The Green Jihad's Human Toll

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In a few prior pieces, I explored in some detail the Obama Regime’s green energy jihad. Essentially, its goal is to “solve” the “crisis” of global warming by forcing Americans (but not the Chinese, Indians, Brazilians, or anyone else) to switch from plentiful, relatively inexpensive domestic fossil fuels to so-called green energy sources (solar, wind, and biofuels — but not nuclear), fuels that are orders of magnitude more expensive.

This jihad has two fronts. First, the Regime is shelling out massive amounts of taxpayer money to solar, wind, and biofuel companies — usually those that have greased the palms of the corrupt Regime, and often those that have failed despite the insane subsidies lavished on them. Second, the Regime puts every possible regulatory hurdle in front of domestic fossil fuel production, doing its uttermost to stifle the renaissance in American fossil fuel energy production created by recent technological advances.

Two recent stories illustrate the toll in human suffering that this green jihad is inflicting on the American people. The first story notes that the US House of Representatives is — finally! — expanding its probe into the green energy programs spawned by this administration. For example, it is looking at the $500 million in taxpayer cash spent on a “job training” program for “green” industries.

This costly Department of Labor program (part of the “stimulus” bill that stimulated only graft) started with the grand promise of training about 125,000 people and putting at least 80,000 of them into jobs. Well, after a year and a half, the program has trained only about 53,000 people, and placed a ludicrous 8,000 in actual jobs. Yes, that’s about $62,500 per job. One wonders, besides, why those people couldn’t have been trained directly by the companies hiring them.

This criticism has raised howls of outrage from the green brigades. Perhaps the most asinine came from Assistant Secretary of Labor Jane Oates, who defended the program on the ground that is wasn’t intended to provide immediate jobs. So I guess she’s admitting that when Obama said the stimulus projects were “shovel-ready,” he was shoveling lies. Oates proclaimed piteously, “It’s like coming to me three days after I join Weight Watchers and yelling at me because I didn’t lose 62 pounds yet.”

No, sweetheart, it isn’t anything like that. A proper analogy would be this: you force me to pay a half-billion bucks to send you to Weight Watchers (a program you could have paid for yourself), under the theory that you will lose 62 pounds, and a freaking year and a half later you have lost only 6 pounds. Get it?

The second story is about the cost of the Regime’s May 2010 moratorium on all offshore drilling in the Gulf of Mexico, because of BP’s deepwater spill. After fighting with the courts for six months, yes, the Regime lifted the moratorium. But ever since, it has stalled the issuance of the requisite permits. (This stall is called the “permitorium.”) Since the lifting of the moratorium, the number of deepwater permits granted has been 71% lower than the average before the spill. Shallow water permits have dropped 84% from their historic average.

The predictable result has been the destruction of a horrendous number of medium and small businesses, with a concomitant loss of jobs. The Greater New Orleans economic development agency has reported the results of a survey showing that 53% of businesses responding have not hired any workers since the moratorium, and 49% have had to lay off workers. Of the 47% that did hire workers, most were just replacing departing employees or hiring in small numbers, and most of them have reduced hours or wages.

That is because the companies are hurting. 82% of the owners reported losing personal savings as a result of the moratorium-permitorium, with 13% completely emptying their savings accounts. 76% of the companies lost cash reserves. 27% lost more than half of them. Only 59% are now profitable.

Few green jobs created, many fossil-fuel jobs lost — all to satisfy the environmentalist extremists who feed donations to the Green Regime.




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Arctic Warming

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The Arctic region is beginning to get hot — but not for anything having to do with “global warming.” No, international tensions are increasing, because of the increasing international demand for fossil fuels.

As Alan Dowd of the Fraser Institute notes in a recent piece, the Arctic is attracting rapidly growing geostrategic attention.

The place is amazingly rich in fossil fuels. The US Geological Survey puts total Arctic oil reserves at 90 billion barrels of oil, or about 13% of estimated undiscovered reserves worldwide, and 1,670 trillion cubic feet of natural gas, or about 30% of the world’s undiscovered gas.

Those are just the conventionally available fuels. God alone knows how much unconventional fossil fuel energy (shale oil and gas, methane hydrates, and so on) lies beneath that frigid sea.

These resources are becoming more and more commercially attractive, for several reasons. First, the Green Regime in Washington has worked to strangle our own domestic production, hoping to shift America to dependence on so-called green energy (wind, solar, and biofuels). Second, Middle East production is increasingly expensive. Finally, as formerly poor countries such as India and China become ever more industrialized, their consumption of fossil fuels is growing. The Energy Information Agency projects a 20% increased in world oil usage over the next 18 years.

This is leading inexorably to friction among nations that have claims in the Arctic: the United States, Canada, Russia, and Norway (together, to a lesser extent, with Sweden and Finland). And it is no surprise the form that this increasing tension is taking: Russia, under the Putin Regime, is pushing to control the lion’s share of the region’s energy wealth.

Russia’s intentions are easy to read from its actions. A 2007 Russian expedition planted the Russian flag on the North Pole. Its leader boasted, “The Arctic is ours!” A year later, a Russian general said that his country was planning to train troops to engage in combat in the region, noting cheekily that “wars these days are won and lost before they are launched.” A year after that, Russia announced that it was opening a string of bases along its northern tier. And last year, it announced plans to deploy 10,000 troops in the region to “defend its Arctic claims.”

And there has been a dramatic increase in Russian bomber interceptions by Canadian and American fighters (up from eight between 1999 and 2006 to 45 between 2007 and 2010). All this is evidence that Putin wasn’t joking when he recently said, “Russia intends without a doubt to expand its presence in the Arctic. We are open to dialogue, but naturally, the defense of our geopolitical interests will be hard and consistent.”

In reaction, both the Bush and the Obama administrations have reaffirmed our national security interests in the region. The US keeps 20,000 troops in Alaska and is conducting “Northern Edge” exercises meant to train our forces in defending the Arctic and keeping the waterways open.

Canada is also concerned. It is constructing new military bases in its Northern Territories and is training troops. The Canadian military has conducted joint exercises with the American and Danish military. A few years ago, Norway conducted Arctic maneuvers with 12 other nations, as did Sweden on its own a year later. Now Finland, Norway, and Sweden together are developing a “Nordic security partnership.” And Denmark is beefing up its military forces in Greenland (its legal territory). The pacifist nations appear to be uniting over this matter.

Such happy high jinks! Notice that these countries aren’t fighting over solar panels, wind turbines, or switchgrass farms. No, they’re fighting over fossil fuels. But, then, people don’t argue over what has no value.

The place is amazingly rich in fossil fuels. The US Geological Survey puts total Arctic oil reserves at 90 billion barrels of oil, or about 13% of estimated undiscovered reserves worldwide, and 1,670 trillion cubic feet of natural gas, or about 30% of the world




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End the Green Nightmare

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There is currently a maelstrom of news about costly failures in the so-called green energy industry. Of course, solar power is prominently featured, and the Solyndra fiasco is only one of the scandals. Rapidly rising to public consciousness is another crony capitalist solar company, SunPower, which looks like it too will go bust and cost the American taxpayer a fortune. Also in this club of losers are solar companies such as First Solar and Abengoa, both again the recipients of taxpayer dollars, thanks to the current administration’s rigid environmentalist ideological mindset.

But not to be overlooked are disappointments in the other segments of the green energy industry. Corn-based ethanol has proven to be such a wasteful boondoggle that even Al Gore has rethought his support of it. And wind power has come in for a good deal of scrutiny. Why, even geothermal companies are proving questionable. A recent report of three on the biggest such companies — Nevada Geothermal Power, Raser Technologies, and U.S. Geothermal — shows that they are all in financial difficulty or are just not profitable. All are recipients all of taxpayer loans or loan guarantees.

This has left the proponents of green power trying desperately to explain away its dismal failure — both here and abroad — to prove itself commercially viable without massive governmental subsidization, and without the corruption that governmental subsidies typically bring. But while we are witnessing the bursting of the Great Green Energy Bubble, we are also witnessing a renaissance of fossil fuels — the very fuels that Malthusian prophets of doom have for decades claimed are “running out.”

This renaissance has been caused by a technological revolution that is transforming oil and gas drilling. Because of it, oil and gas are far more plentiful here and in countries outside the Middle East and other hostile neighborhoods, such as Russia and Venezuela. I am thinking especially of two technologies, fracking and horizontal drilling. The rebirth of fossil fuel production was unimaginable a few years ago. It is completely beyond the ken of the Greens who constitute the Obama Regime, people who never anticipate revolutions that are not run from above, by them, but instead originate in the distributed intelligence of regular (read: creative) people.

We are also witnessing a renaissance of fossil fuels — the very fuels that Malthusian prophets of doom have for decades claimed are “running out.”

Start with fracking. It has certainly made some energy companies rich. For, example, Noble Energy has just paid a whopping $3.4 billion for a half-interest in the Marcellus Shale holdings of Consol Energy. Together they plan to develop a huge chunk of Pennsylvania and West Virginia (663,000 acres). Even after selling off half its holdings, Consol still expects to extract a massive 350 billion cubic feet of gas.

What is fascinating is that Conrol Energy is a Pennsylvania-based coal company — you know, one of those, well, fossils of the fossil fuel industry. It is nicely positioning itself for the inevitable shutting down of coal-fired power plants under the relentless pressure of the EPA. Consol and Noble are just two of the flood of companies moving in to develop the Marcellus Shale formation.

Fracking is also rewarding key players in the industry. Marcus Rowland, the CEO of the small but important player, Frac Tech International, earned a tidy $24.4 million last year. His compensation made him the highest paid CEO of any publicly-traded energy company. He is paid more than the CEO of IBM.

Frac Tech is beating many other energy companies by providing hydraulic fracturing services for big energy companies such as Chesapeake Energy and ExxonMobil. It brought in nearly $1.3 billion in revenues. In the world of fracking, only Halliburton and Schlumberger are bigger.

There is a very recent report about the development of a shale field of truly stupefying proportions. The Utica Shale deposit is an enormous geological formation stretching from Quebec to Kentucky. It may be an even more fertile source for oil and gas than the Marcellus Shale field. Ohio state geologists — a neutral source, please note — estimate that Ohio’s share of this field holds upwards of 15 trillion cubic feet of natural gas and 5.5 billion barrels of recoverable oil (or roughly a third of the production of America’s largest oil reserve, Alaska’s Prudhoe Bay).

Then there is brilliant article discussing one of the unsung creative geniuses of American industry, Harold Hamm. In a week dominated by paeans to the fallen Steve Jobs — who rightly deserved recognition for his amazing success in making Apple what it is — it was nice to see a piece on the remarkable Mr. Hamm.

Far from welcoming the renaissance of the American fossil fuel industry and the jobs it would provide, the Obama Regime has fought it tooth and nail.

Hamm is the founder and CEO of Continental Resources. He rose from humble origins — the thirteenth child of Oklahoma sharecroppers — to become thirty-third on the current Forbes list of wealthy Americans. Yes, Virginia, there is a Horatio Alger. Hamm is almost certainly going to rise to a much higher place on the list, given how much oil he owns.

He made his early success as a wildcatter with a keen sense of where oil could be found. But his greatest contribution was his early employment and improvement of a second innovative fossil fuel technology, a method called horizontal drilling. This is a technique whereby the drilling company drills downward (up to two miles deep), then drills outward, horizontally. This technology has — as dramatically as fracking — allowed energy companies to exploit petroleum and gas reserves hitherto not commercially viable.

Hamm is the discoverer of the famous Bakken oil field that extends from Montana to North Dakota. So fertile has this field proven that it has helped put America back in third place in the world in oil production. He estimates the reserves in Bakken alone at 24 billion barrels — which if true is double our currently proven national reserves. Continental has seen its proven reserves go from 118 million barrels in 2000 to 421 million barrels this year.

One might expect that the Obama Administration would be delighted at the prospects of America’s becoming energy independent — and potentially millions of American blue-collar workers getting high-paying jobs.

But one would be wrong.

Far from welcoming the renaissance of the American fossil fuel industry, the Obama Regime has fought it tooth and nail. It is attacking shale oil and gas with every tool at its disposal. Its Department of the Interior has undertaken a jihad against them. It has locked away from exploration and development vast new areas of the Midwest and has waged a war against conventional offshore drilling. It is now doing its best to stop the new technological drilling, even in lands that have been drilled conventionally before.

The Green Regime’s SEC has entered the fray, demanding that companies like Continental follow new Sarbanes-Oxley requirements about reporting royalty and production figures, meaning that CEOs like Hamm face jail time if some low-level operator misreports production from a field.

Ironically, the feds never apply Sarbanes-Oxley to themselves. If Obama or any of his administration misreports taxpayer liabilities, say, for solar industry loans, nobody faces any consequences.

In addition, the Regime is pushing de facto tax increases for the oil and gas industry, by ending various tax credits the oil industry has long enjoyed. This — coming from an administration lavish in its subsidies to minor and expensive energy sources such as solar, wind, geothermal, and ethanol — is from the point of view of physical science simply bizarre.

Finally, the Green Dream Team has brought its Justice Department into the jihad. It recently brought charges against seven oil companies in North Dakota for killing 28 birds. Continental has been accused of killing — one bird! But this is not a minor matter: the executives face six months in jail if convicted. (Note: The same Justice Department has never even once pursued any American wind power company, even though American wind power facilities kill on the order of half a million birds a year.)

But even as the Regime wages its jihad against domestic fossil fuel industries, other countries are moving ahead with the new fossil fuel technologies. As I noted in an earlier piece, Israel has set about using fracking to free itself from reliance on foreign sources of oil, which would mean changing the balance of power in the Middle East. Israel is using fracking to exploit some major fields, the most recent being a field (named “Leviathan”) which holds 16 trillion cubic feet of natural gas, or about a century’s worth of gas at Israel’s current usage. This field is only part of the massive Levant Basin shale field, which holds upwards of 122 trillion cubic feet of natural gas, or about eight centuries’ worth.

More recently, a small energy player in the UK has announced that the Bowland Shale field, in northwest England, contains an estimated 200 trillion cubic feet of natural gas. This estimate (by Cuadrilla Resources) means that this one shale field contains enough natural gas for two-thirds of a century of the UK’s needs at present levels. And that is only one field.

The British boom is being echoed elsewhere in Europe, where other countries are also turning to fracked gas — except France, which has outlawed shale gas exploration altogether, one suspects to protect its nuclear industry from competition. But Poland, for instance, has an estimated 187 trillion cubic feet of shale gas. This is geopolitically game-changing, considering that Poland now has to import its natural gas from neighboring Russia, a country that historically has kept trying to incorporate Poland into its empire.

Note the extremism of Banks’ demand: don’t even explore, much less try to use, resources until they are proven, to her ilk, to be perfectly safe—something that will never happen.

This discovery in the UK comes just in time to stop its increasing dependence on natural gas from the Middle East and Norway. But — naturally — the British energy suppliers are facing the same kneejerk environmentalist opposition that Hamm and other American suppliers do. Soi-disant environmentalists in Britain are roused in furious opposition. Jenny Banks, the “energy policy officer” for the environmentalist group WWF (World Wildlife Fund) demands, “The government should at the very least halt shale gas exploration in Britain until more research can be undertaken on both the climate-change impacts and contamination risks associated with shale gas.” Note the extremism of her demand: don’t even explore, much less try to use, resources until they are proven, to her ilk, to be perfectly safe—something that will never happen.

What explains this visceral hostility to a product the human race desperately needs, and the pushing of forms of energy that have proven time and again to be commercial losers?

The answer is that much of the environmentalist movement consists of two groups: neo-socialists, and neo-Romantic pagans. The former profess a love of the ecosystem but are really animated by a hatred of capitalism. These are the people who never uttered a peep about environmental degradation when the Soviet Empire was cheerfully despoiling the ecosystem, but who now wax furious at the thought that a capitalist — a capitalist — should even explore for oil. Should Vladimir Putin or Hugo Chavez start using fracking, why, instantly, fracking would be fine.

The second group, even more bizarre, is populated by those I have characterized elsewhere as self-loathing hominids, i.e., people who are ideologically misanthropic. They view their own species as vile and disgusting, literally a blight upon the planet. The thing they fear most is precisely the discovery of inexhaustible, inexpensive energy. They fear it because such energy would allow the human race to flourish, and these self-loathing hominids do not want the human race to flourish. To them, rats and roaches are wonderful, but children are not.

You simply can’t please these worshipers of Thanatos.

But the rest of us should rejoice in the renaissance of fossil fuels. Unlike the green energy sources that have done so pathetically little to help humanity, it holds the promise of inexpensive energy on which our continued prosperity depends.




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Bubblin' Crude

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Green Dreams, Green Nightmares

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A rush of recent reports on energy has much to say about the fundamental foolishness of the green vision of energy production, the vision long regnant in academia, and the one that informs the Obama regime.

The green vision — really, the green dream or delusion — is that the world is running out of fossil fuels, and we need to switch to so-called renewable or sustainable sources, such as solar power, wind power, and biofuels. (These “renewable,” allegedly low-pollution green options never include nuclear or hydroelectric power, both of which are proven to be cost-effective and clean — a point to which I will return shortly). If we just embrace these “new” energy sources, the greens aver, jobs will just multiply magically.But if we continue to use fossil fuels, we are doomed to economic stagnation.

The first report is the happy news that the number of new American oil wells is increasing at a pace not seen in over three decades.

According to the major oil drilling company Baker Hughes, it installed over 800 new oil rigs last year, over twice the previous year's (2009) total, and a tenfold increase over the yearly average during the late 1990s.

These rigs are placed to tap so-called “unconventional reservoirs,” squeezed into shale rock strata. Ten years ago these shale oil reservoirs were written off, but the increase in oil prices and in the level of oil-drilling technology have now opened them up.

The story mentions several promising shale oil fields, including the Eagle Ford formation (stretching from southern Texas into northern Mexico), the Bakken formation (in North Dakota), and the Monterey formation (in California). These formations currently produce about half a million barrels a day. It is now projected that production will hit 1.5 million barrels per day in four years, the equivalent of what we currently get from the Gulf of Mexico, which is roughly about 30% of current total domestic oil production. This will go far toward making up for declining production from our conventional fields in Alaska and the Gulf of Mexico.

The Bakken formation is yielding oil faster than can be sent through pipelines to market, so the oil companies are shipping it by road and rail. The companies have had to open camps to house all the workers needed, and North Dakota has unemployment at less than half the national average (its rate is 3.8%, to be exact). As another article notes, the Bakken field produced 113 million barrels in 2010, up from 33 million the year before.

If the Bakken and Eagle Ford oil fields pay out as expected (they are projected to yield an eventual four billion barrels of oil), they will wind up as the fifth- and sixth- biggest US fields ever found. By 2020, shale oil fields could allow us to cut our imports of foreign oil by 60%, which (at $90 a barrel) is $175 billion less we give foreign dictators. And another article reports that the EIA estimates that with these new fields, American petroleum production will increase 14% by 2020.

A more recent news item gives us more detail about the new shale oil drilling technology. It involves drilling down and then horizontally into the rock, then pumping a mixture of sand, water, and small amount of chemicals in to crack the rock and loosen the oil molecules. Drillers figured out how to make the shale crack more extensively, and that made the extracted oil cheaper than had ever been thought possible.

This process, called fracking, has proven very effective in freeing natural gas, as I noted in an earlier piece. It is beginning to pay off big time in oil production as well.

With this method, new fields are being opened, such as the Leonard formation (which straddles New Mexico and Texas), and the Niobrara formation (which underlies Wyoming, Colorado, Nebraska, and Kansas).

Now, last year, as shale oil technology started proving itself a tremendously effective method for extracting oil, environmentalists immediately arose in opposition. Rep. Henry Waxman (D-CA) held hearings investigating fracking, and the environmentalist Left produced a documentary (Gasland) alleging that the technology was poisoning groundwater. But all the EPA studies have shown that fracking is safe, and even the Environmental Defense Fund seems comfortable with it.

So much for the death of petroleum. Turning now to renewable-green energy sources, some interesting stories are worth noting. Let’s begin with the report that France’s solar program is in trouble.

Two years ago, the French National Assembly passed a law requiring France’s national utility, Electricité de France (EDF), to buy all the power produced by newly installed solar panels at $745 per megawatt-hour, roughly ten times the market price for electricity. The goal was to increase the number of people installing solar panels on their roofs.

The Chinese-manufactured solar panels have a large “carbon footprint” — meaning they were produced by using large amounts of power generated by the burning of dirty coal.

The intended result was that applications for rooftop panel array connections rose — from 7,000 applications a year before the subsidiary to about 3,000 a day by December of last year. But there were unintended, though embarrassingly foreseeable, consequences. One was that the cost to EDF of buying solar power has exploded to $1.4 billion a year, and is threatening its financial health. EDF saw its stock drop by 20% in 2010 (compare that to a 3.7% drop for Europe’s Stoxx 600 Utilities Index). EDF is now $78 billion in debt, a situation that has caused it to defer modernizing its 53 nuclear reactors (which provide 75% of France’s electricity). And it has had to jack up the surcharge that consumers who don’t use solar panels have to pay.

A second consequence is that the solar panels are being purchased from China, thus shifting jobs from France to there. Worse, the Chinese solar panels have a large “carbon footprint” — meaning they were produced by using large amounts of power generated by the burning of dirty coal!

Then there is the report about an ethanol plant, Range Fuels, that in 2007 received startup subsidies of $76 million from the federal government and $6 million from the lucky state of Georgia, where it was supposed to open a plant making ethanol from pine chips. The next year, it got a loan for $80 million, guaranteed by taxpayers under the “Biorefinery Assistance Program.”

The reason the Bush administration started pushing this “advanced biofuels cellulosic ethanol” program (essentially, a program for producing ethanol from switch grass and other biomass) was that corn-based ethanol was already rapidly acquiring a bad reputation for excessive costs and a low yield of energy outputs. Cellulosic ethanol looked like a better prospect.

Georgia politicians were so excited by the smell of pork that they started calling their state “the Saudi Arabia of Pine Trees.” The Saudi Arabia of pine trees!

Well, guess what? Range Fuels just closed, having never produced even one shot of ethanol. Gone with the wind, as they used to say in Atlanta. And all the subsidy money gone with it.

Honest to God, you couldn’t make this stuff up.

 




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Good News, for a Change

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Little noticed in all the year-end political hysteria has been the good news about fossil-fuel energy production in the US and Canada. Unfortunately, the good news could have been better, if only we had better leaders.

The Globe and Mail (Dec. 8) reports that in 2010 the U.S. will end up having produced 140,000 barrels of oil a day more than it did in 2009. That’s incredible, when you consider Obama’s jihad against deepwater drilling. October, a banner month, saw 5.5 million barrels a day produced from American wells. Indeed, the US Energy Information Agency (the EIA) reports that our proven reserves of petroleum are now 22.3 billion barrels, up by 9% last year, in part because of the newly explored Green River shale oil field straddling Colorado and Utah.

America has even more bracing news about natural gas. The US now leads Russia in natural gas production. Again, this is in great measure because of expanding reliance on our extensive shale fields. We have the four largest natural gas fields in the world, and the EIA now puts our proven natural gas reserves at 284 trillion cubic feet, up 11% last year alone, and now at the highest level since 1971.

No doubt this is why China’s state-owned energy company CNOOC has cut a deal with Chesapeake Energy, according to which CHOOC will cover three-fourths of development costs and pay Chesapeake an up-front $1.08 billion for a one-third interest in its Texas natural gas project, a project that will produce the natural gas equivalent of half a million barrels of oil a day.

Our ally to the north, Canada, has also been doing well in fossil fuel energy production. Canadian oil sands production has increased dramatically; it now delivers more oil to North America than does Saudi Arabia. And while the Canadians may not love us, they don’t hate our guts. Young Canadian men don’t strap bombs around themselves and blow Americans apart. This is clearly preferable to the example of other countries.

Also exciting is the prospect of exploiting methane hydrates — essentially frozen water containing gas, found in stupefying abundance beneath ocean floors and the northern permafrost. This is something that the US and Canada can exploit when the time comes. How much of that stuff is there? The US Geological Survey estimates that even with a miserable 1% recovery rate, America could cover all of its present natural gas needs for the next century. And the UN Environmental Program hails methane hydrates as “the most abundant form of organic carbon on Earth.” Canada has been the leader in field-testing this form of gas extraction, and plans to exploit it commercially within a decade or so.

So we are doing fine in terms of resources. What is hurting us is our environmentalist-controlled leadership. We have at the federal level an administration that is hostile to fossil fuels in general and petroleum in particular, and has done its best to push us toward grotesquely costly and inefficient alternatives, such as solar and wind power.

Even at the state level, success in domestic fossil fuel production often happens in spite of, rather than because of, government help. Consider a Wall Street Journal piece (Dec. 16) about New York Governor David Paterson’s decision to issue an executive order imposing a virtual ban on drilling for natural gas within the state.

We don’t normally think of New York as a place like Texas, a petroleum-rich state. But the huge Marcellus shale formation, all 65 million acres of it, stretches from Ohio and West Virginia to Pennsylvania and upstate New York; it’s a repository of vast amounts of natural gas.

Natural gas can be readily extracted from this shale by hydraulic fracturing (“fracking”) — injecting a mixture of water and sand, together with miniscule amounts of various chemicals. Fracking, used now for over 60 years, is used in about a third of our oil and natural gas extraction. Even the EPA has published studies concluding that it’s safe.

But New York environmentalists — among the most devout in the nation — naturally oppose fracking, and the legislature there recently banned it. Paterson vetoed the bill, but put a moratorium on horizontal fracking until the New York Department of Environmental Conservation issues new regulations. This will take at least six months, and will likely manage to keep the ban in effect.

Pennsylvania — hardly a bastion of redneck petroleum lovers — saw $4.5 billion in investment in the massive shale field, creating about 44,000 jobs and $400 million in state and local taxes last year alone. Between July 2009 and June 2010, the 632 Pennsylvanian Marcellus wells produced 180 billion cubic feet of gas, doubling the state’s production.

The American Petroleum Institute reckoned that if New York allowed its shale gas to be tapped, it would provide $15 billion in economic output and $2 billion in state taxes. But New York apparently couldn’t care less about great-paying blue-collar jobs that add to the nation’s energy supplies and lessen our dependence on foreign tyrannies bent on our annihilation.




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