MaggieMae
Reality bits
- Apr 3, 2009
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This is a classical example of the worst sides of free market and government intervention: Using the system to force a false market and protect profits by unfair laws. That's what T. Boone was after. Unfair profits.Why is subsidizing green energy any different than subsidizing the oil and gas industry? T. Boone Pickens was ready to invest $1.5 billion of his own money in windmill technology, but has since decided to scale it down because he can't afford it. Maybe the Koch Brothers can help out.
T. Boone Pickens was prepared to invest his money because he figured the governement would help him by regulation. They didn't so he tried it on his own the problem is he's a realist and figured for wind power to be viable the price of natural gas had to be around 9 dollars per million BTU's(wind costs around 7 to 8 bucks per MBTU). With government regulation he was hoping to push the price up to 11 dollars per MBTU thus netting a nice profit.
Unfortunately for T. Boone Pickens, the government didn't regulate like he wanted and the price of gas dropped to 4 bucks per MBTU. In fact today it is 3.43 dollars per MBTU and analysts see that level being maintained for the next 17 years. So now T.Boone is foisting off his very expensive wind turbines on the Canadians who have to take them.
As far as any corporate subsidy, there shouldn't be any. The oil companies don't get as much as you think they do but they shouldn't rcieve even that.
I have to agree, but the energy industry didn't nearly bankrupt the country with its "false market," the banks that promised big payouts on investments when they had no assets sure did, though. Oddly, a large part of that resulted from regulations that already existed being ignored and given a pass by the government.