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8/8/2023

Energy Realism this past week hit on the impossible EV dream, and where lost opportunities for Democrats on practical energy-climate policy open up doors for Republicans to gain ground.

Duggan Flanakin got us started last week: for all this talk about EVS, mountains of obstacles remain. One of those is the insurance costs for such risky technologies. And yes, the word here truly is “risky.” EVs and their batteries are much more prone to combusting and incredibly expensive repairs even for minor fender benders. Already facing higher costs, less reliability, and inconvenience, it might just be insurance companies that derail the “EV revolution” that we keep hearing about. Indeed, we present the slides from RealClear’s webinar last week, where Mark P. Mills throws cold water on those demanding such a premature electrification revolution.

In fact, “green energy” advocates should realize that their own policies are blocking the very energy transition they insist upon. Marty Durbin details how the U.S. Department of Energy is effectively now warning the IRS that pending federal policies present a risk to the clean hydrogen investment necessary to drive down prices and stimulate industrial demand. While not explicitly mentioned in a recent hydrogen roadmap report, the primary factor influencing these hydrogen supply risks is IRS implementation of the Inflation Reduction Act’s “45V” hydrogen production tax credit. And as pointed out by Pete Stauber and Danielle Butcher Franz, we cannot forget that the Biden administration has also been blocking essential U.S. mining projects from moving forward. A massive increase in domestic mining projects is an absolute necessity to have any chance at installing large amounts of green infrastructure: more wind, solar, and EVs.

These lost opportunities for ruling Democrats are actually major opportunities for Republicans. In particular, Devin Hartman sees a chance for conservatives to advance electric transmission reform. No matter what happens to our sources of energy, both left and right agree that we need more transmission in updating and building a more modern power grid. The status quo is simply not cutting it. Costs are rising and reliability conditions are worsening. Enabling voluntary capital to flow is the path forward. Our Essential Reading then must come from Power the Future. “Green energy” mandates themselves are undermining the reliability and affordability of our electricity supply. It seems that everywhere we turn we see more reminders that an “all of the above” approach is not just wise but mandatory. 

In the News

UAE and Other Oil-Rich Countries Want to Keep Producing and Selling Oil No Matter What

Saman Rizwan, RealClearEnergy

Slide Show: Premature Electrification: Future of Electric Cars

Mark P. Mills, Manhattan Institute

Federal EV, Battery Subsidies May Cost $575B Extra

Daniel Zlatev, Notebook Check

Climate Change Drove July’s Heat Records — But So Did El Niño

Ethan Brown, RealClearEnergy

Separating Weather From Climate Change

Robert Rapier, Oil Price

Biden Settles With Eco Groups, Cut Drilling in GOM

Thomas Catenacci, Fox News

Unplugged: Ford Lost $72,762 for Every EV It Sold in Q2

Robert Bryce

No Energy Transition Without a Reliable Grid

Bernard Weinstein, The Messenger

Tony Blair: Public's Huge Burden of Net Zero

Ben Riley-Smith, Telegraph

China Steel Sector Investing $100B in Coal Plants

Yujie Xue, SCMP

Green Groups to Boycott COP28 in Dubai

Sue Surkes, Times of Israel

India and Surging Coal Demand

Sanjay Dutta, The Times of India

Ukrainian Campaigners Want Europe to Ban Russian LNG

Kira Taylor, Euractiv

A Volatile Winter for Natural Gas Prices?

Bloomberg

Environmentalists Should Favor Fracking

Richard A. Muller, Elizabeth A. Muller, Centre for Policy Studies

Multimedia

Tory MP Gareth Bacon: "Net Zero Will IMPOVERISH a Lot of People"

TalkTV

Tory MP Gareth Bacon has told TalkTV that he thinks Net-Zero will cost a lot of money and impoverish "quite a lot of people."

'Communism Rebranded:' Elon Musk Torches ESG

Fox Business

O'Leary Ventures Chairman Kevin O'Leary discusses Elon Musk's ESG position and whether inflation will tick back up on 'The Big Money Show.'

Kennedy Grills Professor Who Said Schools Shouldn't Take Fossil Fuel Money

Forbes

At today's Senate Budget Committee hearing, Sen. John Kennedy (R-LA) questioned a Tulane professor about whether his own university should return money from its own fossil fuel-based...

A Volatile Winter for Natural Gas Prices?

Bloomberg

Weather is a critical factor impacting the price of natural gas. While natural gas plays an important role in electrical generation year-round, it’s amid winter heating demand that w...

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