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Category Archives: Oil Companies

Texans Tilt at Windmills - Take Care Cries Sancho!

Don Quixote beware, West Texans are erecting giant wind farms as quickly as they can.  In order to move the electricity that is being generated, more than $4.9 billion is being spent on an ambitious plan to set up transmission lines to carry the wind power generated  to surrounding urban areas.

The newly installed lines will be able to handle 18,000 MW, currently more than three time the amount of power currently being generated through existing wind farms.  The new capacity will provide the infrastructure to greatly increase the number of windmills, and get that energy to customers who are located far from the actual power production.  The Public Utility Commission will pay for the expansion with a $3-$4 surcharge on customer’s existing electric bill.

Texas estimates that they could produce over 500,000 MW solely on wind power.   That type of capacity would equal almost 5 times Texas’s current electrical usage.  If all goes as planned, the excess capacity could be sold off to other neighboring states, or even into Mexico.   New windmills are being installed at a rapid rate, and has more than tripled in the last three years.

Boone Pickens is driving the charge in Texas, as the former oil man is investing over $10 Billion in the Mother of all Wind Farms.  He recently claimed, “”I have the same feelings about wind, as I had about the best oil field I ever found.”   This new wind farm would consist of over 2,00 turbines spread across 200,000 acres, and would have a capacity of between 2-4,000 MegaWatts.

The quaint windmills of Don Quixote’s time are now being replaced by giant turbines that stand as high as 20-story buildings.   Although Sancho’s cry of warning would now be best heeded by the local birds and bats.   However, the National Research Council, the research arm of the Academy of Sciences, recently has reported that wind turbines barely have any effect on bird populations.  They claim very small numbers of deaths, but have warned that bats may be more at risk.  Apparently these animals seem to be attracted to the windmills, although the reason why is unknown.

Once this project is completed, Texas will become the largest generator of clean, renewable, wind power.   Not only will this project create thousands of new jobs here in the US, it will also be used as an example of what can be accomplished in a short time frame.  It may take Texans a little time to get used to wind mills out in the field instead of oil wells, but this is great for Texas and for the US.

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Fossil Fuel Use to Grow

According to the Energy Department, despite persistently high oil prices, global energy demand will grow by 50 percent over the next two decades with continued heavy reliance on environmentally troublesome fossil fuels, especially coal and oil.

The projections by the Energy Department’s statistical agency said that without mandatory actions to address global warming, the amount of heat-trapping carbon dioxide flowing into the atmosphere each year from energy use will be 51 percent greater in 2030 than it was three years ago.

“Fossil fuels … are expected to continue supplying much of the energy used worldwide,” the Energy Information Administration report predicts, in spite of the growth of renewable energy sources, especial wind and biofuels.

“Global energy demand grows despite the sustained high world oil prices that are project to persist over the long term”. Oil could cost as little as $113 a barrel or as much as $186 a barrel in 2030, the analysis concluded.

This seems to be common-sense information, who would guess that energy use would not increase in the future? What seems even more obvious is that we need to start taking strong steps towards isolating the US from the rest of the world in terms of energy supply. We need our own supply of energy, preferably renewable or nuclear based, that will shield us from the volatility of the global energy market.

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68 Million Acres

So, the Dems would have you believe that the oil companies are sitting on land, hording all the oil. Well, you know why they are not producing oil from those 68 million acres? Because there is NO oil on that land! Oil companies lease the land, in hopes that when they do geological studies and drill exploratory wells, that they may find oil. If they do, great they pump it out if they can do so profitably. If they don’t find oil, they let the leases expire, which they do within 5-10 years.

The Democrats are using this issue as a smoke screen. Instead of focusing on the real issue, they are playing games with the future of our country.

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Splash and Dash - US Taxpayers Lose Once Again

US Taxpayers are getting screwed out of millions of dollars by a biofuel subsidy that helps to lower gas prices in Europe. Last year this subsidy cost the American taxpayer $300 million, and it’s projected to cost the American taxpayers $600 million in 2008.

The scam is known as “splash and dash.” It consists of an existing $1 subsidy for every gallon of biodiesel fuel blended with regular diesel in the United States. Biodiesel is produced abroad and shipped to the United States, where it’s blended with just a “splash” of regular diesel. For example, a tanker-load of about 9 million gallons of foreign biodiesel requires just 9,000 gallons of American diesel to make it qualify for the subsidy. But every gallon in the shipment receives a $1 subsidy that is paid by the US Government. The ship then makes a “dash” for Europe.

Each load of biodiesel, made from South American sugar cane or Asian palm oil, generates $9 million in tax credits for the importer/exporter. Congress and the National Biodiesel Board know the loophole is being exploited, they can see that the US is exporting much more biofuel than it is producing. But, they claim that they are unable to identify the companies that are “stealing” our money.

We need to immediately end “splash and dash” by eliminating the subsidy for any biodiesel exported from the United States. We all should be outraged that we are subsidizing Europe’s use of biodiesel at our own expense.

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