A Free-Market Energy Blog

Strategic Petroleum Reserve: Early History (Part II)

By Robert Bradley Jr. -- July 28, 2015

“In the first week of the program, three sites in Louisiana were acquired by the Corps of Engineers by emi­nent domain. Pipeline right-of-way was similarly acquired; appraisals below industry standards made condemnation necessary. This, however, did not reduce costs or trim start­-up time as intended. The associated legal proceedings increased costs and created delay, and condemnation set the stage for polit­ical trading between Louisi­ana and federal officials in Washington, D.C.”

In the first decades of the twentieth century, fears of an imminent exhaus­tion of oil led to petroleum land withdrawals and the reserva­tion of oil-rich acreage for future military use. Four Naval Petroleum Reserves were set aside between 1912 and 1923. [1] With the discovery of major new oil fields in Oklahoma, Texas, and California in the late 1920s, the new fear – at least for the vested parts of the oil industry – became oversupply.…

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Early Oil & Gas Storage Regulation: A Historical Review (Part I)

By Robert Bradley Jr. -- July 27, 2015

The Strategic Petroleum Reserve (SPR) is in play. The 695 million barrel inventory, stored in four storage locations in Texas and Louisiana with a capacity of 713.5 million barrels, never found its purpose; it is still waiting for the third oil crisis (after the 1973/74 Arab Embargo and the 1979 Iranian Revolution). Not surprisingly, the SPR is on the verge of becoming a piggy-bank offset for lawmakers. At $50 per barrel, SPR inventory is worth about $35 billion.

This week, MasterResource reviews the history of state and federal oil (and natural gas) storage regulation and ownership. Part I today is early (pre-SPR) regulation. Part II tomorrow will review the prehistory and beginnings of the SPR.

Part III will examine early problems with the federal storage program; Part IV early fill and financing controversies.…

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100% Renewables? (examining a potential methodological flaw)

By Thomas Stacy II -- July 24, 2015

The world has always been dirty and risky. But it was a far dirtier and riskier place before there was an electricity grid run on  coal, natural gas, oil, and nuclear.

The world would still be a dirty place if we stopped utilizing our vast combustion resources. And the competitive disadvantage in manufacturing that would impose lower standards of living (including on the already impoverished) right along with shortening, not lengthening, human lifespan relative to the “breathing as usual” case.

Yes, fossil fuels may run short in some future century. But not this one. Until they do, the U.S. should compete with the rest of the world by using them–just the way that world intends to compete with us.

Potential Flaws

On critiquing such cost analyses as conducted by the U.S.…

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Georgia Power: Need That PTC for Nuclear (Hayet testimony on Vogtle)

By Robert Bradley Jr. -- July 23, 2015
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Settling an Old Score with AWEA

By Robert Bradley Jr. -- July 22, 2015
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Green Energy Plunders the Biosphere

By Viv Forbes -- July 20, 2015
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Educating Public Utility Regulators: Is It Fruitful?

By -- July 16, 2015
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Gas Furnace Rule Part II: Return of the “Scorched Gas” Policy

By -- July 15, 2015
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James Hansen: Revisiting His False Alarms (10-year warning coming due!)

By Robert Bradley Jr. -- July 14, 2015
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AWED Energy & Environmental Newsletter: July 13, 2015

By -- July 13, 2015
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