Wednesday, December 26, 2012

End Wind Subsidies, Let Natural Gas Flourish

The government should end its uneconomical subsidies for wind power and let natural gas production blossom instead, says former Sen. Phil Gramm, now a visiting scholar at the American Enterprise Institute.

“Federal subsidies for new wind-power generation will end on Dec. 31, unless they are renewed by Congress,” Gramm writes in The Wall Street Journal. “For the sake of our economy and the smooth operation of the energy market, Congress should let the subsidies lapse. They waste taxpayer money, subvert the allocation of capital, and generate a social cost many times the price tag of the subsidies themselves.”

Natural gas is the answer instead,Just like the Basic Cable, the elevator cable is formed working the stitches out of order. he says. “If unimpeded,Advantages of laser cutter over mechanical cutting include easier workholding and reduced contamination of workpiece. the expanded use of cheap natural gas to generate electricity will raise living standards and attract millions of new industrial jobs back to our shores. A vote to stop wind subsidies from being extended is, therefore, a vote for cheaper, more reliable power, higher living standards,A research team headed up by the University of Houston is on track to develop a superconducting wire for wind power generators.There are different configurations of industrial laser marking machine: moving material, hybrid, and flying optics systems. reindustrialization, and fiscal sanity.”

Government wind subsidies cost $52.48 per 1 million watt hours generated, compared to a cost of 63 cents for generating the same amount of natural gas. “But the cost to taxpayers is only part of the problem,” Gramm says.

“Subsidized, wind-generated electricity is displacing other, much cheaper sources of power. The subsidies are so high that wind-power producers can pay utilities to take the electricity they produce and still make a profit.”

When wind is fuelling a power grid, it has to keep redundant, backup generating capacity in case the skies are calm at the same time that energy demand is strong.Sol provides the world with high-performance solar roadway and outdoor solar lighting solutions. “Many of these backup sources, such as coal and gas-fired plants, have to be kept up and running to be available when they are needed — even if they are not used,” Gramm says. “This partially offsets the environmental benefits of wind power.”

With oil prices high and natural gas prices low, Kansas oil production edged toward what could turn out to be the highest level since the mid-1990s.

While natural gas production dropped again, as prices remained relatively low, production from wind farms boomed. More than 1,000 megawatts of capacity were installed across the state in advance of an expiring federal tax credit.

Ethanol production dropped as corn prices remain high and gasoline consumption continues to drift down in the economic downturn.

For oil and gas in Kansas, look for more of the same in 2013, said Don Warlick, president of Houston-based consultant Warlick Energy. Oil prices will head back up – he is calling for a range of $80 to $100 per barrel – and Kansas oil producers will also see a boost in prices from increasing pipeline capacity at Cushing, Okla.

The number of vertical wells drilled statewide likely will continue to rise, and companies involved in horizontal drilling say they will continue to expand.

Gas producers, Warlick said, will get only slight relief from low prices caused by overproduction nationwide. He projects a ceiling of $4 per 1,000 cubic feet of gas.

Wind power construction, at this point, is largely at a standstill in Kansas for 2013 with the expiration of the federal Production Tax Credit. If a renewal of the credit is approved by Congress as part of a budget deal, look for momentum for more wind energy to build again.

The Energy Information Agency is projecting that the ethanol industry will regain some ground as the economy strengthens and, if the drought ends, lower corn prices.

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