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Energy

A full-throated endorsement of the Secretary of Energy nominee Chris Wright.

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In Praise of Chris Wright

Like others, we have watched with curiosity as President-elect Donald Trump has rolled out his nominees for the various leadership positions of his administration. Whatever your views on any particular candidate, an undeniable pattern has emerged. First, Trump is selecting people who strongly support the specific campaign promises on which he ran, and those chosen are vowing to implement them to the letter. Second, lack of prior government experience seems to be an attribute rather than a detriment. Finally, the helminthoid establishment in Washington appears utterly ill-prepared for the deluge that is set to befall them, and Trump can expect significant bipartisan resistance as it dawns on lawmakers just how literal he was being on the campaign trail.

Of particular interest to this publication were the President-elect’s positions on energy. During his many rallies and speeches, candidate Trump vowed to be extremely supportive of domestic energy production, promising to unleash a wave of new investment in oil, natural gas, coal, and nuclear energy. He also committed to ending participation in various international climate change initiatives, much to the horror of those on the progressive environmental left. The shackles of federal regulation would soon be lifted, he said, and the US would come to dominate the global energy scene once again.

Against this backdrop, President-elect Trump electrified those in industry by nominating Chris Wright to the position of Secretary of Energy on Saturday. We can think of no better person for the job.

Consider his impressive biography. Wright earned an undergraduate degree in mechanical engineering from the Massachusetts Institute of Technology (MIT) and did graduate work in electrical engineering at both MIT and the University of California, Berkeley. He was a pioneer in the development of US shale gas resources, creating enormous value for shareholders over the past two decades. He has grown his current company, Liberty Energy, into one of the premier energy industry service providers in North America. Finally, he is an investor in and board member of Oklo Inc., a next-generation small modular nuclear reactor (SMR) company that has seen its market cap soar in 2024.

Things get even more promising when one studies Wright’s policy positions on energy. In early 2024, Liberty Energy published a 180-page policy document titled “Bettering Human Lives,” and we are hard-pressed to find anything to disagree with. The ten “Key Takeaways” from the summary page read as follows:

1. Energy is essential to life and the world needs more of it!

2. The modern world today is powered by and made of hydrocarbons.

3. Hydrocarbons are essential to improving the wealth, health, and life opportunities for the less energized seven billion people who aspire to be among the world’s lucky one billion.

4. Hydrocarbons supply more than 80% of global energy and thousands of critical materials and products.

5. The American Shale Revolution transformed energy markets, energy security, and geopolitics.

6. Global demand for oil, natural gas, and coal are all at record levels and rising – no energy transition has begun.

7. Modern alternatives, like solar and wind, provide only a part of electricity demand and do not replace the most critical uses of hydrocarbons. Energy-dense, reliable nuclear could be more impactful.

8. Making energy more expensive or unreliable compromises people, national security, and the environment.

9. Climate change is a global challenge but is far from the world’s greatest threat to human life.

10. Zero Energy Poverty by 2050 is a superior goal compared to Net Zero 2050.

Couldn’t have said it better ourselves | Liberty Energy

What’s not to like? The first nine of these takeaways are objectively true statements of fact, although few executives of publicly traded companies have had the courage to say them out loud. Wright has consistently done so throughout his career. The last is a brilliant reformulation of the climate change debate, as it forces a consideration of the impact on humans, not just the impact of humans.

Wright’s nomination is sure to trigger vigorous opposition by all the predictable people, and we hope he is well prepared to run the gauntlet of personal destruction that the left will undoubtedly use to derail him. Should he win approval in the Senate, Wright has the opportunity to be a historic and transformational figure. His talent, knowledge, leadership attributes, and track record of success make him more than qualified for the job. Count us among those excited at the prospect.

If you’re interested to hear from Wright himself, listen to this episode of Energy News Beat, featuring a discussion with Wright and yours truly, recorded in March of this year.

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Energy

Guilbeault’s Emissions Obsession: Ten Reasons to Call Time Out on Canada’s CO2 Crusade

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From the Frontier Centre for Public Policy

By Pierre Gilbert

Before we collectively devastate our economies, further reduce our birth rates in a misguided attempt to save the planet, squander trillions of dollars, and halt human progress by making energy both scarce and exorbitantly expensive, it’s crucial to remember that human-induced climate change is not a settled fact, but rather a hypothesis largely unsupported by the history of the climate but supported by climate models that have considerable error built into them.

Canadian Environment Minister Steven Guilbeault recently announced a plan requiring the oil and gas industry to cut CO2 emissions by more than one-third from 2019 levels by 2030. This deadline might seem far off, but it also stipulates that at least 20 percent of light-duty vehicle sales must be zero-emission by 2026, a deadline that’s just around the corner. This is all part of Guilbeault’s strategy to achieve the ambitious net-zero emissions target by 2050.

There are at least ten reasons suggesting that this plan is absurd.

  1. CO2 is Not a Pollutant.

Carbon dioxide is, in fact, a fertilizer crucial for the growth of all vegetation. Higher concentrations of CO2 result in increased crop yields and more productive forests. Healthier forests, in turn, absorb more CO2, providing oxygen in exchange which is essential for the survival of all living organisms including humans.

  1. CO2 is a Trace Gas

During my extensive career as a university professor, I encountered numerous students eager to support policies that might devastate the livelihoods of thousands of men and women who depend on the oil and gas industry, believing these sacrifices would save the planet. Their near-religious zeal was only matched by their stunning ignorance of basic CO2 facts.

Class surveys I conducted showed that almost one hundred percent of my students were unaware that CO2 is a trace gas, with its atmospheric concentration having varied significantly over centuries and even seasonally. Currently, CO2 represents about 0.04% of the atmospheric gases, or approximately 420 parts per million (ppm). By comparison, nitrogen makes up about 78%, and oxygen around 21%.

The best estimates suggest that human activities contribute roughly 4% of the total annual CO2 emissions (16 ppm). Canada’s share of global emissions is approximately 1.5% (0.24 ppm), essentially a rounding error in the total calculation.

  1. Why Alberta and Not China?

It is no secret that Guilbeault harbours a special animosity towards Alberta. His energy regulations appear designed to severely impact Alberta’s economy despite the province being a relatively minor player on the global stage. In contrast, China, by far the largest contributor to global CO2 emissions, builds two new coal-powered (dirty) power plants every week and is the primary beneficiary of Canada’s coal exports. Why doesn’t Guilbeault turn his scornful gaze towards the People’s Republic? Even during his visit to China in August 2023 for climate talks, not only did he overlook that country’s appalling environmental track record, to add insult to injury, while there he critiqued Suncor for recommitting to oil sands development, highlighting a troubling policy double standard.

  1. Watch What They Do, not What They Say

The economic and cultural elites, who incessantly warn of an impending climate catastrophe, seem to contradict their own claims by their extravagant lifestyles. Their opulent residences, frequent use of private jets, and other extravagances reveal a significant disconnect between their rhetoric and their behaviour, suggesting either hypocrisy or a lack of belief in the very crisis they promote.

  1. Magical Thinking

When they purport to compel the oil and gas industry to adopt new technologies, politicians and policymakers indulge in a particularly delusional form of magical thinking. First, the industry is already one of the most innovative sectors in the economy. Second, these individuals demonstrate a profound ignorance of both climate change and the complex challenges of energy production. As is typical of low-information politicians, they seem to believe that all they need to do to enact change in line with their utopian ideals is to snap their fingers or twitch their collective nose.

  1. A Multiplier of Human Misery

All the regulations that politicians like Guilbeault introduce with a regularity that rivals the proverbial cuckoo clock have nothing to do with creating new sources of energy or making energy more accessible and affordable. If they were genuinely concerned about their constituents’ welfare, these politicians would incentivize nuclear energy. But they conspicuously do not. These incessant regulations, taxes, and oppressive energy policies serve one purpose: to inflate energy prices so high that middle-class individuals are forced to drive less, reduce their energy use for heating and cooling their homes, and drastically curbing manufacturing. To the extent that such policies persist, they will impose an increasingly devastating economic burden on the poor and the working class.

  1. Extreme Weather Events

A radical reduction in CO2 emissions will not only lead to a weaker economy and increased poverty, but it will also diminish our capacity to respond to extreme weather conditions, which will occur regardless of the taxation governments impose on human activities.

  1. The Used-Car Salesman Syndrome

You know you’re being conned when a used car salesperson fails to mention the downsides of the vehicle being considered. The same skepticism and caution should be applied to politicians who tout only the benefits of their proposed policies without discussing the costs. Either they are blissfully unaware of these costs, or they believe they will be insulated from the real-world repercussions of their harmful policies due to their status, wealth, or connections.

  1. Anti-Human Perspective

While it’s unwise to gratuitously attribute malicious intent to anyone, the evidence suggests that proponents of radical climate change policies operate from what can only be described as an anti-human perspective. They view human beings as liabilities and parasites rather than, as the Judeo-Christian tradition asserts, the valuable assets they truly are.

  1. A Matter of Debate

Before we collectively devastate our economies, further reduce our birth rates in a misguided attempt to save the planet, squander trillions of dollars, and halt human progress by making energy both scarce and exorbitantly expensive, it’s crucial to remember that human-induced climate change is not a settled fact, but rather a hypothesis largely unsupported by the history of the climate but supported by climate models that have considerable error built into them.

In conclusion, Bjorn Lomborg, the Danish political scientist and founder of the prestigious Copenhagen Consensus Center—an organization renowned for producing some of the most authoritative studies on environmental issues—wisely reminds us that while there are environmental concerns needing attention, it’s questionable whether climate change constitutes an existential crisis that warrants dedicating all our resources at the expense of human life and flourishing.

Pierre Gilbert is Associate Professor Emeritus at Canadian Mennonite University. He writes here for the Frontier Centre for Public Policy.

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Energy

Biden Throws Up One More Last-Minute Roadblock For Trump’s Energy Dominance Agenda

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From the Daily Caller News Foundation

By Nick Pope

The Biden administration issued its long-awaited assessment on liquefied natural gas (LNG) exports on Tuesday, with its findings potentially complicating President-elect Donald Trump’s plans to unleash America’s energy industry.

The Department of Energy (DOE) published the study nearly a year after the administration  announced in January it would pause approvals for new export capacity to non-free trade agreement countries to conduct a fresh assessment of whether additional exports are in the public interest. While the report stopped short of calling for a complete ban on new export approvals, it suggests that increasing exports will drive up domestic prices, jack up emissions and possibly help China, conclusions that will potentially open up projects approved by the incoming Trump team to legal vulnerability, according to Bloomberg News.

“The main takeaway is that a business-as-usual approach is neither sustainable nor advisable,” Energy Secretary Jennifer Granholm told reporters on Tuesday. “American consumers and communities and our climate would pay the price.”

Trump has pledged to end the freeze on export approvals immediately upon assuming office in January 2025 as part of a wider “energy dominance” agenda, a plan to unshackle U.S. energy producers to drive down domestic prices and reinforce American economic might on the global stage. It could take the Trump administration up to a year to issue its own analysis, and Bloomberg News reported Tuesday that “findings showing additional exports cause more harm than good could make new approvals issued by Trump’s administration vulnerable to legal challenges.”

Republican Washington Rep. Cathy McMorris Rodgers slammed the study as “a clear attempt to cement Joe Biden’s rush-to-green agenda” in a Tuesday statement and asserted that the entire LNG pause was a political choice meant to appease hardline environmentalist interests.

Notably, S&P Global released its own analysis of the LNG market on Tuesday and found that increasing U.S. LNG exports is unlikely to have any “major impact” on domestic natural gas prices, contradicting a key assertion of the DOE’s brand new study. Members of the Biden administration were reportedly influenced by a Cornell University professor’s questionable 2023 study claiming that natural gas exports are worse for the environment than domestically-mined coal, and officials also reportedly met with a 25-year old TikTok influencer leading an online campaign against LNG exports before announcing the pause in January 2024.

“It’s time to lift the pause on new LNG export permits and restore American energy leadership around the world,” Mike Sommers, president and CEO of the American Petroleum Institute, said of the new DOE report. “After nearly a year of a politically motivated pause that has only weakened global energy security, it’s never been clearer that U.S. LNG is critical for meeting growing demand for affordable, reliable energy while supporting our allies overseas.”

Anne Bradbury, CEO of the American Exploration and Production Council, also addressed the DOE’s report in a statement, advising the public to be skeptical of Biden administration efforts to play politics with natural gas exports.

“There is strong bipartisan support for U.S. LNG exports because study after study shows that they strengthen the American economy, shore up global security, and advance collective emissions reductions goals – all while US natural gas prices remain affordable and stable from an abundant domestic supply of natural gas,” said Bradbury. “U.S. LNG exports have been a cornerstone of global energy security, providing reliable supplies to allies and reducing emissions by replacing higher-carbon fuels abroad, and it is critical that any study or policy impacting this vital sector should reflect thorough analysis and active collaboration with all stakeholders. Further attempts by this administration to politicize or distort the impact of U.S. LNG exports should be met with skepticism.”

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