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After Keystone XL Decision, Don't Believe GOP Hype on Energy
Don't buy the GOP's claims. Oil companies, not green alternatives, are making a killing from the government
Listen to the typical conservative rhetoric about energy being thrown around on talk radio or in Republican presidential debates, and you’re likely to hear that our government primarily uses its regulatory and financial power to create a destructive green energy boondoggle — one that enriches a few politically connected Solyndra executives, appeases a bunch of wild-eyed tree huggers, but hides the fact that renewables supposedly can’t stand on their own in the private sector.
(Photo: Valery Sidelnykov/Shutterstock)
In the face of catastrophic climate change and dwindling fossil fuel resources, this cartoonish narrative has gained traction because it invokes the moment’s most powerful political metonyms, from implicit allegations of crony capitalism to hippie-themed epithets about environmentalists to “free market” fundamentalism. The underlying idea — which will only be more amplified in the wake of the Obama administration’s pipeline decision Wednesday — is that fossil fuels are being persecuted by the American government.
But the reality, of course, is something wholly different. Indeed, this mythology is a perfect example of Orwellian Newspeak in which the reverse of the rhetoric is true. As recent news highlights, the government is doing exactly the opposite of what conservatives say: It is aggressively favoring the fossil fuel industry in ways that give that industry a special economic advantage over clean energy.
In 2010, Bloomberg News released a report showing that global governmental support “for fossil fuels dwarf support given to renewable energy sources.” The numbers led one financial expert to note that while “mainstream investors worry that renewable energy only works with direct government support,” the truth is that “the global direct subsidy for fossil fuels is around ten times the subsidy for renewables.”
According to data compiled by the Environmental Law Institute, the United States is a big contributor to this global subsidy imbalance, “provid(ing) substantially larger subsidies to fossil fuels than to renewables.” In practice, some of the biggest of those U.S. subsidies come in the form of special tax breaks for oil and gas development, and in direct taxpayer funding of multinational corporations’ foreign mining projects (yes, you read that right — your tax dollars go to fund fossil fuel development overseas). Notably, the latter subsidies champion some of the most environmentally hazardous practices in operation such as “fracking” — a practice that our own Environmental Protection Agency has found in two separate reports to be a major potential threat to groundwater.
The New York Times recently explained how these subsidies operate on a day-to-day basis:
In the United States, where the water-intensive drilling technique of fracking was invented, the government is taking a lead role in supporting the dissemination of the technology abroad, as well as promoting other energy projects, including building infrastructure to extract and transport liquid natural gas …
The Export-Import Bank of the United States has financed some of its biggest gas projects over the last several years, including the largest transaction in the bank’s history — $3 billion approved in 2009 for hundreds of miles of gas pipeline and a liquid natural gas plant and terminal project led by Exxon Mobil in Papua New Guinea…
In Peru, the United States Export-Import bank provided more than $400 million in loan guarantees in 2008 for a liquefied natural gas terminal to export gas from the Camisea gas fields, which are in the Amazon rainforest. The project for drilling and pipelines in the Camisea, which received separate financing from the Inter-American Development Bank, has been dogged by spills, accusations that company officials bribed lawmakers and criticisms about exporting the gas rather than using more of it to lower prices for domestic consumers.
On top of this, the Times notes that indirect financial support is also at work, with “the United States Geological Survey offer(ing) training and technology to geologists exploring shale gas in Europe” and “the State Department’s Global Shale Gas Initiative … advising many foreign countries on fracking.” This, mind you, says nothing about the federal government happily leasing public lands for such fossil fuel development. Meanwhile, that same government has deployed its considerable legal and diplomatic resources in an attempt to halt China’s growing financial support for clean energy.
On the regulatory side, it is much the same story.
At the federal level, under the direction of then-Vice President Dick Cheney’s infamous energy task force, the Bush administration passed legislation exempting fracking from the oversight that other energy development is subjected to, thus tilting the energy-development market even further toward domestic fossil fuels.
At the state level, the push to privilege fossil fuels has materialized in the form of a campaign to exempt fossil fuel companies from the local control that every other industry must submit to. In New York, for example, a nascent industry lobbying campaign is gearing up to get Democratic Gov. Andrew Cuomo to prevent local communities from regulating fossil fuel development within their jurisdictions. In Colorado, already a major producer of fossil fuel energy, that same campaign is on the march, as the state’s Democratic Gov. John Hickenlooper used his “State of the State” address to insist that state government should be able to forcibly prevent local cities and towns from regulating oil and natural gas fracking. Though one legislator has announced he will challenge Hickenlooper with a bill empowering those communities to regulate fossil fuels like everything else, the Denver Post reports that Hickenlooper’s push to exempt the fossil fuel industry from local control is supported by the top leaders of both parties in the Legislature.
Taken together, it all adds up to a government that is far more committed to toxic and finite sources of energy than to clean and renewable sources of energy. You may not hear that from either party’s presidential candidates or media defenders — but the facts are quite clear, even if they are inconvenient.
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18 Comments so far
Show AllThe key words here are
"Don't Believe".
I say this because, like the rush to war, the gutting of the constitution, and the deregulation of the blatantly corrupt banks, the gas-guzzling, pollution thick "american way of life" is based upon a BELIEF in godly righteousness.
Those of us who show concern for equal justice and the quality of the environment are considered infidels who fail to keep the faith. To the fundamentalists of all faiths (and I include the majority of the brainwashed U.S. citizens and the phony democrat versus republican mindset), we who are concerned are full of fear and doubt and that is proof to them that we are going to hell.
The separation of church and state has been systematically destroyed in this nation.
"In God We Trust" is now the litmus test of the fascist state we have become.
Either you are part of "the Family" (as written by Jeff Sharlet) or you will be destroyed. The new desperation is the old desperation.
Don't Believe like your life depends upon it.
One thing that leaps out from this article. It is not enough to focus on the citizen you are a country of. Not enough to control pollution in the US and then allow US companies, under the protection of the US military to violate laws that pertain to the US on foreign soil. It is called a double standard-hypocrisy. And guess what...when these corporations and international corporations are done exploiting countries overseas- they will comeback to the US-applying the lessons they have learned-bribing government, confusing he public with lies and extracting every bit of natural resource that remains- all to satiate the insatiable- greed.
Well said and very true.
All fossil fuels are market failures - their price does not include environmental degradation, resulting poor health and early mortality (or now global warming).
The Keystone pipeline is about 1500 miles long and it is claimed that 20,000 new construction & manufacturing jobs will be created.
That is about 13 jobs per mile of pipeline.
There are 2,300,000 miles of pipelines in the US. At 13 jobs per mile that is about 30,000,000 jobs.
Those areas of the US that currently have pipelines must have low unemployment and booming economies.
Bureau of Labor & Statistics data show that there are currently only 2,200,000 oil and gas industry jobs (including fields that support oil & gas) in the US (and 40% of these jobs are minimum wage gas station jobs).
Why don’t Obama, the Democrats & the media point out that 20,000 jobs is a lie?
Every Conservative that's been on C-Span talking about the pipeline does what they're all so good at. They spout Obama's lack of jobs creation, talk about the high numbers of unemployed, and the numbers of jobs the Keystone XL pipeline would create. But not one has said those jobs would go to US citizens, when asked outright. They talk about this pipeline being a way to get us off our dependence on foreign oil, then hedge, and slither all around the issue when questioned about the oil from the pipeline staying here, because they know darned well that it won't. Everyone in that party talks out of both sides of their mouth, then they'll do what neither side said.
Those jobs would NOT go to US workers. TransCanada is a Canadian company, after all.
And besides the energy not staying here; it is STILL foreign oil!
I wrote this in to C-SPAN this morning:
Oil was originally refined for kerosene for lamps for illumination - the anti-green people would have been the ones against Edison and his "crazy" electricity and those "bizarre" light bulbs.
Just drill baby drill.
So rather than the apparent apologetics for a stimulus to subsidize renewable energy in order to compete with nonrenewable subsidies, why not end all subsidies? One of my definitions of unsustainability is need for subsidy.
Subsidies should only be for startups, not for long term maintenance.
I agree - and believe we need some kind of breaks for startup clean energy initiatives and energy conservation. That is solar and wind, insulation, public transportation, but not biofuels.
The only break needed for clean energy and conservation is the elimination of subsidies of dirty energy and waste. Follow this with the recovery of the economic rent on land. This would include depletion and pollution taxes connected with embedded resources such as tar sands.
Venture capital would be forthcoming freely from the private sector if profits and savings are not taxed. This would be facilitated by the relabeling of legal theft of earnings to illegal theft. Theft of earnings should be illegal whether done by government or Jesse James.
While wallowing in mythology, let`s not forget that green energy is the preserve of the rich and that the production of so called green energy involves a toxic manufacturing process reliant upon rare earth minerals, conflict minerals and very nasty chemicals. Batteries are expensive toxic and just because they go to you spring recycling depot does not mean they go to a safe place. Rare earths are not actually rare, but you have to dig up and process many tons of earth to get a small amount of mineral and conflict minerals have resulted in the deaths of several million black people in the Congo since 1998, and nobody seems to care.
Not necessarily. There are green alternatives out there for everything you call toxic, including the rare earth metals. Do some research.
will do
The greenest energy is energy not used. Simple changes in building codes and in the way mass transit used and the density of cities is the best source of "green energy".
A study showed that US cities use far more energy then European cities simply because of the concept of "suburbs" wherein European cities were more densely populated and compact.
>>GwNorth wrote: "The greenest energy is energy not used."<<
Thank you. That cannot be stressed enough!!!
And the fastest way to reduce greenhouse gases' concentration in the atmosphere is to NOT emit them in the first place, ***wherever possible,*** by weeding out ALL non-essential use, or waste, of energy.
The fastest way to shut down coal power plants, without waiting for a matching capacity in renewables, is to drastically reduce or eliminate ALL non-essential use of electricity. That is, ALL things and activities that will not kill you or undermine your health if you stop using them!