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Tax Breaks & Subsidies and USA
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Pickens' plan is basically a couple of pie charts showing how he'd like to see the U.S. energy economy work. ...He gives no specifics publicly, but he's made it clear that it's up to Congress, not consumers or investors, to make this vision become reality.
Because Pickens has announced his gambit in the name of the environment, the media have dropped the skepticism they usually apply to the claims of businessmen trying to make a buck. Because his plan involves government - meaning you and I pay the costs - that skepticism ought to be even greater.
Also filed under [
Energy Policy]
Oil man T. Boone Pickens recently announced his own large program to help get America off its oil addictions. His message in his own Texas twang starts off appealing, while he properly and accurately reports on the $700 billion annually we now spend on imported oil, now at 70% of our total oil consumption. ...Regrettably, near the middle of his advertisement T. Boone wandered off into an alternative energy universe, proposing that wind and solar energy replace the current 22% of our electricity produced by natural gas. Neither source is a true alternative, and are merely erratic, unreliable, supplementary energy sources.
There's a price for subsidizing wind energy with taxpayer dollars
June 8, 2008 in Abilene Reporter News
June 8, 2008 in Abilene Reporter News
Much has been written about the merits or demerits of wind energy as a viable source of electricity generation for meeting the growing needs of electricity consumption in the United States.
No matter which side of the debate one comes down on, one issue is crystal clear. Trillions of taxpayer dollars are being poured into the wind energy corporations' coffers to enhance the return on investment strategies with a guaranteed commitment by federal, state and local governments for a 10-year period.
According to a recent report by the National Renewable Technology Laboratory (DOE), wind energy could account for 20 percent of the nation's electricity by 2030. To reach this target, wind turbines would have to produce 300,000 MW of power or 1,000,000 MW installed capacity. The 500,000 plus wind turbines would cost the taxpayers between $5-7 trillion.
Also filed under [
Texas]
As the Senate opens debate on its mammoth carbon regulation program this week, the phrase of the hour is "cap and trade." This sounds innocuous enough. But anyone who looks at the legislative details will quickly see that a better description is cap and spend. This is easily the largest income redistribution scheme since the income tax. ...If Congress is really going to impose this carbon tax in the name of saving mankind, the least it should do is forego all of this political largesse. In return for this new tax, Congress should cut taxes elsewhere to make the bill revenue neutral.
Also filed under [
Energy Policy]
As they [the American Wind Energy Association] well know, "installed capacity" is meaningless, since the output of industrial wind turbines cannot be stored and cannot be predicted or regulated.
Their effective or useable capacity is near zero, while the effective capacity of coal, gas and nuclear plants is near 99%.
When the public figures this out, I doubt that "85% of Americans" will continue to support wind energy.
Olbeter says the House Ways and Means Committee will unveil today a tax package that would extend and expand renewable tax credits and reinstate the R&D tax credit. The bill would pay for itself by closing tax loopholes, "including one that allows fund managers to defer taxes on compensation earned from offshore funds and another that would allow multinational firms flexibility in allocating global interest expense."
Olberter contends that the bill "has virtually no chance, in its current form, of becoming law." He says the tax loophole closures "are a nonstarter with Senate Republicans and the White House, which opposes taxes generally and these measures specifically." ...this is likely the last meaningful attempt by the Congress to pass extension of renewable energy tax credits before November; he predicts that the solar and wind credits "will probably lapse on December 31."
Congress seems ready to spend billions on a new "Manhattan Project" for green energy, or at least the political class really, really likes talking about one. But maybe we should look at what our energy subsidy dollars are buying now. ...The wind and solar lobbies are currently moaning that they don't get their fair share of the subsidy pie. They also argue that subsidies per unit of energy are always higher at an early stage of development, before innovation makes large-scale production possible. But wind and solar have been on the subsidy take for years, and they still account for less than 1% of total net electricity generation.
Only George Orwell could have invented - and named - the British Government's Renewable Transport Fuel Obligation (RTFO) that came into operation yesterday. It is the latest in a long line of measures intended to ease the conscience of the rich while keeping the poor miserable, in this case spectacularly so. ...The British Government has been persuaded by the wind turbine manufacturers to commit a third of its annual renewables subsidy to this uniquely inefficient energy source, advertising over hill and dale the cabinet's horror of making a decision on nuclear power. ...If all these fancy subsidies and market manipulations were withdrawn tomorrow and government action confined to energy-saving regulation, I am convinced the world would be a cheaper and a safer place, and the poor would not be threatened with starvation.
Just now, for reasons not all of which are "green", commodity prices are soaring. Leave them. Send food parcels to the starving, but let demand evoke supply and stop curbing trade. The marketplace is never perfect, but in this matter it could not be worse than government action. Playing these games has so far made a few people very rich at the cost of the taxpayer. Now the cost is in famine and starvation. This is no longer a game.
Worldwide opposition to wind power has now reached a crescendo and governments have been forced to respond with new planning regulations which impose the technology, often against huge objection.
Public distaste for wind turbines revolves around landscape impact and concerns about noise and loss of tranquillity, but technical objections are of greater concern. ...The power industry concedes that wind turbines would not be built without unprecedented consumer-sourced subsidy or massive tax breaks.
It is time for the threat posed by intermittent renewables, not least in requiring CO2-emitting coal-fired spinning reserve, to be investigated independently, without political interference.
These letters, and a host of others addressing the Cape Wind facility proposed for Nantucket Sound, were published in the Mar 6, 2008 edition of the Cape Cod Times. The Minerals Management Service, a division of the Department of Interior, has released the draft environmental impact statement of the proposed project. Other letters can be accessed by clicking on the link at the bottom of this page.
Also filed under [
General|
Massachusetts]
At the end of 2007, the WilderHill New Energy Global Innovations Index (NEX), a composite of 86 new energy companies covering wind, solar, biofuels, efficiency, and hydrogen, was up by 58%, year-on-year. As of yesterday, however, it was off almost 20% for 2008 so far, compared to a drop of about 8% for the S&P 500. Why would a sector so favored by politicians, environmentalists, and socially-conscious investors suddenly appear to have diminished prospects, just when it seemed perfectly geared for growth? Unfortunately, renewables and the entire alternative energy sector are vulnerable to two of the same principal factors undermining confidence in the economy as a whole: the availability of credit and higher inflation at the wholesale level.
Also filed under [
Impact on Economy]
If you thought the 2008 presidential race was shattering all records for windy rhetoric, it's nothing compared to the political eco-rhetoric being spun to US taxpayers -- to get them to cough up billions of dollars to fuel a renewable wind power industry boom sensible investors won't touch with a turbine's rotor blade. ...Wind power sounds a great European success story -- one to be echoed in the US, it seems, as 2008 is set to see wind power developments shatter records for the fourth consecutive year. However, a closer look at the European "success" story reveals that all is not quite as it seems. Wind seems to be blowing in the mind of the politically correct and those on the recent environmentalist bandwagon but the cost is going to be huge, no companies will plunge into it without massive government subsidies and, if actually built, power reliability will take a nosedive. ...The bottom line is that the renewables debate, and investment in it, is as much about ideology and political belief as it is about economics and environmental issues. When the real cost of turbine power as a major player toward our future power needs is assessed, the answer just ain't "blowing in the wind".
Democrats in Congress are huddling in their low-carbon-footprint backroom in search of a compromise energy bill, and all eyes have been on the issue of raising fuel-economy standards. ...the bill undermines energy independence by raising taxes on domestic production and throwing up new barriers to exploration. ...But its worst (and little noticed) provision may be a requirement that 15% of U.S. electricity be generated from "renewable" sources by 2020. Utilities that can't meet these goals are fined -- taxed, really -- based on how far short of this Eden they fall. Currently, only about 3% is provided by such renewables as wind, solar or "biofuels." ...The "renewables" mandate in the House energy bill, by contrast, is a multibillion-dollar stealth tax on electrical utilities, and ultimately on electricity users. The danger is that, with all eyes on car-mileage standards, this tax could become law without many people even noticing.
Also filed under [
General|
Energy Policy]
Wind power is not the answer to global warming. Do we have alternatives? We certainly do have alternatives to windmills but they would disrupt the lifestyle of electors and consumers. In Paris, an article in the September 2007 issue of the medical journal, The Lancet, shows with supporting calculations that it would be better to minimize human consumption of meat, for 80% of agriculturally produced methane comes from farm animals. Wind turbines won't even alter the greenhouse gas equation but by a mere .03%, as mentioned above. The way to reduce CO2 emissions and other greenhouse gases is to use less energy. Governments must massively invest in energy conservation measures rather than in these wind machines. According to another research, if every English household switched for one single low energy light bulb, a fossil fuel-burning electrical plant could be shut down!
Wind power would only be interesting if energy produced can be stored. It has been proposed to fill reservoirs of large hydroelectric dams, for example. An Australian method has just offered in September 2007 to store electricity in liquid accumulators. Quebec would thus be able to utilize wind energy because the major part of our electricity comes from hydroelectric dams, which is not the case for Ontario or New York where, as almost everywhere else in the world, wind power must be backed up by carbon-based generating stations.
I am disgusted by fly-by-night companies installing wind turbines and solar panels just to showcase technology (see "This Wind Turbine Should Be Turning") or because they are heavily subsidized by government tax credits. Tax incentives are meant to stimulate growth of the renewable energy sector, not feed faux energy companies who don't have a clue. If a renewable installation cannot provide return on investment without a tax crutch, the project is not viable to begin with and should not be allowed to proceed.
Also filed under [
General]
Stories of questionable "carbon offset" sales schemes keep blowing in. ...It's beginning to sound like multiple sightings of the emperor's lack of clothing. Perhaps one problem lies in the ambiguity of the term "carbon offset" itself -- which smells of an Orwellian pollution of the English language.
After all, when you buy "carbon offsets" that doesn't necessarily mean you're paying for a reduction in carbon dioxide pollution. You could be sending payments to a utility company that might (or might not) use your money to help build a wind turbine that might eventually generate a small amount of electricity -- as it continues to build more coal-fired power plants that spew even more greenhouse gases.
But that's the magic of the word "offset" -- it doesn't promise a reduction. It doesn't really promise anything.
Also filed under [
General]
This reminds me of the situation in the late 70's. The government had created an artificial energy shortage. To combat it they created a plethora of programs that did help. It took Ronald Reagan almost no time at all to fix the problem by getting the government out of the way of those people that are producing what you and I need.
Instead the Senate is considering imposing a massive new tax which will be added to the fuel we buy AND the products we buy. And they'll be giving that money out in politically expedient but economically wasteful ways just like Jimmy Carter did.
This is crazy. We have people that are professionals in the energy field and they are being shut out of the debate. Instead the Senate's listening to the tinkerbells who probably can't handle the self-service pumps at the gas station.
Also filed under [
General|
Energy Policy]
Sorry, Ms. Williams, but you have no right to classify us all as ‘narcissists'; we hold our anti-wind positions for a wide variety of reasons. Mainly, though, those who oppose wind do so because we've taken the trouble to learn the technical details, and we realize that wind power is in fact an expensive scam, driven solely by developers eager to cash in on the concerns over climate change. Were subsidy money and incentives to be removed, these folk would decamp overnight.
Do Carbon Emissions Credits really help reduce pollution?
April, 2007 in Wabash Valley Journal of Business
April, 2007 in Wabash Valley Journal of Business
Whether it is called "emissions trading", carbon credits, or cap and trade, the practice amounts to buying and selling the right to pollute. It is an administrative solution to pollution and doesn't, in the final analysis, prevent pollution at all.
Suppose that a friend of yours is trying to lose weight, and he tells you, "If I eat this salad, it will be good for me. So then I can have cake for dessert." What would you tell your friend?
Al Gore is trying to say that by investing in alternative forms of energy, he is "offsetting" the heavy use of conventional electricity for his home. This is like saying that eating salad entitles a dieter to enjoy cake for dessert.
Also filed under [
General|
Energy Policy]