Editor note: The full text of the May 18 floor remarks of Senator Lamar Alexander (R. Tenn.) as reprinted in the Congressional Record last week. Subtitles have been added.
“So I ask the question: If wind has all these drawbacks, is a mature technology, and receives subsidies greater than any other form of energy per unit of actual energy produced, why are we subsidizing it with billions of dollars and not including it in [the energy subsidy] debate? Why are we talking about Big Oil and not talking about Big Wind?”
“We have been debating tax subsidies to the big oil companies. The bill proposed by the senator from New Jersey would have limited it to just the big five oil companies even though many of the tax breaks or tax credits or deductions they receive are the same tax credits that every other company may take– Starbucks, Microsoft, Caterpillar, Google, and Hollywood film producers, for example.…
Continue Reading[Ed. note: This post is taken from Robert Bradley’s conclusion in chapter 18 of Oil, Gas and Government: The U.S. Experience. In this series, Part I summarized the manifold contributions of John D. Rockefeller to a fledgling, powerhouse industry; Part II critically interpreted rebates and other ‘unfair’ practices of Rockefeller’s Trust; and Part III critically reviewed other complaints about unfair practices against Standard Oil.]
The Standard Oil Trust of John D. Rockefeller qualifies as a free market company, not a political one. The major mistake of Standard Oil in its distinguished history was not a failing of economic performance. It was underestimating the need to present information to explain to the public and critics the virtues of integration and scale economies, particularly in petroleum. (This was an intellectual problem of critics too–see the Appendix below.)…
Continue Reading[Part II by Mr. Droz looks at North Carolina’s onshore wind development.]
The Governor of North Carolina recently selected a Scientific Advisory Panel on Offshore Energy to make recommendations regarding offshore energy. At the official state site, information is given about who is on the panel, submissions received, and so on.
Three public hearings have been held regarding coastal Carolina. I spoke in the Morehead City hearing. My brief (two minutes allowed) comments were aimed at the proper process that North Carolina should take to resolve which energy options should be implemented. Not surprisingly the majority of inputs received at these meeting were people and organizations advocating offshore wind energy. (What is that political science insight about concentrated benefits and diffuse costs?)
The Panel is now digesting the inputs received.…
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