“It’s an absolutely sh*t situation.” That is the assessment of Norway’s energy minister, Terje Aasland, about his country’s electricity costs rising to record levels due to its exports of power to the United Kingdom, Germany, Denmark and other European countries.
It is an outcome that many warned the Norwegian government would come about as the decisions were made to build the interconnects to export power into the European Union and the UK. Those critics were of course ignored as those in charge of Norway’s fortunes at the time felt compelled to genuflect to the demands of the EU and other globalist organizations.
Norway derives the vast majority of its electricity from hydropower, which currently provides 90% of the country’s power generation. Most of the remainder comes from wind power, and the nation enjoys a large excess of generating capacity on most days. Thus, all other factors being equal, it made some financial sense to establish those interconnects to sell the surplus into other countries.
But it only made sense when those other countries were taking care to ensure the continuing health and adequacy of their own electric grids. That certainly has not been the case in either the UK or Germany, whose governments have in recent years chosen to discard a former wealth of reliable baseload capacity provided by coal and nuclear plants in favor of relying too heavily on intermittent, weather-dependent wind and solar.
Now, when the wind stops blowing and the sun isn’t shining, those customers of Norwegian power exports drain the host country’s surplus, causing the extremely high energy costs to flow back upstream, hitting Norwegians with abnormally high utility bills. It all came to a head this week when low wind speeds, combined with abnormally cold temperatures on the European mainland, caused power rates in Norway to spike to as high as €1.12 ($1.18) per kilowatt hour (kwh).
By comparison, the average electricity rate per kwh in New York is around 22 cents, while Texans typically pay around 15 cents per kwh. What that price spike meant for Norwegians on December 12 is that taking a 5-minute warm shower would have cost them $5. Doing the same in Texas would have cost around 16 cents.
Naturally, public outrage in Norway over these needlessly high electricity rates is now causing policymakers there to run for political cover. The Financial Times reports that both the ruling leftwing Labour Party and conservative Progress Party are now making plans to campaign next year on platforms to limit or end the export of electricity via these international interconnections.
That is a prospect that no doubt sparks fear in the hearts of the central planners in both Germany and the UK, where electricity imports from Norway play a central role in their own emissions reduction plans. Those plans involve the willful destruction of reliable baseload power stations and forcing power costs to dramatically increase, which in turn results in heavy industries like steelmaking and other manufacturing to leave the country. In that way, these governments are essentially exporting their emissions to China, whose own government is only too happy to serve as home to these heavy industries and power them with the hundreds of coal-fired power plants they build each year.
California Gov. Gavin Newsom and his fellow Democrats have pursued essentially the same strategies in California in this century, with predictable results: Californians pay among the highest power rates in the United States as their power grid has become overloaded with intermittent generation and increasingly reliant on imports from other states. Rather than exporting its emissions to China, California exports them to Nevada and Utah and other U.S. states.
The Biden administration has attempted to take the entire country down this same economically ruinous path for the past four years. Fortunately, voters awakened just in time this year to head off the most damaging impacts now being seen in Germany and the UK.
For Norway, is this an example of the law of unintended consequences setting in? Sure, to some extent. But it is also a clear example of entirely foreseeable consequences stemming from poor policymaking by multiple national governments flowing across borders. This “sh*t situation” was all avoidable, and frankly should have been.
David Blackmon is a contributor to The Daily Caller News Foundation, an energy writer, and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.
Seldom have a few days of energy-related news provided a clearer illustration of the stark contrasts between the crony-capitalism-based energy policies of the Biden administration and the American energy dominance policies to come during a second Trump administration as the news from the past week.
On Nov. 26, the Biden Department of Energy led by Secretary Jennifer Granholm announced an award of $6.6 billion to struggling electric vehicle maker Rivian in the form of a low-interest loan. The infusion of capital is designed to help the company finance a new Georgia-based plant with a production capacity of 400,000 cars per year. Rivian already operates a plant in Illinois capable of turning out 150,000 units annually.
So, what is the problem, you might ask? Well, first, Rivian — like every other U.S. EV maker other than Tesla — has consistently struggled financially. The company so badly missed its sales targets in 2023 that it was forced to discount prices and layoff workers to maintain its ability to service its existing debt load.
Second is the fact that Rivian has only managed to sell a little more than 37,000 units this year as U.S. consumer demand for EVs has stalled, at a financial loss of over $107,000 per car. This begs the question why a car company struggling to sell 50,000 units per year somehow needs the taxpayers to pony up $6.6 billion to raise its production capacity to 550,000 per year, or roughly 13 times its current annual sales.
Third is the fact that Amazon, owned in large part by billionaire Jeff Bezos, is one of Rivian’s biggest investors. Bezos is currently listed as the world’s second-richest individual by Forbes, with a net worth of more than $226 billion. If pouring another $6.6 billion into Rivian is a terrific financial idea — as DOE claims — then why haven’t Amazon and/or Bezos been eager to do that?
The answer seems fairly obvious: This really isn’t a good financial idea at all. What is really happening here is the desperation last gasp of Biden era crony capitalism, shoving those billions of IRA dollars out the door before President-elect Donald Trump is sworn in and starts reining in the madness.
The day before DOE announced its award to Rivian, Trump announced plans to impose 25% tariffs on all imported goods from both Canada and Mexico if the governments in those countries do not immediately move to stop the flows of illegal immigrants and drugs across their borders with the United States. It is key to note that, when you talk about all goods coming in from Canada and Mexico, you are talking about America’s two biggest trading partners for crude oil. Canada is far and away the biggest exporter of oil into the United States, with Mexico ranking second on the list, well ahead of any OPEC nation.
The strategic objective behind announcing these tariff plans two months before being sworn into office was to give the governments of these two countries time to act quickly to slow the flows across their borders and commit to major reforms so the tariffs never have to be actually invoked. It is Trump exercising leverage in a negotiation, a skill that has made him a billionaire in his business life. It is a strategy Biden has never attempted to use related to the open borders the flow of deadly fentanyl that now kills more than 100,000 Americans annually.
Within 48 hours, Trump had held initial talks with socialist Mexican President Claudia Sheinbaum, reporting significant progress. Trump reported far more progress than Sheinbaum was willing to admit, another clear negotiating tactic.
By Friday, Nov. 29, Canadian Prime Minister Justin Trudeau was jetting down to Mar-a-Lago to hold talks with Trump on border reforms his government is willing to make to avoid the tariffs. Again, Trump is still seven weeks away from being sworn into office.
Joe Biden remains president, at least nominally, but the days of his crony capitalist approach to energy policy are running out fast, and will soon be displaced by a Trumpian return to American energy dominance. It is a change that cannot come soon enough.
David Blackmon is a contributor to The Daily Caller News Foundation, an energy writer, and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.
Starmer’s remarks came as he disembarked from a carbon-spewing jet upon arrival in Azerbaijan to attend the UN-sponsored COP29 climate conference.
The annual COP conferences, remember, are where the world’s elites gather each year to discuss ways to leverage climate-alarm dogma as a means of destroying western democracy and trapping the world’s masses in energy poverty while they consume $1,000 Wagyu steaks and $2,000 bottles of wine over dinner.
“I have repeatedly emphasized the importance of global leadership when it comes to the climate challenge,” said Starmer, “and therefore it is very important for me to come to COP… I see the climate challenge as a huge opportunity for the UK if we get it right, and that is why we have made it one of our missions to have clean power by 2030.”
Among the means Starmer’s government is using to show “global leadership” on the climate alarm front is to provide heavy subsidies for costly, low-efficiency offshore wind farms and cover up vast swaths of the UK’s farmlands and countryside with enormous solar arrays. Starmer’s government has simultaneously presided over the closing of the UK’s last remaining coal power plant and one of its last steelmaking factories as part of what appears to be a focused effort to deindustrialize its once-powerful economy.
Trump has made it crystal clear that his approach to energy policy will be diametrically opposite that of Starmer’s Labor government. Trump has already said he plans to pull the United States out of the Paris Climate agreement again, an action he took during his first term, but which was reversed by President Joe Biden.
Trump has also laid out plans to re-industrialize America’s economy with a carrot-and-stick approach that will include incentives for companies building new factories and assembly plants in the United States and imposing tariffs on those who choose to invest in capacity overseas. In a recent pre-election interview, Trump detailed plans to address instability and capacity shortages on the U.S. electric grid by implementing policies to speed up permitting and building of new natural gas and nuclear power generation.
“We have to produce massive electricity that we don’t have. But the environmental impact statements won’t allow us to do that. The rules and regulations that we currently have won’t allow us to do any of it,” Trump said. “But if I’m president, we’ll be able to do it and we’ll do it through natural gas, which is clean. And we’ll do it through primarily natural gas and nuclear.”
While on the campaign trail, Trump repeatedly promised to bring back his first-term policies designed to stimulate the domestic oil-and-gas industry and return the United States to the position of “energy dominance” it enjoyed under his previous administration.
In kicking off the COP29 festivities, Azerbaijan leader Ilham Aliyev created a stir among the climate zealots who make up the preponderance of attendees by appearing to endorse the Trump approach.
Referring to oil and natural gas as a “gift of God,” the Azerbaijani President said, “Countries should not be blamed for having them and should not be blamed for bringing these resources to the market because the market needs them. The people need them.”
At another point, Aliyev appeared to lecture western elitists like Starmer, saying: “Unfortunately double standards, a habit to lecture other countries and political hypocrisy became kind of modus operandi for some politicians, state-controlled NGOs and fake news media in some Western countries.”
In an interview at the summit, Starmer displayed a shocking lack of self-awareness by claiming his government has no plans to “start telling people how to live their lives. We are not going to start dictating to people what they do.”
That is of course exactly what Starmer is doing, and exactly the sort of thing Trump plans to avoid doing regardless of any demands from the globalist climate-alarm industry. Americans stand to be the main beneficiaries from the contrast in policy approach.
David Blackmon is a contributor to The Daily Caller News Foundation, an energy writer, and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.
The catalog of Vice President Kamala Harris’s history on energy policy is as thin as the listing of her accomplishments as President Joe Biden’s “Border Czar,” which is to say it is bereft of anything of real substance.
But the queen of word salads and newly minted presumptive Democratic presidential nominee has publicly endorsed many of her party’s most radical and disastrous energy-related ideas while serving in various elected offices — both in her energy basket-case home state of California and in Washington, D.C.
What Harris’s statements add up to is a potential disaster for America’s future energy security.
“The vice president’s approach to energy has been sophomorically dilettantish, grasping not only at shiny things such as AOC’sGreen New Deal but also at the straws Americans use to suck down the drinks they need when she starts talking like a Valley Girl,” Dan Kish, a senior research fellow at Institute for Energy Research, told me in an email this week. “To be honest, she’s no worse than many of her former Senate colleagues who have helped cheer on rising energy costs and the fleeing American jobs that accompany them. She doesn’t seem to understand the importance of reliable and affordable domestic energy, good skilled jobs or the national security implications of domestically produced energy, but maybe she will go back to school on the matter. No doubt on her electric school bus.”
During her first run for the Senate in 2016, Harris said she would love to expand her state’s economically ruinous cap-and-trade program to the national level. She also endorsed then-Gov. Jerry Brown’s harebrained scheme to ban plastic straws as a means of fighting climate change.
Tim Stewart, president of the U.S. Oil and Gas Association, told me proposals like that one would lead during a Harris presidency to the “Californication of the entire U.S. energy policy.” “Historically,” he added, “the transition of power from a president to a vice president is designed to signal continuity. This won’t be the case, because a Harris administration will be much worse.”
But how much worse could it be than the set of Biden policies that Harris has roundly endorsed over the last three and a half years? How much worse can it be than having laughed through a presidency that:
As Biden’s successor for the nomination, Harris becomes the proud owner of all these policies, and more.
But Harris’ history shows it could indeed get worse. Much worse, in fact.
While mounting her own disastrous campaign for her party’s presidential nomination in 2020, Harris endorsed a complete ban on hydraulic fracturing, i.e., fracking. She later conformed that position to Biden’s own, slightly less insane view, but only after being picked as his running mate.
Consider also that while serving in the Senate in early 2019, Harris chose to sign up as a co-sponsor of the ultra-radical Green New Deal proposed by New York Rep. Alexandria Ocasio Cortez. It is not enough that the Biden regulators appeared to be using that nutty proposal and climate alarmism as the impetus to transform America’s entire economy and social structure: Harris favors enacting the whole thing.
As I have detailed here many times, every element of climate-alarm-based energy policies adopted by the Biden administration will inevitably lead the United State to become increasingly reliant on China for its energy needs, in the process decimating our country’s energy security. By her own words and actions, Harris has made it abundantly clear she wants to shift the process of getting there into a higher gear.
David Blackmon is a contributor to The Daily Caller News Foundation, an energy writer, and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.
The U.S. Olympic team will be supplied with room air conditioning units, joining other countries like Germany, Australia, the United Kingdom, Canada and Italy.
Organizers of the Summer Olympics Games to be held in Paris next month were hoping to force the games to be held sans air conditioning — what a wonderful virtue signal that would send to the climate-alarmed public!
The plan, as USA Today reported, was to force all event venues and athlete housing units to rely on a geothermal cooling system devised by the French. But, you know, it can get hot in Paris in the summer, and participating athletes and countries had some concerns about it.
So, despite the grand, centrally planned net-zero initiatives financed by trillions of debt-funded dollars and euros and pounds, many countries are planning to keep their athletes calm, collected and properly cooled with electricity-hogging room a/c units.
Note that the list of countries above includes some that are led by the world’s most aggressive and notorious climate scolds.
German leaders in this century have succeeded in largely destroying what had been the industrial powerhouse of Europe at the altar of climate alarmism, investing billions of debt-funded euros in a Quixotic attempt to power their society with windmills. That plan has been so successful to date that last winter, in a desperate attempt to avoid power blackouts, the government there resorted to reactivating mothballed coal plants and tore down a wind development to expand a domestic coal mining operation.
In the UK, the Tories — ostensibly the “conservatives” in Britain — now face an electoral wipeout of unprecedented proportions due in part to their buying whole hog into climate alarmist dogma.
In Canada, Prime Minister Justin Trudeau, whose public approval rating would make President Joe Biden blush, faces a similar fate for similar reasons in national elections that will take place in 2025.
The governments of Australia and New Zealand, in nominally “conservative” or “liberal” regimes alike, have also embarked well down the net-zero path to deindustrialization.
Yet every one of these countries will be shipping out hundreds of energy consuming, greenhouse-gas-emitting air conditioners to Paris.
No national government has invested more time and more debt-funded dollars in virtue signaling and lecturing the public about climate change in recent years than the Biden regime. To hear President Joe Biden, Energy Secretary Jennifer Granholm, Transportation Secretary Pete Buttigieg, Climate Envoy John Podesta, former Climate Envoy John Kerry and Vice President Kamala Harris tell it, a 1.5-degree rise in temperature is in fact an “existential threat,” one that requires us to saddle our great-grandchildren with trillions of more dollars in unsustainable debt to address right now, or — wait for it — we will all die!
But hey, we can’t have our Olympic athletes suffering in rooms where the Paris geothermal cooling system might only get temperatures down to an unbearable 78 degrees Fahrenheit, so it is imperative that the United States join the room a/c caravan across the Pond to gay Paree.
That is basically what USA Today quotes U.S. Olympic and Paralympic CEO Sarah Hirshland as saying: “We have great respect for the work that’s been done by the Paris organizing committee in particular and their focus on sustainability,” Hirshland said. “As you can imagine, this is a period of time in which consistency and predictability is critical for Team USA’s performance. In our conversations with athletes, this was a very high priority and something that the athletes felt was a critical component in their performance capability.”
But wait: If climate change is truly an existential threat to all mankind, shouldn’t the desires of a few thousand Olympics athletes to stay cool in their rooms simply be ignored? For the “greater good” and all that stuff?
After all, that is what the central governments in every one of these countries do whenever public opinion disapproves of their policy choices. Why should this become an exception?
The global religious belief that mankind can control the climate like it has a thermostat we can turn up and down at will is an example of unbridled hubris that is unrivalled in human history. That hubris is only exceeded by the rank hypocrisy practiced by the loudest and most visible of the religion’s adherents.
David Blackmon is a contributor to The Daily Caller News Foundation, an energy writer, and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.
