We’ve heard this for well over a decade, if not two. And all it takes is a massive amount of government funding, because the private sector won’t really commit their own money to that extent
The Climate Economy Is About to Explode
Late last month, analysts at the investment bank Credit Suisse published a research note about America’s new climate law that went nearly unnoticed. The Inflation Reduction Act, the bank argued, is even more important than has been recognized so far: The IRA will “will have a profound effect across industries in the next decade and beyond” and could ultimately shape the direction of the American economy, the bank said. The report shows how even after the bonanza of climate-bill coverage earlier this year, we’re still only beginning to understand how the law works and what it might mean for the economy.
Wait, so, they passed this massive bill, which has nothing to do with reducing inflation, and they really didn’t know what it would do? That’s…..disturbing. And a dereliction of duty by the Congress
The report made a few broad points in particular that are worth attending to: First, the IRA might spend twice as much as Congress thinks. Many of the IRA’s most important provisions, such as its incentives for electric vehicles and zero-carbon electricity, are “uncapped” tax credits. That means that as long as you meet their terms, the government will award them: There’s no budget or limit written into the law that restricts how much the government can spend. The widely cited figure for how much the IRA will spend to fight climate change—$374 billion—is in large part determined by the Congressional Budget Office’s estimate of how much those tax credits will get used.
But that estimate is wrong, the bank claims. In fact, so many people and businesses will use those tax credits that the IRA’s total spending is likely to be more than $800 billion, double what the CBO projects. And because federal spending tends to catalyze private investment, that could send total climate spending across the economy to roughly $1.7 trillion over the next 10 years. That’s significantly more money flowing into green-energy industries than the CBO projected, though it’s unclear if that additional money will lead to more carbon reductions than earlier analyses have projected.
Second, the U.S. is “poised to become the world’s leading energy provider,” according to the bank. America is already the world’s largest producer of oil and natural gas. The IRA could further enhance its advantage in all forms of energy production, giving it a “competitive advantage in low-cost clean electricity and hydrogen production, infrastructure, geologic storage, and human capital,” the report states. By 2029, U.S. solar and wind could be the cheapest in the world at less than $5 per megawatt-hour, the bank projects; it will also become competitive in hydrogen, carbon capture and storage, and wind turbines. (The law will help America’s battery industry, but the bank doesn’t see the U.S. becoming the world’s biggest battery producer, given that China already has such a dominant advantage.)
Do you think China will allow the U.S. to overtake them? Or, will they simply start dumping even more onto the market and well below cost rates, like they’ve been doing? If any of that federal money dries up, U.S. companies will significantly reduce their investments. If they thought they’d make a lot of money they’d be investing it now, without all the federal kickbacks.
Finally, those of us who have long worked in climate change—and here I include myself, who started covering this topic in 2015—should have some excitement and even humility about this deluge of new talent. Even setting its arduous politics aside, managing climate change is a legitimately difficult technical and cultural problem—it’s going to require as many attentive and enthusiastic brains as possible, and the path to decarbonizing always required an infusion of new workers, investment, and good will. If you don’t yet work in the industry, but have always cared about climate change as an issue, well, this is your moment to get involved. These companies are going to need engineers, yes, but also programmers, accountants, marketers, HR staff, general counsels—there is space for everyone now.
The fight against climate change is going to change more in the next four years than it has in the past 40. The great story of our lives is just beginning. Welcome aboard.
What’s weird is they do not want to invest their own money, nor change their own lives to match their beliefs.
Teach Russia and Saudi Arabia are set to reduce production which will again cause all fossil fuel prices to “skyrocket” even on domestic oil costs since producers can sell to the highest paying customer, either foreign or domestic . Only renewables seem to have stable prices with generation costs around 6 cents per kWh according to recent large scale contracts. Many think that the Saudis and Russians are raising the price now just before our midterms hoping to give their GOP friends including a Trump a political advantage. How does that make you feel knowing those bad actors are interfering in our election outcomes? Do you welcome them as allies?
John-how do you feel about Brandon curtailing our own oil production? Which came first-Brandon’s move or the Saudi’s ?
UnderTrump, OPEC price moves didn’t have much effect here
Jill,
Who’s John?
FYI:
US oil production plummeted, reaching its nadir May 2020 at 9713 thousand BBL/day. It’s now over 11,800 thousand BBL/day.
In Jan 2017 natural gas was at 88 billion cu ft/da and in July 2022 was at 119 cu ft/da.
OPEC slowly raised crude production from June 2020 until it is now at the pre-pandemic 2019 level. BTW, OPEC regulates crude production not price.
In the tRump years retail gasoline averaged about $2.40/gal, since 2021 the average is about $3.20/gal.
If President Brandon curtailed our own oil production, why has production increased since the low point during the PedoDon reign?
The US is today producing about 11 million BBL/day, and OPEC about 30 million BBL/day. OPEC (including Putin and bin Salman) intends to reduce their production by 2 million BBL/day. This is an opportunity for US producers to increase their output, and at a higher price!! Russia, OPEC and China want to destabilize the US.
119 billion cu ft/da
Rimjob fudging the facts again.
Surprise.
https://www.macrotrends.net/2562/us-crude-oil-production-historical-chart
#LGBFJB
Bwaha! Lolgfy
US oil production plummeted, reaching its nadir May 2020 at 9713 thousand BBL/day. It’s now over 11,800 thousand BBL/day.
Anyone with a BRAIN KNOWS THE GOVERNMENT LOCKED DOWN THE WORLD. NO ONE NEEDED GASOLINE CAUSE THEY HAD TO SHELTER IN PLACE> OIL USAGE PLUMMETED FOR MONTHS because of the pandemic.
We continue to have this discussion and you continue to lie.
Russia and Saudia Arabia started an oil war in which they pumped out oil despite the lack of need by the world. Ships full of oil sat off shores waiting to be purchased during this time until Trump Threatened them both and they halted their oil war driving the price back up to a more reasonable level.
OPEC slowly raised crude production from June 2020 until it is now at the pre-pandemic 2019 level. BTW, OPEC regulates crude production not price.
This might be true but the number one producer of oil during that time was the USA and Biden and the AGW NAZIS have destroyed the fracking industry in the USA thus eliminating the oil produced by the USA that went into the market.
ITS moot.
Biden went to OPEC just a few days ago and begged them to increase oil production, they laughed at him and cut it by 2 million BBLS of oil per day because he is RAPING THE USA by releasing oil from the Strategic oil reserve to keep the prices from 10.00 per gallon of gasoline.
Nothing you say has merit, but it is always fun to play with numbers to make people think it is someone else’s fault.
All of this lies squarely on BIDEN and the DEMOCRATS FEET who were horrified by the pandemic and forced Trump to shut down and then blamed him for job losses and the economy when you worthless leftists ruined millions and millions of lives over politics.
And even your January 6th committee just shut down cause they found out there was nothing to see here. I am still breathlessly waiting for Trump to be arrested and charged with TREASON.
That is more likely to happen to Biden than it is Trump.
“Only renewables have stable prices”.
Only renewables have a high amount of reliability problems
“Only renewables have stable prices”.
You always lie to make a point. Do you realize if the point is a lie it does not work? Renewables do not have stable prices, they are subsidized to achieve -level- prices. Renewables can’t replace fossil fuels because they don’t provided the out put or reliability. BTW, renewables are not renewable.
If any energy could be price stable it would be nuclear.
MAGA
Idiot child, we could have had stable prices over the past two years – but President* Brandon decided that wasn’t important.
We are aware that you aren’t very bright – you don’t need to keep proving it.
Dear Elwood:
“US oil production plummeted, reaching its nadir May 2020 at 9713 thousand BBL/day. It’s now over 11,800 thousand BBL/day.”
The May 2020 number was caused by, you may remember, a pandemic of Chinese Flu, AKA Covid. The previous low, after 8 years of Obama, was 8544 thousands of barrels a day August 2020
The all time high, after 3 years of Trump, was 13000 thousands of barrels a day in November 2019. It has not recovered to the previous high, plus, demand has increased as the country started moving again.
The blame is clearly on Biden and his Far Left administration’s desire to create shortages to increase the price of gasoline in order to make EV’s more competitive.
https://www.eia.gov/petroleum/production/
“If President Brandon curtailed our own oil production, why has production increased since the low point during they PedoDon reign?”
Production is based on expectation of supply versus price. If the supply is expected to be reduced by federal leases being curtailed then production will be lowered and prices will increase.
Think of it like this. You are planting tomatoes on a farmer’s land for resale to a grocer. The farmer’s wife says you can no longer plant on the land. You increase your price because eventually your supply will diminish and you want to maintain your revenue’s level. The grocer immediately increases the price because his supply price will go up.
“This is an opportunity for US producers to increase their output, and at a higher price!! Russia, OPEC and China want to destabilize the US.”
Production increases require land and capital investment. As long as Biden supports an anti-oil agenda increases will be slow and tentative.
Commenter typed, conspiratorially, and without evidence: The blame is clearly on Biden and his Far Left administration’s desire to create shortages to increase the price of gasoline in order to make EV’s more competitive.
US oil production plummeted as demand plummeted resulting from the global pandemic (get used to it, more to come!). As the price dropped so did production in the US. Since the low point of production under PedoDon, production has increased, not decreased. Yes, it takes a while for production to ramp up again and investors are wary as OPEC+ completely and absolutely controls crude oil prices. OPEC+ produces about 3/4th of the world’s crude.
PedoDon coerced Saudi Arabia to cut production to boost prices enabling US producers to get back to work. He threatened to cut SA purchases of GI military equipment. The Saudis are our best customer!
The US sits on 69 BILLION bbls of crude reserves. We use 18 million bbls/day or 6.6 BILLION a year. That’s 11 years of crude. WE HAVE NEVER BEEN CRUDE OIL INDEPENDENT. OPEC+ will have us by the short hairs as long as we depend on crude oil, period.
OPEC+ has most of the global crude reserves. Venezuela and Saudi Arabia over 300 BILLION bbls each, Iran, Iraq, Kuwait, UAE, Russia have significant reserves. Our friendly neighbor Canada sits on over 100 BILLION bbls.
BTW, each gallon of gasoline burned produces about 20 pounds of carbon dioxide.
We get it. There are critical elections in 2022 and 2024, and it’s difficult for a minority to win. You have to gin up fear in your voters and make it hard for the other guys to vote.
Can you explain how a gallon of gasoline which weighs 6 pounds becomes 20 pounds of CO2? I really need to hear this convoluted BS explanation.
We get it. There are critical elections in 2022 and 2024, and it’s difficult for a minority to win. You have to gin up fear in your voters and make it hard for the other guys to vote.
Every time you begin a paragraph or sentence with “We get it.” you continue to go on and prove you don’t get it. At this point we figure you never got it and never will get it. You are blinded by your own propaganda and bigotry.
MAGA.