Energy Tomorrow Blog
Posted October 4, 2017
Some initial takeaways from this week’s House hearing, during which there was considerable discussion of the U.S. Energy Department’s recent request that a new electricity pricing program be developed by the Federal Energy Regulatory Commission – one that effectively would favor some energy sources over others.First, as we argued twice last week (read here and here), markets – not preferences, mechanisms, subsidies or whatever – should be allowed to select energy sources for power generation, because they reward innovation, promote efficiency, lower prices and work to benefit consumers.
Posted October 3, 2017
Posted September 29, 2017
Earlier this week we wrote about the market perils of government efforts to favor some energy sources over others (“On Energy, Let Markets Choose”). We may as well have been talking about Friday’s U.S. Energy Department request that the Federal Energy Regulatory Commission (FERC) develop a new electricity pricing program that lets some power plants recover the costs of providing that power.Whatever you call these preferential measures – subsidies, mechanisms, credits – they tend to foil the way markets, if left to themselves, reward innovation, promote efficiency, lower prices and work to benefit consumers.
Posted September 26, 2017
We support all-of-the-above energy – the concept that America is strongest and its citizens are best served when all of our country’s energy sources play their part. We’re also for the important role markets play in determining energy sources, because markets reward innovation, spur efficiency, lower prices and work to benefit consumers. That said, a new study that basically argues market-distorting subsidies enjoyed by some energies should be followed by market-distorting subsidies for others makes little sense.
Posted September 21, 2017
For a number of months we’ve been talking about the need for more efficient and predictable federal processes for the permitting of energy infrastructure – including new natural gas pipelines and added capacity. New, bipartisan legislation introduced this week in the U.S. Senate is latest move in that direction.
Posted September 19, 2017
Looking at the benefits of natural gas in a state such as New Jersey – lower consumer costs, jobs, environmental progress – it makes no sense to risk what works for New Jerseyans by handing state subsidies to nuclear plants. New Jersey voters agree: A strong, bipartisan majority opposes the idea in a new poll.
Posted September 7, 2017
As the Texas-Louisiana region continues its recovery from Hurricane Harvey, energy companies are making preparations for Hurricane Irma, which the National Hurricane Center projects could make landfall in Florida on Sunday. The big issue in Florida is consumer access to fuel. Companies are working with state and federal officials to meet needs.
Posted September 6, 2017
The U.S. Energy Information Administration (EIA) reports on rising gasoline prices in the wake of Hurricane Harvey and notes that the storm’s impact on prices is similar to the big hurricanes of 2005, Katrina and Rita. … EIA’s report underscores a number of points we’ve been making about the oil supply chain, of which the Texas-Louisiana region is part – especially the section of that chain that shows the path of refined products from refineries to retail outlets – and the need for patience as processes come back online.
Posted September 5, 2017
Before then-Hurricane Harvey first made landfall, we discussed how mega-weather events historically have impacted the regional/national oil supply chain and supply levels in the marketplace. The uncertain path of Hurricane Irma will drive continued conversation about storm effects on refineries and other energy infrastructure and the potential for market impacts around the country. That’s the context for some basics about the fuel marketplace and the processes that bring finished consumer products from refineries to retail outlets.
Posted August 15, 2017
We’ve posted quite a bit recently about the need for streamlining the federal permitting process for energy infrastructure (see here and here). An API study earlier this year estimated investments in needed natural gas and oil infrastructure could total more than a trillion dollars and potentially generate more than 1 million jobs through 2035. That’s a lot of economic potential linked to infrastructure – and in that context, President Trump’s new executive order modernizing and bringing greater accountability to the federal permitting process certainly is welcome. It coincides with release of a new study, for North America’s Building Trades Unions (NABTU), detailing the jobs and economic impacts of energy infrastructure construction.