Alex Epstein Profile picture
Feb 17, 2021 12 tweets 4 min read Read on X
Many people have asked me what I think of Twitter-promoted @JesseJenkins' account of the TX situation. Turns out he preemptively blocked me, but looking at his thread from another account I believe it's deliberately superficial, evading root causes that damn his favored policies. Image
Let's start with the simple truth: *the only real reason reliability has suddenly become an issue, everywhere*, is that policy now rewards unreliability and punishes reliability.

For much more on this read @MeredithAngwin's excellent "Shorting the Grid."
The primary goal of policies that reward reliability and punish reliability is to reduce CO2 emissions by the bizarre method of promoting unreliable solar and wind at the expense of reliable nuclear, as well as all other reliable power sources.
These anti-reliability policies, as I have explained in detail, are the root cause of the Texas situation.

Anti-reliability policies are also the root cause of the California situation.

energytalkingpoints.com/california-bla…
Jesse Jenkins is a supporter of "net-zero" policies, which mostly consist of forcing us to use unreliable wind+solar. Thus he is a contributor to the anti-reliability policy trend at the root of TX's problems. His thread, predictably, ignores the culpability of that trend.
Jenkins' thread amounts to: Wind and solar did virtually nothing to help during the cold snap, but they were expected to do virtually nothing—so no problems there. Whereas natural gas and coal were expected to do a lot but they underperformed. So they’re the problem.
But the *reason* natural gas and coal underperformed was preventable problems caused by policies that punish reliability and reward unreliability--policies that Jenkins supports. That's why I say his analysis is deliberately superficial; the true analysis damns his policies.
Any serious analysis of what's going on in Texas should share the information captured in this chart: unreliable wind and solar electricity (green and yellow) completely fail to keep us warm or powered. Fossil/nuclear only "failed" in one place, TX, due to preventable problems. Image
I respect Jenkins' knowledge of many of the specifics of the TX grid. But by not giving the bigger picture of 1) anti-reliability policies and 2) green energy failure, he is contributing to the false and dangerous "fossil fuels failed" narrative.
Don't let Jenkins or anyone else distract you from the fact that "unreliables" failed everywhere. That's the fact we need to keep in mind as we are pitched policies to eliminate reliable fossil fuels and nuclear, and to "replace" them with unreliable wind and solar. Image
Here's Jenkins's thread. I would have quote-tweeted it, but for some reason he blocked me before I even read his post.

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More from @AlexEpstein

May 13
Republicans ran on a pledge to "terminate" the trillion-dollar Inflation Reduction Act subsidies, aka "the Green New Scam."

But their proposed budget keeps almost all the subsidies, while falsely claiming to save money through easily-reversed “phaseouts” starting in 4 years!
🧵 Image
If you’re just joining the conversation about the IRA subsidies, here’s what you need to know: they are subsidies for inferior forms of energy that cost a fortune, raise energy costs, and make our grid unreliable—especially the solar/wind subsidies.
The IRA subsidies should all be fully repealed.

It is possible that some sort of compromise is absolutely necessary to repeal most of the IRA.

However, the current proposal from House Ways and Means does not repeal the IRA subsidies in any meaningful way due to 3 fatal flaws.
Read 18 tweets
Apr 27
Canada has 3X the US’s oil reserves but less than 40% the production.

Why? Anti-oil politicians like Mark Carney who say they’re protecting Earth’s coldest country from global warming.

Here's the story of Canada's squandered oil opportunity—and how to reverse it 🇨🇦👇 Image
*Canada has the greatest oil opportunity on Earth: > 3 times the reserves of the US, with lower production costs.*

Canada has 170 billion barrels of proven oil reserves—by far the largest of any free country. And its producers can profit at $44 oil, vs. >$57 for US shale.

Canadian oil production is also continuing to get cheaper. Oil sands operating costs have dropped 19% over the past five years, and the industry—which is still fine-tuning how to coax oil-like bitumen out of oil sands—has substantial room for further cost reductions.

In addition to its massive proven oil reserves, Canada also has massive unexplored oil resources. Canada’s Northwest Territories may contain up to 37% of Canada’s total oil reserves, much of it light crude, which is even cheaper to extract and transport than bitumen from oil sands.
*Canada is squandering its oil opportunity, with < 40% of US production and much slower growth.*

Given Canada's massive oil reserves and lower production costs, Canadian oil should have been growing far faster than US oil—on a path to producing even more oil than the US does.

Instead, Canada is totally squandering its oil opportunity, with less than 40% of US production and slower growth since 2010.Image
Read 12 tweets
Apr 25
Why Congress's new budget should eliminate all IRA "tax credits"

1. They are subsidies
2. They promote inferior energy
3. They raise energy costs
4. They make energy unreliable
5. They increase our debt
6. They make our economy less productive
7. They don't lower CO2 emissions
*Truth 1: IRA energy tax credits are really just subsidies*

Real tax credits let productive industries keep/reinvest more of their profits.

Most IRA "tax credits" are transferable tax reduction certificates that unprofitable industries trade for cash. I.e., subsidies.

A tax credit lets productive industries pay less tax on profits, which enables them to reinvest in additional productivity.

But most IRA "tax credits" support activities that are unprofitable on a free market—e.g., solar, wind, hydrogen—and therefore have no taxes to reduce with credits.

How can unprofitable activities be set to get a trillion dollars in IRA "tax credits"?

Because they are aren't really tax credits but *transferable tax reduction certificates* that can be easily sold for cash to profitable companies (and sometimes the government itself).

Giving a trillion dollars in transferable tax cut certificates to unprofitable activities that pay no taxes is no different than giving transferable tax reduction certificates to individuals who pay no taxes.

It's a trillion dollar subsidy, not a tax credit.
*Truth 2: Every IRA subsidy promotes inferior energy*

Every subsidy has lobbyists who say it's somehow improving American energy.

But the fact is, they are demanding subsidies because the energy they are pushing is inferior and couldn't survive or thrive on a free market.

The IRA's "45Y" and "48E" subsidies will give $241-901 billion to companies for "clean electricity," mostly intermittent solar and wind—which would be used far less in a free market because they are so unreliable. E.g., CA has chronic reliability problems from depending on solar.

The IRA's "45X" Advanced Manufacturing Production subsidies will give companies $132-193 billion to inefficiently manufacture batteries, as well as the solar panels and wind turbines that are created huge reliability problems on our grid and increasing the cost of electricity.

The IRA's "30D," "25E," and "45W" subsidies will give $117-393 billion to companies for EVs—whose mix of cost and (in)convenience most consumers won't pay market prices for, and therefore need huge subsidies as well as mandates to buy.

The IRA's "45Q" subsidies will give companies $34-210 billion to capture CO2 and pump it underground—a process companies would use very little on a free market since it's so costly. E.g., carbon capture for a coal plant costs 4 times the price of the coal!

The IRA's "45V" subsidies give companies $33-100 billion for hydrogen fuel—which would exist very little in a free market because it's so expensive to make. Hydrogen costs 10 times what gasoline does for the same energy! And favored "green" hydrogen is even more!

The IRA's "45Z" subsidies will give companies $43 billion for various "clean fuel" projects, mostly biofuels—which would be used far less in a free market since they are expensive to produce and compete with food for cropland.

The IRA's "25C" and "25D" subsidies will pay (mostly wealthy) property owners $28-276 billion to use government-favored "energy efficiency" technologies like solar panels and heat pumps that they wouldn't otherwise use or be willing to pay for.
Read 10 tweets
Mar 28
⚠️ WARNING: The secret UN carbon tax that's about to fleece America

Next week, the UN votes on an ocean carbon tax that would spike the price of food, fuel, and everyday essentials—hitting US the hardest.

Here's what the admin and Congress can do to stop this in its tracks👇🧵 Image
The UN's International Maritime Organization (IMO) is supposed to ensure safe shipping around the world.

Instead, it's pushing a carbon tax on shipping fuel, with proposals ranging from $19 to $150/ton of CO2—the equivalent of adding $1.29 to the price of gasoline! Image
A $150/ton carbon tax on shipping would double fuel costs for large ships.

The marine fuel oil used to power most large ships costs ~$400/ton. Since burning one ton of marine fuel oil produces ~3.2 tons of CO2, a $150/ton carbon tax adds ~$480/ton—roughly doubling today's price.
Read 11 tweets
Mar 12
Did the EPA really just take the "Biggest Deregulatory Action in U.S. History"?

Actually, yes.

Here are 18 important deregulatory actions EPA announced today, and why they will make life better for all of us.

🧵👇
1. "Reconsideration of regulations on power plants (Clean Power Plan 2.0)"

These Biden regs would effectively ban all coal plants and new natgas plants by demanding impossible 90% carbon capture.

Reconsidering them is essential to preserving the grid and unleashing electricity.
2. "Reconsideration of light-duty, medium-duty, and heavy-duty vehicle regulations"

These Biden regs paved the way for the EV mandate by imposing unachievable emission standards on gas vehicles.

Reconsidering them is essential for preserving automotive choice.
Read 20 tweets
Mar 12
Amazing news: @EPA is challenging the single most destructive regulatory action in US history: the "endangerment finding."

This bogus "finding" allowed Obama/Biden to ban gas cars, shut down power plants, slow US oil growth, and lock up our limitless natural gas.

Full story 👇
Ever wonder why the Biden EPA was able to become an economic dictator, prohibiting most Americans from buying a gas car after 2032 and effectively banning all coal plants and new natgas plants after 2039?

It started with the Obama EPA's bogus "endangerment finding."
In 2009, the Obama EPA issued a "finding" that GHGs "endanger both the public health and the public welfare of current and future generations."

But GHGs mostly come from fossil fuels, which on net had clearly been enhancing health and welfare—and would continue doing so.
Read 13 tweets

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