Mitt Romney released an energy plan yesterday that some outlets report sets a goal of energy independence by 2020. That’s not quite right. The goal expressed here is “North American energy independence” by 2020, and when you consider that one of our biggest if not our biggest energy trading partner is Canada, and that Mexico ships a fair bit of oil as well, that really says very little.
The white paper shifts back and forth between “North American” energy independence and just “energy independence,” seeking to blur that distinction. But one of the key elements of the plan is a “North American Energy Partnership,” which mainly consists of approving the Keystone XL pipeline and any other pipelines Canada and Mexico want to build. There’s also a whiff of the idea that we should gouge Canada and Mexico and purchase their oil at a discount. The white paper makes this outlandish statement that “America still imports more oil from OPEC than it does from Canada and Mexico,” when OPEC consists of practically every oil producing nation on Earth, with much greater capacity than the two North American countries, and yet it’s STILL pretty close, with the US getting 37% of its oil resources from Canada and Mexico, compared to about 50% from OPEC.
The other parts of the energy plan, which has no actual metrics in it but instead some broad principles, are fairly familiar. There’s a “drill-baby-drill” section urging an opening of as many offshore sites for development as possible; a “state’s rights” section that would devolve onshore development down to the states (so good luck if you live in Texas or the Plains or the Deep South); a “no more Solyndras” section on the facilitation of “private-sector-led development” of new energy technologies; and a “stop the EPA” section that stresses “transparency and fairness” in permitting and regulations. There’s also a section on accurately assessing current energy resources, the idea being that there’s all this undiscovered oil in America that the government is deliberately hiding.
The domestic energy boom, of course, has already happened. The development of natural gas through fracking has skyrocketed over the past decade or so, reducing greenhouse gas emissions through coal even as environmental questions about fracking have been raised. Solar and wind power nearly doubled since the investments from the stimulus, although that entire wind power industry faces impending doom if the wind production tax credit isn’t secured (Romney opposes extending that tax credit). Oil production is up on onshore and offshore sites. Renewable fuels have expended under the federal mandate, one that Romney says specifically he would keep. Coal is being phased out, a key difference between the Romney campaign and the status quo; the energy plan specifically wants to reverse the de facto regulatory “barring the use of resources like coal.” The Romney campaign would also keep in place needless subsidies for the oil and gas industry, a waste of around $40 billion that could go to alternative energy development and reduce greenhouse gas emissions.
The Obama campaign provided Federico Peña, the former Energy Transportation Secretary under Clinton, to give this quote on the plan: “Only two days after a fundraiser hosted by the CEO of major oil companies, Romney is expected to defend billions in oil subsidies while opposing efforts to use oil more efficiently and develop homegrown alternative energy. We will never reach energy independence by turning our backs on homegrown renewable energy and better auto mileage.”
Basically, we could have written this Romney plan for him. It combines all the elements of conservative ideology in service to the oil and coal industries. It has floating numbers about benefits ($500 billion in economic impact! 3 million jobs! 1.1 million manufacturing jobs!) tied to no actual data. But the choice here, of course, is between this real assault on the nation’s natural resources, and a kinder, gentler assault, with fracking and shale oil development and offshore oil almost everywhere. There are big differences between Romney and Obama on coal and wind. But that’s mostly it.




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By this does Mitt mean no government loans to politically connected companies or just no government loans to Green Energy companies? Sorry the thought that Mitt who still owns stock in Bain and Rep Ryan who invests with government insider knowledge suddenly getting ethics is funny. This part here seems a way to kill all U.S green investment.
China, Germany, Denmark etc all have huge government investment in Green Energy if Mitt’s energy plan is no Government Green investment America will fall behind in this tech and green companies in America will see their stock price sink.
No mention of fracking for Natural Gas in Mitt’s plan? We should ask him about it.
Any idea who actually cobbled up this “white paper?” (Other than oil industry hacks, of course.) Any names and/or company fingerprints?
“The domestic energy boom, of course, has already happened”
Oh definately. I heard it peaked in the early 70′s. LOL mitt
a supply glut has depressed the natural gas market, contradicting the industry line that it would stabilize what has historically been a volatile market. Instead, gas prices have dropped from about $13 per MMBTU (million metric, or one million, BTU) at the beginning of the boom to $4, barely a break-even point.
http://newyork.sierraclub.org/SA/Vol41/wounded.htm
http://my.firedoglake.com/thingscomeundone/2012/03/11/will-free-market-forces-stop-natural-gas-fracking-or-will-the-1-demand-a-tax-break-and-loans-from-the-government/
Show Data By:
Data Series Area
GraphClear Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 View
History
Wellhead Price
3.14 2.89 2.46 2.25 1.89 1.94
As Liquefied Natural Gas 16.11
http://www.eia.gov/dnav/ng/ng_pri_sum_dcu_nus_m.htm
My bold Prices are high for liquid natural gas which we need to build more plants to turn natural gas to liquid to meet demand however demand is not expected to last China is building tons of green power and still has coal.
Japan’s government is trying to reopen their nuke plants despite strong public feeling otherwise but at these prices Japan will likely choose wind power as a long term solution. The EU can of course get natural gas from Russia and the Germans are using wind energy to turn water into hydrogen and putting the hydrogen in their natural gas pipelines in effect “cutting” their natural gas as this tech takes off the EU’s need for natural gas should decline long term.
Next add in the green house effect and warmer winters and demand for natural gas should sink.
Koch brothers less regulation means the Koch brothers can charge whatever they want for power. With the push to lower CO2 America is building more natural gas plants the hope is to make consumers pay more for the natural gas plants of course the koch brothers hope to buy state and private power companies and with no regulations on the profits they make they will make a huge profit then blame the Left for forcing us to build natural gas plants.
They want to do this before solar, wind etc become so cheap people put up solar, wind etc on their homes.
However since fracking only makes a profit at $2.25 or $3.50-$4.50 to break even.
Then add in to the price of power the cost of building new natural gas plants plus the Koch brothers profits plus the cost of the loans the Koch brothers expect to take out to buy the power companies and build the new Natural gas plants. Numbers I have no idea how to calculate since there will be no government regulations to limit profit by the koch brothers and heck long term Mitt will with crony capitalism make green energy even more profitable. Of course this will take years and by then Mitt will have killed American green power.
Even when the company finds gas, it sometimes doesn’t pay to drill. For instance, the company needs natural gas prices of only $2.25 per thousand cubic feet to break even in the Marcellus (prices are currently around $4). But in Louisiana they need $3.50 and in Texas, $4.50.
http://www.forbes.com/sites/christopherhelman/2011/10/05/aubrey-mcclendon-chesapeake-billionaire-wildcatter-shale/3
http://my.firedoglake.com/thingscomeundone/2012/03/11/will-free-market-forces-stop-natural-gas-fracking-or-will-the-1-demand-a-tax-break-and-loans-from-the-government/ my bold
I predict Mitt or Obama if he wins will have to bailout the frackers with our tax dollars very soon especially if we get a warm winter this year. Cheaspeak the biggest fracker has a ton of debt.
Federico Pena was Sec Transportation, not Energy. Reward for the development of Denver’s new airport when he was Mayor.
Even with a pipeline well Canadian tar sands oil is real expensive it only makes a profit when oil is around $100 a barrel that means gas prices have to stay high. Does energy independence from OPEC mean we will be stuck buying Canadian tar sands oil and not OPEC oil in order to keep Canada in business?
Iraq is getting their oil production up and Iran oil sanctions can’t last forever…unless we want the world economy to keep sinking.
with the US getting 37% of its oil resources from Canada and Mexico, compared to about 50% from OPEC.
Where’s that other 13% come from? The US already produces double of what Canada and Mexico produce combined.
Sounds like we may already be there.
Global Crude Oil and Liquid Fuels:
http://www.eia.gov/forecasts/steo/report/global_oil.cfm
Non-OPEC Crude Oil and Liquid Fuels Supply:
http://www.eia.gov/forecasts/steo/tables/pdf/3btab.pdf
The next question is at what price oil and gas will be under Mitt’s plan even if we buy OPEC oil. And if we don’t buy OPEC oil and do achieve independence from OPEC what will the cost be?
Sorry this much math is beyond me.
Romney always seems to overlook a few minor details in his “edicts”. He’s not really a detail oriented kinda guy. Ann might be tho’.
Are you “in the business”?? My little sister is and she and I were discussing this exact same thing on Sunday at my grandaughter’s birthday. She’s got so much natural gas she doesn’t know what to do with it.
I guess Mitt doesn’t go outside often. If you stand in my yard you can see and smell the smoke of the fires in northern cal.
“Global warming? What global warming?” The Mighty Mittster
Germany is doing pretty well solarizing their electrical grid.
Anything like that from Obie or Mitt?
(crickets)
Don’t roof rack me bro…………
I think the reason why it talks about “North American energy independence” is because of the plan to harmonize the continent into something resembling a North American Union. Research the SPP.
I used to invest in green energy I still look at the competition my mistake was holding on to green energy stocks during the banking crisis thinking Obama meant what he said about investing in Green Energy.