The mid-Atlantic may be getting back into the game

May 31, 2017 · Posted in Business and industry, Campaign 2018, Delmarva items, Maryland Politics, National politics, Politics, Radical Green · Comments Off on The mid-Atlantic may be getting back into the game 

This is one of those posts it took me a few days to write as life intervened, but it turns out to be a happy accident in this case.

While I’m certainly not been the biggest fan of Donald Trump as President overall, he has had his moments. Today he’s given Radical Green a conniption fit just by announcing he will make a formal declaration on whether we will remain in the Paris Climate Agreement tomorrow afternoon. It’s expected he will decide to withdraw, but there’s also a school of thought that believes it’s just a negotiating ploy to give America a better bargain than Barack Obama negotiated.

In the meantime, it looks like another of those moments may be the rebirth of something that was strangled in the crib during the last administration when they overreacted to the comparatively rare Deepwater Horizon disaster by eliminating the prospect of oil exploration off the mid-Atlantic coast.

In order to get to that point, though, a necessary step is to do seismic surveying. Remember when the environmentalists had a cow awhile back because they were talking about doing this for oil exploration, and it got everyone’s knickers in a wad all up and down the coast? Well, it turns out doing this can serve a lot of other interests as well, at least according to Interior Secretary Ryan Zinke:

“Seismic surveying helps a variety of federal and state partners better understand our nation’s offshore areas, including locating offshore hazards, siting of wind turbines, as well as offshore energy development,” said Secretary of the Interior Ryan Zinke. “Allowing this scientific pursuit enables us to safely identify and evaluate resources that belong to the American people. This will play an important role in the President’s strategy to create jobs and reduce our dependence on foreign energy resources.”

The last G&G seismic data for the Mid- and South-Atlantic Outer Continental Shelf (OSC) were gathered more than 30 years ago when technology was not as advanced as today. Aside from providing data on potential offshore oil and gas resources, seismic surveys are also used to site offshore wind structures, locate potential seafloor hazards, locate potential sand and gravel resources for beach replenishment activities, and locate potential archaeological resources. Data from seismic surveys also assists the Department in determining Fair Market Value of offshore resources.

It was also over 30 years ago that a series of exploratory oil wells were drilled and capped off the New Jersey and Delmarva coastline, with the closest to us being about 80 miles ESE of Ocean City. At the time it was determined this was essentially a dry hole, but the exercise was useful as a study of the ocean floor and substrate below. So if the same is true now, I wonder why the environmentalists are so afraid of exploratory drilling and seismic surveying? Maybe because they know as well as I do that there’s a significant amount of oil out there, and it would keep the price of oil affordable enough to undercut the subsidies needed to keep renewables competitive?

And last week’s update from Energy Tomorrow was doubly interesting because not only did it have the release regarding the seismic surveying, it also had a small news item that pointed to a new, soon-to-be-released (and peer-reviewed) three-year study that concluded fracking has no effect on groundwater. (Are you listening, Larry Hogan? There’s still time to reconsider your foolish ban on fracking in this state before your election next year.)

Of course, the study authors did have a caveat to their findings:

In contrast to groundwater samples that showed no evidence of anthropogenic contamination, the chemistry and isotope ratios of surface waters (n = 8) near known spills or leaks occurring at disposal sites mimicked the composition of Marcellus flowback fluids, and show direct evidence for impact on surface water by fluids accidentally released from nearby shale-gas well pads and oil and gas wastewater disposal sites.

Now I know the Radical Green folks will be going “SEE! SEE! I BET YOU CAN LIGHT THAT WATER ON FIRE!!!” However, it seems to me one could easily have the same contaminating type of effect from a sanitary sewer overflow, underground tank leak, or EPA incident. The key words are “accidentally released,” and companies that want to stay in the business have a duty and legal obligation to be as careful as possible.

But this blows away one key argument from fracking opponents, not that they are much for using logic anyway.

With the right mindset and private-sector infrastructure investment, this region of the country could finally be energy self-sufficient on its own. The job created could be yours.

Backtracking on fracking

Western Maryland is blessed with an enormous amount of cleaner burning natural gas and we need an all of the above approach to energy. I am concerned that there has been a knee-jerk reaction against affordable energy production in our state. Maryland is definitely behind the curve because this administration has decided to politicize the issue rather than take a balanced approach to ensuring we have access to clean and affordable energy sources to power our homes and businesses and grow our economy.

States throughout the country including our neighbors develop their natural gas resources safely and efficiently. Many of these states are realizing an economic boom through gas and oil exploration and are working in concert with groups like the Natural Resources Defense Council to harness these vast resources of domestic energy in an environmentally sensitive way.

Larry Hogan, in response to a WYPR-FM candidate survey, May 2014. (Emphasis mine.)

Three years later, western Maryland is still blessed with an enormous amount of cleaner-burning natural gas, but on Friday Governor Hogan decided it would be better to leave this valuable resource in the ground rather than create jobs and economic opportunities for a section of the state that lags behind the rest of Maryland when it comes to those two very things.

Perhaps we should have seen this coming, though: the temporary moratorium that was in place stemmed from a bill that Hogan allowed to become law without his signature rather than veto it back in 2015. The bill, which as originally introduced was laughably intended to “protect our health and communities,” was amended from a ban extending to 2023 to a prohibition intended to last until October of this year, when the Maryland Department of the Environment was to have regulations in place. But, as Governor Hogan noted in his press conference announcing the new fracking ban, Maryland envisioned the most stringent regulations in the nation – a roll of red tape that would have amounted to a de facto ban if enacted.

And to illustrate the political pressure Radical Green can put on wobbly members of the GOP, bear in mind that the original third reader vote on the 2015 House bill had 45 opposed, but that number whittled down to 33 once the Senate version passed and the House bill (as amended to match the Senate version) went to third reader. The wobblers who changed their votes were Delegates Anderton, Afzali, Beitzel, Carozza, Krebs, Malone, McComas, Miele, Shoemaker, and West. (This list is ten because two Delegates who voted “no” originally were absent the second time, but Afzali changed her vote after the fact to be truly gutless. Interestingly enough, Delegates Anderton, Carozza, Krebs, and Shoemaker all changed back three days later when the Senate third reader came to the House while Delegate Saab opted to join the dark side.) Conversely, the Senate only had two votes correctly in opposition all along, Senators Hough and Ready.

Now we can add Larry Hogan to the list that has wobbled and fallen – this despite a mountain of evidence that hydraulic fracturing, which has been ongoing for over six decades, is safe when done properly. Even the EPA, which put out a final report in the waning days of the Obama administration, noted they found scientific evidence that hydraulic fracturing activities can impact drinking water resources under some circumstances. Yet many of the circumstances they point out could occur at any chemical plant, and they note:

Data gaps and uncertainties limited EPA’s ability to fully assess the potential impacts on drinking water resources locally and nationally. Because of these data gaps and uncertainties, it was not possible to fully characterize the severity of impacts, nor was it possible to calculate or estimate the national frequency of impacts on drinking water resources from activities in the hydraulic fracturing water cycle.

So should I point out again that over 2 million wells have been hydraulically fractured over the last six decades without incident? It seems to me that past performance should be a very good predictor of future results, particularly as the technology advances. And if you read the report, you’ll note that the uncertainty of cause even extends to those limited, rare incidents blamed – many times falsely – on fracking and most publicized by Radical Green.

No one denies there is risk with hydraulic fracturing – just as there are documented issues with low-frequency noise and impacts on bat population with wind turbines and potential for environmental impact as more and more solar panels are spread over the landscape to significant effect – but the rewards from fracking, as measured by both local economic benefits and the lessening of reliance on foreign energy supplies, have been found to outweigh the risks in nearly every jurisdiction where fracking is possible, while the recalcitrant others (Maryland and New York) have believed the hype over the facts.

While Maryland is a small part of the Marcellus Shale formation that has produced the resurgent energy industry in a region that first benefitted over a century ago from an oil boom – there’s a reason we have motor oil from Pennzoil and Quaker State and it’s not because the brand names are cute – this is a time when the domestic oil and natural gas industry is in a holding pattern. Crude oil prices in the $40-50 a barrel range and a relatively constant balance of natural gas supply and demand means that Maryland missed the boat by about a half-decade in the current cycle, but an increased potential in natural gas exports – coupled with a multi-billion dollar investment in Maryland’s Cove Point facility for LNG exporting that’s slated to come online later this year – means our state would have been in good position to benefit in a few years’ time once natural gas exploration began and delivery infrastructure was put in place. (People tend to forget that part of the equation, too.) But politics, embodied in the baseless fear caused by a noisy environmental lobby, ruled the day Friday.

Allow me to let you in on a dose of common sense: there’s no way in hell Radical Green will give Larry Hogan any credit for what he did on fracking come election time. You can bet your bottom dollar that they will flock to whoever the Democrats end up anointing in their primary because their main goal isn’t a clean environment but to have statists in charge of government. Yes, the rank-and-file who might send a couple hundred dollars to the Chesapeake Bay Foundation every year may really care about the health of the bay, but when the people who benefit most from it are the ones who determine the annual “grade” for the cleanliness of the Bay one has to wonder how much of their thumb is placed on the scale. After all, if the Bay had a grade of A and was pristine H2O, what need would there be for a CBF?

The oil and gas industry doesn’t depend on a government subsidy – they just want a fair and predictable regulatory scheme. But a state which has no problem bending the energy trade by mandating a certain percentage of electricity comes from solar energy and demanding ratepayers subsidize an offshore wind farm seems to have an issue with the source that’s been proven reliable over time and is known as a job creator.

As a ratepayer and voter, I was willing to accept the slight environmental risk of fracking in return for a more prosperous state overall as well as more inexpensive and reliable energy. (And yes, I know that the area in question isn’t one where I live. But if I ever secure a piece of land nearby and someone wants to pay me for the right to use my land to explore for energy resources, I’m glad to oblige. No one has yet assessed the Delmarva Basins on which many of us live for their energy potential.)

In 2014, Allegany and Garrett counties provided almost 1/4 of Larry Hogan’s margin of victory as he carried the duo by 16,466 votes in an election he won by 65,510 votes. Add in adjacent Washington County and that number becomes 35,274 votes, or over half his victory margin. At the risk of losing thousands of votes in that region, Larry Hogan has acquiesced to an environmental lobby that’s not going to give him any credit, any dollars, or any votes for the decision he’s made.

I suppose Larry Hogan thinks he’s got an all-of-the-above electoral strategy, too. But at a time he could have changed Maryland for the better, he instead foolishly chose to surrender to the naysayers.

Thoughts on renewable energy and handouts

February 11, 2017 · Posted in Business and industry, Delmarva items, Maryland Politics, National politics, Politics, Radical Green · Comments Off on Thoughts on renewable energy and handouts 

With the whole Trump transition, controversy over various nominees, and other distracting background noise, there are a lot of subjects which have been placed on the back burner – one of them is renewable energy.

I noted a few days back that two pipelines stalled under the previous administration were kicked back into gear once Trump came into office, but at the very end I alluded to two battles shaping up in the Maryland General Assembly. One was the overturning of Governor Hogan’s proper veto of the “sunshine tax,” which I discussed a lot on the Facebook page of the Maryland Climate Coalition (a motley crew of environmentalist wackos, leftist faith-based groups, and a union or two.) The other is their misguided attempt to ban fracking in the state (SB740/HB1325) which has 23 of the 47 Senators as co-sponsors and over 60 members of the House of Delegates.  (Think of the sponsor lists as a handy guide for voting for their opponents in 2018.)

A couple days later, I received an e-mail from someone at the National Council for Solar Growth (NCSG), which I gather is a non-profit because she wrote “We’re in a dash to get as much exposure as possible in fear that our funding may soon be pulled. :(” According to their website, they are a 501 (c)(3) organization “with a mission to educate homeowners and businesses about the economic and environmental benefits of PV solar,” and some of the benefactors listed are the Departments of Energy and Housing and Urban Development, along with the Global Solar Council and PACENow, which is a financing mechanism that adds an assessment to your property tax bill.

One thing that is worth reading on their website is a case study on return on investment, using a home in Massachusetts as an example. This family spent $55,000 on a 10 kW system, which is probably double the amount some homeowners would require. But once you knocked off rebates, tax credits, solar renewable energy credits, and net metering, supposedly the cost came down to just under $30,000. Realize, of course, most of this “savings” is a subsidy by state and federal governments. In Maryland’s case, the “sunshine tax” that Hogan vetoed would increase the number of solar renewable energy credits utility companies have to purchase – basically they created an artificial market where none existed. In the case of this Massachusetts family, their upfront cost was defrayed by $3,725 and it would continue at that pace for another nine years.

All told, the family would put in about $30,000 but taxpayers and ratepayers would kick in $54,750 – $21,225 up front and $33,525 over the next nine years. The case study also said the family was receiving income of about $350 monthly from the utility company for net metering. It seems like a sweet gig, which is probably why I see Solar City trucks all over the place. But would they be as prevalent if the public money spigot were shut off? I think not, and remember our friend was fretting about NCSG losing their funding. The market may not be sustainable at this point, nor will it become so. Over time, the panels will begin to lose efficiency and may not end up saving them anything.

And then I started thinking about some of those who have been financing the Left over the years, particularly a “green energy” guy like Tom Steyer. Instead of working to mature the market and taking the risks inherent in building it while allowing people to choose whether they wish to participate or not, those financing Radical Green have instead been backing the idea of forcing people to adapt via government fiat. Don’t want to buy a solar energy system for your house? Well, we will just make the utility companies pay for it and they’ll just pass the cost onto you. Can’t find enough private financing to build the market? We’ll just lobby for our own carveouts and earmarks in the name of “saving the planet.” Instead of assisting those interested, they impose their preferences on everyone.

I think a great example of this is the electric car. Once upon a time, way back when, there were rudimentary electric cars produced. But people found it was cheaper and easier to use the internal combustion engine, and the American love affair with the automobile began. As opposed to mass transit, for one thing the automobile equates to freedom of movement: you are not at the mercy of waiting for the next train or bus nor are you restricted to going only to places they serve.

So I suppose it’s a concession from the Left that they decided electric cars are worth an “investment.” The problem is that they aren’t necessarily suited for freedom of movement in the respect that they have a limited range – it’s almost like you have a leash on yourself unless you know of places you can charge up, and that’s not even really an option because, as opposed to five or ten minutes at the local Wawa filling up, you would need at least a half-hour to charge enough for 90 miles. But the government is still trying to bring that market up to speed, to turn a phrase.

Consider the Chevy Bolt, which GM bills as an all-electric vehicle with a range per charge of 238 miles. It’s built on the same platform as their sub-compact Spark, but instead of setting you back about $17,000 as a Spark would a Bolt retails for $37,495. (Some of that is returned in a federal tax credit of $7,500 – again, no one is giving tax credits on the regular Spark. My older daughter and son-in-law would love that, since they both own a Spark.) But to do things right, you would need to install a home charging station, which costs about $1,000 – of which 30% is rebated in another federal tax credit. It requires at least 40 amp, 240 volt service so a rule of thumb is that you will use about 30 kWh to go 100 miles. Driving 1,500 miles a month (not uncommon around here) and that means additional electrical consumption of 450 kWh, which is about 50% of a typical home’s usage for a month. So much for net metering.

So let’s recap: you’re using far more electricity, limiting your range of motion, and costing taxpayers about $8,000 for dubious gain. (And I haven’t even discussed how they get the materials for the battery – hint: it’s not very eco-friendly.)

In essence, what has been going on for the last thirty years is that we have transferred billions of dollars from hard-working taxpayers to those who profit from a belief that mankind can save their planet from the scourge of climate change, which is laughable on its face. As I have said for years, I have no real issue with energy efficiency but that should be sought on a market standpoint, not because we are forced into it or made to pay for it. There are certain things which create abundant energy quite cheaply and reliably: coal, oil, and natural gas. At one time – before my time – we were told (falsely, as it turned out) that nuclear power would be so cheap they wouldn’t have to meter it.

With a government that’s spending $4 trillion a year, isn’t it time to let these giveaways to Radical Green go away? And before you argue about Big Oil and its “subsidies,” read this. America’s economic engine needs reliable and inexpensive energy to run at peak efficiency, and on this cloudy day with relatively calm winds I’m not seeing much from those other sources.

  • I haven't. Have you?
  • Categories

  • Archives

  • Link to Maryland Democratic Party

    In the interest of being fair and balanced, I provide this service to readers. But before you click on the picture below, just remember their message:

  • Part of the Politics in Stereo network.