American Energy. Walter A. Rosenbaum

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American Energy

      American Energy

      The Politics of 21st Century Policy

       Walter A. Rosenbaum

       University of Florida

       Los Angeles

       London

       New Delhi

       Singapore

       Washington DC

      Copyright © 2015 by CQ Press, an Imprint of SAGE Publications, Inc. CQ Press is a registered trademark of Congressional Quarterly Inc.

      All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the publisher.

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       Library of Congress Cataloging-in-Publication Data

      Rosenbaum, Walter A.

      American energy : the politics of 21st century policy / Walter A. Rosenbaum, University of Florida.

      pages cm

      Includes bibliographical references and index.

      ISBN 978-1-4522-0537-3

      (pbk. : alk. paper)—ISBN 978-1-4833-1068-8 (web pdf)

      1. Energy policy—United States—History—21st century.

      2. Energy consumption—United States—History— 21st century. I. Title.

      HD9502.U52R6397 2014

      333.790973—dc23 2013037022

      This book is printed on acid-free paper.

      14 15 16 17 18 10 9 8 7 6 5 4 3 2 1

Box, Table, and Figures

      Preface

      Not too long ago, the mayor of a small Louisiana parish reflected upon the sudden prosperity that seemed almost miraculously to attend some of his neighbors. The lucky ones, he observed, “went to bed one night poor and woke up the next day rich, enabled to buy a Cadillac and pay cash … It was kind of like the show The Beverly Hillbillies. Parish homeowners, he said, could typically earn “signing bonuses of $350 to as much as $30,000 an acre from gas companies, as well as royalties that can last for decades.”i

      i Clifford Krauss and Tom Zeller, Jr., “When a Rig Moves In Next Door,” New York Times, November 7, 2010, BU:1.

      This prosperity has a name. It is shale oil “fracking,” a technology rapidly altering state and local economies across America, about which much will be said in coming chapters. Fracking is an example of what an increasing array of energy experts believe to be a remarkable and compelling change underway across the US energy economy. This book concerns this transformation and its impact upon America’s traditional governance of its vast energy resources. Because this change is forcing a rethinking and revision of American energy policy, this narrative has two interrelated themes. The discussion gives necessary attention to traditional foundations of national energy policy, such as energy taxes, subsidies, environmental and market regulation. The narrative also focuses in every chapter upon recent technological innovations and economic events reshaping, sometimes profoundly, the substance of current energy policy—technical innovations, such as fracking and wind farms, or economic transformations, such as the recent surge in US energy exports.

      There can be uncertainties, of course, when riding the wave of predictions about America’s changing energy future now increasingly frequent among energy professionals and policymakers—experts can miscalculate. However, the early evidence of many predicted changes in America’s energy economy is already apparent; it compels the attention of current energy policymakers and requires recognition in any interpretation of current US energy politics and policy.

      These important transformations in the American energy economy are “remarkable” in several respects. The change has been so recent that a book written about contemporary US energy policy only a few years ago would now be surprisingly outdated. The changes underway are also notable for the anticipated scope of their impact. The decision of the Obama administration in 2011 to move ahead aggressively with regulation of domestic CO2 emissions from electric utilities, for instance, is predicted to alter the long-term economic future and market competitiveness of the domestic coal and natural gas industries.

      The reader will note the interplay between themes of change and continuity in each of the following chapters, which focus upon American energy governance in different perspectives. The first chapter introduces institutions, actors, and settings essential to understanding the US energy policymaking process. Chapter 2 is a concise “primer” describing traditional policy instruments commonly encountered in energy governance. The following four chapters explore current politics and policy issues in four important energy domains: petroleum and natural gas, coal, nuclear energy, conservation and electric power. Each of these chapters has a common format:

       The Energy Source: Its Significance and Changing Status

       Currently Significant Resource Policies and Politics

       Contending IssuesFlashpoints of Current ControversyPolicy Alternatives

      The final chapter, 7, explores important issues arising from US engagement in the global energy marketplace.

      I am indebted to my reviewers and editors for their very important contribution to the creation and writing of this book and herewith absolve them of any responsibility for mistakes of commission or omission which— alas!—are my own. My able reviewers include: Christopher Burdett, Virginia Commonwealth University; Fred Curtis, Drew University; Greg Gangi, University of North Carolina, Chapel Hill; Marjorie Randon Hershey, Indiana University; Susan Hunter, West Virginia University; W. Henry Lambright,


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