ON AUG. 21, TEXAS OIL INDUSTRY CEOs gave Mitt Romney $7 million at a fundraiser. Two days later, the Republican presidential nominee announced the most pro-oil, anti-environment energy policy statement in history. What a sham, and what a shame.
The Aug. 23 release of Romney’s energy plan touting the formation of three million jobs wasn’t even a thin cover for the greed and avarice of an industry that has enjoyed billions of dollars in American taxpayers subsidies. The fact that Romney didn’t at least put a few more days between the handover of $7 million and the announcement that if elected he would shred decades of environmental protection laws is most likely the result of Republican eagerness to pull the media spotlight off Rep. Todd Akin’s misogynistic babblings.
(By the way, where do the Republicans get these clowns? Why would any woman vote for a candidate from a party with positions that are so disrespectful to women?)
Besides shredding the EPA, Romney’s plan would increase the nation’s reliance on “dirty” energy — oil, coal, natural gas and nuclear reactors — and eliminate investments in energy efficiency and clean energy. It would open the Atlantic Coast and the Arctic National Wildlife Refuge to development. It would let states decide who should exploit federal land and how such exploitation would be conducted, effectively eliminating all viable environmental oversight. Worse, it would weaken public health regulations, and it ignores the threat of global warming.
Noted nonprofit Friends of the Earth described Romney’s proposal as “like an Easy-Bake recipe for cooking the planet — double down on dirty energy … and wait for the timer to go off on out-of-control climate change.”
Sadly, Romney’s energy policy statement reflects how thoroughly the Republican Party has repudiated its legacy values of respect for Mother Nature, and instead embraced the wealth of Big Oil and America’s extraction — that is, dirty — economy.
Most modern observers have forgotten that Republicans have a historic connection to environmental protection that dates to 1864, when John Conness, a Republican senator from California, authored legislation to preserve and protect Yosemite Valley. Abraham Lincoln, setting a precedent that a nation could value nature enough to protect and preserve it, signed Conness’s legislation. This was not an isolated case. Corrupt as Ulysses S. Grant was, he created Yellowstone National Park. Another Republican president, Teddy Roosevelt was known as the father of America’s national park system and an environmental champion.
Even the nefarious Richard Nixon left a strong environmental legacy. Nixon gave our nation most of the core legislation governing the protection of our air, water and wilderness by signing the National Environmental Policy Act of 1969, creating the Environmental Protection Agency in 1970 and signing the Clean Air Act Extension of 1970, the Marine Mammal Protection Act of 1972, the Endangered Species Act of 1973 and the Safe Drinking Water Act of 1974.
But the Republican legacy of good environmental stewardship took a near death blow under President Ronald Reagan and his infamous Interior Secretary James Watt, and the party went from environmental protectionism to their current rapacious stance. There was a brief respite under George H.W. Bush, who led a partial revival after years of Reagan neglect by strengthening the Clean Air Act in a way that led to a cleanup of coal-burning acid rain and a reduction of smog. But then, sadly, with the election of his son in 2000 the party again lost its way — and the environment paid the price. Environmental advocates had to go so far as to sue the administration of George W. Bush over its failure to enforce the very laws passed by his GOP predecessors.
Now, Mitt Romney has adopted the chant of “drill, baby, drill” — the cost, apparently, to get nominated by the radicalized Republican Party.
Sadly for the American people, the Big Oil guys keep shoveling buckets of money into Republican super PACs and lobbying activities, Mother Nature be damned. Once proud of their environmental legacy, the Republican Party has shamelessly leaped into the arms of wealthy men who have made their fortunes by pillaging and ransacking our environment.
Instead of proposing a national energy policy that moves us toward sustainability and ensures equitable use of our precious national resources, Romney’s plan would strip away federal protection of the environment. He would turn exploration and development of federal lands over to the states, resulting in chaos and corruption. Further, Romney’s plan would revoke many of the laws regulating offshore drilling.
Of course, most of the plan is just plain hooey. In the first place, it is highly unlikely any president would be able to reverse current environmental laws and turn regulatory authority of federal land over to the states. The Supreme Court would be bogged down for decades with the subsequent lawsuits. Secondly, I doubt even British Petroleum would be stupid enough to drill in the Atlantic Ocean off the southeast coast of the U.S. — the middle of Hurricane Alley.
The most emotionally appealing aspects of Romney’s plan have to do with the idea that somehow we can drill enough oil on American soil to become energy independent, and that this unleashed torrent will create large numbers of jobs.
In the first place, the oil industry doesn’t know or care where a barrel of oil comes from. Oil is a “fungible” commodity, like the currency markets. This means that a barrel — just like a dollar, yen, euro or pound — is exchangeable, or replaceable, in whole or in part, by another barrel (or dollar, yen, euro or pound).
Imagine a huge swimming pool. Producers pour oil in; consumers take oil out. Except in the cases where an individual producing country has a direct contract with a consuming nation for a tanker or two, most oil is bought on the world’s spot market. The whole process is enabled by the large international oil companies that determine what happens to the oil when it enters the global market. So a barrel of oil could come from Bakersfield or it could come from Saudi Arabia, and there is no practical way of controlling where it ends up.
The problem is not supply, but price. Recently, the volume of oil imported to America has dropped significantly — more domestic supply and more efficient autos — but the price has risen sharply. For the most part, OPEC sets what it considers the fair price of oil based on what is needed to satisfy OPEC nations’ social and political needs, or in the case of the Saudis, to maintain the monarchy. Since the beginning of the Arab Spring, this “fair price” keeps rising based on the threat of revolution, and to a lesser degree, economics. Supply is regulated by the oil producers, and is withheld or increased based on keeping the fair price intact.
So when the price of oil spikes, it spikes for everyone. Which is why oil analyst Charles Maxwell said in the February 2011 issue of Barrons magazine that, based on simple supply and demand, the price of oil will climb to $300 a barrel by 2020.
So Romney’s notion of American oil self-sufficiency and the resulting reduction in the price of gasoline is little more than political bunting. It’s just wrong, and surprising to hear from a business guy who went to Harvard. That university has some bright guys specializing in oil price theory who might be willing to explain to him how things really work.
Romney’s other claims — that eliminating federal protections on the environment and letting the oil companies run amok will create three million high-paying jobs and return $500 billion to our economy — are similarly silly.
In the first place, the oil exploration and refinery businesses are highly evolved and technologically sophisticated. They are not labor-intensive industries anymore, like they were when I was growing up in Kern County. Hordes of roustabouts and roughnecks have been replaced by more durable and smarter equipment in the fields, and engineers with computerized equipment are running the refineries.
In fact, many more jobs could be developed by a commitment to the new green industry.
The green industry is emerging. It is attracting new money, and big job growth is ahead, not behind it like petroleum and other mature industries.
Likewise the pixie-dust notion that an oil exploration free-for-all would put $500 billion back into our economy. Reducing government oversight of the oil industry might make the oil companies — already the world’s richest — even richer, but the fallout would be tragic. We had a glimpse of this future recently in the Bay Area with the San Bruno gas pipeline explosion and the Chevron refinery fire. Petroleum products are explosive, volatile and ruinous to water supplies and human health. We need more and better controls over these industries, not less. Frankly, they — along with the coal companies — should pay a tax on their carbon emissions so we can clean up our air and reduce the number of asthma cases that are so costly and detrimental to our children.
Even legendary oilman T. Boone Pickens griped about Romney’s plan. “It’s all about oil,” Pickens beefed to the New York Post, noting that natural gas got lost in the plan. But while Pickens was right to note how little attention Romney paid to natural gas, there was even less attention paid to renewable energy.
Grist, an online news source, did an analysis of Romney’s plan. Their senior editor, Lisa Hymas, counted the number of mentions each energy source got in the plan. Oil was mentioned 154 times. Natural gas was second at 36. Solar? Down the list with 14 mentions — and not all of them complimentary. Wind, with 10 citations, barely beat out nuclear. Energy efficiency was mentioned once; sustainability and climate, not at all.
Finally, in his plan Romney utterly ignored scientists’ concerns that the burning of fossil fuels poses a grave threat to Earth by releasing greenhouse gases that are causing warming and other climate changes. Of course, in a remarkable twist of fate, the recent Republican convention was almost overshadowed by Hurricane Isaac, itself most likely a product of global warming.
Republicans have spent hundreds of millions of dollars and enormous amounts of energy to portray Mitt Romney as an exceptionally capable and honest family man. He’s tall, dark and handsome, with beautiful white teeth. He has an aw-shucks image that reminds one of Andy Griffith, and his narratives describe America in Mayberry terms. More time and money went into portraying Romney as a self-made corporate wizard who at the same time is the champion of America’s economic base of small business. He’s a Mr. Fix-it with super leadership skills who can miraculously grow jobs, shrink the deficit and reduce the size of the federal government. And hey, he’s overly generous to his friends and church, too.
But the reality is that Romney is a legacy member of the America’s rich elite with a personal fortune estimated at more than $200 million. He has no connection to small business; his father was the 43rd governor of Michigan, wealthy and successful in industry.
Romney, through his company Bain Capital, was a corporate raider, a ruthless and profit-above-all-else businessman. He and the other raiders sliced and diced their way through the American corporate landscape during the two decades of the 20th century, buying companies with enormous leveraged debt, tearing them apart, outsourcing the work force, selling off the pieces and rewarding themselves with enormous amounts of money. If there was anything left, the companies staggered along servicing the debt and paying even more money to the raiders. Most companies raided by Bain ended up broke and in bankruptcy.
Romney has nothing in common with America’s small business owners. His world is dressage, or horse ballet, not a football game over chips and soda or a game of golf with the guys. He doesn’t have a home in the suburbs; he has three mansions in different states. His money isn’t in a local community bank where it is invested wisely to help grow the community; it is in the Cayman Islands.
Worst of all is that as a member of the super-rich, Romney is taxed at a lower rate than the rest of us. Because he is taking advantage of the Bush/Republican capital gains tax breaks, Romney is paying about a 15-percent tax rate. Most salaried folks or pensioners are paying 25-28 percent. What other shocks might those hidden tax returns reveal?
Why should you or I pay a higher rate of taxes than a super-rich guy? Why should we subsidize his three mansions, his fleet of cars, and his dancing horse, then turn around and elect him president? What sort of goofy world is this?
But it may be the $7 million Mitt Romney took from Big Oil CEOs that rankles the most. He wasn’t even ashamed that he took it, and 48 hours later he came out with an outrageously pro-oil, anti-environment energy policy statement. It is a level of brazen behavior that is hard to stomach from any politician — much less one who wants to be president.
Grant Cooke is a long-time Benicia resident and CEO of Sustainable Energy Associates. He is co-author, with Nobel Peace Prize winner Woodrow Clark, of “Global Energy Innovation: Why America Must Lead,” published by Praeger Press. Cooke and Clark are currently writing a second book titled, “The Green Industrial Revolution.”
Screech says
Until all of you hypocrites start driving pure electric cars, then hush up about it. You are just as much the problem as everyone else.
Oldtimer says
Yeah but electricity is primarily generated by fossil fuels!!!!
Bob Livesay says
This Enviro Greenie comment was not about energy. It was pure political anti Romney stuff.
Real American says
Can’t it be both?
Thomas Petersen says
Hey Grant, Have ever heard of osmotic power or salinity gradient power? It seems to me that we might have the ideal conditions for that sort of thing here on the straight?
Thomas Petersen says
Meant to read: “Have you ever heard……..” Where is the edit button?
Grant Cooke says
Thomas,
Very interesting question. As I understand it, in an osmotic reaction, electricity is produced as water transitions from salt to fresh water. I read about the process being tested in Europe, but will have to dig deeper. It’s a fascinating concept, and certainly one that might work in our delta. Another easy and cheap way of generating power in our waterways would be run-of-the-river. This process would use moderate size turbines that would constantly spin as water flows through them. Another easy way to generate power is placement of small wind turbines in highway medians. The turbines are spun by the force of cars traveling along. This would also work in subways with the force of the trains. The Chinese have developed a power source using magnetic fields for their train systems. It is called Maglev, or magnetic levitation, and it is very promising. There’s a wealth of innovative ways to generate cheap renewable energy and transmit it via smart green grids. Unfortunately, the U.S. (except for California) lacks the political will and community commitment to build sustainable generation systems. However, the game changer may come from China. China is being so polluted by carbon emissions from automobiles that the government may only allow electric and hydrogen powered cars. This may be part of their next Five-Year Plan. If so, it will push car companies worldwide into converting, most probably to hydrogen. Norway already has a hydrogen highway and all of the world’s 50 automobile manufacturers have hydrogen prototypes. Should be interesting as we move into the Green Industrial Revolution.
Grant
Thomas Petersen says
“Another easy and cheap way of generating power in our waterways would be run-of-the-river. This process would use moderate size turbines that would constantly spin as water flows through them.”
Yes, I am aware of the tidal power installation in New York ‘s East River (the RITE Project). I’ve seen a great documentary on this project. However, I can’t find the link. The RITE Project was headed up by Verdant Power. They, just this year, received a project license for an additional tidal energy project in the East River.
DDL says
Thomas Stated: Yes, I am aware of the tidal power installation in New York ‘s East River
More efficient than tidal power, as well as being continuous, are marine current power sources which use turbines to generate electricity. Hydro alternative energy is a Florida based company that has projects in the Galapagos
Islands, South Africa, the Caribbean and other locations. This is similar to the ‘run-of-the-river’ technology that Grant refers to, but is much larger then most river run turbines
RKJ says
I’m retired but if Grant can get one of these river projects going I’ll put my old work boot on, hard hat and volunteer to help him build this I’ll work for free. C’mon Grant let’s build it !
Grant Cooke says
DDL, Thanks, I didn’t know about the hydro alternative project in the Galapagos.
Thomas Petersen says
Also, as far as the osmotic or salinity gradient power plant in Europe, the pilot plant is operating in Norway. They plan to have a commercial plant up by 2015.
RKJ says
Grant this green revolution sounds great. Why don’t green entrepreneurs put their own private money behind it and build it. As you say California has the political and community will to do it so what is stopping it other than greenies wanting someone else (government) to pay for it. If you and others feel stongly that this is the answer then do it. Get the green investors to come up with the green.
RKJ says
Grant I’d like to add that there are thousands of green supporters out there that would probablly volunteer to help build whatever the green revolution comes up with saving the movement millions.
Thomas Petersen says
Great idea RKJ! Another hot topic with the alternative energy set is the rapid advancement in regards to algae fuel. Some companies to keep an eye on, and that are also currently public, are GreenShift Corporation (GERS.OB), Nanoforce (NNFC.PK),Valcent Products Inc. (OTCBB: VCTPF), Green Star Products (Pink Sheets: GSPI), OriginOil, Inc. (OTCBB: OOIL) and PetroSun Inc. (Pink Sheets: PSUD).
Grant Cooke says
Thomas, Many thanks for your additions and insights. I’m familiar with algae fuel, in fact, I’m trying to get one going as part of a wind project.
RKJ says
Thomas, I see GreenShift goes after corn for energy, it seems to me there could be conflict being as corn is also a food for animals and people. what do you think?
Thomas Petersen says
Yes RKJ, this conflict could be considered a primary reason for the fact that the ethanol from corn endeavors have slowed down over the last few years. In comparison, Algae could also be a food source for animals and people. The advantage of algae over corn is that are claimed to yield 10 fold more fuel per unit area than corn or other crop. If algae fuel replaced all the petroleum fuel in the United States, it would require the utilization of only 0.42% of the of the land-mass of the U.S. (equivalent to 1/2 the land area of Maine). This is equivalent to only a fraction the area of corn routinely harvested in the U.S. Algae can also be cultivated on land not suitable for any other agricultural product. For example, it can be grown in deserts or abandoned industrial areas. It can also grow in any type of water (salt water, non-potable water, waste water, etc,), and can also be harvested from the ocean.
Grant Cooke says
RKJ, Thanks so much for your comments and insights. Actually, focus on the green industry is rapidly growing by equity funds and venture capitalists, throughout the world. There are several multi-billion dollar risk funds investing in this space. Because of the Euro-crisis and recession most of the European risk money is gone, but there is some in America and Asia. We need a more focused effort to make alternative energy accessible, but we’ll get there eventually.
Retirednuke says
Have another glass of the Koolaid, Grant? Nothing more than an anti-Romney rant from another Libtard!
Real American says
Yeah anything Repugnicans disagree with is a “rant.” This is the opposite of a rant. It’s a very cogent, well-written argument. Agree or disagree, any way you slice it this is eloquence.
How about one of you articulate conservatives contend with the issues this excellent piece by Mr. Cooke raises? Anyone? Anyone?
RKJ says
Some great ideas here! In the meantime let’s drill for more oil wherever it may be. I still drive a fossil fueled car.
DDL says
“Corrupt as Ulysses S. Grant was”
Not much of a need to read past that false statement.
Grant had people in his administration that were corrupt, but I doubt it if there is proof that he was in fact tainted himself. Grant actually had very good policies towards the Indians as well as towards the post war south, but his policies were often carried out by people who did not follow the guidelines set. His biggest weakness was trusting the wrong people.
Grant is an example of a very popular man who was in over his head as President, a story that repeated itself with the man we have now.
Real American says
“Not much of a need to read past that false statement.”
Au contraire. Even if it were false, a debate worth having and a subject on which I’d like to hear from someone who isn’t an amateur historian, there is a very great need to read past. If only you would see it.
Tuning out is a bad habit I don’t expect from such an intellectually ambitious person as you, Mr. Lund.
“Grant is an example of a very popular man who was in over his head as President, a story that repeated itself with the man we have now.”
You do better when you steer clear of politics. I particularly enjoyed your piece on Dietrich Bonhoeffer and look forward to its conclusion, provided it doesn’t descend into preposterous analogy.
DDL says
Thanks for the comments Real American, I hope you enjoy Part II of the Bonhoeffer piece.
RKJ says
Grant said “engineers with computerized equipment are running the refineries”
Process operators with computerized equipment and manual equipment are running the refineries not engineers. The fitters, machinist, riggers, welders, electricians, painters, insulators, instrument repair, xray/ut guys, laborers, office personel and engineers are all part of the many that make it work and I am sure I have left some out. There are many many more during a turnaround
Bob Livesay says
The big issue is are we moving into the :” Green Industrial Revolution”? It does appear we are not. The Enviro Greenies such as Grant are on a very exspensive mission. Now lets just say Grant we convert your Enviro Greenie Mission to Oil, Gas and Coal. Lets just say we put all that support or subsides into these products. Now Grant would you think it might not only be productive and cost effective to go after our natural resources? Now Grant you know the subsdises for gas, oil and coal are about 64 cents per megawatt. Grant you also know that solar has subsidies of about $775 per megawatt. On the surface that does seem to be very expensive for a failed product. Now Grant you also know that the subsidies for wind and solar are over three times the subsides for oil, coal and gas in total government dollars. Got that Grant government dollars. Now Grant that is real comparable dollars not an amount that is not comparible to a small amount of energy. It is real cost. Now Grant would it not be better to take those waisted dollars and put them into making oil,coal and gas burn cleaner and at the same time extract it cleaner. Sure makes a lot of sense to me. What say you Grant? Grant your article is without a doubt directed at Romney and the Conservatives. That is Ok. But at the same time if we could reach our energy. goals in a very clean and efficient way would you now vote for Romney? Grant I think not. You are on a mission to get Romney defeated at any cost to very hard working Americans Grant you have put your mission before the good of very hard working Americans. You should be ashamed of yourself. Please think about it.
Real American says
Why should Grant be ashamed of himself for expressing his opinion on the opinion page of his local newspaper? It is a perfectly valid opinion and in this country he is free to express it. Or would you have it otherwise?
Mountain Sky says
Politics maybe creepy but ignorance is shameful. Thanks for the article I posted it forward
Oldtimer says
We’d all vote for Obama if we could get a piece of that Solyndra action!!!!!! I wonder what the CEO of Solyndracdrives??? I’ll lay odds it not a prius but a nice gas guzzling Mercedes!!!!! Maybe Grant will report back
DDL says
the CEO of Solyndra
I saw a report that he was at the Democrat convention getting VIP treatement, no surprise there.
Looks like the Dems expect to get some of that $500,000,000 back in donations.