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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