Common Sense Energy: Elon Musk is selling ice to Eskimos
Your Weekly Dose of “Common Sense“ Energy News
The Empowerment Alliance
In response to the Biden Administration reportedly considering a ban on crude oil, a bipartisan group of House members signed a letter noting their concern that a ban would further burden the domestic oil and gas industry and the larger economy. This move would unquestionably decrease U.S. competitiveness in the global market and give more leverage to adversaries such as China and Russia. The years following the repeal of the ban of crude oil exports in 2015 cumulatively resulted in over a 500% increase in exports.
Led by Representative Roger Williams (R-TX) and Representative August Pfluger (R-TX), over 60 members signed this letter urging the President to shift his attention to the “issues facing everyday Americans who are paying more to fuel their cars and heat their homes.”
The Bottom Line: At a time when America’s role as a global energy superpower is under threat from the Russians and Chinese (and the President), banning crude oil exports would be extremely foolish. A bipartisan group of legislators acknowledged that in their letter to President Biden.
In typical Elon Musk fashion (promoting his own best interest), he recently advocated against electric vehicle (EV) subsidies included in President Biden’s “Build Back Better (or Broker)” plan. His company, Tesla, recently broke the trillion dollar market cap threshold and has a higher valuation than the next 5 automakers combined. So, it’s no surprise that he is lobbying against his competition receiving subsidies that would threaten his market share. It’s worth noting that Tesla has benefited from billions in government subsidies since its inception.
However, there is some common sense in what he says. In terms of manufacturing costs, EVs are not competitive with their internal combustion engine counterparts. In other words, they cost too much to make and thus price themselves out of the market for most Americans.
While the BBB plan does make available a substantial subsidy for EV purchases, there are currently zero (0) EVs being produced that qualify for the proposed full $12,500. The Chevy Bolt “will qualify, but there’s one massive caveat, due to battery fires, the Bolt EV and Bolt EUV are not currently for sale, as GM isn’t even producing them at this time.”
The Bottom Line: Elon Musk may be looking out for himself but he is not wrong. The government should not be intervening in the free market, especially against consumers’ better interests. That’s what EV subsidies do.
Louisiana Governor John Bel Edwards recently highlighted the Venture Global LNG plant for the 1,000s of American jobs it will create. Not only that, the deal that Venture Global struck with Chinese company Sinopec will help reduce global carbon emissions.
Energy demand is so high in China, that the government is considering building more coal fired plants (color us shocked). As we all know, Chinese coal production is already hindering global efforts to reduce emissions.
Luckily, the deal with Venture Global will provide a clean source of energy to plants in China that will benefit the whole world. In the words of Venture Global CEO, Mike Sabel, “The larger that gas deals are, with anybody, the more you are directly reducing future potential CO2 emissions.”
The Bottom Line: In a great move for Louisiana oil and gas workers, producers, consumers, and the environment, Venture Global LNG inked a record deal to supply China with clean, affordable natural gas.
For the first time in a long time, Americans are shocked to see that the price of gasoline has gone down, albeit modestly.
The going rate for a gallon of gas is currently $3.33, down 4 cents from last week. Patiently waiting for the DCCC post another graph since we’ve now doubled our savings!
FERC Virtual Commission Meeting: On Thursday, December 16, the Federal Energy Regulatory Commission will hold a virtual commission meeting.
It’s the holidays… not much going on inside the Beltway.
COMMON SENSE QUOTE OF THE WEEK
“Affordable, clean, and abundant energy is the birthright of every American.”
– Rep. Buddy Carter (R-GA), explaining why he signed TEA’s Declaration of Energy Independence