens continue their efforts to prevent damage to the Louisiana coastline.
- A closer look at Obama’s “$90 billion for green jobs” (washingtonpost.com)
- Another Obama green-tech subsidy recipient begins furloughs for workers (hotair.com)
- Presidential Debate: Romney’s $90 Billion Untruth (kcet.org)
- The Official Obama vs. Romney Energy Policy Breakdown (solarfeeds.com)
- Romney & Obama Clash Over Clean Energy in First Debate (treehugger.com)
- Reader Mailbag: Does Via Meadia Give Oil Companies A Pass? (blogs.the-american-interest.com)
- Energy bills to rise to pay for green power (guardian.co.uk)
- Obama Up To His Neck In Oil: USA Now Finds Itself Blessed With Centuries Of Renewable Oil And Gas! (politicalvelcraft.org)
- Wind Power Fiasco: Call Your Congressman (americanthinker.com)
- Something Wicked This Way Continues: Banker Schemes Re-elected Illegal Immigrant Obama ~ Imposition Of Nazi EPA & Carter Energy Departments Continue. (politicalvelcraft.org)