Manufacturing uses electricity, Tourism uses gas. Michigan relies on both to feed and provide for families.
In the last several years, we have seen an increase in the price of energy on a scale that eclipses the nation’s inflation rate. Winter heating, electric both causing families to budget a little differently, as some heating bills approach and surpass car payment status even with budget planning in place. Michigan families must struggle while central planning fails to solve this current crisis.
As I see it…
1. There are not enough players in the energy business.
2. Oil technology is not being utilized to its fullest.
3. Government gets in the way of fuel economy
Michigan can do little to solve the crisis by itself, other than avoid worthless CO2 reducing schemes, but the people can write congressional leaders to encourage reduction in the regulatory process which could allow the quicker development of smaller oil production and refining firms, and stimulate real competitiveness.
Additional oil firms would stimulate use of current and new oil technology adding efficiency, and reducing costs as the competitors attempt to gain market share. (a basic economic principle) Additionally, manufacturing industries which serve these markets would see growth in their customer base. Michigan could capitalize on this if the tax structure were correct, but what manufacturer would locate here with the lunacy in our current state government?
Federal government safety, pollution, and manufacturing standards are in a constant state of flux, usually becoming overly aggressive on the side of safety, clean air, and “feel good” politics. Who can argue against clean air? Who can argue safety? Troubling however, is when government solutions become more problematic than the issues they attempt to solve.
R-12 is an example of politics dictating policy, and demonstrates how an irrational environmental mindset can do more harm than good.. to it’s own cause. The efficiency of R-12 has not, and cannot be disputed. It is/was the best most efficient refrigerant ever developed by man, (in Michigan if I am not mistaken) yet through some initial theoretical labs (not actual real monitoring) it was shown to bond with ozone. Of course this was not acceptable to politicos who are here to protect us from ourselves, so legislation was crafted to replace it with a substitute refrigerant which did not bond with ozone.
Problem. The new refrigerant was poisonous. R-12 was not, unless exposed to fire. Further, the tests continued even after the R-12 had been officially replaced. R-12 could not be shown to be bonding in actual conditions which were used as examples to create the legislation in the first place! Then, there was an efficiency decrease which caused the use of more energy to be used in the refrigeration process. Also, one must consider the people who switched over their R-12 systems. Where did it go? hmmmm?
The efficiency issue of refrigerants is now addressed with seemingly better substitutes, but the point being made here, is that much happened in the political arena driven by knee jerk environmental activism. Governor Granholm spoke at an economic club meeting in Traverse City a few days ago and apparently brought up the plan to “bury CO2.” Seriously.. Do you think she has a clue as to the possible impact of this type of project? What about long term chemical reaction to the minerals which will house it? I don’t know the answers to these things, but I am at least skeptical. Anyhow, CO2 is much ado over nothing in my less than humble opinion.
Cars and economy are a wonder of government as well. 20 years ago I had the opportunity to drive a Mercury Lynx Diesel. It got 60 miles to the gallon. It was also a solidly built car with quite a bit of pep. Where did it go? Why are we excited to see 30MPG cars now.. two decades later? How about the 1988 Buick LeSabre we had, that got 32 MPG around town? Two words: “Ralph” and “Nader.” OK, maybe not just Ralph, but certainly his brand of protecting us from ourselves has added to costs we pay, and absolutely more fossil fuel emissions as legislators turn toward safety trying to build the perfect safe ride.
Oh yeah.. thats right they don’t build…. Point made yet?
Bury CO2?
Don’t hold your breath on that competition angle. If Andy Dillon gets his way they’re going to re-monopolize the utilities in Michigan while giving them $8 billion in new tax dollars.
Not that the giant checks DTE and Consumers wrote him have anything to do with it of course.
–Nick
http://www.RightMichigan.com
Hey, the energy policies of Jimmy Carter worked well in the 1970s, so what’s wrong with Congress and the Michigan legislature running at full speed to put them back in place in this century?
Oh wait a minute – um, the energy policies of Jimmy Carter didn’t work in the 1970s. In fact they were a disaster that reduced domestic energy production and caused prices to skyrocket.
Never mind . . .
The burying CO2 comment refers to CO2 sequestration which DTE is experimenting with to see if they can deal with some of their emissions by trapping it underground in Gaylord, MI. The other thing CO2 sequestration is used for it enhanced oil recovery (EOR). Basically, CO2 can be pumped into non-producing oil wells to force the rest of the oil to the surface. There are an estimated 1 billion barrels still underground in these non-producing wells. There is also a company called M & M Energy that wants to use CO2 from a new IGCC powerplant to recover Michigan’s stranded oil. Of course DTE and Consumers are lobbying hard to keep them from being allowed to build their new powerplant in MI. They are also trying to re-monopolize the MI energy market by getting PA 141 repealed.
Hey, I’m down with EOR operations. I’m not however down with DTE and Consumers trying to get the state to grant them a monopoly.
Great Blog. Its nice to see others not buying into the CO2 Scam.
Big bucks to be made by politicians and companies on selling this scam.
Can anyone say Emron?. I am all for extracting oil from the Sands in Michigan.
I Supported the attack on Iraq… not just because of WMD but because of Saddam’s Threats and his targeting of our Airmen over the no-fly zone
A foreign country must know that an attack on Military in any manner can have grave consequences. but back on point the mistake was at the commander in chief position. To the victor come the Spoils… Oil
Yet the democrats demon-ize the whole industry. We need to stabilize Iraq
And they Should fund our dept to a point to stabilize the dollar