“In terms of affordability, availability and scalability – methanol and ethanol are the best prospects to [displace oil in transportation] quickly.”

– John Hofmeister, quoted in “Q&A: He Ran Shell Oil Co. – and He Thinks We Use Too Much Crude,” Houston Chronicle, September 19, 2014.

“Retired Shell Oil President John Hofmeister will say practically anything to get quoted in the news media, presumably in the hope of raising his public profile.” (John Donovan, 2016)

It was with some relief that I learned about the passing of a 1) oil executive who never should have been one; 2) mega-promoter who shamed his profession with vitriolic messaging; and 3) thorn in the side of free-market energy education.

Background

John Hofmeister (1948–2021) combined flawed views on energy with ultra-political correctness. How Royal Dutch Shell could have promoted its human resources director (1997–2005) to run Shell Oil Company (2005–2008) is a story of how one contra-capitalist act leads to another.…

“Replacing gasoline-powered cars with electric vehicles will increase demand for power … [but] Texas’ grid lacks the transmission capabilities…. And without more batteries to store power when the sun doesn’t shine and the wind doesn’t blow, it will be difficult for renewables to become a stable source of electric generation.”

“The electric vehicle maker Canoo announced in late June it would build a large factory in Oklahoma instead of in North Texas, citing the Lone Star State’s unreliable energy infrastructure as one reason.”

– Houston Chronicle, July 5, 2021, B4.

Renewables cause “greenouts” by disappearing at the peak and wounding conventional (‘reliable’) generation otherwise.

And greenouts are putting electricity for transportation in doubt–and discouraging new business from relocating to PUCT/ERCOT’s Texas.

Read it for yourself: Shelby Webb in “Houston’s energy transition not likely to be smooth.”…

So even though renewables can provide a benefit in lowering the overall clearing price for energy, there will come a point – if we have not already reached it – where there will be so many wind and solar resources bidding into the RTO markets that marginal clearing prices no longer benefit customers … [by making] dispatchable-on-demand generation resources needed for system reliability unable to survive economically. (Bernard McNamee, below)

A recent article at RealClear Energy by former FERC commissioner Bernard McNamee, “Why Marginal Pricing in Wholesale Electric Markets May Need Reform” (June 20, 2021) recognizes a problem with regulated pricing that results in a very inconvenient truth: renewable energy has blown up the neoclassical planning model for electricity in the Texas ISO (Independent System Operator). And it is hurting reliable generation in the RTO (Regional Transmission Organization) regions as we speak.…

Ed. Note: Mr. Jayaraj (below) continues his series on the energy situations of various countries and regions far removed from the U.S. (China, India, Japan, the Far East generally, the Middle East, Africa, Nigeria, The common denominator is the bedrock of oil, natural gas, and coal for affordability and reliability, with wind and solar investment being an appendage by government policy to appease climate activists.

The power demand in the country grew by 10 percent each year during the last one decade. Coal played a central role…. For Vietnam to surge ahead and sustain the hard-earned growth of the past decade, it must unequivocally support the growth and expansion of the fossil fuel sector, especially coal. (below)

“Vietnam” evokes an infamous place in history as a war zone.…