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What's your Energy IQ? Part Two
This is part two in the series of What’s your Energy IQ? Finding solutions to the energy crisis is a hot topic, and one that we can not ignore. The American Petroleum Institute created a survey gauging how much people know about energy. The results were broken down into how much people know about supply, demand, and how people view the taxes.
In terms of taxes, Americans tend to underestimate the oil industry’s contributions to the economy through jobs and taxes, while they tend to overestimate the oil industry’s profits.
- Only 15 percent of respondents knew that six million Americans are employed directly or indirectly by the oil and natural gas industry.
- Only 9 percent of respondents knew that oil companies pay more than 40 percent in income taxes as a share of their income. The majority thought that it was less than 30 percent, and one-third of all respondents believed companies pay less than 15 percent.
- Similarly, when asked how much the oil and natural gas industry paid in taxes over the past three years, only 10 percent of respondents answered correctly—$242 billion. One quarter of respondents believed that the U.S. oil and natural gas industry contributed less than $100 billion.
- More than 40 percent of respondents believed that the oil and natural gas industry earn more than 20 cents per every dollar of sales. In fact, the industry earns just below 6 cents on every dollar.
Additionally, the survey asked “What percent of global energy demand in 2030 will be met by fossil fuels, such as oil, natural gas, and coal?” The responses might surprise you.
In the meantime, take the survey to find out your Energy IQ.
http://energyiq.energytomorrow.org/EnergyIQWidget.swf
Also, check out Bearing Drift’s post about Friedman on Climate Change.
What's Your Energy IQ?
American Petroleum Institute (API) just released their Energy IQ survey, and the results show that Americans are more aware of how current policies affect domestic oil and natural gas production. In terms of demand, the study found that many continue to underestimate the amount of oil that we need in the future.
- While the U.S. Energy Information Administration (EIA) projects U.S. energy demand will increase 9 percent during the next 20 years, only 5 percent of respondents chose the correct answer. The majority overestimated this number, believing that U.S. demand would increase 16 to 21 percent.
- When asked about the role fossil fuels such as oil, natural gas and coal will play in meeting global energy demand, only 10 percent of respondents answered correctly that fossil fuels will meet 85 percent of this demand. This is the second consecutive year this number has dropped even though EIA figures for future U.S. reliance on fossil fuels have risen by five percent since 2008.
The other particularly intriguing statistic is that many Americans overestimate the amount of oil that we receive from Persian Gulf nations and underestimate the amount of oil that we receive here in North America. Canada is one of the largest oil suppliers to the United States.
The statistics are interesting, and you can even test your own energy knowledge by taking the survey.
http://energyiq.energytomorrow.org/EnergyIQWidget.swf
Since this is a two-part series looking into the Energy IQ, I will focus more tomorrow onto how Americans view the oil industry and taxes, as well as sharing a video asking everyday people about their views on energy.
GOP Releases Energy Act
The Republicans in Congress have released a proposal that will increase advancements in addressing the energy crisis our country is currently facing. With the rising prices at the pump, a sinking economy, and the possibility of a national energy tax, “cap and trade,” Congress needs to address this issue with a pragmatic, environmentally conscious approach. The Republicans realize that Americans have fallen on hard times with the slumping economy, and they have created a proposal (unlike the Democrats, who have proposed the cap and trade tax) that would address this crisis without raising taxes.
Some of the initiatives included in the bill are:
- Lifting the drilling restrictions in ANWR, the Mountain West, and the Outer Continental Shelf
- Pushing for clean and emissions free nuclear energy, along with increasing the number of nuclear reactors
- Relying on our own renewable resources, such as clean-coal technology, wind and solar energy
- Cutting frivolous lawsuits that would hinder the development of energy advancements
Americans need to rid themselves of being dependent on foreign countries for oil and other energy sources. Our country offers the opportunity to be energy independent, and all we need to do is to tap into them without harming the environment, which is possible.
**Source: GOP.gov
The Need for Offshore Drilling
Summer is almost here, and people are packing up their vehicles heading off for their vacations. With last year’s astronomical fuel prices, many are wondering if this awaits the high costs will await them this year.
According to The Washington Examiner, the Democrats in Congress are proposing increased regulations and higher taxes on oil companies who drill both on the land and offshore. If a bill that has been drafted by the House Natural Resources Committee is passed, offshore drilling will be threatened by increased taxes on exploration and oil companies will also received an increased tax burden. This will only be passed along to the consumer.
At a time, when most would think that the Democrats in Congress would be concerned about their re-election bids and maintaining a majority, they decide to raise taxes for the oil companies, who are working to ensure that we are utilizing oil in our own country, rather than being dependent on foreign oil reserves. These taxes are only going to hurt Main Street America. Hopefully, this will be the wake-up call for Americans, when they go to the polls in November 2010. The Democrats do not care for the American taxpayer or utilizing our own natural resources for energy. Talk about thugocracy at work, people!
Did Mr. Cap and Trade know what was in his bill?
Mr. Cap and Trade 2009, Rep. Henry Waxman, Chairman of the Energy and Commerce Committee should know what’s in his proposed $646 billion national energy tax bill, right? As you can see in the video below, Waxman openly admits that he doesn’t know what’s included in his bill and that he relies on the United Nations to help discriminate against domestic manufacturers and energy producers. Geez, with noble morons (like Pelosi and Waxman) leading the Democrats in Congress, we are starting to look towards restoring common sense in 2010.
Blogger Conference Call on Chevron Exploration in the Gulf of Mexico
Last Friday, I had the opportunity to join other bloggers on a conference call with the American Petroleum Institute. The call was focused on Chevron’s deep water exploration initiatives and the economic impact. You can read more here.
McDonnell/Bolling Energy Plan Released
The McDonnell/Bolling Energy Plan was released today with proposals of more energy and more jobs for Virginia. This plan will include a great focus on green jobs and promoting Virginia as the “Energy Capital of the East Coast.” With oil and natural gas located off the coast in Virginia, there would be more jobs created and this will assist in reducing our dependence on foreign oil.
Here are some of the highlights from the plan:
- Supporting Virginia’s coal industry and nuclear energy
- Expedite the permitting and approval processes for energy facilities
- Support affordable Energy Efficient improvements
- Improve Energy Reliability and Affordability through SMART Grids and Buildings
McDonnell said during his speech at Old Dominion University:
“This morning I traveled to Old Dominion University to launch our energy plan at The Virginia Coastal Energy Research Consortium. The Consortium is researching and developing the energy solutions of the future. However, to do this work for tomorrow they need the energy of today. And that is what our “More Energy, More Jobs” energy plan is about. We need more energy in Virginia at a reasonable price, and that means we must utilize all the resources available to us. Thankfully in Virginia the resources are plentiful, and if we fully develop them all we can be the “Energy Capital of the East Coast.”
McDonnell continued, “Right now Virginia is the second largest importer of electricity behind California. The time has come for bold action to harness the energy available to us today, while continuing to develop the energy sources of tomorrow. In a McDonnell administration we will safely drill offshore for natural gas and oil, and reap the significant economic benefits documented in recent studies. We will use a portion of the revenues from this effort to fund alternative and renewable energy research and development and a portion to fund transportation infrastructure. We will support Virginia’s coal industry which supplies 43% of our energy, creates thousands of jobs in Southwest Virginia and Hampton Roads, yet is under constant attack from national special interest groups. We will leverage Tobacco Commission funding to make Southside and Southwest Virginia a hub of energy research and development. We will expedite permitting and approval for new energy facilities to reduce bureaucratic delays in getting necessary projects underway. And we will make Virginia a national leader in the burgeoning field of green energy by establishing the Commonwealth as a “Green Jobs Zone” which will bring entrepreneurs, and the jobs they create, to Virginia. We need more energy, we need more jobs. We need our lights to stay on at an affordable price, while we develop our future energy sources. Our comprehensive energy plan will power the Virginia of today and tomorrow and create thousands of good paying jobs for our citizens in the process.”
Bolling mentioned the anticipated success from this plan.
“As Governor and Lieutenant Governor we are committed to supporting a comprehensive energy policy – a policy that recognizes the importance of developing new sources of energy, like wind, solar, biofuels and the like; while at the same time doing more to expand traditional sources of energy like nuclear power, clean coal, oil and natural gas, all of which are in abundance in Virginia.”
Bolling added, “As we all know, the most important issue currently facing our state is the need to get our economy moving again and create the jobs Virginians need to protect their economic security. We are determined to do just that. At the same time, we all know that our nation faces another important challenge, the need to protect our national energy security. Fortunately, we have developed a strategy to help our nation enhance its national energy security, while at the same time helping Virginians protect their own economic security.
There is no doubt that the energy crisis will be a difficult challenge, but there is no doubt that we need to be looking at common sense solutions in this economy.
**Cross Posted at Virginia News Platoon and YR Dominion
Green Jobs Initiatives: Are they really necessary?
Lately, there appears to be a green jobs movement across the country. After all, Barack Obama’s stimulus plan included a provision that was specifically geared to creating more green collar jobs. However, this raises a huge question: are green jobs really needed?
In an economy where there are massive spikes in unemployment, this has caused many to re-evaluate their career paths in new fields, like environmental firms, etc. These positions do not require college, but several years of training, as well as the offers of advancement and competitive salary. Green jobs are great, but the problem is that many of these positions might not have longevity in the future. As more technology continues to evolve, these positions might have a shorter shelf life.
However, these jobs are not the solution to the current unemployment crisis, as it takes a long time to establish these openings and due to the constantly changing environment at large. The fact that the Commonwealth of Virginia is also trying to place a premium focus on creating green jobs, as they believe it will provide more employment options. Right now, the Virginia State Senate is considering Governor Kaine’s plan. This plan would create the following:
- Creating a fund that would extend grants to manufacturers of wind and nuclear power equipment
- Provide an income tax credit for homeowners to install solar power
- Exempting the sales tax for those who buy green energy home systems
- Providing incentives to power companies
- Making sure that all state buildings are built for green energy
I am all for protecting the environment, but we can do this in an economically sensible way. This plan is not allowing options for those who decide not to follow this plan. As for home improvements, making the switch to green energy can cause more green to fall out of your pockets. Many of these green products are quite costly and not proven as effective as the regular energy products.
The green jobs are not created overnight. Meanwhile, many of those unemployed are left wondering where the next pay check will come from and trying to locate jobs in their fields of expertise. Virginia would be wise not to place such a focus on this program, especially since we are in a budget crisis. The Commonwealth can not afford to waste money on this program.
Banning Light Bulbs–Not Such a Bright Idea
Question: How many delegates does it take to ban incandescent light bulbs? Well, Del. Adam Ebbin (D-Arlington) is proposing a measure that will ban incandescent light bulbs in the Commonwealth of Virginia. Talk about another example of nanny state politics in Virginia.
Ebbin wants to ban these light bulbs, since they save energy and cut down on pollution. However, the Richmond Times Dispatch reports that Ebbin has been rethinking his bill, instead considering adding fees on the incandescent bulbs.
This is a dim bulb idea, as incandescent bulbs are a cheaper alternative to the compact fluorescent light bulbs. In an economic recession, the last thing we need to worry about is banning a lower price light bulb, in place of a higher price bulb that has no proven effect of being safe for the environment.
**Cross Posted at Virginia News Platoon
