Sunday, July 8, 2012

OMG, Proof that Free Markets Really Do Work, in Energy No Less

I recently came across this gem.

USA CO2 emissions may drop to 1990 levels this year

But here's the most fascinating information in the article.
What is most interesting is that this is market driven, not mandate driven.
This is truly astonishing, even as the EPA noose continues to strangle America and our economy with more than a little help from the courts that recently issued a very nasty ruling upholding EPA powers.  Liberals, statists, globaloney folks and Democrats were truly euphoric and in a far more celebratory mode than they were over the SCOTUS Obamacare ruling (which they really didn't understand but that's another story).  Anyway the NYT chirps in.

Court Backs E.P.A. Over Emissions Limits Intended to Reduce Global Warming

The Luddite Dems would, without the slightest hesitation, gladly blast America back to the Stone Age.

So what's with this 'free market energy activity may reduce CO2 emissions back to 1990 levels' nonsense?  Well, it's not nonsense.  It's dubbed the miracle of shale gas.

Why are US carbon emissions plummeting back to 1990 levels? First and foremost are sharp reductions from electric power production, as a result of fuel switching from coal to gas, rising renewable energy production, and increasing efficiency. Yet, the shale gas revolution, and the low-priced gas that it has made a reality, is the key driver of falling carbon emissions, especially in the last 12 months.
As of April, gas tied coal at 32% of the electric power generation market, nearly ending coal’s 100 year reign on top of electricity markets. Let’s remember the speed and extent of gas’s rise and coal’s drop: coal had 52% of the market in 2000 and 48% in 2008.

Apart from power production, reductions of carbon emissions from the transportation sector since 2007 are pushing down US Carbon emissions. First quarter 2012 transportation emissions declined by about 0.6%, compared to the same period in 2011. Rising fuel efficiency and some switching to lower carbon fuels are the main causes of falling transportation emissions.

The bottom line is that America’s carbon emissions may drop back close to 1990 levels this year. That result would have been thought impossible, even at the end of 2011.

But the shale gas revolution makes a reality many things recently thought impossible. It was thought impossible to slash carbon US carbon emissions back to 1990 levels by 2012. It was thought impossible to massively, quickly cut carbon emissions and, at the same time, have lower energy bills.

Shale gas production has slashed carbon emissions and saved consumers more than $100 billion per year. Truly astonishing!
What will the Dems do? Outlaw shale gas because it's apparently cheap, clean and significantly lowers the cost of electricity production?

What's more astounding is that the shale gas revolution happened without government subsidies, loan guarantees and an act of congress. Now that's something the political class truly can't handle.

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