Moving Back To Fossil Fuel

On Saturday, The Daily Caller posted the following:

Two of Europe’s largest energy firms are pivoting from green energy back to their core oil and gas businesses, a move that industry experts tell the Daily Caller News Foundation signals a willingness to take political hits as oil and gas continue to be major sources of revenue.

Both Shell and fellow U.K. energy firm BP opted against further cuts to oil production recently, in a bid to restore investor confidence as their renewable ventures struggled, according to Bloomberg. While the moves were met with criticism from climate-focused investors — activist investors and protestors attempted to storm the stage at Shell’s annual shareholder meeting in late May — the companies are likely to stay the course despite criticism, thanks to the reliability of oil and gas to drive profits despite the emergence of green energy, Dan Kish, senior research fellow at the Institute for Energy Research, told the DCNF.

“Smart energy executives looking at the long term recognize that politics are fleeting,” Kish said. “Politicians may be flighty and distracted by today’s shiny objects, but real business sense combined with a knowledge of engineering and physics shows that real energy makes good business because it is what people need and want.”

The article concludes:

“The EU’s oil majors have an even harder time than America’s trying to remain politically correct while continuing to produce the energy the world needs and make sufficient profits to satisfy shareholders and invest in new production,” Ebell told the DCNF. “They are faced with the reality that renewables produce little energy at a high cost.”

While Shell re-committed to its target of net-zero emissions by 2050 in a Wednesday press release, it also said in a footnote that such a change was dependent on societal factors. There would be “significant risk that Shell may not meet this target” if society at large had not made a shift to net zero by then, the company said.

Shell and BP did not immediately respond to a DCNF request for comment.

At some point, as a businessman, you have to do the things that work for the benefit of your company. It should also be noted that the western countries have generally reduced carbon emissions with the use of scientific ways to limit pollution. The countries that are still polluting are not tightly bound by climate accords–China, India, and Russia.

Sometimes The Lies Are Just Funny

The Daily Caller posted an article today about President Obama’s claim that he started the oil boom in America. Somehow that’s not the way I remember it.

The article reports:

Former president of Shell Oil Company John Hofmeister said former President Barack Obama had nothing to do with America’s increased oil production and actually frustrated many areas of the energy sector.

Obama claimed he was responsible for America’s recent oil boom during an event hosted by Rice University’s Baker Institute on Tuesday night and Hofmeister challenged his assessment.

…“The facts are the facts. And, yes, the production did increase throughout his term,” Hofmeister said on “Fox & Friends” Thursday. “But, frankly, he had nothing to do with it.”

“This was production in states like Texas, Oklahoma, Pennsylvania, Ohio, Colorado — North Dakota in particular. And these were all state decisions made with industry applications for permits. The federal government had no role.”

The article notes the roadblocks President Obama put in the way of accessing American oil:

Hofmeister said Obama opposed the energy industry at every turn with his actions against offshore drilling and his handling of the Keystone Pipeline.

“If anything, he was trying to frustrate the efforts by taking federal lands off of the availability list — putting them just, no more drilling [sic]. He shut down the Gulf of Mexico for a period of six months,” he said. “[He] changed the regulations from an average of 60 to 80 pages per permit to 600 to 800 pages per permit. He also never approved the Keystone XL pipeline after dangling all the potential customers for eight years. And it was in the eighth year when he said no Keystone Pipeline.”

“I would say that he was not a leader when it comes to energy,” Hofmeister said.

As far as President Obama’s opposition to the Keystone Pipeline goes, as long as that pipeline was not built, the oil was shipped via the Burlington Northern Santa Fe railroad, owned by Berkshire Hathaway, owned by Warren Buffett, a close friend of President Obama. On February 21, 2013, I reported the following (article here):

If the Obama administration holds firm on blocking Keystone, the big loser will be TransCanada Corporation. But who will the big winners be? American railroads:

And of them, the biggest winner might just be the Burlington Northern Santa Fe, which is owned by Berkshire Hathaway, the conglomerate controlled by Obama supporter and Omaha billionaire Warren Buffett. In December, the CEO of BNSF, Matthew Rose, said that his railroad was shipping about 500,000 barrels of oil per day out of the Bakken Shale in North Dakota and that it was seeking a permit to send “crude by rail to the Pacific Northwest.” He also said the railroad expects to “eventually” be shipping 1 million barrels of oil per day.

President Obama did not facilitate the energy independence of America. He did, however, do a pretty good job of lining the pockets of some good friends.