« Key to diminishing poverty - economic freedom | Main | The Left's Holiday from Sane »

Forget the people, save our cronies!

Although my colleague Rodney Graves touched briefly on this story in an earlier post, I had already planned to publish a few comments about it this morning so here goes.

This week's Sunday New York Times featured a piece entitled "Insiders Sound An Alarm Amid A Natural Gas Rush" which attempted to lead readers to the conclusion that natural gas producers such as Devon Energy and Chesapeake Energy (both headquartered in my hometown of Oklahoma City) have been lying about the low cost and abundance of natural gas extracted from fractured shale.  Chesapeake Energy's CEO Aubrey McClendon immediately responded to the story, as did 25 other energy experts in academia, government, and energy production.

The analysis of the article, which highlighted several instances where the NYT reporter(s) appeared to have simply gleaned information from the Internet without bothering to do any serious one-on-one interviews with their sources, concluded that the Times purposefully published a slanted piece (horrors, horrors, I know) designed to damage the natural gas industry, possibly as a sop to left-leaning environmentalists who have recently been working overtime to poison public opinion about the hydraulic fracturing process used to extract natural gas and oil from shale deposits.

Why would environmentalists work so hard to damage the production of a domestic energy source that is abundant, requires little refining, and burns cleaner than any other hydrocarbon fuel?  Chris Helman, blogging at Forbes.com, explains it simply: "I can only guess that the problem, as the Times sees it, is that as long as we have all that cheap gas, there's precious little need for solar panels, windmills and other cornerstones of their much-heralded but slow evolving green jobs revolution."

As I have pointed out many, many times on this blog, no Presidential administration in recent history has invested more in crony capitalism than the Obama Administration, and one of their favorite pet industries is "green energy", specifically the wind and solar power technologies developed by one of his Administration's biggest cronies, General Electric.

And then there is Al Gore, a founding father of the "cap and trade" and "carbon credits" energy schemes pioneered by the global warming movement.  Gore and his partners in Generation Investment Management, World Resources Institute, and other similar organizations committed to saving the planet through rationing carbon-based energy, stand to earn personal fortunes in the billions if their efforts are successful and implemented on a world-wide scale.

And so you have it.  Crony capitalism that favors the elites who just happen to helm government and environmentalist-approved (pardon the redundancy) industries and investment firms once again rears its ugly head as it attempts to crush free market efforts to develop a clean and inexpensive energy source that will be far more beneficial to everyone, but will enrich the "wrong" people in the process.

'Hope and Change' indeed.

A commenter at Hot Air also had this to say, which is worth considering as well: "As an investor, I had a different take on the article. I didn't see it as an attack on the natural gas industry, but a warning from insiders that an investment bubble is forming around the industry.  Bubbles can form when, in the rush to invest in a given sector, 'dumb money' is willing to jump into even the smallest opportunity without doing adequate due diligence or without fully grasping the potential return on investment.  Unless more utilities replace coal-fire plants with gas and more freight companies transition to CNG engines, investors may be left with collapsing asset values as over-supply depresses prices for the next several decades."

I believe that such conversions can and will happen, but at a rate that is affordable and commensurate with market forces, rather than what we are seeing today, which is the forced conversion of power plants to gas based on government mandates and timetables.  If the government allows the market to function normally without lopsided financial incentives and mandates, bubbles will be far less likely to appear.
Enhanced by Zemanta


TrackBack URL for this entry:

Comments (12)

The Hot Air commenter is wo... (Below threshold)
James H:

The Hot Air commenter is worth noting. At my end, I didn't see an anti-gas agenda on the Times reporter's part that much. Rather, I saw a number of industry analysts raising caution about an industry that could heat up soon. And if industry analysts have doubts, talking to the investment community and to the press is part of their job.

I think it is part of a rel... (Below threshold)
Jeff Blogworthy:

I think it is part of a religious war on humanity due to resurging paganism. It explains a lot. Pristine nature sans humans is the sacred ideal. You see the undercurrent everywhere.

"If the government allows t... (Below threshold)

"If the government allows the market to function normally without lopsided financial incentives and mandates, bubbles will be far less likely to appear."
No sh*t Sherlock!

James H, you don't have to ... (Below threshold)

James H, you don't have to look past the first layer of epidermal cells to see the intent. Its just the sunscreen that blinded you.

CHAGANTIDid you re... (Below threshold)
Jeff Blogworthy:


Did you really have to gum up the thread with that cut-and-paste? Bad form.

Thank you Chagnati for what... (Below threshold)
jim m:

Thank you Chagnati for what appears to be the green equivalent of a Nigerian email scam.

Kalifornia is still waiting... (Below threshold)

Kalifornia is still waiting for all those "green shoots coming up all over" that Arnie talked about.

The only green shoots comin... (Below threshold)
jim m:

The only green shoots coming up in California are from the grass growing in the parking lots of abandoned corporate headquarters. I guess in those terms the idiots there will consider it a tremendous success.

"Kalifornia is still waitin... (Below threshold)

"Kalifornia is still waiting for all those "green shoots coming up all over" that Arnie talked about."

I think one of his sprouts is about 15 years old now? Undoubtedly there are others. Have faith in the 'Sperminator'.

James H - "The Hot Air comm... (Below threshold)
Upset Old Guy:

James H - "The Hot Air commenter is worth noting."

It's good advice. The Upset Old Gal and I have heard this same advice from our money-guy. Invest for the long term. You're making investments, not "playing the market."

However, since this story appeared in the US news section, not in the financial section. So while the advice is sound as a general investing philosophy, I'm not inclined to believe that was the commenter's purpose. I also understand your comment didn't go to purpose, James. But even the industry-guys comments about markets heating up and cooling down is pretty much boilerplate regardless of industry or market served. I've to to question both the Times and that commenter's purpose there.

jim m writes:<blockqu... (Below threshold)
Rodney Graves Author Profile Page:

jim m writes:

The only green shoots coming up in California are from the grass growing in the parking lots of abandoned corporate headquarters. I guess in those terms the idiots there will consider it a tremendous success.

In excess of 16,000,000 square feet of commercial real estate currently sits empty in the San Francisco Bay Area.

Hey! Don't make fun of all... (Below threshold)

Hey! Don't make fun of all those green shoots coming up in Kalifornia - that's "medicinal" marijuana, a neccesity to enable them to see unicorns, feel peace and love and, most of all, to ignore reality.






Follow Wizbang

Follow Wizbang on FacebookFollow Wizbang on TwitterSubscribe to Wizbang feedWizbang Mobile


Send e-mail tips to us:

[email protected]

Fresh Links


Section Editor: Maggie Whitton

Editors: Jay Tea, Lorie Byrd, Kim Priestap, DJ Drummond, Michael Laprarie, Baron Von Ottomatic, Shawn Mallow, Rick, Dan Karipides, Michael Avitablile, Charlie Quidnunc, Steve Schippert

Emeritus: Paul, Mary Katherine Ham, Jim Addison, Alexander K. McClure, Cassy Fiano, Bill Jempty, John Stansbury, Rob Port

In Memorium: HughS

All original content copyright © 2003-2010 by Wizbang®, LLC. All rights reserved. Wizbang® is a registered service mark.

Powered by Movable Type Pro 4.361

Hosting by ServInt

Ratings on this site are powered by the Ajax Ratings Pro plugin for Movable Type.

Search on this site is powered by the FastSearch plugin for Movable Type.

Blogrolls on this site are powered by the MT-Blogroll.

Temporary site design is based on Cutline and Cutline for MT. Graphics by Apothegm Designs.

Author Login

Terms Of Service

DCMA Compliance Notice

Privacy Policy