Posted on 07/24/2008 4:50:56 PM PDT by calcowgirl
- Jerry Taylor is a senior fellow at the Cato Institute.
Virtually every claim made by T. Boone Pickens to justify the lavish subsidies he is seeking for his wind energy investments is flat wrong.
First, oil imports are not the cause of high gasoline prices. On the contrary, oil imports serve to keep gasoline prices down. After all, we import oil for a reason -- it's cheaper than the domestic alternative. If we were to restrict our energy diet to energy produced in the United States, it would make domestic energy producers (like Mr. Pickens) far richer and energy consumers (the rest of us) far poorer, and GDP would be reduced as well. While one can understand why Mr. Pickens is attracted to the idea of "energy independence," for the rest of us, keeping the country open to imported goods is pro-consumer, whether we're talking about oil, steel, textiles or athletic shoes.
Second, we are no more forced to rely on the "goodwill" of foreign oil producers when we shop for petroleum than we are forced to rely on the "goodwill" of supermarkets when we shop for eggs and milk. Oil producers export crude oil because it's a great way to make money -- and for many, the only way to make money. And once that oil is in the global marketplace, market actors, not oil producers, dictate where it goes. Hence, we are betting on producer greed -- which is a pretty safe bet.
Third, if wind energy were a sensible economic investment, it would not need the lavish federal and state subsidies already in place or the additional largesse sought after by Mr. Pickens. Likewise, if compressed natural gas (CNG) vehicles are an economically sensible alternative to conventional gasoline-powered vehicles, then no government "master plan" is necessary to deliver them to market. Price signals will induce investors to invest and consumers to buy, without government having to lift a finger. The same goes for all the other energy-related R&D Mr. Pickens would like the taxpayer to dole out. If that R&D is promising, it will be pursued, whether government subsidizes it or not.
Fourth, if reducing our carbon footprint is the goal, then the most direct and efficient means of reducing that footprint is to impose a tax on carbon emissions and then leave it to the market to sort out how to most efficiently order affairs under those new prices. Maybe it will mean windmills and CNG, but maybe not. Perhaps it will mean more nuclear power, new hydrogen-powered fuel cells, "clean" coal, the emergence of cellulosic ethanol, battery-powered cars or hybrids -- or a continuation of the existing energy base but less consumption as a consequence.
Of course, if the market were to go into any of those directions, Mr. Pickens would be out a lot of money, which is probably why he wants to hard-wire the market to consume the things he's investing in and have the government lavish him with subsidies in the course of doing so. I wish Mr. Pickens well in his wind energy business, but I see no reason why taxpayers, ratepayers or consumers ought to be forced to sacrifice in order to fatten his already ample bank account.
And I just pretend to go to the Gas station for gas.
“First, oil imports are not the cause of high gasoline prices”
People say this all the time and I have yet to hear a logical explaination. If you want to say that the oil refineries are part of the problem, fine, but to argue oil and gas prices are not tightly related is a waste of time.
LOL !
T.Boone is a snake oil sort !.......:o)
Have ya seen his new dig’s up near Canadian ?
T. Boone Pickens = Follow the Money!
And he knows it..
Really? How many supermarket cartels are there that intentionally restrict the price of eggs? How many supermarket cartels tell the POTUS to get stuffed when he goes begging for more eggs? Please.
Oops. Should read “restrict the supply of eggs”.
Sure have. He likes the Romans...
I looked at pickensplan.com and didn’t find a single sentence on how he will store wind electric when the wind don’t blow, or how he’ll store solar electricity when the sun don’t shine. A fatal flaw.
Back up, redundancy, is absent. He’s an empty 80 year old suit co-opted by Al Gore look-alikes to make a bundle on speculations.
Ya’ll doing Ok ? haven’t seen ya around in a while ! Your bird is doing GREAT in the sandbox !
Congrats to all your folks !.........Well Done Sir !!
I am still gonna make the effort to get to one of your open houses......(honest) !!!
Stay safe !
We’re doing OK over here... I haven’t been posting much much lately. I did stir up some trouble in one of the other T Boone threads..
Yeah and there’s no “ramping” with hydro to smooth out those starts and stops of wind and solar you mentioned... I used to kind of look up to the guy because of his help with the Swift Boat Veterans, but now this just proves what I’ve said about billionaires and celebrities... Their resources don’t always prove they’re smarter than everyone else!!!
Sure glad you found and posted this!!! Thanks...
Well some days ya just have too stir !......:o) Be it good or bad .........stir !
Good for the forum at times !!
My Dad went too AHS with T.Boone and has nothing good too say about the guy. Is ole George Chapman still going ahead with his nuclear power plant plan ??
You Stay Safe !
And Federal and State laws will REQUIRE that his power be purchased first, before any other power, regardless of cost.
He'll get PAID to make power, and he will get GUARANTEED BUYS of everything.
If Pick-your-pocket was honest, and really wanted to help us not buy oil from anywhere, he would be pushing shale oil. We could, in 10 years, produce all 20 million barrels a day of oil that we consume. And we could sustain that rate for 280 YEARS on just the oil shale we have in this country. And do it at $40 per barrel.
Meaning the current 7 million barrels a day we produce could be sold on the open market, bringing $280 million a DAY into the US in petroleum sales.
And we don't have to drill in ANWR, or the coasts, or anywhere else. Just drill and process the oil shale in Utah, Wyoming, and Colorado.
Pickens is just about picking your pocket via the force of Government. He's found it cozy and well paying to be in the same role as Al Gore...
The self professed capitalist should then simply fund his own project without trying to reach into my pocket.
Blowing Hot Air Up Our Shorts(snip)
A successful oilman, investor, deal-maker and speculator, Pickens’ large natural gas holdings position him to make billions from selling gas for backup electricity generation under his wind energy proposal – especially if drilling bans remain in effect, keeping gas prices in the stratosphere. Launching the enterprise with the backing of federal mandates and subsidies minimizes his financial risk and attracts “free market” investors, by putting the risks for this fanciful scheme on the backs of taxpayers.
In short, Pickens’ proposal is “true green” – in the financial and public relations arenas, though hardly in the ecological sphere.
Pickens says we can’t drill our way to freedom from foreign oil. But that’s true only if we keep our best prospects off limits to drilling. Open ANWR and the OCS, and the situation changes dramatically.
(snip)
It’s increasingly obvious why Gore, Hansen and Reid are becoming more shrill and hysterical by the day. The hot air they are trying to blow up our shorts is no basis for economy-killing cap-and-trade rules or ecology-killing forests of wind turbines.
Hey, thanks for showing up.
I forgot who to credit for finding the 100x subsides info in my above post.
EVERYONE that infor was thanks to PugetSoundSoldier
Funny how the left is in love with this 80 year old man with tax subsidies dancing in his head, but disrespects the 71 year old McCain.
How about you two using “Private Reply”?
You bet! Pickens is looking for a boondoggle and massive subsidy payout all in the name of green energy.
If that’s not out of the Al Gore playbook, what is?
- Pickens states we can’t drill our way out of the current crisis. It’s provably false, but is the mantra of the watermelon leftists.
- Pickens wants the Government to pay him the subsidies to generate wind power. Not only forcing you to buy his power, but forcing you to pay a LOT more than just the electric bill says (because he’ll get subsidies). Just like forced mileage standards, CFL use, etc.
- Pickens plan will transfer literally BILLIONS of tax dollars to his pockets. Wealth transfer in the extreme.
So what’s conservative about that? And how is it fundamentally different than the schemes Al Gore is running?
Just damn.
Thanks for posting (and for the link).
Here's the point: we don't have to import a SINGLE DROP of oil from ANYWHERE - Canada, Mexico, Saudi Arabia, Venezuela, Nigeria. NO imports required AT ALL.
We have 62% of the world's 3 TRILLION barrel oil shale reserves, meaning we have around 1.9 TRILLION barrels of oil.
That same oil shale can be converted to liquid crude for $40 per barrel on average. About 1/3rd of the current price of oil on the world market. Meaning we can slash the price of gas, heating oil, and all oil products by 1/3rd. Putting gasoline around $1.35 per gallon.
Current US consumption is 20 million barrels a day, and we import 12 million barrels a day.
Now do the math. At full consumption, 1.9 trillion barrels will last about 95,000 days. Or 260 years. At current import levels, we'd last 433 years.
Add in the proven reserves in the US currently being tapped, and we have at LEAST 300 years of the full 20 million barrel per day consumption, all within the US, all without drilling ANWR or any offshore area.
Given these HARD FACTS, T. Boone Pickens is simply LYING when he says we can't produce enough oil domestically. Flat out, bald-faced. And it's meant to get you to have sympathy with his position, view him as a "savior" with his massive taxation scheme called wind power.
You want to solve the energy crisis? Pressure Congress to lift the oil shale ban. Don't push for ANWR, offshore, or any other drilling. Oil shale alone. Nothing more is needed.
Pass this information along to your liberal friends - the facts come from the DOE and Wikipedia, hardly left-wing sources! It's inescapable proof that we can produce our own oil.
And it's proof that Pick-Your-Pocket wants to steal your money via a massive tax and wealth transfer.
The left disrepects McCain? Before this election, he was their best friend. McCain/Feingold, McCain/Kennedy, McCain/Kerry, McCain/Lieberman, etc. They'll be perfectly happy with McLeft's policies if he wins, they just like the Messiah a little better.
My pleasure. Not much gets my dander up more than a capitalist taking on the mantle of the watermelons like Al Gore and STEALING - through the force of Government taxation - from you and me to line his own pockets.
Pick-your-pocket may have been an honorable man at one time, but now he's no worse than an enviro-Scrooge, keeping every penny and treating the US taxpayers as the Cratchits... Take our money for his own use.
i cannot stand his commercial... since the first time i heard it, i call out, “liar, liar, liar!” to all his claims... such as, “this is one emergency we cannot drill our way out of.” i knew he was in it for himself...
People say this all the time and I have yet to hear a logical explaination. Cut the US supply of oil by 65% and then see what the price would be.
If you think you can be an island in a global market, you will quickly find out that you are a leaky raft.
Also, if we make more oil available on the market, that improves our balance of trade and improves the value of the dollar.
Oh I sorry if we were too loud.........didn’t mean too bother.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.