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Old 06-23-2008, 02:20 PM
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Default An American Energy Initiative for the 21st Century - Part I

As the price of gas continues to rise, the corresponding partisan rancor and posturing has likewise followed off into low Earth orbit. Enduring increasing pain at the pumps, Americans naturally look about for answers and ultimately someone to hold responsible.

How did we come to this sorry state? What can be done? Whose fault is it? All are completely reasonable and natural questions. Many point to the cartoonishly vilified Big Oil. Others blame obstructionist environmentalists. Some accuse cowboy capitalist market speculators. Engaging in what increasingly appears to be the new national pastime, several believe in a conspiracy among oil producers and nefarious groups seeking to cripple and push us off the world stage.

Yet, while flaring tempers and pointed fingers may vent our spleens, they do nothing to address the situation at hand.

Let me be the first to say I have engaged in my fair share of this very same vitriol. Lest I be charged as a self-righteous and proselytizing hypocrite, I readily acknowledge and take full responsibility for wantonly adding fuel to the philosophical and political flames. I have ridden the tumultuous rapids of high emotion and surrendered myself to the partisan passions of the moment. That being said, the time for reason and rationality is now at hand.

Setting past sins of omission and commission aside, the time has come to look to the future. What follows is a broad and rough outline for a comprehensive energy plan for America. The devil and boredom lie in the details, so this is offered in the broadest of terms as a starting point for discussion and debate.

First though, let me clearly state that while I am an admitted and committed Petrovore, I am no friend of wanton and wasteful gluttony. Accordingly, I wholeheartedly support the responsible development of our natural resources and the expansion of renewables where possible. However, I likewise firmly believe first and foremost in the economic security of our nation. Therefore when push comes to shove, the caribou will kindly have to step aside so we may develop our resources in ANWAR, albeit in the most responsible and minimally intrusive way possible.

Furthermore, bear in mind this is a long term plan. Many of the proposals may not produce tangible results for years. Yet, to further delay its inception is to extend the period of vulnerability for our economy and our very way of life. Having done so repeatedly in the past, we can ill afford to do so yet again. Now, onto the fun, shall we?

-Open ANWAR and the Outer Continental Shelf for exploration and drilling: Estimates place the potentially recoverable reserves in the billions of barrels of oil and trillions of cubic feet of natural gas. The impact of this development will be in the mid to long range. However, further delay will likewise push back the introduction to and impact of these reserves on energy markets. Responsible planning for the future entails concrete action today and this is a tangible step towards securing our future energy needs.

-Heightened lease development and administration: A report issued by the House Natural Resources Committee recently asserted that energy firms currently hold undeveloped and inactive leases on millions of acres of federally owned land. Due to the variables involved with exploration and production and the fact that not all lands are going to be commercially exploitable, the true extent of this situation is open to debate.

Nonetheless, in order to encourage timely development of these resources, oversight, tracking and review of federal leases should be substantially increased. Companies applying for future federal leases would be required to provide a plan with a corresponding timeline for developing land awarded to them. In line with current policies, increasing penalties would be imposed on them up to the forfeiture and loss of their lease should they fail to meet their submitted timelines without showing good cause for their delay. Companies experiencing chronic and repeated delays and forfeitures would be barred from applying for future leases.

The new regulations and requirements would likewise be applied to pre-existing and current leases.

As part of the new lease regime, companies would be required to provide additional royalty-in-kind payments of oil to the Strategic Petroleum Reserve in order to increase the amount of oil available to the nation in times of crisis.

-Establishment of the Federal Petroleum Management Board: In order to remove political considerations and influence from the management and utilization of the Strategic Petroleum Reserve, the FPMB would be created. The Board would be empowered to add or release stocks from the SPR as it deemed necessary and would include members of the energy industry as well as financial and commodity markets experts. It would additionally be responsible for working with commodity markets and energy industry entities and personnel in order to coordinate and stabilize national energy policy. Modeled after the Federal Reserve, the FPMB would be an independent entity with its members appointed by the President and approved by Congress.

-Expansion of national refining capacity: All the oil in the world is useless unless it's refined. Accordingly, in addition to increasing supply, you must correspondingly increase refining capacity. With the last new refinery built in the United States when Jimmy Carter was President, it is long past due.

The permitting process for new refineries should be dramatically restructured with regulations being loosened. As a matter of national security, federal regulations should take precedence over state and local requirements. In exchange for loosened regulations for new permits and expansion of pre-existing refineries, the industry would pay into a federal pool that would be used to address and offset any adverse impact that might occur, much like the EPA’s Superfund.

In order to encourage expansion of pre-existing and new refineries, tax incentives would be provided that specifically supports each option. Tax incentives and favorable lease provisions would be offered for the refurbishment and utilization of formerly active industrial facilities as well as former military sites.

-Electrical generation capacity expansion: Nuclear power plant permitting would be updated, simplified and expedited. Clean coal and carbon sequestration technology would be encouraged through tax incentives and government-private sector partnerships.

The national power grid and the corresponding delivery network must be upgraded and expanded. Redundancy and flexibility must be greatly enhanced, as demonstrated by the New York blackout of August, 2003. Permitting for power line routes would be expedited accordingly. Minimizing the impact of line routes on animal habitat and the environment would play a significant, but not ultimately determinant role.

-Expansion of renewable electrical generation capacity: While not being able to provide consistent base load generation, renewable sources such as wind turbines and solar cells should be dramatically expanded. Tax incentives that allow families and businesses to deduct the full installation costs of such systems the first year, as well as the total cost of the systems themselves over three to five years would encourage the expansion of home and business-based supplemental electrical generation. This would allow power generators to lower their fuel usage and production costs.

Furthermore, tax incentives and expedited permitting should be provided for the expansion of commercial renewable electrical generation. If renewables are going to be a significant part of our future energy equation, serious incentives must be provided and efforts made to support them during their fledgling period.

Intrigued? Enlightened? Engrossed? Enraged? If so, tune in again tomorrow, same Bare Knuckled channel, same Bare Knuckled time for Part Two of the American Energy Initiative for the 21st Century.

Remember, faithful readers, you may find yourself behind the wheel of a large automobile. And you may ask yourself – well…..how do I fill this? Stay tuned for those answers and more tomorrow!
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Old 06-23-2008, 04:25 PM
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You can't possibly be serious.
  • From Media Matters:
    Quote:
    However, within the area assessed by the USGS, oil production is barred only in the smaller "Arctic National Wildlife Refuge 1002 coastal plain area," which is controlled by the federal government. By contrast, active exploration wells existed after 1987 in state-controlled waters, and the state currently accepts bids for oil and gas leases in that area. The USGS found the smaller, federally controlled region's average likely amount of "technically recoverable" oil to be 7.7 billion barrels...
    That's a drop in the bucket considering that the US uses about 22 million barrels PER DAY. That doesn't even begin to solve the problem.
  • Also no solution. It would take a MINIMUM of ten years from the time development--including exploration--began for that oil to reach market. By then gasoline will be at $8-10 per gallon. Care to bet on it?
  • Not even feasible. You're talking about legislative action?? Add another couple of years at minimum before anything even begins to happen.
  • Do you know how long it will take for BRAND NEW REFINERIES to come on line...even if the petroleum industry were interested in building them? Which they aren't. You're dreaming.
  • The same goes for generation of electricity...except that most electricity is generated by burning petroleum or coal. You have NO idea what you're talking about.
  • "Expansion of renewable electrical generation capacity" that's the ONLY thing you've said which makes any sense at all...except that Jimmy Carter said it first about 30 years ago. Pay attention.

So if you've got something to offer that doesn't include further enriching objectionable Middle East regimes, I'll be delighted to listen. But as long as you're suggesting MORE of what got us into this mess in the beginning, you can keep it to yourself...
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Old 06-23-2008, 04:49 PM
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Jimmy Carter said invest in renewable energy sources 30 years ago, and if renewable energy research and development had all of the energy subsidies that have gone to billionaire oil corporations over that period of time, we would be much farther along than we are today.

Electricity? How much desert space is available in the western states. What if that area was covered with solar panels?

Fuel? How about developing biofuel from algae and bacterial breakdown of cellulose crop and lumber waste. How about floating barges on the ocean that would be biofuel farms?

If we are really talking about the future, why not talk about it on its own terms instead of looking at it only from the vantage point of existing forms of energy development?
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Old 06-23-2008, 04:50 PM
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Originally Posted by Angel Of Mercy View Post
You can't possibly be serious.
  • From Media Matters:

    That's a drop in the bucket considering that the US uses about 22 million barrels PER DAY. That doesn't even begin to solve the problem.
  • Also no solution. It would take a MINIMUM of ten years from the time development--including exploration--began for that oil to reach market. By then gasoline will be at $8-10 per gallon. Care to bet on it?
  • Not even feasible. You're talking about legislative action?? Add another couple of years at minimum before anything even begins to happen.
  • Do you know how long it will take for BRAND NEW REFINERIES to come on line...even if the petroleum industry were interested in building them? Which they aren't. You're dreaming.
  • The same goes for generation of electricity...except that most electricity is generated by burning petroleum or coal. You have NO idea what you're talking about.
  • "Expansion of renewable electrical generation capacity" that's the ONLY thing you've said which makes any sense at all...except that Jimmy Carter said it first about 30 years ago. Pay attention.

So if you've got something to offer that doesn't include further enriching objectionable Middle East regimes, I'll be delighted to listen. But as long as you're suggesting MORE of what got us into this mess in the beginning, you can keep it to yourself...
I have heard several different opinions regarding what the effects of drilling off the coast and in ANWR would be. They range from little to a lot. Who is right? Who knows? Your Media Matters source is hardly impartial.

What I do know is that sitting around doing nothing is stupid. All of these things should be pursued. Drilling more domestically by opening restrictive drill sites, alternative fuel development, and nuclear power. There is no one answer.
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Old 06-23-2008, 09:31 PM
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Originally Posted by SamInTheSouth View Post
I have heard several different opinions regarding what the effects of drilling off the coast and in ANWR would be. They range from little to a lot. Who is right? Who knows? Your Media Matters source is hardly impartial.

What I do know is that sitting around doing nothing is stupid. All of these things should be pursued. Drilling more domestically by opening restrictive drill sites, alternative fuel development, and nuclear power. There is no one answer.
Hear, hear, Sam! Action is the order of the day!

There is no silver bullet, as you allude to. Hence, my proposal is both comprehensive and long term.

While Angel is amply able to articulate his opposition, he fails to offer any solutions or proposals himself. Far easier to attack someone else's ideas than to put your own on the table for scrutiny. Something sadly all too common today in the political arena.
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Old 06-23-2008, 11:05 PM
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Quote:
Originally Posted by The Bare Knuckled Pundit View Post
While Angel is amply able to articulate his opposition, he fails to offer any solutions or proposals himself. Far easier to attack someone else's ideas than to put your own on the table for scrutiny. Something sadly all too common today in the political arena.
Well, first of all...when did I become the subject here?? It seems to me--and this is only a shot in the dark, mind you!--that SOMEBODY ELSE started this thread with a long, hairy, obstreperous rant about how they had all the answers.

Either defend your position or yeild to superior reasoning.

A major factor in why you're so far off base is that you haven't taken "Peak Oil" into consideration AT ALL. What happens when the oil runs out...or, more correctly, reaches that point of diminishing returns where it is too expensive to extract? (And I DID blog the essay at that link, by the way. I'm not exactly new to this topic...)
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Old 06-24-2008, 12:54 AM
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Quote:
Originally Posted by Angel Of Mercy View Post
Well, first of all...when did I become the subject here?? It seems to me--and this is only a shot in the dark, mind you!--that SOMEBODY ELSE started this thread with a long, hairy, obstreperous rant about how they had all the answers.

Either defend your position or yeild to superior reasoning.

A major factor in why you're so far off base is that you haven't taken "Peak Oil" into consideration AT ALL. What happens when the oil runs out...or, more correctly, reaches that point of diminishing returns where it is too expensive to extract? (And I DID blog the essay at that link, by the way. I'm not exactly new to this topic...)
Ever hear of Sour Crude Oil? There are Trillions and Trillions of barrels of it. Your famed source, Dr. Hubbert, only used Sweet Crude Oil in his figures. He left out another source called Shale.


The Peak Oil theory has been peddled around since the 80s and every decade since they've said it would be this decade or this year or that year and so on.. not once have they been proven right.
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Old 06-24-2008, 08:02 AM
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Originally Posted by Angel Of Mercy View Post
Well, first of all...when did I become the subject here?? It seems to me--and this is only a shot in the dark, mind you!--that SOMEBODY ELSE started this thread with a long, hairy, obstreperous rant about how they had all the answers.

Either defend your position or yeild to superior reasoning.

A major factor in why you're so far off base is that you haven't taken "Peak Oil" into consideration AT ALL. What happens when the oil runs out...or, more correctly, reaches that point of diminishing returns where it is too expensive to extract? (And I DID blog the essay at that link, by the way. I'm not exactly new to this topic...)
Actually, I never claimed to have all the answers. I did, however, say I was offering this as a starting point to open up dialogue and debate.

Furthermore, Finny is absolutely correct. The planet contains extensive amounts of sour and non-conventional oil. The majority of the oil we purchase from Canada - our number one supplier - is derived non-conventionally from tar sands in Alberta. While the low hanging fruit of easily accessable, cheaply produced oil may be running out, there are trillions of barrels of non-conventional oil yet to be tapped.

While you may not be new to the topic, you seem to be poorly informed and highly reactionary to anyone that doesn't march in lock step with your beliefs. You also appear to ignore the fact that the overall thrust of my proposals is directed towards long term and comprehensive solutions. There is no silver bullet or magic wand. However, if you're going to run a modern society of 300 million plus, you're going to need to look at every reasonable and serious proposal.

Finally, why not offer up your own ideas or suggestions? If mine are so off base, then by all means feel free to share your own proposals. Sitting around wasting time attacking each other is part of the reason we're in these dire straits in the first place. Surely someone as articulate as yourself has something more to offer than just partisan rancor and diatribes.
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Old 06-24-2008, 11:35 AM
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Originally Posted by Finny View Post
Ever hear of Sour Crude Oil? There are Trillions and Trillions of barrels of it. Your famed source, Dr. Hubbert, only used Sweet Crude Oil in his figures. He left out another source called Shale.


The Peak Oil theory has been peddled around since the 80s and every decade since they've said it would be this decade or this year or that year and so on.. not once have they been proven right.
Yes, I've heard of heavy sour crude. And, for your information, not only does it cost too much to refine into a useful product, many refineries simply CAN'T DO IT. Read up.

Same deal with oil shale, sometimes known as "tar sands." The expense of refinement is prohibitive. That could change when light sweet crude reaches around $200 a barrel, but not much sooner.

Clearly you didn't read my post on Peak Oil at the link I posted. Otherwise you'd know that M.K. Hubbert DID, in fact, accurately predict the peak of American crude oil and it's effects in the late 70's.

Get your facts straight before you start butting in, Fins...
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Old 06-24-2008, 11:41 AM
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Quote:
Originally Posted by The Bare Knuckled Pundit View Post
<snip>
Furthermore, Finny is absolutely correct..
<snip>
While you may not be new to the topic, you seem to be poorly informed and highly reactionary to anyone that doesn't march in lock step with your beliefs.
Finny is full of baloney. To the top. Read my previous post just above.

Once again, you try to make this thread about ME rather than the shortcomings in your own logic, reasoning and information. If that's what floats your boat, Knuckles, be my guest. But that's a strategy which suggests I've ALREADY won this debate and successfully called your bluff...
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