Category Archives: Government Revenues

Make The Climate Change Radicals Walk The Walk, Not Just Talk The Talk


Glenn Reynolds, a Tennessee University Law Professor posted in USAToday, where he frequently contributes opinion columns, “ Ban AC for DC “ with the subtitle being “If our rulers think global warming is a crisis, let them be a good example for the rest of us”

goreandhairdryer

 

 

 

Reynolds says:

“In this, I’m inspired by Rep. Lamar Smith, R-Tex., who noticed something peculiar recently. It seems that EPA Administrator Gina McCarthy, who spends a lot of time telling Americans that they need to drive less, fly less, and in general reduce their consumption of fossil fuels, also flies home to see her family in Boston “almost every weekend“; the head of the Clean Air Division, Janet McCabe, does the same, but she heads to Indianapolis. In air mileage alone, the Daily Caller News Foundation estimates that McCarthy surpasses the carbon footprint of an ordinary American.

Smith has introduced a bill that wouldn’t target the EPA honchos’ personal travel, though: It provides, simply, that “None of the funds made available by this Act may be used to pay the cost of any officer or employee of the Environmental Protection Agency for official travel by airplane.”

This makes sense to me. We’re constantly told by the administration that “climate change” is a bigger threat than terrorism.  And as even President Obama has noted, there’s a great power in setting an example: “We can’t drive our SUVs and eat as much as we want and keep our homes on 72 degrees at all times … and then just expect that other countries are going to say OK.”

Reynolds thinks expanding Representative Smith’s proposed legislation would useful as he notes in the following:

  1. Extend Smith’s bill to cover the entire federal government. We have Skype now, and Facetime. There’s no reason to fly to meetings. I’d let the President keep Air Force One for official travel, but subject to a requirement that absolutely no campaign activity or fundraisers take place on any trips in which the president travels officially.
  2. Obama makes a great point about setting the thermostat at 72 degrees. We should ban air conditioning in federal buildings. We won two world wars without air conditioning our federal employees. Nothing in their performance over the last 50 or 60 years suggests that A/C has improved things. Besides, The Washington Post informs us that A/C is sexist, and that Europeans think it’s stupid.
  3. In fact, we should probably ban air conditioning in the entire District of Columbia, to ensure that members of Congress, etc. won’t congregate in lobbyists’ air-conditioned offices.
  4. Speaking of which, members of Congress shouldn’t be allowed to fly home on the weekends. Not only does this produce halfhearted attention to their jobs — the so-called “Tuesday to Thursday Club” — but, again, it produces too much of a carbon footprint. Even if they pay for the travel out of campaign funds, instead of their own budgets, they need to set an example for the rest of us — and for those skeptical foreigners that Obama mentioned.

Reynolds takes a swipe at Leonardo DiCapprio as well. And what about Michelle Obama’s vacations!!!

The full posting is a good read, ( somewhat tongue-in-cheek in some parts.)

Do you think the warmers really believe in this catastrophic global warming stuff? Does not look like it. I think it demonstrates that they are using this to increase the size of the government through regulations (and thus their power.) That was the motivation of the founders of this movement.

cbdakota

Wind Subsidy Defeated In The Senate


misc-wind-power-tower-falling-downThe wind producers Production Tax Credit (PTC) extension was voted down in the Senate. The PTC awards a tax credit of $0.023 for each kilowatt-hour (KHW) produced. The PTC expired at the end of last year. This subsidy began in 1992 with the idea that it was a temporary assist for renewable energy to become competitive with traditional sources of electricity. The subsidy was initially set  at $0.015 per KWH. It is adjusted annually. It has been renewed many times. Twenty-two years of subsidies and the PTC wind and solar are still not competitive.

Unfortunately about half of the States have renewable energy mandates that require the State to buy a certain percentage of its total power from renewable sources. This will keep some amount of renewable power in business.

Wind and Solar produced electricity can’t be reliably scheduled.  Wind doesn’t blow all the time and the sun is on average only available for something in the range of half a day, given no clouds. The nations power grids must balance supply and demand on a moment-to-moment time frame for its customers. Until (and if) a reliable and economic way to store the electricity generated by renewables is developed, fossil fuel generated power back-up is necessary to quickly adjust to changes in supply and demand.

These subsidies allow crony capitalism to exist.   Favored groups are selected and the subsidies allow them to make money. Because the government doesn’t have any money except what they can take from the taxpayers, this means we are the ones that pay. And on a continuing basis the homeowners pay for high priced power.

Well, before we think we have made at least one step toward sanity because the PTC was voted down in the Senate, remember that the advocates of the PTC have found ways to get it renewed year after year. The vote in the Senate was 51 against the PTC and 46 for. Not a big margin. Especially considering that three Republicans voted for its renewal. It will not be renewed if there is a vote on the PTC all by itself. But there will be many opportunities to bundle the PTC into some big bill everyone wants passed.

cbdakota

Political Class Does Not Care If Climate Science Is Wrong


If you are a skeptic you may think that you are winning the science battle with the warmers.  You probably have always thought that in the end you would win that battle and that would settle things.  You were half right, you are winning the science battle but you have not yet deterred the politicians.   The science has never mattered much to them.  The warmer’s programs to combat  “global warming are really the only things that matter to them.  Whether it is Cap & Trade, Carbon tax, or some other scheme, they are for it.  They tell you they are doing this for your own good.  But in fact most of them want greater control of your life and they can do it through taxes and regulations that are at the heart of these schemes.

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IPCC Draft Of The “Summary For Policy Makers” Leaked


The hype around the soon to be released UN Intergovernmental Panel on Climate Change (IPCC) Summary for Policy Makers  (SPM) does make me a little ill.   The last such report was issued in 2007 and it does not seem that the assemblers of the report have learned much in that time.  It is not that they have completely ignored reality but just mostly ignored it.

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CONGRATULATIONS!! Some Rich Californian Thanks You For Helping Pay For His New Tesla


Now the Tesla is a sweet looking car with some impressive stats.  Perhaps not as good as advertised, see this posting, but still right up there with the best.
teslamodelcimages
 And while you may not be able to afford one—early models went for over $109,000 and the new S model goes for about $70,000—some people, wealthy ones anyway, are buying them.  Tesla sold an estimated 9,650 S models by the end of April this year. Things are going so well that Tesla made a profit in the first quarter.

Collapsing Consensus–Next Targets Are The Professional Societies


In my previous posting I wondered when the “consensus” scientists would begin to openly call into question the theory that CO2 is the primary forcing agent driving global warming. The longer the “pause” in global warming continues, (the IPCC head, Dr. Pachuri said the pause is now at 17 years), the harder it must be to steadfastly hold to the CO2 theory. Skeptics largely agree that CO2 is a forcing agent but have maintained that natural forces were probably the dominate force. In my opinion, the Sun is most likely the major forcing agent even though the exact mechanism has yet to be proven.

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Where Are The “Consensus” Scientists Hiding?


Dr Rajendra Pachauri admits that there has been no global warming for 17 years.  Dr Pachauri is, if you don’t know, the leader of the Intergovernmental Panel on Climate Change (IPCC), a branch of the UN.  The IPCC has issued reports on climate change which conclude—- burning of fossil fuels releases CO2 causing a “dramatic” increase in global temperatures.  The IPCC documents have had widespread influence. For example, the US EPA successfully used these reports as the technical justification to declare CO2 a hazardous pollutant that needed to be regulated. The IPCC’s belief is that natural forces are inconsequential.
For the last 17 years, CO2 emissions resulting from fossil fuel burning have increased.  The measurement of atmospheric CO2 has climbed steadily over these 17 years and yet the global temperature has not risen.  Proving that the natural forces indeed are consequential.

State By State Study Shows Unconventional Gas Is A Major Boon For The US Economy


A  previous posting, “Fracked Natural Gas Changing The US Economy”,  discussed the impact that fracked gas (aka, shale gas) is having and will continue to have on employment, investment, natural gas (NG) price (current and future), and Governmental Income in the US.  That discussion was based upon a study by IHS Global Insight that they released in December, 2011, This posting will review the details of a new IHS study released in June 2012 which totals all the sources of  unconventional NG— shale gas, tight sands gas and coal bed methane—and projects the total impact these unconventional NG sources have on the Nation and each of the lower 48 States plus DC.

There are 20 States in the lower 48 that are considered unconventional NG producers.  In addition to the TOP 10 employment producers shown in the chart below, the other ten are Alabama, Illinois, Kansas, Kentucky, Mississippi, Montana, New Mexico, New York, Virginia and West Virginia,  The other 28 plus DC are considered non-producers of unconventional NG.

Let’s begin with employment resulting from the exploitation of the unconventional NG. 

TOP 10 UNCONVENTIONAL OIL PROUDUCING STATES
 EMPLOYMENT CONTRIBUTION  
Number of Workers    
 

2010

2015

2035

State      
Texas

288,222

385,318

682,740

Louisiana

81,022

124,782

200,555

Colorado

77,466

126,525

127,843

Pennsylvania

56,884

111,024

270,058

Arkansas

36,698

53,919

79,723

Wyoming

34,787

45,763

78,792

Ohio

31,462

41,366

81,349

Utah

30,561

36,593

50,839

Oklahoma

28,315

41,763

69,261

Michigan

28,063

37,926

63,380

       
Top 10 total

693,481

1,004,979

1,704,541

Prod States

826,355

1,195,346

2,007,902

       
US Total

1,008,658

1,463,450

2,438,877

 

 

 

 

The order of ranking is based upon the 2010 employment numbers. I have a little trouble with the display as it uses numbers down to the single digits out of millions; however, it does not take away from the forecast of an impressive growth rate.  The “US Total” includes the induced jobs in the non-producing States that benefit from the low-priced plentiful NG.   

IHS uses the following system to develop their results: The analysis of unconventional gas development and its contribution to the US regional economies was conducted using a top-down/bottom-up approach. The contribution was assessed separately for direct, indirect, and induced contributions defined as follow:

• Contributions of unconventional gas are those activities required to explore, produce, transport, and deliver natural gas to consumers or to provide critical supplies or onsite services that support unconventional gas activity.

• Contributions are defined as activities in outside industries that supply equipment, material and services for the development of unconventional gas and its tier suppliers.

• Contributions are the economic effects caused by workers spending their wages and salaries on consumer goods and household items.

Their study forecasts that nearly $3.2 trillion in investments will be made to  develop  unconventional gas  between 2010 and 2035.

The following IHC charts show other effects from their study,

 

CONTRIBUTION TO GOVERNMENT REVENUE
         
        $ million  
   

2010

2015

2035

2010to2035
Producing States

28,034

41,090

71,806

1,255,034

Non-Producing States

5,758

8,246

13,317

243,701

           
US Total  

33,793

49,335

85,123

1,498,734

These monies in this chart are derived from the expected Federal, State and Local tax revenues and from royalty payments.  The last column is the cumulative no. of dollars for the period 2010 to 2035.

US VALUE ADDED      
      $Millions  
   

2010

2015

2035

         
Producing States

118,077

174,037

295,897

Non-Producing States

15,328

22,479

35,831

         
US Total  

135,405

196,516

331,831

     

 

 

 

IHC defines this chart as follows: The commonly used measure of GDP, which is simply the sum of the value added across all products and services produced in the United States, is generally considered the broadest measure of the health of the US economy. Value added to US GDP is defined as the sum of labor incomes, corporate profits, indirect business taxes paid, and depreciation. Annual value added to GDP from unconventional gas activities was more than $133 billion in 2010 and, by 2015, is projected to approach $200 billion. The majority of the value added to GDP—nearly 90%—over the 25-year forecast horizon is generated by unconventional gas production activities that take place in the 20 producing states.

IHC concludes that: Unconventional gas activity is expected to make a significant contribution to all of the economies of the lower 48 states over the next 25 years. Traditional oil and gas producing states like Texas and Louisiana will continue to lead the way in terms of their absolute contributions to the US economy. But many new and emerging energy states will drive much of the growth in the coming years, and the economic activity generated by this increase in unconventional gas activity will also reach well beyond the traditional unconventional producing states.

The full report can be seen by clicking here.

cbdakota

The Ill-informed Bishop And The Wind Turbines


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Offshore Windmills To Save The US Postal Department


Senator Carper  (De Dem) delivered what I believe to be an inane idea in a recent Senate speech. His idea is to build a vast number of offshore windmills.  Then begin to junk the existing fleet of fossil fuel powered mail delivery trucks, buy new all electric trucks and charge them every night using power generated from the offshore windmills.  Vastly overpriced electricity,  I might add.

Watch the video to see Senator Carper in action. I don’t know how much this scheme would cost but I image it would be huge.  Probably enough to sink the post office instead of saving it.

I used to live in Delaware—never voted for Carper, but unfortunately I was in the minority.  Carper beat the incumbent, Senator Roth (of the Roth IRA), in 2000 by a 56% to 44% margin. He defeated Jan Ting by 70% to 29% in 2006.  He is running for a third term in the November 2012.  His opponent will be determined in the September Delaware primary election.

Cbdakota