Back to Basics

Unprecedented! As bills to extend seemingly perpetual wind energy subsidies were again introduced by industry lobbyists late last year, taxpayers finally decided they’d had enough.

Informed and inspired by a loose but growing national coalition of groups opposed to more giveaways with no scientifically proven net benefits, thousands of citizens called their senators and representatives – and rounded up enough Nay votes to run four different bills aground. For once, democracy worked.

A shocked American Wind Energy Association and its allies began even more aggressive recruiting of well-connected Democrat and Republican political operatives and cosponsors – and introducing more proposals like HR 3307 to extend the Production Tax Credit (PTC). Parallel efforts were launched in state legislatures, to maintain mandates, subsidies, feed-in tariffs, renewable energy credits, and other “temporary” ratepayer and taxpayer obligations.

This “emerging industry” is “vitally important” to our energy future, supporters insisted. It provides “clean energy” and “over 37,000” jobs that “states can’t afford to lose.” It helps prevent global warming.

None of these sales pitches holds up under objective scrutiny, and their growing awareness of this basic reality has finally made many in Congress inclined to eliminate this wasteful spending on wind power.

Entitlement advocates are petrified at that possibility. Crony corporatist lobbyists and politicians have built a small army to take on beleaguered taxpayers, rate payers and business owners who say America can no longer afford to spend more borrowed money, to prop up energy policies that drive up electricity costs, damage the environment, and primarily benefit foreign conglomerates and a privileged few.

To confront the growing onslaught of wind industry pressure and propaganda, citizens should understand the fundamental facts about wind energy. Here are some of the top reasons for opposing further handouts.

Energy 101. It is impossible to have wind turbines without fossil fuels, especially natural gas. Turbines average only 30% of their “rated capacity” – and less than 5% on the hottest and coldest days, when electricity is needed most. They produce excessive electricity when it is least needed, and electricity cannot be stored for later use. Hydrocarbon-fired backup generators must run constantly, to fill the gap and avoid brownouts, blackouts, and grid destabilization due to constant surges and falloffs in electricity to the grid. Wind turbines frequently draw electricity from the grid, to keep blades turning when the wind is not blowing, reduce strain on turbine gears, and prevent icing during periods of winter calm.

Energy 201. Despite tens of billions in subsidies, wind turbines still generate less than 3% of US electricity. Thankfully, conventional sources keep our country running – and America still has centuries of hydrocarbon resources. It’s time our government allowed us to develop and use those resources.

Economics 101. It is likewise impossible to have wind turbines without perpetual subsidies – mostly money borrowed from Chinese banks and future generations. Wind has never been able to compete economically with traditional energy, and there is no credible evidence that it will be able to in the foreseeable future, especially with abundant natural gas costing one-fourth what it did just a few years ago.

President Obama and Senate Democrats need to take Lemonade Economics 101.

Tell a ten-year-old that the federal government is going to make him pay 25 cents for every glass of lemonade he sells at his corner stand, and he will say he’ll have to charge an extra quarter per serving – or simply close up shop. He certainly won’t say he’ll lower his prices.

But President Obama wants us to think he can compel oil companies to lower the skyrocketing pump price of gasoline, by eliminating business tax deductions for certain major companies, and raising their cost of doing business by what he admits would be $4 billion a year.

In fact, regular gasoline averaged $1.85 per gallon when Mr. Obama took office. It is now $4.20 a gallon in much of the Washington, DC area, over $4.00 in many regions, and heading north as summer approaches. The impact on commuters, family budgets, vacation plans, and shipping food and other products has been horrendous, and is getting worse.

In reality, oil companies don’t get subsidies. They get tax deductions for exploration, drilling, refining and other business expenses. Eliminating those deductions is effectively a tax hike, and the companies will have to pass those tax hikes on to their customers – further increasing pump prices.

And yet Senate Democrats recently offered an amendment that would eliminate various tax deductions for five major oil companies, turn the supposed savings into subsidies for wind turbine, solar panel and electric car makers – and use any leftover crumbs to “pay down” our skyrocketing budget deficit.

The ploy needed 60 votes – but got only 51, despite the President’s vocal support. “Members of Congress,” he said, “can stand with big oil companies, or with the American people.”

However, the American people are no longer buying the partisan rhetoric.

They increasingly understand that new taxes and restrictions on oil companies are not in their best interest. In fact, a recent Harris Interactive poll found that over 80% of US voters support increased domestic oil and gas production, to create and preserve jobs, lower pump prices and increase government revenues.

They understand that only 12% of what they pay for gasoline goes to oil companies for refining, marketing and distribution. Another 12% is state and federal taxes. Fully 76% is determined by world crude oil prices – and thus by global supply and demand, and confidence or fear about world events.

Americans understand that eliminating tax deductions for expenses incurred in producing and refining oil is the same as imposing new taxes. Those taxes would result in curtailed drilling and production, reduced royalty revenues, worker layoffs, still higher gasoline prices, and increased costs for everything we grow, make and transport with petroleum. Blue collar, poor and minority families would be hurt worst.

Every US business claims deductions for new equipment, facility depreciation, utilities, payroll, research and other expenses. This ensures that businesses, like individuals, recover their costs and get taxed only on their net incomes.

Five oil companies should not be singled out and punished as the sole exception to this rule.

Legitimate expense deductions are very different from subsidies. Subsidies amount to government taking money from individuals and profitable companies, and transferring it to politically favored companies and products that could not survive without perpetual support.

The Obama Administration’s anti-hydrocarbon ideology and “renewable” energy mythology continues to subsidize crony capitalists and the politicians they help keep in office – on the backs of American taxpayers, ratepayers and motorists. The latest chapter in the sorry ethanol saga is a perfect example.

Once again bowing to pressure from ADM, Cargill, Growth Energy and other Big Ethanol lobbyists, Lisa Jackson’s Environmental Protection Agency has decided to allow ethanol manufacturers to register as suppliers of E15 gasoline. E15 contains 15% ethanol, rather than currently mandated 10% blends.

The next lobbying effort will focus on getting E15 registered as a fuel in individual states and persuading oil companies to offer it at service stations. But according to the Associated Press and Washington Post, Team Obama already plans to provide taxpayer-financed grants, loans and loan guarantees to “help station owners install 10,000 blender pumps over the next five years” and promote the use of biofuels.

Pummeled by Obama policies that have helped send regular gasoline prices skyrocketing from $1.85 a gallon when he took office to $4.00 today – many motorists will welcome any perceived “bargain gas.” E15 will likely reduce their obvious pump pain by several cents a gallon, thus persuading people to fill up their cars, trucks and maybe even boats, lawnmowers and other equipment with the new blends.

That would be a huge mistake.

E15 gasoline will be cheaper because we’ve already paid for it with our taxes. The Congressional Budget Office says it costs taxpayers $1.78 every time a gallon of ethanol replaces a gallon of gasoline. Ethanol blends also get less miles per tank than gasoline; more ethanol in your tank means even fewer miles from your tank. You may save at the pump, but your cost per mile will increase.

Ethanol collects water, which can cause engine stalls. It corrodes plastic, rubber and soft metal parts. Pre-2001 car engines, parts and systems may not be able to handle E15, which could also increase emissions and adversely affect engine, fuel pump and sensor durability. Older cars and motorcycles mistakenly (or for price or convenience) fueled with E15 could conk out on congested highways or in the middle of nowhere, boat engines could die miles from land or in the face of a thunderstorm, and snowmobiles could sputter to a stop in a frigid wilderness.

Homeowners and yard care professionals have voiced concerns that E15’s corrosive qualities could damage their gasoline-powered equipment. Because it burns hotter than gasoline, high ethanol gasoline engines could burn users or cause lawnmowers, chainsaws, trimmers, blowers and other outdoor power equipment to start inadvertently or catch fire, they worry.

As several trade associations have noted in a lawsuit, the Clean Air Act says EPA may grant a waiver for a new fuel additive or fuel blend only if it has demonstrated that the new fuel will not damage the emissions control devices of “any” engine in the existing inventory.  E15 has not yet met this requirement. EPA should not have moved forward on E15 and should not have ignored studies that indicate serious potential problems with this high-ethanol fuel blend.

Largely because of corn-based ethanol, US corn prices shot up from an annual average of $1.96 per bushel in 2005 to $6.01 in 2011.

The Sierra Club and other environmental pressure groups are redoubling their efforts to “stop fracking in its tracks.” No wonder. The technology is an existential threat to fundamental “green” dogmas.

Horizontal drilling and hydraulic fracturing is a true “game changer.” In less than two years, this proven but still rapidly advancing technology has obliterated longstanding claims that we are running out of petroleum. Instead, the USA now finds itself blessed with centuries of oil and gas.

Poland and Estonia are using it, China has invited companies to the Middle Kingdom, Britain, Israel and Jordan are evaluating their shale deposits, and other nations are following suit – coaxing oil and natural gas from shale and other rock formations that previously had refused to yield their hydrocarbon riches.

By making more natural gas available, fracking has reduced the US price for this clean-burning fuel to under $3 per thousand cubic feet (or million Btu), compared to a peak of $8 a few years ago.

Natural gas is also supplanting coal for electricity generation. Due to excessive, mostly unnecessary new Environmental Protection Agency regulations, many US coal-fired power plants are shutting down. Replacement plants are far more likely to be gas-powered than nuclear, especially in the near term.

Natural gas makes heating and electricity more affordable for families, hospitals, government buildings and businesses; feed stocks less expensive for makers of plastics, paints, fabrics and other petrochemical products; and the prospect of natural gas-power vehicles more enticing, without mandates or subsidies. That translates into thousands of jobs created or saved.

Companies are keeping chemical plants open that were slated to close, due to soaring prices for oil that they now can readily replace with cheap natural gas. Shell plans to build a $2-biillion ethane “cracking” plant near Pittsburgh – creating 10,000 construction jobs and 10,000 permanent jobs – thanks to abundant gas from Marcellus Shale. Louisiana, North Dakota, Pennsylvania, Texas and other states are reporting subsidy-free employment and revenue gains from shale gas development. More are likely to follow, as companies seek new ways to capitalize on access to abundant, inexpensive, reliable gas.

Natural gas also provides essential backup power for wind turbines. Without such backup, electricity generation from these projects would plummet to zero 70-80% of the time, affecting assembly lines, computers, televisions, air conditioners and other electrical equipment dozens of times every day.

Even harder for environmentalists to accept, cheap natural gas also makes it harder to justify building redundant wind turbines that require large subsidies to generate far more expensive electricity only 5-8 hours a day, on average, while killing large numbers of raptors, migratory birds and bats. It makes more sense to simply build the gas turbines, and forget about the mostly useless wind turbines.

Fracking is also unlocking oil in the vast Bakken Shale formations beneath Montana, North Dakota and Saskatchewan. Oil production there has shot from 3,000 barrels a day in 2006 to nearly 500,000 today – creating thousands of jobs … and a growing need for the Keystone XL pipeline to Texas.

In response, eco-activists are spreading unfounded fears about this proven technology. Using words like “reckless,” “dangerous” and “poisonous,” they say unregulated fracking companies are operating with little concern for ecological values and causing cancer, earthquakes and groundwater contamination.

When President Obama took office, regular gasoline cost $1.85 a gallon. Now it’s hit $4.00 per gallon in many cities, and some analysts predict it could reach $5.00 or more this summer. Filling your tank could soon slam you for $75-$90.

Winter was warm. Our economy remains weak. People are driving less, in cars that get better mileage, even with mandatory 10% low-mileage ethanol. Gasoline is plentiful.

Misinformed politicians and pundits say prices should be falling. Our pain at the pump is due to greedy speculators, they claim, and greedier oil companies that are exporting oil and refined products.

Their explanation is superficially plausible – but wrong.

Energy Information Administration (EIA) data show that 76% of what we pay for gasoline is determined by world crude oil prices; 12% is federal and state taxes; 6% is refining; and 6% is marketing and distribution. The price that refiners pay for crude is set by global markets.

World prices are driven by supply and demand, and unstable global politics. That means today’s prices are significantly affected by expectations and fears about tomorrow.

A major factor is Asia’s growing appetite for oil – coupled with America’s refusal to produce more of its own petroleum. Prices are also whipsawed by uncertainty over potential supply disruptions, due to drilling accidents and warfare in Nigeria; disputes over Syria, Yemen and Israeli-Palestinian territories; erroneous reports of a pipeline explosion in Saudi Arabia; concern about attacks on Middle East oil pipelines and processing centers; and new Western sanctions on Iran over its nuclear program and the mullahs’ threats to close the Straits of Hormuz.

Moreover, oil is priced in US dollars, and the Federal Reserve’s easy money, low interest policies – combined with massive US indebtedness – have weakened the dollar’s value. It now costs refineries more dollars to buy a barrel of crude than it did three years ago.

Amid this uncertainty and unrest, speculators try to forecast future prices and price shocks, pay less today for crude oil that could cost more four weeks hence, and get the best possible price for clients who need reliable supplies. When they’re wrong, speculators end up buying high, selling low and losing money.

Oil speculators play a vital role, just as they do in corn and other commodities futures markets.

Basic chemistry dictates that a barrel of crude (42 gallons) cannot be converted entirely into gasoline. Depending on the type of crude, some 140 refineries across the USA transform each barrel into gasoline, diesel, jet fuel, heating oil, asphalt, waxes, petrochemicals and other essential products.

This manufacturing process leaves them with excess diesel fuel, because American vehicles consume less diesel than refineries produce – due to air pollution laws that limit diesel use. US refineries export that excess diesel to Europe, which uses more diesel than gasoline, and Europeans ship their surplus gasoline to mostly East Coast consumers. US refineries also sell excess inventories of other manufactured products to overseas markets, but diesel is by far their principal export.

America exports $180 billion in finished products every month – $2.2 trillion annually in corn, wheat, cars, tractors, appliances, airplanes, pharmaceuticals and much more.

Last year, for the first time since 1949, America was a net exporter of fuel and other petroleum products.

President Obama “is focused like a laser on putting people back to work,” Rep. Debbie Wasserman Schultz (D-Fla.) assured us last fall – echoing repeated statements by President Obama and Administration officials who “can’t wait” for Congress or others to take action and create jobs.

The jobs thing didn’t last long, however. The President soon vetoed TransCanada’s application for permits to build the Keystone XL pipeline. Approving them “would not be in the national interest,” he declared.

It is hard for most Americans to understand how it is contrary to the national interest to create 20,000 construction and manufacturing jobs, increase US gross domestic product by an estimated $350 billion, and bring 830,000 barrels of oil per day via pipeline from friend and neighbor Canada to Texas refineries. It’s hard for us to grasp how pipelining Canadian oil is worse than importing oil in much riskier tankers from unstable, unfriendly places like Venezuela and the Middle East – or how it’s better for the global environment to transport Canadian oil by tanker to China, where it will be burned under far less rigorous pollution laws and controls.

It’s equally hard for average citizens to comprehend how more than three years of careful environmental studies are insufficient, especially after the State Department had issued several reports concluding that the pipeline would have only “limited adverse environmental impacts” in areas that are already dotted with oil wells and crisscrossed with oil and gas pipelines.

To suppose, as the President insisted, that Keystone would generate “a lot fewer jobs than would be created by extending the payroll tax cut and extending unemployment insurance” is simply baffling.

In view of White House intransigence, what should Congress and TransCanada do now?

The 1,660-mile-long Keystone XL pipeline would begin in southeastern Alberta, Canada and end in Port Arthur, Texas. Although it would incorporate the existing Keystone Cushing pipeline through Kansas and part of Oklahoma, most of the US portion (from Canada through Montana, South Dakota and Nebraska, and from Cushing, Oklahoma to Port Arthur) would be new. Keystone XL would create 20,000 jobs manufacturing and installing 36-inch pipe, valves and other components to build that addition.

Environmentalists predictably went ballistic. Surface mining Alberta’s oil sands damages lands and habitats, they ranted. Never mind that this technique is being replaced by in situ “steam-assisted gravity drain” processes, that mined lands are being restored to forest and grass habitats, or that blocking Keystone XL will neither end oil extraction nor prevent shipment to China.

Mining, processing and using this oil will increase greenhouse gas levels and global warming, activists vented. Never mind that total CO2 emissions would amount to an almost undetectable portion of annual global emissions. That “dangerous manmade global warming” is an exaggerated scare that has little basis in truly peer-reviewed science. Or that there has been no warming for a decade, UN IPCC “science” is crumbling at its foundation, and increasing numbers of climate experts are publicly dissenting from IPCC orthodoxy.

Mr. Obama needs environmentalists in his camp, if he expects to be reelected. Radical greens have made Keystone XL the latest symbol of their intense hatred of anything hydrocarbon – and a centerpiece for fundraising.

President Obama “is focused like a laser on putting people back to work,” Rep. Debbie Wasserman Schultz (D-Fla.) assured us last fall – echoing repeated statements by President Obama and Administration officials who “can’t wait” for Congress or others to take action and create jobs.

The jobs thing didn’t last long, however. The President soon vetoed TransCanada’s application for permits to build the Keystone XL pipeline. Approving them “would not be in the national interest,” he declared.

It is hard for most Americans to understand how it is contrary to the national interest to create 20,000 construction and manufacturing jobs, increase US gross domestic product by an estimated $350 billion, and bring 830,000 barrels of oil per day via pipeline from friend and neighbor Canada to Texas refineries. It’s hard for us to grasp how pipelining Canadian oil is worse than importing oil in much riskier tankers from unstable, unfriendly places like Venezuela and the Middle East – or how it’s better for the global environment to transport Canadian oil by tanker to China, where it will be burned under far less rigorous pollution laws and controls.

It’s equally hard for average citizens to comprehend how more than three years of careful environmental studies are insufficient, especially after the State Department had issued several reports concluding that the pipeline would have only “limited adverse environmental impacts” in areas that are already dotted with oil wells and crisscrossed with oil and gas pipelines.

To suppose, as the President insisted, that Keystone would generate “a lot fewer jobs than would be created by extending the payroll tax cut and extending unemployment insurance” is simply baffling.

In view of White House intransigence, what should Congress and TransCanada do now?

The 1,660-mile-long Keystone XL pipeline would begin in southeastern Alberta, Canada and end in Port Arthur, Texas. Although it would incorporate the existing Keystone Cushing pipeline through Kansas and part of Oklahoma, most of the US portion (from Canada through Montana, South Dakota and Nebraska, and from Cushing, Oklahoma to Port Arthur) would be new. Keystone XL would create 20,000 jobs manufacturing and installing 36-inch pipe, valves and other components to build that addition.

Environmentalists predictably went ballistic. Surface mining Alberta’s oil sands damages lands and habitats, they ranted. Never mind that this technique is being replaced by in situ “steam-assisted gravity drain” processes, that mined lands are being restored to forest and grass habitats, or that blocking Keystone XL will neither end oil extraction nor prevent shipment to China.

Mining, processing and using this oil will increase greenhouse gas levels and global warming, activists vented. Never mind that total CO2 emissions would amount to an almost undetectable portion of annual global emissions. That “dangerous manmade global warming” is an exaggerated scare that has little basis in truly peer-reviewed science. Or that there has been no warming for a decade, UN IPCC “science” is crumbling at its foundation, and increasing numbers of climate experts are publicly dissenting from IPCC orthodoxy.

Mr. Obama needs environmentalists in his camp, if he expects to be reelected. Radical greens have made Keystone XL the latest symbol of their intense hatred of anything hydrocarbon – and a centerpiece for fundraising.

In December 2011, the Environmental Protection Agency released new Clean Air Act “National Emission Standards for Hazardous Air Pollutants.” Once again, EPA Administrator Lisa Jackson touted the supposedly huge benefits of controlling emissions of mercury (Hg) and other air toxics from U.S. coal- and oil-fired power plants (or electric generating units, EGUs).

The people of Idaho may welcome this new rule, since EPA’s miraculous modeling machine has promised to prevent “six premature deaths” and create “up to $54 million” in health benefits by 2016 – even though not one coal-fired EGU in Idaho fits the EPA’s final rules. Even the District of Columbia, which has only one oil-fired unit, will somehow, magically realize “up to $120 million” in health benefits, presumably from new restrictions on coal-fired units in Maryland or Virginia.

The average U.S. citizen, however, can be excused for no longer being willing to be penalized by EPA – the Extreme Punishment Authority – for such minimal, imaginary and manufactured benefits.

In fact, the final rule may be the most expensive one ever devised by EPA. And yet, even EPA admits, the alleged “hazards to public health” from mercury and non-mercury emissions from American EGUs are “anticipated to remain after imposition” of the new regulations.

As to benefits, EPA computer models claim Hg emission cuts will reduce average per person “avoided IQ loss” by an undetectable “0.00209 IQ points,” with estimated “total nationwide benefits” of $500,000 to $6.1 million by 2016. For the electric utility sector, says EPA, net job creation from the rules will be “not statistically different from zero” and could be between minus 15,000 and plus 30,000 jobs.

In fact, the new regulations will likely eliminate tens of thousands of jobs annually, especially in energy-intensive industries that rely on low-cost electricity to survive and face growing competition from foreign companies that pay far less for energy, labor and raw materials. Small businesses will also get hammered.

“EPA cannot certify that there will be no SISNOSE from this rule,” the agency admits. “SISNOSE” is EPA-speak for “significant impacts on a substantial number of small entities.” In other words, the rules are likely to inflict significant economic harm on small businesses, and thus on the health and welfare of numerous (former) small business owners, employees and families. The agency failed to explain why it has once again ignored the adverse impacts on human health and welfare caused by its rules.

EPA also confessed that U.S. power plants actually contribute a mere 3% of the total mercury deposited in computer-modeled American watersheds, and thus in fish tissue. Citizens will justifiably wonder where the other 97% comes from, and why we should spend so much money for so little benefit. (The “missing” mercury comes from foreign sources and from volcanoes, subsea vents and other natural sources.)

To see how extreme EPA’s scenarios are, consider five more egregious errors in the final regulations. First, EPA admitted it could “calculate risk” for only 3,100 (4%) of the continental USA’s 88,000 watersheds.

Second, for over 60% of the 3,100 watersheds it did model, EPA took only one or two fish mercury measurements – making it virtually impossible to adopt even valid 75th-percentile fish mercury values.

“… gleaming white wind turbines generating carbon-free electricity carpet chaparral-covered ridges and march down into valleys of Joshua trees.” This is “the future” of American energy – not “the oil rigs planted helter-skelter in [nearby] citrus groves,” nor the “smoggy San Joaquin Valley” a few miles away.

The Forbes article’s poetic paean to Aeolian energy nevertheless voiced consternation that a 300-megawatt “green” turbine project might kill some of the magnificent California condors that are just coming back from the edge of extinction – and the project might be cancelled as a result.

Indeed, the US Fish & Wildlife Service (FWS) has asked Kern County to “exercise extreme caution” in approving projects in the Tehapachi area, because of potential threats to condors. The “conundrum will force some hard choices about the balance we are willing to strike between obtaining clean energy and preserving wild things,” the article suggested. Hopefully, it concluded, new “avian radar units” will be able to detect condors and automatically shut down turbines when one approaches.

All Americans hope condors will not be sliced and diced by giant Cuisinarts. But most of us are puzzled that so few “environmentalists” and FWS “caretakers” express concern about the countless bald and golden eagles, hawks, falcons, vultures, ducks, geese, bats and other rare, threatened, endangered and common flying creatures imperiled by turbine blades.

And many of us get downright angry at the selective way endangered species and other wildlife laws are applied – leaving wind turbine operators free to exact their carnage, while harassing and punishing oil companies and citizens.

In 2011, following a million-dollar, 45-day helicopter search for dead birds in North Dakota oil fields, US Attorney Timothy Purdon prosecuted seven oil and gas companies for inadvertently killing 28 mallard ducks, flycatchers and other common birds that were found dead in or near uncovered waste pits. Under the Migratory Bird Treaty Act, the companies and their executive officers faced fines of up to $15,000 per bird, plus six months in prison. (They eventually agreed to plead guilty and pay $1,000 per bird.)

Also in 2011, a FWS agent charged an 11-year-old Virginia girl with illegally possessing a baby woodpecker that the girl had rescued from a housecat, even though she intended to release the bird after ensuring it was OK. The threatened $535 fine was finally dropped, after the FWS was deservedly ridiculed in the media.

The mere possession of an eagle feather by a non-Indian can result in fines and imprisonment, even if the feather came from a bird butchered by a wind turbine: up to $100,000, a year in prison or both for a first offense. Poisoning or otherwise killing common bats that have nested in one’s attic can cost homeowners thousands of dollars in fines.

Wind turbine companies, officers and employees, however, are immune from prosecution, fines or imprisonment, regardless of how many rare, threatened, endangered or migratory birds and bats they kill. In fact, FWS data show that wind turbines slaughter some 400,000 birds every year. If “helter-skelter” applies to any energy source, it is wind turbines, reflecting their Charles Manson effect on birds.

Our nation’s economic growth may finish an anemic 2 percent on the year. Faced with looming taxes and regulations, few companies are expanding, hiring or buying equipment. More than 14 million Americans are unemployed, excluding the nearly 9 million who have been forced to take part-time jobs, or the 2.5 million who’ve given up on finding work.

Meanwhile, 140,000 have been added to government payrolls, and the nation is spending $4 billion a day more than it’s taking in.

That is unacceptable, demoralizing – and unnecessary.

The White House and Democrats are clueless about reinvigorating the economy. But they have proven they know how to kill jobs, prosperity and hope. Their energy policies are especially destructive.

As President Obama made clear, under his tutelage electricity costs would “necessarily skyrocket,” gasoline prices would soar, “green” energy would become the law of the land, and he would “fundamentally transform” America. He is keeping his promise.

America’s vast storehouses of untapped oil, gas, coal and uranium could generate millions of jobs and hundreds of billions in revenues. Electricity generation industries and the factories and other businesses that depend on reliable, affordable energy could do likewise, if they were unshackled from excessive regulations that often actually harm health and environmental quality.

Instead, the Environmental Protection Agency, Departments of Energy and the Interior, and other government bureaucracies continue to impose a near-total shutdown of onshore and offshore oil and gas leasing. They drag their feet or simply reject drilling permits, display antipathy toward hydraulic fracturing to tap our 100-year supply of shale gas, and impose truckloads of punitive air and water rules designed to shutter dozens of coal-burning power plants.

The President claims he will “pare back regulation” by several billion dollars – out of an estimated $1 trillion in total annual regulatory compliance costs. EPA alone promised “$126 million” in supposed paperwork reductions, while imposing several hundred billion dollars in new EPA regulations.

Mr. Obama finally suspended EPA’s proposed ozone rules, which many had warned would be the most expensive environmental edicts in history. But they will be back with a vengeance after the 2012 elections. Meanwhile, bowing to EPA and environmentalist pressure, he postponed action on the Keystone XL pipeline, which would have created 20,000 almost-shovel-ready construction jobs.

Now EPA wants 230,000 new bureaucrats, just to process future carbon dioxide emission permits, based on bogus climate chaos models and scenarios. Even our worst nightmares cannot fathom the job-killing compliance costs this would impose on the 6,000,000 businesses these regulations would affect.

Again using questionable to fraudulent assertions about catastrophic manmade climate change to justify its actions, EPA is also demanding 54.5 mpg fuel economy standards – which will result in thousands of deaths and millions of injuries, as cars are further downsized and plasticized.

Even businesses on the leading edge of the “green revolution,” crony capitalism and lobbying for dollars are faring poorly. After lapping up $1.5 billion in government red-ink subsidies and loan guarantees, three US solar companies filed for bankruptcy and fired over 2,000 workers. And still the Energy Department shoveled more billions of tax dollars into more wind and solar projects, despite voter objections.

DOE also sponsored programs that cost $20 million to create 14 jobs and weatherize four Seattle houses in a year.