Energy
Trump Has A Plan To Fix The Electricity Grid — Increase Supply
From the Daily Caller News Foundation
By Bonner Cohen
Trump vowed in a second term to issue a “national emergency declaration to achieve a massive increase in domestic energy supply.”
Citing the need for more electricity to continue growing the artificial intelligence (AI) sector and keep the U.S. tech industry ahead of China, former President Donald Trump on Sept. 5 vowed in a second term to issue a “national emergency declaration to achieve a massive increase in domestic energy supply.”
But standing in the way of ramped up domestic energy production is a federal permitting process notorious for its foot-dragging. Some in Congress acknowledge the problem, but their latest effort to rectify the situation risks being overtaken by surging energy demand and troubling geopolitical realities.
Hoping to unravel the reams of red tape that have tied up transportation, energy, and mining projects for years, and in some cases killed them altogether, Sen. Joe Manchin (I-W.Va.) and Sen. John Barasso (R-Wyo.) want their colleagues to approve their “Energy Permitting Reform Act of 2024.” Centralizing decision-making on power transmission nationwide is the centerpiece of their legislation. Accordingly, it would bolster the Federal Energy Regulatory Commission’s (FERC) authority to approve interstate transmission lines and require interregional transmission planning.
In a bid to satisfy as many conflicting interests as possible, the bill establishes deadlines for filing lawsuits over energy and mining projects, and sets requirements for onshore and offshore oil, gas, coal and renewable energy leasing and permitting. It also includes provisions on hard-rock mining and sets a 90-day deadline for the secretary of Energy to grant or deny liquified natural gas (LNG) export applications, according to a summary of the legislation.
The bill is generally supported by such groups as the American Clean Power Association, the Solar Energy Industries Association, the American Council on Renewable Energy, Advanced Energy United, and Americans for a Clean Energy Grid, UtilityDive reported.
Many of the wind, solar and transmission-line projects favored by these groups have encountered the same permitting and litigation delays that have bedeviled fossil-fuel producers. On the other hand, the Sierra Club opposes the measure, finding it insufficiently hostile to fossil fuels and saying it “would open up federal lands and waters to more leasing and drilling and unnecessarily rush reviews of natural gas export projects…”
Aside from all the problems inherent in vesting so much authority in one federal bureaucracy, FERC, to handle the nation’s power transmission challenges, such conventional approaches are no match for the transformative developments already roiling America’s electricity supply. While politicians, along with some less-than-savvy investors, have been content to pour wads of public and private cash into the green energy transition, artificial intelligence (AI) is rapidly upending the world elites thought they knew.
Energy-hungry data centers — there are currently over 2,700 in the United States with hundreds more planned — need electricity 24/7/365 if they are to meet the extraordinary demands of AI. The amount of electricity AI-driven data centers require cannot be produced by intermittent solar and wind power transmitted hundreds if not thousands of miles from the sunny Southwest or the gusty plains of the Upper Midwest. Big Tech’s demands on an already shaky grid far outstrip anything politically fashionable solar panels and wind turbines can ever deliver. To their chagrin, the Big Four data center developers — Amazon Web Services, Google, Microsoft and Beta — now find themselves increasingly dependent on the very fossil fuels and — where available — nuclear power they have been so quick to dismiss over the years.
But given the choice of meeting their lofty Net-Zero carbon emissions goals or cashing in on AI’s financial promise, Big Tech will choose the second option. And the stakes go well beyond the companies’ respective bottom lines. Data centers are essential to AI, and AI is essential to national security. If the U.S. is not the global leader in AI, China (along with its junior partner, Russia) will be.
“AI can be the foundation of a new industrial base it would be wise for our country to embrace,” Sam Altman, co-founder and CEO of OpenAI, recently wrote in the Washington Post.
Ceding the United States’ current lead in AI to China would be a blow from which America’s industrial base, and thus its military preparedness, would be hard pressed to recover. Data centers, powered by a steady flow of reliable energy, are now key assets in the perilous world of 21st century geopolitics.
As neighbors in the communities in which they are located, data centers are a mixed blessing. They generate enormous revenues to local governments but can be seen by nearby residents as disruptive to their community. The non-descript but noisy buildings comprising data centers house thousands of computer servers processing the data that make the internet, cloud computing and AI possible. They not only require gobs of power but also plenty of water used to lower temperatures.
Together with government-driven efforts to put more EVs on the road, data centers further complicate the challenges facing the already stressed electric grid. These developments are beyond the reach of the horse-trading that goes into Capitol Hill legislation. What is clear, however, is that the vaunted green-energy transformation will never be equal to the task before us.
Bonner Russell Cohen, Ph. D., is a senior policy analyst with the Committee for a Constructive Tomorrow (CFACT).
Daily Caller
Biden’s Signature Climate ‘Boondoggle’ Might Be On Chopping Block After Trump Win
From the Daily Caller News Foundation
In the wake of the election of President Donald Trump to serve a second term in office, along with presumptive Republican majorities in both houses of Congress, many are now asking about what the future will hold for the oddly named Inflation Reduction Act.
Trump made it repeatedly clear on the campaign trail that he is not a fan of that law, which was passed on straight party-line votes in both houses of Congress, or of the hundreds of billions of dollars in green energy subsidies contained in it.
In a statement sent out in a post-election memo, Sierra Club President Ben Jealous took on a pessimistic tone, saying: “Donald Trump was a disaster for climate progress during his first term, and everything he’s said and done since suggests he’s eager to do even more damage this time.” Given the major role played by the Sierra Club and other climate-alarm groups in writing the IRA, that is exactly the kind of comments we might expect.
But a full repeal of the IRA seems unlikely to succeed, even with GOP control of the House and Senate. Republican majorities will be slim and the GOP has never shown an ability to hold all its members together when voting on controversial issues. Thus, a more scalpel-like approach seems more likely to succeed.
I asked Karr Ingham, a respected petroleum economist who serves as the president of the Texas Alliance of Energy Producers, if he thinks Trump and his administration would seek to repeal the Inflation Reduction act in full. Ingham said: “I certainly hope so.” Specifically, Ingham pointed to a need to repeal “the methane tax [waste emissions charge] in the IRA, and frankly, much of the spending boondoggle that is the IRA should simply be eliminated.”
Tom Pyle, president of D.C.-based think tank the Institute for Energy Research, said he believes President Trump “absolutely should” pursue a full repeal of that law. “The vast array of subsidies embedded in the Inflation Reduction Act (IRA) is already destabilizing our electricity grid, while the spending further fuels inflation and contributes to soaring government deficits.”
Pyle further notes that Trump has promised an array of tax cuts for working Americans and families and will need to find budget offsets for those. Pyle believes the IRA offers such an opportunity. “Getting rid of subsidies for big corporations in exchange for tax relief on working families is both good policy and good politics,” he adds.
But American Petroleum Institute President Mike Sommers said his group favors retaining at least some major pieces of the IRA, specifically pointing to subsidies for carbon capture and storage (CCS) and hydrogen development. “We’ll advocate for provisions that we support, and we’ll seek repeal of provisions that we think don’t line up with continued production in the states of oil and gas,” Sommers told Politico. This is no surprise given that some of API’s biggest members have already made big bets on both CCS and hydrogen projects.
It is also important to remember that, since the IRA was signed into law in September 2022, renewable energy companies have invested hundreds of billions of dollars into wind, solar and electric vehicles projects, and a big portion of those investments are happening in key Republican states and counties.
Jason Grumet, CEO at the American Clean Power Association, said in a statement that, “Private sector clean energy investment is bringing jobs and economic opportunity to small towns and rural communities across the nation, while hundreds of new factories have come online in states that have seen far too many good jobs move overseas.” Grumet also pointed to the fact that quite a lot of investment into both wind and solar took place during Trump’s first term in office even without the added incentives from the IRA subsidy and tax incentive regimes, adding that ACPA and its members are “committed to working with the Trump-Vance administration and the new Congress to continue this great American success story.”
There is little question the Trump administration will take a hard look at many of the IRA provisions, but political realities combined with the billions already invested based on the continuation of these programs makes a full repeal seem highly unlikely.
David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.
Economy
Hydrocarbons Are The Backbone of Global Progress
From the Frontier Centre for Public Policy
By Ian Madsen
The use of hydrocarbons is a necessity for modern life.
Climate Crusaders claim that our society could do without oil and natural gas by proceeding to a Utopia of ‘Net Zero’ by 2050, extracting CO2 (carbon dioxide) emissions from the atmosphere. However, as the Canadian Energy Centre notes, that cherished goal cannot be realized. This is true of fueling transport, heating or electric power, and all other uses of hydrocarbon fossil fuels.
People use oil and natural gas constituents for more than just burning. They use them in every sector of the economy, including military equipment and non profit organizations such as universities and hospitals.
The main component is ethane, C2H6, a ‘natural gas liquid’, extracted from raw natural gas. Ethane is then converted to ethylene, a versatile building block for many other chemicals, Other natural gas liquids, such as propane and butane, are generally used as fuel, in petrochemical production, and as some oil components.
Ethylene is used in various plastics, textiles, detergents and antifreeze. Plastics are used for containers, in countless household and industrial products, and tubing, filters, surgical masks, gloves, gowns, bandages, disinfectants and other medical products. Petrochemical-sourced materials are in the outer casing of medical devices and their components– important instruments such as blood diagnostics machines, DNA sequencers, MRI devices, ultra-sound and CAT and PET scanners.
Styrene, an ethylene end-product, makes synthetic rubber in tires. Synthetic rubber and related products are vital for the gaskets, seals, hoses and tubes in internal combustion, jet and diesel engines. Diesel engines are used in long-distance trucks bringing food to supermarkets. They also power excavating equipment that mines ores to refine into metals, fire trucks, and other machines, such as combines and tractors, which are vital to agriculture.
Petrochemicals also go into polymer fabrics such as polyester, spandex, acrylic and ‘breathable’ fabrics used by themselves or with ‘natural’ materials such as wool, cotton, silk and linen to make a great variety of items like clothes, underclothes, athletic wear, waterproof or winter jackets, hosiery, belts, handbags, upholstery material, furniture coverings, lawn and garden furniture, slope-stabilizing geotechnical fabrics, retractable arenas’ roof coverings, bedding materials, curtains, drapes, and tablecloths.
The same for the construction industries. Such products include paints, solvents, lacquers, countertops, knobs, flooring, adhesives, abrasives, pipes, plumbing and lighting fixtures. Two major insulation products builders and renovators are compelled to add to homes and office buildings make use of petrochemicals: polyurethane foam and styrofoam. Plastics go into the insulation’s outer sheath and for house wrap.
Plastics and related synthetic materials are also used in the latest generation of high-insulation windows, solar panels and wind turbines. Hence, petroleum based products are crucial to climate crusaders’ goal of lower energy consumption.
Plastics indeed add to the garbage volumes people generate. But plastic trash is manageable. Current recycling programs are ineffective, says the journal Nature. Despite rampant alarmism, waste-to-energy plastic destruction, as is bacterial digestion, is a viable alternative.
Petrochemicals and plastics make modern life possible. While substitutes are now under development, they are unlikely to become common anytime soon. So forbidding plastics would be detrimental, especially for emerging economies. Petrochemicals and plastics derived from hydrocarbons are crucial to making less-developed nations healthy and prosperous. Depriving them of that opportunity would be cruel and unnecessary.
Ian Madsen is the Senior Policy Analyst at the Frontier Centre for Public Policy
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