Tag: oil

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crime and punishment folly too much government

Ban These Energy Bans

Colorado, Climate, energy, oil, drilling

Several bills pending in the Colorado legislature target the state’s oil industry.

State Senator Kevin Priola, responsible for two of the bills, says he’s acting to stop climate change. To prevent the mass extinction of species, he claims.

One of his proposed statutes would outlaw new oil wells in Colorado after 2030. Another bill would, among other things, outlaw fracking from May through September unless drillers use special hard-​to-​get electric equipment. The same bill would also direct an agency to reduce the number of vehicle miles traveled.

Another lawmaker’s bill would make it harder to produce new wells.

Priola explains that since 50,000 wells already operate in Colorado, his legislation would not much impair production. But Dan Haley, president of Colorado Oil & Gas Association, observes that the highest production of oil wells comes in their first 18 months. Within two years of the 2030 ban, then, the state’s oil industry would sharply decline.

We’re seeing this more and more. Bans and plans to ban gas-​powered lawn mowers, gas-​powered cars, gas, coal, oil. Lawmakers working to shut down civilization. Not all at once, but via ever faster and bigger Interim Steps.

Don’t they see that they too will be harmed when things are no longer permitted to function? Do they imagine that if they achieve all their industry-​killing dreams, all the food, clothing, shelter, transportation, communication will continue just as smoothly and abundantly as ever?

Don’t they think about the day after tomorrow?

This is Common Sense. I’m Paul Jacob.

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Illustration created with PicFinder and Firefly

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folly general freedom ideological culture national politics & policies too much government

The Energy Trap

madness of crowds, energy policy, electric cars, fuel, oil

After the spectacular failures of the COVID response, “the experts” appear to be on a roll. That is, they are once again not “following the science” but being led by politics, ideology, and the madness of crowds.

The big issues right now demonstrating mass folly on a societal level? Aside from agriculture policy, trade, subsidy, banking and high finance, and “climate change,” the big one — not unrelated to most of the rest — is the power grid.

About which our leaders seem to be nuts.

What we know is the supply of “renewable energy” is nowhere near enough to meet the general demand for energy. California’s a great example, announcing “the end of fossil fuel-​powered car sales by 2035” but sporting a power grid that is already unable to handle demand, which became bitterly funny when the Golden State asked citizens not to charge their electric cars during high-​demand hot days.

“US Power Grid Needs Trillions in Upgrades to Accommodate Renewable Energy Demands,” reads a recent Epoch Times feature.

Trillions.

It’s not as if America is rolling, like Uncle Scrooge, in trillion-​dollar surpluses. As I type these words, the US Debt Clock shows the federal government quickly approaching $31 trillion in public debt.

So now we’ll need more trillions to keep the lights on?

Yes.

Our lives depend on electrical energy, our civilization runs on electricity, but our leaders have been painting us into a corner. Bad policies that hobble efficient fuel sources and pushing inefficient sources have set a trap.

And the only real way out of the trap is one politicians don’t like: admitting they were wrong and reversing their policies.

This is Common Sense. I’m Paul Jacob.

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Illustration created with DALL‑E

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free trade & free markets national politics & policies political economy

Big Oil, Big Profits — Big Deal?

Joe Biden, oil, inflation

When President Joe Biden accused oil companies of excessive profiteering, and those profits as a cause of inflation, reactions were … mixed.

Democrats love that kind of talk. Ronald Reagan, back in his Democrat days, pitched precisely that sort of rhetoric when he campaigned for Truman’s re-election.

Republicans, along with most other Americans, are skeptical. Or just plain incredulous.

Meanwhile, what did Big Oil say?

Chevron’s CEO, Mike Wirth, took special care to complain of the president’s rhetoric, characterizing the administration as having “largely sought to criticize, and at times vilify, our industry.”

Perhaps Biden’s worst vilification was that Exxon had “made more money than God” — as if spending more money than God were his job and that he resented any money he couldn’t spend. 

EXXON responded by noting that the multinational had continued investing in infrastructure even during the pandemic lockdowns when the company “lost more than $20 billion and had to borrow more than $30 billion to maintain investment to increase capacity to be ready for post-​pandemic demand.”

In a helpful mode, the company offered that “government can promote investment through clear and consistent policy that supports U.S. resource development, such as regular and predictable lease sales, as well as streamlined regulatory approval and support for infrastructure such as pipelines.”

Biden, who ran on decreasing oil production by regulatory crackdown, received a square hit.

Nonetheless, the Democrats double-​down on their worn-​out “windfall profits” alarmism. 

After a huge hit to consumption during the lockdowns, the profits are there not as recompense for Big Oil’s regrettable big losses, but as incentives to get out of the Great Suppression. 

We should want profits to entice more investment.

Could it be that Biden wants neither?

This is Common Sense. I’m Paul Jacob.

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Accountability folly free trade & free markets general freedom moral hazard

Oil’s Bad that Ends Bad

Mexico, oil, nationalize, socialism, neoliberalism

Sometimes socialism seems reasonable.

Emphasis on “seems.”

Take natural resource socialism. Ores and oil are “just there in the ground” and “belong to everybody.” So it “just makes sense” that “the people” should “own” the mining and drilling and refining industries, and run these operations to share the profits to help “everybody,” not just a few.

The Mexican government bought into this back in 1938, when it nationalized the U.S.- and Dutch-​based oil companies. Today, the industry is under-​capitalized, its equipment old and inefficient. Mexico itself is a mess. The government is corrupt and the people far poorer than would have been the case had they not bought into the nationalization mania.

The cause of the problems should not be in dispute. “By cutting off Mexican oil exploration from foreign investment and foreign know-​how,” Ryan McMaken writes in an interesting analysis, “the Mexican state has only succeeding in making the Mexican oil industry less efficient, and less capable of taking advantage of the natural resources in Mexico.”

Which is why the government has been making tentative “liberalization” moves, de-​monopolizing Pemex, the government’s oil outfit.

Unfortunately, though the damage done by bad government policy and monopolistic privilege is everywhere to see, many people (especially intellectuals) in Mexico blame “neo-​liberalism” and non-​existent “free markets” for rising prices and the specter of economic collapse.

Once bitten by the natural resource socialism bug, it’s apparently easy to dismiss evidence. Or the common-​sense notion that government over-​reach has made the mess they now struggle with.

This is Common Sense. I’m Paul Jacob.

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Mexico, oil, nationalize, socialism, neoliberalism

 

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folly general freedom ideological culture

Caliph/​f or Nyet

drought, war, Syria, Global Warming, California, illustration

We live in a time when intelligent people expend vital brain power concocting explanations for war that weigh drought as a more significant cause than … previous tyranny and warfare.

Yes, the President’s friends and acolytes defend the notion, in all seriousness, that it is unregulated capitalism leading to global warming and Levantine droughts that made Syrians all unruly. This explains everything!

Just blame Islamic State violence on the weather and not on … the murderous dictator willing to kill masses of his own people, the intoxicating ideology of jihad, and (definitely not!) on Barack Obama’s Mideast policies.

I emphasized the Syrian dictator’s acts last Sunday. But surely American foreign policy — going back to Bush, at least — destabilized the region, and constitutes a major cause of the violence.

A far greater cause than our car-​driving addiction! And coal!

And flatulent cows …

Blame shifting is not just a foreign policy vice, though. My Townhall column began not with the nascent Caliphate’s droughts, but California’s. And there’s more than just a few syllables of pronunciation similarity. People are assigning the wrong causes in both regions.

When California’s government-​run water system subsidizes almond growing in a near desert, of course there is going to be waste. And yet politicians focus on home water use, scolding folks for taking long showers.

Yet, who sets the price of the water homeowners buy? Who, then, is responsible for the incentives to which consumers react?

The State of California. Suffering no drought of disastrous dictates by politicians in over their heads.

This is Common Sense. I’m Paul Jacob.

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drought, war, Syria, Global Warming, California, illustration

 

Categories
Common Sense free trade & free markets

Why Plant Crops?

With the financial crisis and bailout bill, our energy problems have been pushed off the front page. But they’re not gone. We still need energy to run our cars, homes, businesses, you name it.

So, I wanted to address a goofy argument that has been made a lot about drilling for oil in the Arctic National Wildlife Refuge, way up north in Alaska. Some say that we shouldn’t drill because it won’t do anything at all to help lower the price of gas now.

We’re continually told that it will take seven to ten years for the oil found there to be pumped out, processed and pumped into our cars as gasoline.

Not shocking. It’s true. Most things do take some length of time to fully accomplish.

Say you order an appliance. It’s days before delivery. Have an idea for a book? It takes time to write, edit, and publish it. You’ll have to wait to get your first copy.

You know, the price of food is up, too, in part because of America’s stupid ethanol policy, which we’ve talked about before. Apply the logic of anti-​drilling advocates and we won’t plant crops anymore because, after all, no food pops into existence ex nihilo, instantaneously. It takes months before harvest. Even longer for the food to trundle off to market.

So, why plant? Why drill? Why buy that book, knowing that you can’t read it until you get home?

This is Common Sense. I’m Paul Jacob.