In the Pipeline: 8/2/12

Charlie Drevna says it pretty well.  While we are dallying with ethanol and other nonsense, the Chinese are investing in petroleum assets all over the planet, including Canada. American Products. American Power. (8/1/12) reports: “In addition to hurting America’s farmers, this year’s record drought has exposed another great flaw with EPA’s renewable fuel standards. Not only do EPA regulations force American consumers to purchase more expensive fuel that generates lower mileage per gallon, these regulations now threaten to consume 40 percent of our nation’s corn crop at a time when the USDA has designated more than half of U.S. counties as ‘disaster areas’ because of the drought,” Pyle said.

See, once you accede to small tyrannies, they tend to become larger tyrannies. And, yes, I am talking to those of you who are toying with the idea of an energy tax. Fraser Coast Chronicle (8/1/12) reports: “A FITNESS club that claimed the carbon price would drive up the price of its gym memberships has been fined $6600 by the Australian Competition and Consumer Commission.”

Leaving aside for a moment that the sources of their electricity is easily two-thirds coal, natural gas, or nuclear (no one buys wind on the spot market), how much would you like to bet that most of the rest is hydropower?  For those scoring at home, the environmental community does not count that as “renewable” (too affordable and reliable). Facebook (8/1/12) reports: “Today we’re sharing our 2011 carbon footprint, energy mix and energy use for our data centers and global offices. We’re releasing this data because we believe in the power of openness, and because we hope that adding another data point to our collective understanding of our industry’s environmental impact will help us all keep improving.”

When brave people speak truth to power, it helps others find their own bravery. Sen. Sessions (8/1/12) reports: “Sessions Debates Boxer At Hearing On Global Warming Regulation”

Everyone needs to be super careful now about what they say on the phone (those who don’t get that should google “wiretapping” and “Congressman McDermott”). Politico (8/2/12) reports: “McDermott (D-Wash.) will introduce a bill Thursday to create a carbon tax that he says will create incentives for long-term changes in the American energy market without harming the economy, and in fact providing much-needed revenues.”

This is fun.  The Administration has to explain why their friends the Europeans are right to tax carbon (does that sound familiar?) while not annoying their friends who are the rich dudes who fly internationally.  I’ll bet they avoid the easy answer, which is, of course, that the EU has lost its collective mind. Politico (7/31/12) reports: “Pressure on the White House to take action against the EU’s plan to mandate emissions trading for airlines is ratcheting up, with the Senate moving to advance a bill on the issue amid high-level international meetings taking place this week.”