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Ernest Istook

Ernest Istook

Posted: June 4, 2010 12:38 AM

What Obama Didn't Tell Us About Energy

What's Your Reaction:


"According to the U.S. Department of Energy, when subsidies are measured according to how much electricity is generated, it's $.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."

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 undersea gusher proves we need billions more to subsidize green energy. That was the president's claim in his big Pittsburgh speech.

He did not 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 from fossil fuel power stations, 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 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 does not fit political correctness. 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 measured according to how much electricity is generated, it's $.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.

Ernest Istook served 14 years as a U.S. Congressman and is now a distinguished fellow at The Heritage Foundation. First appeared at The Foundry.

 

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12:35 PM on 06/09/2010
For over three years Texaco bought every single oil well in California, or the rights to drill them, and guess what, they came up with so meager a supply (Texas, according to an old oil worker there, told me in 2000, "Ain't got no more oil here. It’s just all gone."), Chevron bought them out, and hence it is now Chevron-Texaco.

'Peak oil" is real given current sources for oil and who now is most likely to control them, and I noticed how the Bush administration played the Wall Street cards for their oily friends: "This means war!" they'd declare one day against "axis of evil" state Iran, the next week oil stocks shot up. Iraq oil was worth about 150 trillion dollars when it was at 40 dollars per barrel, and the Caspian sea fields will be worth only God knows how much, since they are virtually virgin undersea sources. The US oil spill in the gulf of Mexico 2010 is sort of good news for big oil, since endangering an Indonesian "Islamist" region, in the empires "Clash of Civilizations," will be popular in the US and highly profitable to the likes of Rupert (duel US Austrailian citizenship) Murdock, News Corporation mogul.

They, big oil big banks and big military, are ready willing and able to start another world war (against nations which can be totally wiped out by the air force), to get their hands on this oil.
03:06 PM on 06/08/2010
Don't let people make the OUTRAGEOUS claim that nukes are "CLEAN"!

everybody alive today,

the companies storing the nuke waste,

the countries that would regulate those companies,

even the memory of where the waste is,

will all be dead and gone,

The waste will continue to be deadly for another million years.

our children's, children, for generations

that will have to deal with nuke cr@p.

In just 50 years of 500 reactors, nuclear waste has been dumped all over the world, the Mob has gotten involved, and big company clearly just don't care. The Englishes channels and Somalia are huge nuclear waste dumps now. Radiation is invisible, and insidiously kills after 20 years of cancers that are indistinguishable from natural cancers.

We all just watched BP murder the Gulf for save a buck.

Chu, Wake up! Think. Break the propaganda hold the Nuclear PR geniuses have on you.

Solar Wind and Waste Bio Fuels can provide several times the worlds energy needs, clean safe, cheaper in the long run 26$/barrel, cheap now 2-6 cents, installable in 12 years at 50% growth, and good forever.

Stop the insanity of nukes.
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Michael Mann
Nuclear Educator
05:48 AM on 06/07/2010
Nuclear power, is the cleanest, safest, most reliable, current technology to provide energy. The plants operating now are safe and the new designs are even safer.
Building 100's of new nuclear power plants would improve the economy, reduce or eliminate dependence on foreign oil, create jobs, reduce pollution, and provide for future technological advancement.
I have been working with nuclear power for 30 years, I would be glad to have a new Nuclear power plant or high level "waste" disposal facility in my backyard. My family lives in a home within 10 miles of a nuclear power plant. (Where I work) I understand the risks involved and I’m completely comfortable with a plant "in my backyard". I have confidence that our kids will be smart enough to treat the nuclear "waste" as a valuable resource or at least to handle it safely. If the cavemen thought their children would be too stupid to use fire safely, where would we be now?
Using Chernobyl as a reason not to build is like saying because of the Hindenburg I will never fly in a commercial airliner.
Nuclear power has the smallest environmental impact of any current energy production method per unit of energy produced. One fuel pellet about the size of a pencil eraser produces the same energy as about 1 ton of coal, and if reprocessed most of what’s left can be reclaimed. Nuclear power is our best option for reliable, environmentally friendly base-load electrical power
02:41 PM on 06/07/2010
You just witness the murder of the gulf by big oil corner cutting.

and now you want to risk the nuclear version of that.

Nothing seems to get through to people who want to risk it all for a mythical saved buck.

Nuclear power is the dirtiest technology ever created. 50 years and we have create a million year intractable waste problem,

but you have the gall to still call it CLEAN?

several new members of the nuclear bomb club, TMI Chernobyl,

and you have the gall to call it SAFE?
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Michael Mann
Nuclear Educator
08:04 PM on 06/07/2010
You have the gall to talk about something you know nothing about? Nuclear power is the safest method of producing electrical power in the US, over 40 years of operation, a better safety record than financial institutions (OSHA statistics) So yes it is SAFE!
http://thisweekinnuclear.com/?p=455
Nuclear power plants release no carbon monoxide, no sulfur dioxide, no mercury, no arsenic, no carbon dioxide, contribute 100 times less to the radiation dose of an average American than coal fired plants. So yes it is CLEAN!
The "waste" is in the form of fuel assemblies; ceramic pellets in zircalloy tubes, very solid materials which pretty much stay wherever you put them. Can be used to power generation IV reactors for centuries. NOT very intractable waste problem!
Please get better informed, don't listen to all that anti-nuke propaganda!
03:42 PM on 06/05/2010
Nukes ARE NOT CHEAPER:

25 cent per kwh nukes 9$ per W average. http://energyeconomyonline.com/uploads/Is_New_Nuclear_Competitive_July_10_2009_FNS_Event.pdf

25 cents per KWH for new Nuclear.

http://climateprogress.org/2009/01/05/study-cost-risks-new-nuclear-power-plants/

10$ per W nuclear minimum.

http://climateprogress.org/2009/07/15/nuclear-power-plant-cost-bombshell-ontario/

that 50% default rate is used by companies to claim lower costs, because they new company does not have the construction debt.

It's an accounting trick.

The other gross lie from the nuclear power industry, is to list the incremental cost of nukes power, which is just fuels and maintenance, leaving out construction, disposal of waste, decommissioning. Yet another trick is to quote the prices of future reactors as if the nuclear power industry wasn't famous for cost overruns, and in fact, the 8B$ loan guarantees that Obama gave the Nuke folks, is for construction cost overruns.

The nuke industry of course deceives in a similar matter to make solar wind and waste bio fuels look bad. For instance they include storage for solar, to q1uadruple it's price, they use the most expensive solar they can find, when even using the average is deceptive, because it includes years of older more expensive system. Current price of installed solar best buys is less than 2$, and thus 3 cents per kwh over 30 years as an investmnet.
08:41 PM on 06/06/2010
Here is research's calculation for his absurd 3 cents kwh

"30years*365days per year*24hourse per day*SunFactor 6/24 equivalent peak sunlight hours = 64 KWH per Peak Watt.

Nano solar at 2$ per installed Peak watt is just 3 cents per KWH. 2$/64KWH = 3.1 cents."

First he uses 6/24(25%) to account for solar variations and electrical losses when NOAA's PVWatts gives 19%for the perfectly aligned roof. 6648/(4*365*24)

Then he assumes that the money needed was neither borrowed, to pay down your mortgage, or reinvest ie no interest on a 30 year life.

Then he assumes no labor, permits, or maintenance cost and uses the latest going out of business sale prices.

I ran the latest American AP-1000 reactor at $5B/Gw (4 times Chinese cost for the same reactor) using his silly technique and it came to $.01/kwh.

Using an actual solar 5 kw solar Watson House,Massachusetts with Research's grid tie package ratioed up to 5 Kw we get

panels,ship,inverters $18K, labor $6k, 5500 kwh annual actual (confirmed with PVWatts), loan 6% 25 years 8% cost.

2400000*.08/5500 = $.35/kwh

Built in Phoenix
2400000*.08/8085 = $.24/kwh

Getting better but still 15 times the cost of mass produced nuclear and a long ways from Research's ridiculous 3 cents/kwh.
09:26 PM on 06/06/2010
I list the retail stores to buy the panels for about 1$ and the inverter for about 50 cents per watt.

Seth,

has all sorts of more expensive installation.

Choose.

If you live in CA or Hawaii, it's a no brainer, since you are paying 30 cents+ for you peak noon electricity.
11:27 PM on 06/06/2010
Notice Seth has no rebuttal for the true high cost of nuclear power.
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BearIy Here
01:20 AM on 06/07/2010
Go argue with the U.S. Department of Energy. That's where the numbers in the article are from. The article hyperlinks to them.
02:48 PM on 06/07/2010
suddenly you trust the governmnet the Bush installed, and Obama has not had time to clean out? You just watch the oil spill and the MMS corruption that led to it, and you can't be skeptical enough to read more around.

I read that report. I does not reference where it got the solar numbers.
really prove me wrong. They are cooking the numbers to favor nuke, because Chu Likes Nukes.

Fossil and Nukes have 100 times the money to buy the government as solar wind and waste bio fuels.
03:37 PM on 06/05/2010
What is it about conservatives that they want dangerous Nuclear power, that only wimps would want safe solar, wind and waste bio fuels?

They want to conserve the monarchy, fear, and the security forces you can get using fear, are handy for keeping the serfs down.

Look at BP's private security force.

We all see that big business will cut corners on any system, till that system breaks, since, though legally persons, corporations cannot be punished, imprisoned, or executed.

So let's trust big business with nuclear power! How F'ed up is that?

A nuclear version of the Oil Spill murder of the entire gulf for 30 years,

would be deadly for hundreds, thousands of years.
08:46 PM on 06/06/2010
As for real cost as opposed to BS from astroturf sites, he's some for ya.

Two real nuke builds one actual cost, one sale cost.

$2B/Gw Candu 2.0 cents a kwh with 5% finance

www.cnnc.com.cn/tabid/168/Default.aspx

$1.2B Westinghouse 1.5 cents a kwh with 5% finance

www.bloomberg.com/apps/news?pid=20601080&refer=asia&sid=aJPyNB5Q_Fr0

Largest solar installion in the US at Arcadia Florida
42 Gwh/annual $150M,$32B/Gw or 50 cents a kilowatt hour at Florida Power's discount rate. Google it

Latest Chinese built Texas wind farm - 56 sq miles of concrete, roads and steel, $1.5 billion. 125 Mw(avg), excluding storage, transmission, plus millions annually for load balancing natural gas. $12B/Gw., 12 cents a kwh. Google it
11:28 PM on 06/06/2010
right seth, that's why the 8B$ obama loan guarantees are for cost overrun's.....
03:28 PM on 06/05/2010
BS! solar wind and waste bio fuels CAZN supply the worlds energy needs.

Nuclear is NOT CLEAN.

Specifically, Rooftop PV Solar, Offshore wind, and Waste Bio char, can supply the worlds energy and fuel needs: cleanly, safely, Forever, within 12 years and cheaper in the long run 2-6 cents now, and 26$ per barrel bio oils.

http://www.ecobusinesslinks.com/solar_panels.htm
about 1$ per Wp solar panels, new.

install solar plants for about $1.30 per watt, compared with an industry average of about $1.75, according to Hardy." http://www.bloomberg.com/apps/news?pid=20602099&sid=a7K1FZoNgJ0w

Wind: “between two and six cents today, depending on location.12 Wind power approaches competitiveness with conventional generation at this price point. “

http://www.repp.org/articles/static/1/binaries/wind%20issue%20brief_FINAL.pdf

http://www.css.cornell.edu/faculty/lehmann/publ/BiofBioproBioref%203,%20547-562,%202009%20Laird.pdf

26$ per barrel bio oil from waste bio char.
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Overtone
See bio on the Aesop Institute website
01:03 PM on 06/04/2010
TIME FOR 24/7 DEVELOPMENT OF BREAKTHROUGH COST-COMPERITIVE ENERGY SYSTEMS!

Revolutionary renewable, technologies are beginning to emerge.

See Moving Beyond Oil and Running on Water at; http://www.aesopinstitute.org

The science is new and understandably difficult to accept.

Government and independent labs are increasingly involved and practical applications are on the horizon.

With one example of new science and technology, a barrel of ordinary water is expected to replace 200 barrels of oil. A gallon or two might power a future hybrid-electric car 1,000 miles.

This work grows from successful research at a National laboratory 30 years ago, A modified engine achieved 70% efficiency, probably due to fractional Hydrogen, which was unknown at the time.

Later, vehicles powered by water fueled cells might go even farther on a gallon.

In parallel, magnetic generators and room temperature Ultraconductors will replace batteries, the Achilles heel of contemporary electric cars.

The latter have been the subject of four completed government contracts. Almost 1,000 samples were made by another firm for the Air Force.

24/7 development can happen quickly. A few wise, adventuresome, risk takers could insure it takes place without further delay.

These electric cars and trucks will become power plants when suitably parked and may eventually pay for themselves by selling electricity to the local utility.

No need to build new nuclear plants. This country can supersede fossil fuels faster than might be imagined!
10:30 AM on 06/04/2010
What he said in the quote was that if coal continues to be heavily polluting than under his bill, which builds in external costs of fuels, the cost of coal would sky-rocket.

I can understand why you would distort what he said by quoting him out of context if you were writing for an audience that was anxious to hate Obama and so didn't care if what you said was accurate. But what is the point in distorting Obama's comment to an audience that is going to be more sympathetic to him than you.

Lying is understandable when it is likely to work. Here it is not likely to work and it is still lying. So it makes you look bad and doesn't accomplish anything. That seems a bizarre thing to do.
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BearIy Here
10:46 AM on 06/04/2010
Do you have eyes and ears? Did you watch the video? Obama said electricity rates would skyrocket. You are manufacturing totally different words than what Obama used.
11:14 AM on 06/04/2010
Yes, but I listened to the whole thing not the out of context parts of the videos pushed on conservative sites. The Obama comments were made as part of a discussion. Serious people often say things in parts of discussions which if taken out of the context of those discussions can look bad. Unfortunately that is why it can be hard for serious people to be successful politicians. I am glad Obama is an exception to this.
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10:24 AM on 06/04/2010
New technologies necessarily require investment. The fact that it's the United States government that is investing in them is irrelevant. When people first drilled for oil and gas, that technology required an investment, too.

The United States has 3.79 million square miles of land area. 55,000 square miles for windmills is a drop in the bucket of that land surface, and we would not have to have unsightly and dangerous coal mines or mountain top removal mines. I would much rather see a windmill on a mountaintop than a mountain ecology destroyed by a mine. As for when the wind is not blowing, that is why batteries were invented.
03:16 PM on 06/04/2010
Agree... that's why it was such a puzzle that Ted Kennedy had such an objection to them in the Kennebunport area. There must have been some other reasons...