Showing posts with label energy industry. Show all posts
Showing posts with label energy industry. Show all posts

Saturday, March 26, 2011

A Celebration of Civilization

Americans take reliable and affordable energy so much for granted that they've developed a reckless contempt for the companies and people that provide it to them. They must think their homes are electrified and heated by magic, given the disdain they show for coal mines, drilling rigs, power plants, nuclear reactors, transmission towers and pipelines, and judging from the vilification they heap on the evil energy companies, which routinely are portrayed as the murderers of Mother Earth.

One demonstration of that contempt comes tonight, with the annual celebration of "Earth Hour," when "millions of people around the world" will turn off their lights for one hour in order "to make their stand against climate change." Energy use = global catastrophe: that's the dangerously simplistic equation touted by the dim bulbs who thought up Earth Hour. The only way we can "save the planet" is by turning off the lights, parking our cars and crawling back to the dank caves from whence we came, much to the planet's misfortune. Light has always been synonymous with civilization. It was long believed to be a friend to humankind (thank you, Prometheus). Earth Hour turns it into the enemy of the planet.

Energy providers take this abuse in stride: they've been so badgered into submission by eco-Luddites that they can barely rise to their own defense. They seem apologetic and ashamed -- some probably even sponsor Earth Hour events and distribute pro-Earth Hour propaganda in an effort to placate their implacable critics.

But I have an idea that might help them turn public perceptions around.

I propose a counter-event called "Energy Hour," which would also occur once a year, but at a randomly-selected time. All at once, on cue, all the world's energy providers would suspend operations for an hour (maybe longer if you really want to make things interesting), plunging the planet into darkness, cold and immobility. The lights would go off. The computers would stop. Electric appliances would not work. Gas tanks would go dry. Streets would be gridlocked. Apprehension and uncertainly would grip most of the industrialized world, as the people wait anxiously and prayerfully for the light to return.

Maybe the worldwide standstill that would result -- maybe the disruptions, the danger, the discomfort and the desperation that would occur, if civilization were for even an hour "off the grid" -- would remind disconnected moderns of the debt they owe to energy providers. Maybe they'll understand, once again, that electricity doesn't come from light switches, and that without drilling rigs, their cars become inanimate objects. It probably won't take more than one or two Energy Hours before the Earth Hour movement loses its mojo, and before people take a more rational, balanced and appreciative view of the energy sector. Maybe we'll see a halt to the regulatory warfare waged on energy producers. Maybe we'll get a national energy policy based on realism, not pie-in-the-sky pipe dreams.

Happy "Energy Hour," everyone! Take a moment this weekend to savor all the comforts, conveniences and benefits that come from living in this gloriously energy-dependent society.

Thursday, February 17, 2011

Bjorn Channels Bastiat to Expose the "Green Jobs" Myth

Bjorn Lomborg, "the skeptical environmentalist," has a good piece in Slate taking on the myth of the "green energy" economy -- which should be required reading for all those who are still drinking the "new energy economy" Kool-aid peddled by one former Colorado governor. The claimed economic benefits are largely an illusion, Lomborg explains, which results from studying only one side of the ledger, a common mistake among economic illiterates.

Lomborg's analysis is straight out of Bastiat, the free-market pamphleteer and popularizer who explained this oft-made mistake in a famous essay, "What is seen and what is not seen." Wikipedia explains Bastiat's point as follows, for those who aren't inclined to read the essay:

"One of Bastiat's most important contributions to the field of economics was his admonition to the effect that good economic decisions can only be made by taking into account the "full picture." That is, economic truths should be arrived at by observing not only the immediate consequences – that is, benefits or liabilities – of an economic decision, but also by examining the long-term consequences. Additionally, one must examine the decision's effect not only on a single group of people (say candlemakers) or a single industry (say candles), but on all people and all industries in the society as a whole. As Bastiat famously put it, an economist must take into account both "What is Seen and What is Not Seen." Bastiat's "rule" was later expounded and developed by Henry Hazlitt in his work Economics in One Lesson, in which Hazlitt borrowed Bastiat's trenchant "Broken Window Fallacy" and went on to demonstrate how it applies to a wide variety of economic falsehoods."

The "green energy economy" is an illusion generated by looking at only one side of a multi-sided equation -- by focusing on the apparently-obvious benefits and beneficiaries, while ignoring the less-obvious costs and economic casualties that stem from a government-ordered reallocation of scarce resources. The economic illiterate applauds the new job being "created" in the wind turbine plant -- a job being subsidized by federal or state "incentives" -- but ignores the job that's destroyed at the coal mine or on the drilling rig, all because politicians decide that they know better than the market does about how to organize the energy sector.

True "economic literacy" requires an ability to see not just what seems obvious, but what is harder to see but is just as consequential. When you see the picture in totality, the "green jobs" delusion disappears.

Friday, November 19, 2010

Monopolizing Young Minds

The problem with most Americans, I once heard a senior official at the National Geologic Survey say, is that they don't know where stuff comes from. They are the most prodigious consumers of energy, minerals, wood products and other raw materials in world history, yet they're completely clueless about what it takes to procure and produce these things. They appear as if by magic, at the gas station, or in the grocery store, or when they flick on the light switch, and most Americans have forgotten (if they ever knew) from whence they come. And thanks to the eco-indoctrination they receive in schools, many young Americans are raised to have contempt for the individuals and industries -- the evil logger and miner and oil driller -- who produce what they consume.

This disconnect is one symptom of a very confused and self-destructive society.

A group of Utah state legislators hopes to help address the disconnect by using surplus oil and gas revenue to teach school kids more about the benefits of mining and drilling. But environmental groups naturally oppose the idea, arguing that this amounts to an attempt to justify the destruction of the planet. At present, greens have pretty much taken over our education system. Many schools today serve as eco-indoctrination centers, where malleable young minds celebrate Earth Day, say the Pledge Allegiance to the Planet, dutifully learn their recycling rituals, hear the sensationalist spin on climate change and rarely hear a word rebutting the propaganda. But propose bringing a little balance to the discussion? Then its you who stands accused of trying to hijack the curriculum.

It's truly Orwellian.

Totalitarians always make a play for the kids. Greens are no different. And they will vigorously fight any attempt to end their monopoly over young minds.

Wednesday, October 27, 2010

Maybe We Should Call Him Slickenlooper

Microbrewmeister John Hickenlooper is touted as the most business-savvy of the gubernatorial candidates. It's this quality, above all others, that earned him the endorsement of The Colorado Springs Gazette and the city's Chamber of Commerce. But you can have success as a businessman while also being an economic illiterate, as Hick seems to be proving with his half-baked proposal to boost state subsidies for higher-ed through a "voluntary" hike in the severance tax paid by energy companies. The idea is naive in several ways.

The Ritter administration has been on a 4-year crusade to make life miserable for energy companies operating in Colorado: I'm not sure, if they ever return in force, that they'll be in the position or the mood to engage in education philanthropy at the state's urging. That's not their job. And they would be completely justified -- to echo one Rhode Island politician -- in telling the new governor to take his severance tax hike and shove it. The energy sector has no more obligation to help fund higher education than any other industry. It just seems like the most convenient cow to be milked. Why doesn't Hickenlooper ask micro-brewers to volunteer to pay a special "higher education" tax on every pint sold, if he's taking us down the road to coerced corporate "philanthropy"? The nexus between beer drinking and college students seems much stronger to me.

But here's the truly troubling part. Hickenlooper must understand, even vaguely, that these additional severance taxes wouldn't come out of the company's till, but will be funded by energy consumers -- meaning us -- in the form of higher energy prices. Energy companies may somehow be gulled into going along with the scheme, given the relish with which big government and big business bed down together (see the Clean Air-Clean Jobs Act), but they will really be "volunteering" to help keep higher ed fat and happy on behalf of their customers, who won't be polled on the matter. We'll be paying for this whether we volunteer or not.

What Hick really wants is to "volunteer" Colorado energy users to bankroll a higher ed establishment that refuses to economize, refuses to cut costs, refuses to change the way it operates. But he's afraid to ask us point blank, or to say that he wants to raise energy taxes, so he opts for this subterfuge.

And we all know what happens in this country when you don't "volunteer" to cooperate with politicians and regulators: those friendly overtures have a nasty habit of becoming threats, and then mandates. If this is what we can expect from Hick The Business Wiz, we may come to look back fondly on the Bill Ritter years.