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Energy

Biden Talks Tough About NATO, but His Energy Policies Tell Different Story

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From Heartland Daily News

By Steven Bucci of the Daily Signal

That faction must decide which is the priority: stopping Putin and helping our friends in Europe permanently leave the sway of Russia’s energy extortion, or crippling American energy companies to virtue-signal how “green” America can become. You can’t really have both.

President Joe Biden, host of the 75th anniversary NATO Summit in Washington that ends Thursday, last week claimed to ABC News anchor George Stephanopoulos that he “put NATO together.”

Trying to find a charitable spin on this claim, let’s assume Biden means that he helped NATO stand stronger against Russian President Vladimir Putin in the crisis over Russia’s 2022 invasion of Ukraine.

Biden certainly didn’t put together NATO, founded in 1949, regardless of his recollection. In that context, it makes one wonder about the purpose and intent behind Biden’s energy policies and their implications for our NATO allies.

The president’s words imply one thing, but his actions are exactly the opposite. At this week’s NATO Summit, America’s allies should have denounced Biden’s energy policies for benefiting Russia.

For example, if we investigate the Biden administration’s policies on liquefied natural gas, we find that rather than supporting NATO against Russia, they clearly enable Russia and disadvantage our allies. Biden’s imposition this year of an export moratorium on liquefied natural gas, or LNG, has hampered U.S. companies that are trying to aid our allies by weaning them off dependence on Russian natural gas.

You can debate Biden’s words (and his faulty memory), but his policies are simply dead wrong.

First, let’s look at Biden’s disastrous pause in exports of liquefied natural gas. The Energy Department has stopped new permits for such exports to Europe and Asia, which has led to price volatility and no assurance of reliable sources for our allies to meet their energy demands.

federal judge in Louisiana recently reversed Biden’s moratorium. That action could eventually help allow private sector companies in the U.S. to support our allies in Europe and Ukraine.

One example of note includes Ukraine and Venture Global, an American company that wants to come to the rescue by supplying Ukraine and Europe with liquefied natural gas to help them reduce their dependence on Russian gas. Biden’s continued pause had stood in the way.

The judge in Louisiana noted that the Biden administration’s suspension of LNG exports conflicts with settled law such as the Natural Gas Act, which directs the Energy Department to “ensure expeditious completion” of permit reviews.

Biden’s LNG export moratorium also violates the Administrative Procedure Act, since there never was a congressional direction that the Energy Department impose it.

All of this is a clear conflict (again) between responsible policy and the extremist green faction of Biden’s Democratic Party and his administration. That faction must decide which is the priority: stopping Putin and helping our friends in Europe permanently leave the sway of Russia’s energy extortion, or crippling American energy companies to virtue-signal how “green” America can become.

You can’t really have both. And yet, ironically, new evidence demonstrates that U.S. exports of liquefied natural gas represent a climate-conscious solution. A recent Berkeley Research Group report found that these exports result in lower greenhouse gas emissions than does natural gas supplied by competing countries, and much lower emissions compared with coal.

The second example of this dangerous conflict is Biden’s support for a Middle East pipeline owned by the Russians. Here at least the president’s position seems to be nuanced, since a greater supply of oil could help lower energy prices.

Biden’s State Department has strongly supported restarting an oil pipeline that has been offline because of a political dispute among Kurdistan, Iran, and Turkey. Unfortunately, the pipeline is 60% owned by Rosneft, an oil company that itself is owned by the Russian state.

Oh, and a point I skipped above: We shouldn’t be helping Iran or a hostile Turkey to control or influence significant energy in any way. All this defies logic.

It’s obvious that Biden wants cheaper energy. Every president does in an election year. That said, why is the State Department supporting reopening a Middle East pipeline that’s majority-owned by the Kremlin after the Biden administration canceled infrastructure projects here at home?

The administration’s priorities are entirely misplaced.

There is a path forward. It involves reinforcing American leadership in domestic energy production.  Instead of playing into the hands of our adversaries (Russia, Iran, and Venezuela), the Biden administration needs to change course and open more access to American oil and gas production.

That starts by permanently ending the suspension on LNG exports, ending the moratorium of oil and gas exploration on federal lands, ending unprecedented restrictions on offshore oil and gas leasing, ceasing resistance to the Canadian Enbridge Pipeline 5, and restarting canceled pipeline projects such as Keystone XL.

America’s energy resources are the envy of the world and should be leveraged to protect our citizens and our allies.

U.S. energy exports strengthen our competitive edge against China, Russia, and other hostile regimes. They also produce high-paying jobs at home and lessen dependence on any foreign source.

If America really wants to help Ukraine and be a leader in NATO, this is a path that will be consistent, effective, and inexpensive compared with direct financial or material support.

The green energy activists will hate it, but simply put: They’re wrong.

Steven Bucci is a visiting fellow in the Phillip N. Truluck Center for Leadership Development.

Originally published by The Daily Signal. Republished with permission.

Business

Carney doubles down on NET ZERO

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If you only listened to the mainstream media, you would think Justin Trudeau’s carbon tax is long gone. But the Liberal government’s latest budget actually doubled down on the industrial carbon tax.

While the consumer carbon tax may be paused, the industrial carbon tax punishes industry for “emitting” pollution. It’s only a matter of time before companies either pass the cost of the carbon tax to consumers or move to a country without a carbon tax.

Dan McTeague explains how Prime Minister Carney is doubling down on net zero scams.

 

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Artificial Intelligence

AI Faces Energy Problem With Only One Solution, Oil and Gas

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From the Daily Caller News Foundation

By David Blackmon

Which came first, the chicken or the egg? It’s one of the grand conundrums of history, and it is one that is impacting the rapidly expanding AI datacenter industry related to feeding its voracious electricity needs.

Which comes first, the datacenters or the electricity required to make them go? Without the power, nothing works. It must exist first, or the datacenter won’t go. Without the datacenter, the AI tech doesn’t go, either.

Logic would dictate that datacenter developers who plan to source their power needs with proprietary generation would build it first, before the datacenter is completed. But logic is never simple when billions in capital investment is at risk, along with the need to generate profits as quickly as possible.

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Building a power plant is a multi-year project, which itself involves heavy capital investment, and few developers have years to wait. The competition with China to win the race to become the global standard setters in the AI realm is happening now, not in 2027, when a new natural gas plant might be ready to go, or in 2035, the soonest you can reasonably hope to have a new nuclear plant in operation.

Some developers still virtue signal about wind and solar, but the industry’s 99.999% uptime requirement renders them impractical for this role. Besides, with the IRA subsidies on their way out, the economics no longer work.

So, if the datacenter is the chicken in this analogy and the electricity is the egg, real-world considerations dictate that, in most cases, the chicken must come first. That currently leaves many datacenter developers little choice but to force their big demand loads onto the local grid, often straining available capacity and causing utility rates to rise for all customers in the process.

This reality created a ready-made political issue that was exploited by Democrats in the recent Virginia and New Jersey elections, as they laid all the blame on their party’s favorite bogeyman, President Donald Trump. Never mind that this dynamic began long before Jan. 20, when Joe Biden’s autopen was still in charge: This isn’t about the pesky details, but about politics.

In New Jersey, Democrat winner Mikie Sherrill exploited the demonization tactic, telling voters she plans to declare a state of emergency on utility costs and freeze consumers’ utility rates upon being sworn into office. What happens after that wasn’t specified, but it made a good siren song to voters struggling to pay their utility bills each month while still making ends meet.

In her Virginia campaign, Democrat gubernatorial winner Abigail Spanberger attracted votes with a promise to force datacenter developers to “pay their own way and their fair share” of the rising costs of electricity in her state. How she would make that happen is anyone’s guess and really didn’t matter: It was the tactic that counted, and big tech makes for almost as good a bogeyman as Trump or oil companies.

For the Big Tech developers, this is one of the reputational prices they must pay for putting the chicken before the egg. On the positive side, though, this reality is creating big opportunity in other states like Texas. There, big oil companies Chevron and ExxonMobil are both in talks with hyperscalers to help meet their electricity needs.

Chevron has plans to build a massive power generation facility that would exploit its own Permian Basin natural gas production to provide as much as 2.5 gigawatts of power to regional datacenters. CEO Mike Wirth says his team expects to make a final investment decision early next year with a target to have the first plant up and running by the end of 2027.

ExxonMobil CEO Darren Woods recently detailed his company’s plans to leverage its expertise in the realm of carbon capture and storage to help developers lower their emissions profiles when sourcing their needs via natural gas generation.

“We secured locations. We’ve got the existing infrastructure, certainly have the know-how in terms of the technology of capturing, transporting and storing [carbon dioxide],” Woods told investors.

It’s an opportunity-rich environment in which companies must strive to find ways to put the eggs before the chickens before ambitious politicians insert themselves into the process. As the recent elections showed, the time remaining to get that done is growing short.

David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.

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