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3 interesting developments in the US energy sector today

Shall I give you the good news first?

US District Court Judge Martin Feldman of New Orleans has found the Department of Interior in civil contempt for continuing the Gulf drilling moratorium against his orders.

Yes, folks. You heard that correctly. Back in June Judge Feldman had refused, at the Interior Department’s request, to delay the decision’s effects after he earlier struck down the moratorium. Now the judge has found the Interior Department in contempt for failure to adhere to his ruling. House Natural Resources Committee Chair Doc Hastings issued a press release today.

“The federal judge’s initial ruling striking the offshore moratorium and his most recent decision to hold Interior in contempt of court correctly puts the letter of the law ahead of the Obama Administration’s agenda. Hopefully this ruling takes us one step closer to ending the de facto drilling moratorium in the Gulf, which will put people back to work and allow us to start producing more of our own energy at home.”

And Sen. David Vitter (R-LA) also praised the ruling:

“Judge Feldman’s decision is a sharp rebuke of the Interior Department for continuing to place politics before all else following the BP spill. A ruling of this nature reveals that the judge believes that Interior blatantly disregarded his earlier ruling – undoubtedly because of their actions that led to the current de facto moratorium,” said Vitter. “Federal permitting has fallen off a cliff, and the resulting impact on Louisiana families, jobs and domestic energy production has caused a lot of pain in coastal Louisiana.”

Now all we have to do is to get Interior to comply…

And the head scratcher, h/t to Mike “Gamecock” Devine:

Power Plants Go Down in Texas, State Buys Electricity from Mexico

Texas? Has to BUY electricity from Mexico? Yep. They sure do right now. The state, according to the Institute for Energy Research, holds one quarter of our oil reserves and 30% of our natural gas reserves, and receives almost half of it’s electricity from natural gas and 35% from coal.

I spoke with Dan Simmons of IER to get some insight into this most unusual phenomenon. He said their organization is scratching their heads too. Fifty plants of all kinds, all over the state are down, at this point he believes because of the coldest weather Texas has had in fifteen years and the plants weren’t built to tolerate this kind of weather.

Come on. I live in northwest Ohio. We have temps well below zero, lots of snow and had a huge ice storm a couple days ago. I’ve lived here all my life. Yes, we have had the power go out in neighborhoods and grids in severe weather. But actual plants go down? I can’t remember this ever happening here.

Vladimir joked about this earlier today.

How’s all them tur-bines workin’ out for y’all?

Of course, lawmakers have vowed to hold hearings. Mexico’s Federal Electrical Commission agreed to transmit 280 megawatts of electricity to Texas, enough to power only about 56,000 homes.

Could this have anything to do with the EPA cracking down on Texas “polluters”?

Federal regulators say the move, set to take effect next year, is designed to cut toxic emissions and bring Texas in line with the Clean Air Act. And environmental groups say it will help improve the state’s ecology and the health of Texans and those living nearby.

One never knows with the EPA. After all, they did pull the permit from an already-in-use coal mine in West Virginia, the state which mines the second most amount of coal in this country.  Just saying, not drawing any conclusions at this point.

And now onto this little tidbit of news, h/t to Kenny Solomon, which I’m sure no one is surprised about:

As Egypt Burns, Obama Fiddles in PA to Announce “Clean Energy”

From Reuters:

With U.S. unemployment at 9.4 percent despite signs of economic recovery, Obama’s push for green energy jobs is an important part of his high-stakes effort to tackle joblessness — the problem most on the minds of voters, even as issues like the turmoil in Egypt dominate the headlines.

Hey Mr. Obama. Isn’t it a little ironic while visiting Pennsylvania you are standing right on top of the Marcellus Shale which contains huge amounts of our coal and natural gas? The Obama administration wouldn’t give any details, but stated all these “clean energy upgrades” for commercial buildings would be paid for by eliminating tax subsidies for oil, natural gas, coal and other fossil fuels. Surprise!

Economist Joseph Mason found that higher energy taxes on oil and gas companies in the form of repeal of Section 199 and dual capacity credits will lead to over 150,000 job losses in 2011 alone. Couple that with oil and gas companies supporting more than 9 million jobs and account for nearly 7.5% of GDP, raising taxes on them makes no sense.

When I questioned Mr. Simmons about ending the subsidies, he stated his organization supports ending all subsidies for all kinds of energy. Right now the wind industry gets a subsidy of $23-$24 per megawatt, while the oil and gas industry gets only $1-2 a megawatt. Of course it is the taxpayer who is footing the bill for that mega subsidy on wind.

Mr. Simmons ended by saying “any kind of energy which is more costly, like solar and wind, Mr. Obama is in favor of.”

Of course he is.

Crossposted at Conservative Outlooks

Crossposted at Procinct.net

COMMENTS

  • pilgrim

    http://www.chron.com/disp/story.mpl/ap/business/7411539.html

    MEXICO CITY

    • http://www.redstate.com/etcartman Kenny Solomon

      ……not only would the electricity from Mexico be flowing, it would be free, delivered by the cartels in exchange for Sec. Napolitano ordering DHS/ICE to pay even less attention to all the illega…… um…… misplaced travelers than current op-plan.

      • http://www.conservative-outlooks.com ladyimpactohio

        the building of homes with wood burning fireplaces.

        http://activerain.com/blogsview/935644/wood-burning-fireplaces-to-disappear-in-southern-california

        Confirmed by an email buddy of mine in CA.

        • http://www.redstate.com/etcartman Kenny Solomon

          1. Making land use almost impossible from the largest tract, down to your living room

    • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine
  • izoneguy

    The story I am hearing is that a major coal fired power plant had to go off-line because the water supply was interrupted due to water main breaks.
    Yesterday our power went off at 7:00 AM, 10:00 AM and again at about Noon. Each time it was off about 20 minutes.

    They said they had to do rolling blackouts so the whole grid would not go down.

    Many Texas homes are electric only, no gas. We have a mixture. The Heaters are gas and the AC electric. One of my water heaters is gas, the other electric. We do have a gas fired fireplace so at least we would not freeze to death….

    I don’t think this had anything to do with the EPA clamping down – but if it is and if Obummer told Mexico not to help – isn’t Obummer directly infringing on the soverign rights of Texas and it’s citizens?

    Rick Perry needs to get to the bottom of this.

    And again I say to the people of Egypt….please in God’s name take Obama off of our hands. You can have him – we don’t want him.

    • http://www.conservative-outlooks.com ladyimpactohio

      on the EPA issue to see if any relationship.

      I was stunned when Simmons of IER said 50 plants were down.

      • texasgalt

        The Electricity Reliability Council of Texas proved their grid management wasn’t so reliable.

        The “company” is responsible for assuring reliable electrical distibution from the deregulated companies in Texas. Oversight for them is through the Texas Public Utility Commission.

        ERCOT is all in for wind generated electricty and that segment has increased 500% over the lat five years to about 11% of total capacity. 50% of all new power is scheduled to come on line is to be wind generated.

        It seems too coincidental that in December they launched a long awaited Modal system which was supposed to automate allocation of wind power to where it is most needed. There are known issues with wind generated electricity in very cold temperatures.

        Something went badly wrong somewhere. I heard too many nonsense excuses and explanations of what made the rolling blackouts necessary. I don’t think we have the truth yet and the truth might be a very interesting story.

        http://www.ercot.com/content/news/presentations/2011/2009%20ERCOT%20Annual%20Report.pdf

        http://www.ecs.umass.edu/mie/labs/rerl/research/Cold_Weather_White_Paper.pdf

        • http://vladenblog.tumblr.com Vladimir

          These high pressure winter weather systems tend to have clear blue skies and very little wind.

          A wind turbine without wind is as useless as teats on a bull.

          I believe that expression is from Texas.

          • izoneguy

            But the wind chills are like -10 where most of the turbines are.
            Those turbines don’t work when it gets that cold.
            And when do we need power the most?
            When it is freezing!!!
            We can still live fine when it is 100 degrees.
            10 degrees gets a little rough.

        • http://www.redstate.com/etcartman Kenny Solomon

          How many times to some of us have to say it ?

          ICLEI is the danger.

          PDF from “4CleanerAir.org”.

          The eGRID database maintained by EPA is a widely used resource, forming the basis of the ERCOT methodologies developed by Art Diem of the EPA and by the Texas A&M

          • http://westforwestwing2012.com heartlander

            But he acts like he’s never heard of ClimateGate.

            The incredible fraud committed by scientists-with-an-agenda has been exposed to the light of day — but Obama and the rest of the global elite put their fingers in their ears, going “LALALALALALALA I can’t hear you!!!!” as if it had never happened.

            I don’t deny the possibility of global climate change — and I know enough about the science to know that yes, as Al Gore has been saying, worse winter storms (along with worse droughts, worse typhoons, in short, more drastic weather of every sort) could be a result of climate change.

            BUT — having said that, Al Gore and co. are full of carp, because:

            1. Basically, all the “science” is no longer worth the paper their journal articles are printed on, since the key players — CRU, NASA and the IPPC — have been caught redhanded.

            2. Carbon dioxide is only a teeny, tiny percentage of “greenhouse gases” — the main one being….WATER VAPOR.

            3. Man’s contribution to that teeny tiny percentage is even smaller.
            (Hello? Anybody remember high-school biology? Plants GIVE OFF carbon dioxide. It’s called photosynthesis, you dweebs! If you’re all about “greening” the planet, shut up about carbon dioxide already!)

            4. All of those “greenhouse gases” — water, carbon dioxide, methane, you name it — are totally dwarfed by the effect of the SUN itself, which changes over time in ways that are totally — hello? — beyond man’s control. (I know that’s a blow for egotists such as Al Gore, but we really are pretty small in the cosmic scheme of things, physically speaking.)

          • ohiohistorian

            Once the earth start to get cold, the air holds less water vapor, and so now you get less global warming. We had better pump more carbon dioxide up there so that we can warm up. Or better yet, wait until the sun does the job that God planned and warms us up “naturally”. Come about July, we will again hear Al Gore drone on about global warming.

            I understand 2010 was reported as the second warmest year on record (supposedly they can’t get their numbers 2005 data yet, but they are trying). Meanwhile, my natural gas bill here in Ohio was higher, and I used about 10% more capacity last year than in the prior years, but was somewhat offset by electrical reduction due to less demand. Something stinks in statisticsland. Of course, that is run by the Obama sycophants also, so what can you expect?

          • bobmontgomery
        • talgus

          were a reasonable response to a problem that should not have occurred. Because power generators are independent from everything in TX deregulation, their bean counters most likely could see no reason to prepare (spend money) for extreme cold. What is needed is a penalty for not having your power ONLINE when it is scheduled to be producing. This would spur some preventative maintenance, like keeping pipes from freezing, having backup pressurization for gas feeds, etc. Right now, all ERCOT can do is drop customers (load).

          • gekster

            If the power source was gas or coal fired, no problem.
            The gas didn’t freeze, there was no electricity to pump it.
            There was no electricity, because of the large amount of wind turbines in west Texas that shut down due to cold weather, and wind not blowing.

            The planers figured with all the Global Warming, it should never have gotten cold unough to shut them down.

            Ohhh….wait….. I forgot the Global Warming IS the cause of the record freezing.
            My bad.

    • Menlo

      The power was out at my place for about 5 hours. It came on a little before noon and thankfully did not go out again. I don’t think that was part of any “rolling blackout.”

      It seems strange though since the demand had been as high before and probably higher in the summer.

      I wouldn’t count on Rick Perry for anything more than a campaign. I think the state’s power situation is only going to get worse, especially from a monopoly in the process of forcing everyone to buy their “stupid meters.”

  • http://theconservativecrawfish.wordpress.com/ reelman

    EGYPT-2011-OIL-1974-YOU

    As we observe Egypt 2011 there is a real chance the hater moslem group The Muslim Brotherhood (ya like that name?) will weasel its way into power like in Iran when Carter was in office. This could very well mean the Suez Canal oil tankers either denied passage or have a very heavy “oil toll”. Does anyone really think that can’t happen after what the world has seen by Iran in recent years?

    If you were born before 1955 or so the following FLASHBACK will not be news to you…1974 was a horror show…lines at gas stations of 50 cars and half the stations closed…10 gallon limits many places.
    I hope we never get there again but it DID happen and all those born after about 1960 have no clue.

    America must drill drill drill…build 10 nuclear plants and make millions more 4 cylinder 40mpg clean diesel cars instead of goofy super expensive impractical electric nitemares.

    Gas was 29-39 cents a gallon in 1972. In 1973 I worked a summer gas station job in Belle Chasse, La…
    we (the Spur Station) were the most expensive gas around at 39 cents a gallon and look what 1974 brought!

    Truckers must be really worried…they drive 50-150k miles a year pulling a heavy rig. You can’t do that on 10 gallons a day.
    Did you notice how prices jumped last year as gas rose? Every single item shipped in now costs more and that should only get worse.

    If you think $3 hurts now…think about $4 or worse…think about a 10 gallon max allowed at $5.

    I personally don’t put any limits on the damage OzBama and hater moslems as far as the damage they can do to America’s oil situation. Look at all the drilling shutdowns, permit denials and such in just two years. Those have consequences.

    The worst case 2011 scenario will rock your world in a very ugly way like 1974 in addition to trashing any recovery for years.

    Hopefully, we will all be laughing about this post come the fall or voters will be a lot more enraged than last November.
    Count on that for 2012. Excuses do not fill your tank.

    http://theconservativecrawfish.wordpress.com

    • http://westforwestwing2012.com heartlander

      … and the only way food gets into the cities is trucks and trains.

      No petroleum, no food. It really is that simple.

      • bobmontgomery

        ‘People freezing to death in New Mexico.” “Petroleum companies shutting down operations all across the nation.” “Obama’s regulatory czar tells the nation: You’re on your own. Good luck.” “No jobs. No heat. No food. Obama has left us with nothing.” “There is no hope.”

  • izoneguy

    Then I figure we have one more to survive while Obama is President.
    We should know by Nov of 2012.
    When Obama becomes a lame duck it will be vital to not let them shut off the power out of spite.

  • bobmontgomery

    …..in their place put…..solar reserves and …..wind….reserves. Have we started retrofitting the Ike, the JFK and the Reagan with ….panels ….yet?

  • http://westforwestwing2012.com heartlander

    Anyone who could write THIS sentence:

    With U.S. unemployment at 9.4 percent despite signs of economic recovery, Obama

    • http://www.conservative-outlooks.com ladyimpactohio
  • http://www.redstate.com/etcartman Kenny Solomon
  • E Pluribus Unum

    Or I suppose that is what “civil contempt” means, that nobody goes to jail.

    I would love to see this matter get WhataSized™ into criminal contempt.

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