How Energy Drives The World

The Energy Wars Heat Up

By Michael Klare, cross-posted from Tom Dispatch

Conflict and intrigue over valuable energy supplies have been features of the international landscape for a long time.  Major wars over oil have been fought every decade or so since World War I, and smaller engagements have erupted every few years; a flare-up or two in 2012, then, would be part of the normal scheme of things.  Instead, what we are now seeing is a whole cluster of oil-related clashes stretching across the globe, involving a dozen or so countries, with more popping up all the time.  Consider these flash-points as signals that we are entering an era of intensified conflict over energy.

From the Atlantic to the Pacific, Argentina to the Philippines, here are the six areas of conflict -- all tied to energy supplies -- that have made news in just the first few months of 2012:

Payola For The Most Profitable Corporations In History

And Why Taxpayer Shouldn't Stand For It Anymore

By Bill McKibben, cross-posted from Tom Dispatch

Along with “fivedollaragallongas,” the energy watchword for the next few months is: “subsidies.”  Last week, for instance, New Jersey Senator Robert Menendez proposed ending some of the billions of dollars in handouts enjoyed by the fossil-fuel industry with a “Repeal Big Oil Tax Subsidies Act.”  It was, in truth, nothing to write home about -- a curiously skimpy bill that only targeted oil companies, and just the five richest of them at that. Left out were coal and natural gas, and you won’t be surprised to learn that even then it didn’t pass.

Still, President Obama is now calling for an end to oil subsidies at every stop on his early presidential-campaign-plus-fundraising blitz -- even at those stops where he’s also promising to “drill everywhere.” And later this month Vermont Senator Bernie Sanders will introduce a much more comprehensive bill that tackles all fossil fuels and their purveyors (and has no chance whatsoever of passing this Congress).

Whether or not the bill passes, those subsidies are worth focusing on.  After all, we’re talking at least $10 billion in freebies and, depending on what you count, possibly as much as $40 billion annually in freebie cash for an energy industry already making historic profits.  If attacking them is a convenient way for the White House to deflect public anger over rising gas prices, it is also a perfect fit for the new worldview the Occupy movement has been teaching Americans. (Not to mention, if you think about it, the Tea Party focus on deficits.) So count on one thing: we’ll be hearing a lot more about them this year.

But there’s a problem: the very word “subsidies” makes American eyes glaze over. It sounds so boring, like something that has everything to do with finance and taxes and accounting, and nothing to do with you. Which is just the reaction that the energy giants are relying on: that it’s a subject profitable enough for them and dull enough for us that no one will really bother to challenge their perks, many of which date back decades.

By some estimates, getting rid of all the planet’s fossil-fuel subsidies could get us halfway to ending the threat of climate change. Many of those subsidies, however, take the form of cheap, subsidized gas in petro-states, often with impoverished populations -- as in Nigeria, where popular protests forced the government to back down on a decision to cut such subsidies earlier this year. In the U.S., though, they’re simply straightforward presents to rich companies, gifts from the 99% to the 1%.

If due attention is to be paid, we have to figure out a language in which to talk about them that will make it clear just how loony our policy is.

Start this way: you subsidize something you want to encourage, something that might not happen if you didn’t support it financially. Think of something we heavily subsidize -- education. We build schools, and give government loans and grants to college kids; for those of us who are parents, tuition will often be the last big subsidy we give the children we’ve raised. The theory is: young people don’t know enough yet. We need to give them a hand when it comes to further learning, so they’ll be a help to society in the future. From that analogy, here are five rules of the road that should be applied to the fossil-fuel industry.

Road To Dystopia With The GOP

DonkeyHotey

Joan McCarter at Daily Kos wrote two pieces yesterday, one on the actions of the Republicans in the House and one on what they did in the Senate, that come pretty close to telling us all we need to know about what the GOP stands for.

First, the House Republicans passed Paul Ryan's budget resolution, the so-called "Path to Prosperity," which as McCarter explains, would among other things end Medicare as we know it:

The House Republicans made their ultimate dystopian statement today, in passing Rep. Paul Ryan's budget in a 228-191 vote. Ten Republicans voted against it, no Democrats voted for it and 13 members did not vote.

House Speaker John Boehner called this plan "a real vision of what we were to do if we get more control here in this town. It's still a Democrat-run town."

Just a few reminders about the Ryan budget, and what the House Republicans put down as their political marker for 2012, their vision for a Republican-ruled America: It would give the wealthy a humongous tax break, the lowest tax rate since the Hoover administration; it would gut nutritional assistance, cutting it by 17 percent over the next decade; it would cut Medicare benefits and begin the process of killing the program; it would kill millions of jobs; it turns Medicaid into a block grant and deeply cuts federal spending for it, and for SCHIP, the children's health program; and it breaks the already agreed upon Budget Control Act of 2011, threatening, once again, a government shutdown.

This is also the budget endorsed by Mitt Romney. Today the Republicans made their most definitive statement for the America they envision. This is their platform for 2012, from the top down.

Not to outdone, the Senate Republicans filibustered a bill to repeal subsidies and tax breaks to Big Oil that had majority support.

 Another day in the Senate, another filibuster by Republicans on behalf of corporate America. The Senate voted on advancing a bill to repeal subsidies and tax breaks to Big Oil, and while the majority supported the bill, the filibuster held in the final 51-47 vote (Republicans Mark Kirk and Orrin Hatch were not present to vote).

Maine Republicans Olympia Snowe and Susan Collins voted with Democrats, while Democrats Mark Begich (AK), Mary Landrieu (LA), Jim Webb (VA) and Ben Nelson (NE) switched sides. Landrieu and Begich, being from oil producing states, were needlessly voting for self protection, since there wasn't a chance the filibuster could be broken. Webb and Nelson, both retiring, are completely inexcusable.
But this is the status quo that the Republicans voted to protect:

Just this past January the typical household paid about $290.76 for gasoline, up by $25 over the same one-month time span in January 2011. It looks like households will face a similar increase in gasoline expenditures in February with gas prices on the rise even though demand is the lowest it’s been since 1997. This especially affects the 82 million households that spend 6 percent or more of their annual household budgets on gasoline. High oil and gasoline prices in 2011 enabled the big five companies to rake in $137 billion in profits last year. These enormous earnings contributed to the $1 trillion in profits they earned from 2001 through 2011. Despite a profit figure with 12 zeroes—count them: $1,000,000,000,000—these oil giants are major players in the lobbying efforts to retain $4 billion in annual tax breaks for oil and gas companies that they clearly do not need. In the scheme of all things Big Oil, these tax breaks are small, particularly in relation to their profits and in light of the fact that in 2011 these companies also had a combined $58 billion in cash reserves, nearly 30 times more than they received in special tax breaks.

The American taxpayer is subsidizing those billions Big Oil is raking in, while we pay more and more at the pump every week. At least we know now, definitively, which side the Republicans are on.