Tags: Furchtgott-Roth | green | energy | renewable

Furchtgott-Roth: Green Energy Policies Only Push Power Prices Higher

By    |   Thursday, 25 Oct 2012 02:16 PM

Policies aiming to increase production of renewable or green energy normally end up increasing utility bills for U.S. consumers, said Diana Furchtgott-Roth, a senior fellow at the Manhattan Institute.

Increased use of natural gas, meanwhile, can lower energy costs and improve the economy at the same time.

But politics is needlessly complicating energy policies by forcing a market for green energy.

“The only reason that there is a market for it is because some states such as California have put into place laws that say by a certain date — in California it’s 2020 — 33 percent of their electricity has to be made with renewables, which is going to drive electricity bills in California sky high,” Furchtgott-Roth told Newsmax TV in an exclusive interview.

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“In Colorado it’s 30 percent by 2020 and other states have other mandated renewable fuel requirements, which doesn’t make any sense now that we have a 200-year supply of inexpensive natural gas,” thanks to hydraulic fracturing, also known as fracking, and new technologies that allow for the extraction of oil and gas much more easily nowadays.

Increased use of natural gas would bring energy costs down rather than send them higher.

“The new technology has resulted in this incredible supply of natural gas at $2.75 per million BTU,” Furchtgott-Roth said, referring to British thermal units, an industry metric that measures natural gas.

“Using that will bring people’s electricity bills down rather than up.”

Editor's Note: Startling Proof of the End of America’s Middle Class. Details in the Video

Supporters of green energy often claim that fossil fuels will run out one day, adding renewable energy must replace oil, gas and coal when possible.

Such an argument is fine, but let the private sector decide what energy source fits best with the needs of the economy, be they from fossil fuels from renewable sources, and don’t allow the government to intervene with subsidies and other policies that basically aim, often unsuccessfully so, to pick winners and loser.

“As we start to run out of something, it becomes more expensive and then we find substitutes, but in fact the more expensive oil has become, we have actually found more oil, we have much higher reserves of oil than we did 15 or 20 years ago,” she noted.

“We can bring oil from Canada through the Keystone XL Pipeline if that’s ever approved to refineries in the Gulf of Mexico to substitute for the oil from Mexico and Venezuela that is dwindling away.

“I am not against new technology, I am not against new forms of energy, but what I am against is the federal government subsidizing it,” Furchtgott-Roth said.

The federal government should conduct basic research to help the private sector determine who wins and who loses.

“Do you think the government would have thought of funding Apple to build the iPhone?”

Millions wait in line to pick up the iconic smart phone every time the tech bellwether releases a new version, she stated.

“Do you see anyone waiting in line to get the latest biofuel at $27.50 a gallon instead of $3.50 for gasoline?”

Editor's Note: Startling Proof of the End of America’s Middle Class. Details in the Video



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Policies aiming to increase production of renewable or green energy normally end up increasing utility bills for U.S. consumers, said Diana Furchtgott-Roth, a senior fellow at the Manhattan Institute.
Furchtgott-Roth,green,energy,renewable
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2012-16-25
Thursday, 25 Oct 2012 02:16 PM
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