New Energy Proposals Could be A Game Changer
April 10, 2015
The American Energy Renaissance Act of 2014 proposes many drastic changes to the status quo surrounding energy and environmental regulations. Energy proponents would laud passage of the bill, and while as a whole, it would be no victory for traditional environmentalists, one of its provisions stands out, as it seeks to phase out engine-damaging ethanol fuel and create a higher standard for fuel economy.
Those proposals include:
- Giving only states the right to regulate hydraulic fracturing;
- Preventing the Environmental Protection Agency (EPA) from regulating carbon dioxide (CO2), methane, water vapor and nitrous oxide emissions;
- And repealing regulations on crude oil exports.
Transportation, which is second only to the electric power sector in terms of carbon dioxide emissions, could see significant long-term reduction in emissions while creating a surplus in disposable income for Americans and business owners.
Natural gas, while still not yet as widespread as coal, is very cost competitive, with liquid natural gas (LNG) at less than $10 per British thermal unit (Btu) while normal gas flirts with numbers around and below $5. Furthermore, if natural gas cannibalized market share from the coal it would help both the economy and the environment.
The consumer free market response to any good or service in production is to demand quality proportional to whatever price level that consumer is willing and able to pay. With time, more countries are joining the ranks of developed nations who — like the United States — are characterizing themselves as more than willing to pay premiums on energy for better environmental quality.
Source: Santiago Bello, "American Energy Renaissance Act — Why Oil and Gas Matte," National Center for Policy Analysis, April 8, 2015.
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