Israel, Electric Cars, and Existential Threats

Posted on 05/22/2012 by Juan

Israeli entrepreneur Shai Agassi has launched an Israeli electric car, and also arranged for four recharging stations. Israel is a perfect place for this experiment, since it is a relatively small and compact country, so the present lack of range of most electric cars (70-150 miles) may not be an issue for a lot of Israelis. The commuters between Tel Aviv and Jerusalem, e.g., could use it, especially if it was easy to charge the car while one is at work. If the recharging stations could be solar or receive their power from solar or wind electricity plants, this development could be significant. (Portugal is another good candidate for this sort of arrangement).

Agassi stresses that as long as petroleum reigns, Israel will remain hostage to oil producers hostile to his country. (The natural gas fields in the Mediterranean extend into neighbors’ territory and are more a war waiting to happen than salvation, not to mention that natural gas puts carbon dioxide into the atmosphere). Thus, a move to wind and solar would help make Israel energy-independent and make it more secure.

In this light, the Likud government’s hope of getting 10% of its electricity from renewables by 2020 is laughably unambitious. Why isn’t Alon Tal’s Green Party more popular? Why do Israelis put up with an energy policy so beholden to petroleum producers such as Iran and Saudi Arabia?

Meanwhile, Arava Power is investing $200 million in 8 medium-sized solar power generating fields, in conjunction with Siemens, the German energy firm that owns 40% of Arava, and which is a major player in renewable energy.

Israel is a natural for solar power generation, with expanses of sunny desert and a large pool of engineers, scientists and inventors who are creating innovative solar technology such as reflector dishes

The China Bank is offering to fund such projects (China is another big solar player, and may be seeking access to Israeli solar technological breakthroughs).

Some of Israel’s Mediterranean coast is sufficiently low-lying, including the city of Tel Aviv, that the rising ocean levels that will be caused by global warming will submerge them over time. In past eras, an increase of 1 degree celsius translated into 10 to 20 meters increase in sea level. Even if we can hold our present increase to 3 degrees celsius through a crash global green energy program, that would be an increase of as much as 60 meters or 180 feet. Tel Aviv will certainly end up under water if humanity goes on spewing carbon dioxide into the air at this rate–not in this century, but over time. A majority of Israeli Jews live in and around Tel Aviv. Climate change is the real existential threat, not bluster from Iran.

0 Retweet 3 Share 7 StumbleUpon 0 Printer Friendly Send via email

Posted in Energy, Environment, Israel/ Palestine, Uncategorized | 1 Comment

The Great Fracking Catastrophe in Rural America (Cantarow)

Posted on 05/21/2012 by Juan

Ellen Cantarow writes at Tomdispatch.com

If the world can be seen in a grain of sand, watch out.  As Wisconsinites are learning, there’s money (and misery) in sand — and if you’ve got the right kind, an oil company may soon be at your doorstep.

March in Wisconsin used to mean snow on the ground, temperatures so cold that farmers worried about their cows freezing to death. But as I traveled around rural townships and villages in early March to interview people about frac-sand mining, a little-known cousin of hydraulic fracturing or “fracking,” daytime temperatures soared to nearly 80 degrees — bizarre weather that seemed to be sending a meteorological message.

In this troubling spring, Wisconsin’s prairies and farmland fanned out to undulating hills that cradled the land and its people. Within their embrace, the rackety calls of geese echoed from ice-free ponds, bald eagles wheeled in the sky, and deer leaped in the brush. And for the first time in my life, I heard the thrilling warble of sandhill cranes.

Yet this peaceful rural landscape is swiftly becoming part of a vast assembly line in the corporate race for the last fossil fuels on the planet. The target: the sand in the land of the cranes.

Five hundred million years ago, an ocean surged here, shaping a unique wealth of hills and bluffs that, under mantles of greenery and trees, are sandstone. That sandstone contains a particularly pure form of crystalline silica.  Its grains, perfectly rounded, are strong enough to resist the extreme pressures of the technology called hydraulic fracturing, which pumps vast quantities of that sand, as well as water and chemicals, into ancient shale formations to force out methane and other forms of “natural gas.”

That sand, which props open fractures in the shale, has to come from somewhere.  Without it, the fracking industry would grind to a halt. So big multinational corporations are descending on this bucolic region to cart off its prehistoric sand, which will later be forcefully injected into the earth elsewhere across the country to produce more natural gas.  Geology that has taken millions of years to form is now being transformed into part of a system, a machine, helping to drive global climate change.

“The valleys will be filled… the mountains and hills made level”

Boom times for hydraulic fracturing began in 2008 when new horizontal-drilling methods transformed an industry formerly dependent on strictly vertical boring. Frac-sand mining took off in tandem with this development.

“It’s huge,” said a U.S. Geological Survey mineral commodity specialist in 2009. “I’ve never seen anything like it, the growth. It makes my head spin.” That year, from all U.S. sources, frac-sand producers used or sold over 6.5 million metric tons of sand — about what the Great Pyramid of Giza weighs.  Last month, Wisconsin’s Department of Natural Resources (DNR) Senior Manager and Special Projects Coordinator Tom Woletz said corporations were hauling at least 15 million metric tons a year from the state’s hills.

By July 2011, between 22 and 36 frac-sand facilities in Wisconsin were either operating or approved. Seven months later, said Woletz, there were over 60 mines and 45 processing (refinement) plants in operation. “By the time your article appears, these figures will be obsolete,” claims Pat Popple, who in 2008 founded the first group to oppose frac-sand mining, Concerned Chippewa Citizens (now part of The Save the Hills Alliance).

Jerry Lausted, a retired teacher and also a farmer, showed me the tawny ridges of sand that delineated a strip mine near the town of Menomonie where he lives. “If we were looking from the air,” he added, “you’d see ponds in the bottom of the mine where they dump the industrial waste water. If you scan to the left, you’ll see the hills that are going to disappear.”

Those hills are gigantic sponges, absorbing water, filtering it, and providing the region’s aquifer with the purest water imaginable. According to Lausted, sand mining takes its toll on “air quality, water quality and quantity. Recreational aspects of the community are damaged. Property values [are lowered.] But the big thing is, you’re removing the hills that you can’t replace.  They’re a huge water manufacturing factory that Mother Nature gave us, and they’re gone.”

It’s impossible to grasp the scope of the devastation from the road, but aerial videos and photographs reveal vast, bleak sandy wastelands punctuated with waste ponds and industrial installations where Wisconsin hills once stood.

When corporations apply to counties for mining permits, they must file “reclamation” plans. But Larry Schneider, a retired metallurgist and industrial consultant with a specialized knowledge of mining, calls the reclamation process “an absolute farce.”

0 Retweet 9 Share 32 StumbleUpon 2 Printer Friendly Send via email

Posted in Energy, Environment, Uncategorized | 8 Comments

Top 10 Green Energy Good News Stories Today

Posted on 05/16/2012 by Juan

1. The Department of the Interior has given the green light to a power transmission line that is intended to bring power from Google, Inc.- backed offshore wind farms in the Northeast of the US to the mainland. Environmental impact studies will take 18 months to two years. The US, unlike Germany, so far has no offshore wind farms, and the US electricity grid needs to be re-done so as to bring power from such sources to consumers.

2. Inexpensive natural gas is being preferred to coal in the US, so that coal electricity generation has fallen 19 percent in the past year and now accounts for only 36% of US power. Natural gas is cleaner than coal, though it still pumps carbon dioxide into the atmosphere. This is sort of like getting the good news that you’re being poisoned, but it isn’t with arsenic but rather something much more slow-acting.

3. Coal burning in the US will likely soon be phased out, since natural gas will likely stay inexpensive and EPA limits on carbon dioxide emissions are harder and harder for coal plants to meet. This according to a new Blooomberg Report.

4. The average American is willing to pay a 13% premium for power from wind and solar, over dirty sources such as coal, petroleum and natural gas.

5. A new design for a power-generating buoy powered by ocean waves is showing promise.

6. ReNew Power Ltd. is investing $1.1 billion in wind farms to generate electricity in India. Indian has little petroleum or natural gas so far, but enormous potential for wind and solar power generation.

7. “Big Solar” ran into some problems in the US, but the wave of the near future may anyway be “small solar”.

8. Saudi Arabia is investing $100 billion in solar energy for domestic electricity generation. Since it doesn’t have so much gas or coal, Saudi Arabia uses petroleum to generate electricity, which is relatively rare. But the more its uses its oil for such domestic purposes, the less money it can make from selling its oil abroad. Hence, solar for electricity generation in the kingdom.

9. Eight automakers have agreed on standardized electric vehicle charging.

10. Two geothermal companies have signed contracts worth $700 million to explore geothermal energy in Kenya. Underground steam could bring electricity to many parts of rural Kenya.

0 Retweet 23 Share 26 StumbleUpon 1 Printer Friendly Send via email

Posted in Energy, Environment, Uncategorized | 16 Comments

The New Energy Wars (Klare)

Posted on 05/10/2012 by Juan

Michael Klare writes at Tomdispatch.com:

The Energy Wars Heat Up
Six Recent Clashes and Conflicts on a Planet Heading Into Energy Overdrive

By Michael T. Klare

Conflict and intrigue over valuable energy supplies have been features of the international landscape for a long time.  Major wars over oil have been fought every decade or so since World War I, and smaller engagements have erupted every few years; a flare-up or two in 2012, then, would be part of the normal scheme of things.  Instead, what we are now seeing is a whole cluster of oil-related clashes stretching across the globe, involving a dozen or so countries, with more popping up all the time.  Consider these flash-points as signals that we are entering an era of intensified conflict over energy.

From the Atlantic to the Pacific, Argentina to the Philippines, here are the six areas of conflict — all tied to energy supplies — that have made news in just the first few months of 2012:

* A brewing war between Sudan and South Sudan: On April 10th, forces from the newly independent state of South Sudan occupied the oil center of Heglig, a town granted to Sudan as part of a peace settlement that allowed the southerners to secede in 2011.  The northerners, based in Khartoum, then mobilized their own forces and drove the South Sudanese out of Heglig.  Fighting has since erupted all along the contested border between the two countries, accompanied by air strikes on towns in South Sudan.  Although the fighting has not yet reached the level of a full-scale war, international efforts to negotiate a cease-fire and a peaceful resolution to the dispute have yet to meet with success.

This conflict is being fueled by many factors, including economic disparities between the two Sudans and an abiding animosity between the southerners (who are mostly black Africans and Christians or animists) and the northerners (mostly Arabs and Muslims).  But oil — and the revenues produced by oil — remains at the heart of the matter.  When Sudan was divided in 2011, the most prolific oil fields wound up in the south, while the only pipeline capable of transporting the south’s oil to international markets (and thus generating revenue) remained in the hands of the northerners.  They have been demanding exceptionally high “transit fees” — $32-$36 per barrel compared to the common rate of $1 per barrel — for the privilege of bringing the South’s oil to market.  When the southerners refused to accept such rates, the northerners confiscated money they had already collected from the south’s oil exports, its only significant source of funds.  In response, the southerners stopped producing oil altogether and, it appears, launched their military action against the north.  The situation remains explosive.

* Naval clash in the South China Sea: On April 7th, a Philippine naval warship, the 378-foot Gregorio del Pilar, arrived at Scarborough Shoal, a small island in the South China Sea, and detained eight Chinese fishing boats anchored there, accusing them of illegal fishing activities in Filipino sovereign waters.  China promptly sent two naval vessels of its own to the area, claiming that the Gregorio del Pilar was harassing Chinese ships in Chinese, not Filipino waters.  The fishing boats were eventually allowed to depart without further incident and tensions have eased somewhat.  However, neither side has displayed any inclination to surrender its claim to the island, and both sides continue to deploy warships in the contested area.

As in Sudan, multiple factors are driving this clash, but energy is the dominant motive.  The South China Sea is thought to harbor large deposits of oil and natural gas, and all the countries that encircle it, including China and the Philippines, want to exploit these reserves.  Manila claims a 200-nautical mile “exclusive economic zone” stretching into the South China Sea from its western shores, an area it calls the West Philippine Sea; Filipino companies say they have found large natural gas reserves in this area and have announced plans to begin exploiting them.  Claiming the many small islands that dot the South China Sea (including Scarborough Shoal) as its own, Beijing has asserted sovereignty over the entire region, including the waters claimed by Manila; it, too, has announced plans to drill in the area.  Despite years of talks, no solution has yet been found to the dispute and further clashes are likely.

* Egypt cuts off the natural gas flow to Israel: On April 22nd, the Egyptian General Petroleum Corporation and Egyptian Natural Gas Holding Company informed Israeli energy officials that they were “terminating the gas and purchase agreement” under which Egypt had been supplying gas to Israel.  This followed months of demonstrations in Cairo by the youthful protestors who succeeded in deposing autocrat Hosni Mubarak and are now seeking a more independent Egyptian foreign policy — one less beholden to the United States and Israel.  It also followed scores of attacks on the pipelines carrying the gas across the Negev Desert to Israel, which the Egyptian military has seemed powerless to prevent.

Ostensibly, the decision was taken in response to a dispute over Israeli payments for Egyptian gas, but all parties involved have interpreted it as part of a drive by Egypt’s new government to demonstrate greater distance from the ousted Mubarak regime and his (U.S.-encouraged) policy of cooperation with Israel.  The Egyptian-Israeli gas link was one of the most significant outcomes of the 1979 peace treaty between the two countries, and its annulment clearly signals a period of greater discord; it may also cause energy shortages in Israel, especially during peak summer demand periods.  On a larger scale, the cutoff suggests a new inclination to use energy (or its denial) as a form of political warfare and coercion.

0 Retweet 12 Share 12 StumbleUpon 1 Printer Friendly Send via email

Posted in Energy, Uncategorized | 1 Comment

Raging Weather & Climate Change (McKibben)

Posted on 05/04/2012 by Juan

Bill McKibben writes at Tomdispatch.com

Too Hot Not to Notice?
A Planet Connected by Wild Weather
By Bill McKibben

The Williams River was so languid and lovely last Saturday morning that it was almost impossible to imagine the violence with which it must have been running on August 28, 2011. And yet the evidence was all around: sand piled high on its banks, trees still scattered as if by a giant’s fist, and most obvious of all, a utilitarian temporary bridge where for 140 years a graceful covered bridge had spanned the water.

The YouTube video of that bridge crashing into the raging river was Vermont’s iconic image from its worst disaster in memory, the record flooding that followed Hurricane Irene’s rampage through the state in August 2011. It claimed dozens of lives, as it cut more than a billion-dollar swath of destruction across the eastern United States.

I watched it on TV in Washington just after emerging from jail, having been arrested at the White House during mass protests of the Keystone XL pipeline. Since Vermont’s my home, it took the theoretical — the ever more turbulent, erratic, and dangerous weather that the tar sands pipeline from Canada would help ensure — and made it all too concrete. It shook me bad.

And I’m not the only one.

New data released last month by researchers at Yale and George Mason universities show that a lot of Americans are growing far more concerned about climate change, precisely because they’re drawing the links between freaky weather, a climate kicked off-kilter by a fossil-fuel guzzling civilization, and their own lives. After a year with a record number of multi-billion dollar weather disasters, seven in ten Americans now believe that “global warming is affecting the weather.” No less striking, 35% of the respondents reported that extreme weather had affected them personally in 2011. As Yale’s Anthony Laiserowitz told the New York Times, “People are starting to connect the dots.”

Which is what we must do. As long as this remains one abstract problem in the long list of problems, we’ll never get to it. There will always be something going on each day that’s more important, including, if you’re facing flood or drought, the immediate danger.

But in reality, climate change is actually the biggest thing that’s going on every single day. If we could only see that pattern we’d have a fighting chance. It’s like one of those trompe l’oeil puzzles where you can only catch sight of the real picture by holding it a certain way. So this weekend we’ll be doing our best to hold our planet a certain way so that the most essential pattern is evident. At 350.org, we’re organizing a global day of action that’s all about dot-connecting; in fact, you can follow the action at climatedots.org.

The day will begin in the Marshall Islands of the far Pacific, where the sun first rises on our planet, and where locals will hold a daybreak underwater demonstration on their coral reef already threatened by rising seas. They’ll hold, in essence, a giant dot — and so will our friends in Bujumbura, Burundi, where March flooding destroyed 500 homes. In Dakar, Senegal, they’ll mark the tidal margins of recent storm surges. In Adelaide, Australia, activists will host a “dry creek regatta” to highlight the spreading drought down under.

Pakistani farmers — some of the millions driven from their homes by unprecedented flooding over the last two years — will mark the day on the banks of the Indus; in Ayuthaya, Thailand, Buddhist monks will protest next to a temple destroyed by December’s epic deluges that also left the capital, Bangkok, awash.

Activists in Ulanbataar will focus on the ongoing effects of drought in Mongolia. In Daegu, South Korea, students will gather with bags of rice and umbrellas to connect the dots between climate change, heavy rains, and the damage caused to South Korea’s rice crop in recent years. In Amman, Jordan, Friends of the Earth Middle East will be forming a climate dot on the shores of the Dead Sea to draw attention to how climate-change-induced drought has been shrinking that sea.

In Herzliya, Israel, people will form a dot on the beach to stand in solidarity with island nations and coastal communities around the world that are feeling the impact of climate change. In newly freed Libya, students will hold a teach-in. In Oman, elders will explain how the weather along the Persian Gulf has shifted in their lifetimes. There will be actions in the cloud forests of Costa Rica, and in the highlands of Peru where drought has wrecked the lives of local farmers. In Monterrey, Mexico, they’ll recall last year’s floods that did nearly $2 billion in damage. In Chamonix, France, climbers will put a giant red dot on the melting glaciers of the Alps.

And across North America, as the sun moves westward, activists in Halifax, Canada, will “swim for survival” across its bay to highlight rising sea levels, while high-school students in Nashville, Tennessee, will gather on a football field inundated by 2011’s historic killer floods.

0 Retweet 8 Share 7 StumbleUpon 1 Printer Friendly Send via email

Posted in Energy, Environment, Uncategorized | 1 Comment

Earth Day means nothing if We Don’t Limit Carbon Emissions

Posted on 04/22/2012 by Juan

The first observance of Earth Day was March 21, 1970. I was 17, and along with other students at Broad Run High School, went out with garbage bags to clean up the side of the road leading to the school. Even then, of course, the world faced much more serious pollution issues than roadside litter. But that problem was one we students could do something about.

Given the magnitude of the challenges the earth now faces, provoked by man-made global climate change as a result of our spewing massive amounts of carbon dioxide and soot into the atmosphere, the problems that were on our minds in 1970 seem in retrospect miniscule. Moreover, the idea that individuals could resolve this problem by taking individual action is a non-starter. It is a collective and infrastructural problem and we have to band together and do something about it through the instrumentality of the government. Unfortunately, our government has mostly been bought by Big Oil, so that the crisis of the environment is also the crisis of American democracy.

In 2011, fossil fuel emissions jumped about 6%, and over the past 20 years these emissions have risen half again as much. The likelihood that the world can keep the average temperature increase to only 2 degrees C is rapidly receding. We are likely headed for a 5 degrees C (over 9 degrees F) increase over the next century or two. The full impact of this radical heating of the earth won’t become apparent for centuries, since the oceans are cold and deep and will only gradually warm. If we produce the 5 degrees C. increase, the whole world will eventually be tropical, including Antarctica, and we probably will lose about a third of the world’s land mass to rising seas, displacing hundreds of millions of port city dwellers and destroying a significant percentage of global wealth. Worse, we as a species evolved and lived during relatively cold eras, and it is not clear whether we can survive in so extensively altered a world. Food issues may arise. The oceans will absorb some of the carbon dioxide, becoming acidic and inhospitable to many marine species. We could lose a lot of those species, with implications for human food sources.

Although the oceans will probably only rise a few feet this century, we could see some severe effects of the warming oceans much sooner. A US Senate hearing just pointed out that there could be storm surges and floods in coastal regions, affecting populations living 4 feet or less above sea level, and affecting energy plants along the shore. Some 4 million Americans live on the coasts at 4 feet or less above sea level, and 287 energy facilities are that low along the shores.

We are not well positioned to deal with this man-made looming catastrophe. Distant harm versus present pain at the pump makes for a very difficult calculation. Even now, government subsidies to promote clean energy are on the chopping block in the US and Germany. China has ambitious plans for renewable and nuclear energy, but is also the world’s leading carbon polluter as things now stand.

The price of solar power is falling, and will probably cross with hydrocarbons in this decade if it has not already done so. But in a world that took seriously the findings of climate science, there would be Manhattan Project-style crash programs to move the world to solar, wind, geothermal and hydro-electric power more quickly. There are many research projects, and some breakthroughs. But what we are doing now isn’t nearly enough.

So from conceiving ourselves as merely littering and poisoning the earth when I was a teenager, we have gone to a realization that we are threatening the earth with heat stroke and drowning. We have taken giant strides backwards. Our laws at state and federal levels, should reward innovation and risk-taking in the clean energy sector. Too often they do not. We need to get the right laws passed to deal with this crisis, and if representatives won’t pass them, we need new representatives.

0 Retweet 31 Share 35 StumbleUpon 0 Printer Friendly Send via email

Posted in Energy, Environment | 17 Comments

Why Romney is Lying about the Causes of high Prices at the Pump

Posted on 04/04/2012 by Juan

After his wins on Tuesday, Mitt Romney is clearly the Republican standard bearer in the 2012 election, and he is already flailing about attempting to find some mud to throw at President Obama in hopes some of it will stick. He has trotted out a tired talking point attempting to blame Obama for high gasoline prices, saying that the president’s environmentalism has gotten in the way of US drilling. The charge is full of factual and logical holes.

But the attack of Romney2 on Obama is undermined by the positions taken by Romney1. In 2006, Romney opposed temporarily suspending gasoline taxes because of a spike in the price of petroleum, asserting, “high gasoline prices are probably here to stay.” Then in his 2010 book, “No Apology,” he actually saw rising gasoline prices as a good thing: “Higher energy prices would encourage energy efficiency across the full array of American businesses and citizens … It would provide industries of all kinds with a predictable outlook for energy costs, allowing them to confidently invest in growth.”

Romney had it right the first time. Oil prices are a matter of supply and demand, and Romney only wants to talk about supply. The US imports 8.7 million barrels of petroleum per day (the world produces roughly 87 million barrels a day). If you wanted to put down its price, you could begin by slashing imports by not wasting so much gasoline. If we moved more things by train instead of by trucks; if we gave more tax breaks for buying hybrids and electric vehicles; if we did more to encourage wind and solar energy and integrated it with electric vehicles; if we lowered the speed limits; if we held Detroit’s feet to the fire and required much higher gasoline efficiency much sooner, if we set policies that encouraged people to live in cities near their work– if we did all that we’d put down the price of petroleum. We only have 4% of the world’s population and we use about a fifth of the world’s petroleum, and that is one of the problems.

Of course, the upward pressure on prices is coming mainly from increased use of petroleum by China and India, where large numbers of people have forsaken bicycles and discovered the joys of urban gridlock. Prices jumped the other day on good news about China growing a little faster this year than had earlier been forecast. When China grows, the price of petroleum goes up. So to get firm downward pressure on pricing you’d need China and India and Europe to stop wasting so much gasoline, too.

We can’t affect the supply part of the equation. The United States just doesn’t have many petroleum reserves by world standards, and drilling in nature reserves and off pristine beaches is not going to produce enough fuel to lower world prices. We’ve already increased our production of petroleum and liquid fuels by about a million barrels a day since Obama has been president, and Obama isn’t doing anything to stand in the way of that kind of thing.

And, there are currently some international issues affecting supply:

1. the boycotts on Iran (which Romney supports, in fact he wants more! The more you boycott Iran’s oil, the more you put up the price of petroleum; hint: you’ve reduced supply). Talk of war also raises gasoline prices because the futures markets get nervous.

2. Declining production from old fields. China’s domestic production is down 200,000 barrels a day this spring because an old field is being worked out. China’s good economy is also roaring along, so that Chinese demand was up about 18% in February.

3. Political instability and quarrels. The Kurds in northern Iraq say they will stop pumping oil until the central Iraqi government gives them the share of profits it had promised. Syria used to produce 400,000 barrels a day and is now not doing much because of the upheaval there. South Sudan has shut down production as part of its quarrel with Sudan, through which it pipes its oil, over how much Khartoum skims off.

Romney doesn’t have a magic wand to address these issues, and most of his policies would make things worse (he’d pursue heightened tensions with Iran, would oppose green energy and more efficient use of fuel, etc.)

So why is Romney flipflopping and lying about the president and gasoline prices?

Petroleum companies, oil services companies, and pipeline companies, which can collectively be called Big Oil, spend millions on lobbying politicians in Washington. Some 90% of their contributions go to Republicans. As the likely incoming leader of the Republican Party, Mitt Romney is eager to attract more Big Oil campaign money (the industry liked Rick Perry slightly better) and to support a major constituency of his party.

That constituency is a coddled one.

The Center for American Progress points out, US taxpayers give the 5 biggest oil companies $4 billion a year in tax breaks, even though they made nearly $140 billion in profits last year:

“High oil and gasoline prices in 2011 enabled the big five companies to rake in $137 billion in profits last year. These enormous earnings contributed to the $1 trillion in profits they earned from 2001 through 2011. Despite a profit figure with 12 zeroes—count them: $1,000,000,000,000—these oil giants are major players in the lobbying efforts to retain $4 billion in annual tax breaks for oil and gas companies that they clearly do not need. In the scheme of all things Big Oil, these tax breaks are small, particularly in relation to their profits and in light of the fact that in 2011 these companies also had a combined $58 billion in cash reserves, nearly 30 times more than they received in special tax breaks.”

So Romney wants a political narrative that casts the oil companies as heroic victims. Why, they could supply us with cheap gasoline if only mean Obama didn’t interfere so much with their attempts to drill in Santa Monica beach and in nature reserves.

But they can’t, and Obama isn’t. And besides, Romney already praised the high prices as a good impetus for greater private sector efficiency. Is that cold comfort to the middle class vacationers this summer paying an arm and a leg at the pump? Yup, but Romney is going to provide the middle classes with so much cold comfort this summer that they won’t need air conditioning.

0 Retweet 62 Share 29 StumbleUpon 0 Printer Friendly Send via email

Posted in Energy, Environment, US Politics | 12 Comments