Home > Frac > Hydraulic Fracturing Series: Green Energy (Solar)

Hydraulic Fracturing Series: Green Energy (Solar)

Hello all,

If you are reading this post, we would like to inform you that this is the third in a series entitled “Hydraulic Fracturing Series”.

In this series, we will attempt to question the claims of those who are opposed to Hydraulic Fracturing and ask some questions of the detractors.

In our previous posts we have addressed the issues of their Water Usage claims and their call for a Fracturing Ban.

In the Water Usage post, we hoped to put the water used in Hydraulic Fracturing into perspective in terms of normative water usage.

In the Fracturing Ban post, we attempted to examine the fuller ramifications of what a Fracturing Ban could mean.

In this third post, we will address the complications of their claims concerning Green Energy as the sole method for energizing America.

It should be noted that we are absolutely for Green Energy. We want it to improve, become more cost effective, more efficient, and in turn, a realistic option.

What we are adamantly opposed to is holding up Green Energy as the “end all” solution for America’s current or future energy demands and the idiocy associated with those who want all petroleum related or natural gas related industry shut down immediately in the name of radical environmentalism.

Sadly, these folks get lots of press.

Throughout this blog, two of the drums that we beat the most often are the drums of reason and realism. We believe that it is unreasonable to call for a Fracturing Ban when one of the primary methods utilized in the extraction of Natural Gas and Oil is Hydraulic Fracturing. Without Hydraulic Fracturing, the volume of recovery is much lower.

So, as always, we intend to put this into perspective for the purpose of clarity and good, old-fashioned common sense.

Green Energy (Solar):

We hear that through a combination of Wind-Farms and Solar Panels, that we will be able to supply the energy needed to power America.

And, according to the majority of the Twitter feeds and Blogs we read, these are the only viable options available (in terms of what is represented in the press).

So what is the problem with “Clean” energy?

Some of the arguments that Greens apply to “Dirty” energy apply to what could be deemed “Clean”.

They do not draw attention to the parallels.

Again, we want to emphasize that we are not calling for an end to Green Energy.

Our industry puts more money toward the advancement of Green Technology than anyone, including cause seeking celebrities.

What we are saying is that Green Energy has some huge hurdles and they are often overlooked by those who report that they are superior options.

Solar Panels are very apparently not cost effective, nor are they profitable.

If the debacle with Solyndra taught us anything, it is that selling and manufacturing solar panels (as of now) is not profitable or more accurately, it is not cost effective.

One of the largest problems with the push for Green Energy is that although the press is outspokenly for it, the United States, in its current state, cannot effectively use it. Proof of this is the poster child for misappropriated guaranteed government loans.

According to the reports from PricewaterhouseCoopers and the SEC, Solydra sold $58 million dollars worth of solar panels in the nine months that preceded October of 2009.  They cost $108 million to manufacture and it cost an additional $115 million to market the panels and run the company.  That means that in a 9 month period, Solyndra lost nearly $200 million dollars. That was just in 2009. They reported net losses of $114.1 million in 2007, $232.1 million in 2008, and $172.5 million in 2009.

Solyndra reported a deficit of $557.7 million by January 2, 2010.  Four months before that on September 9, 2009, the US Government guaranteed a loan of $535 million dollars for the construction of a second Solyndra production facility when the company would report a deficit greater than the amount of that guaranteed loan.

Greens like to tout conspiracy theories that include campaign donations and under the table handshakes between government and Oil and Gas companies.

What part of a guaranteed $535 million dollar loan to a solar panel company $557.5 million dollars in the red doesn’t look sketchy?

Where does government money come from? How much did this cost tax payers?

Pennsylvania received over a billion dollars in taxes in a twelve month period because of drilling in the Marcellus largely because of Hydraulic Fracturing.

The bottom line is that the press may believe in Green Energy like Solar Panels but Americans won’t spend money on them nor are they cost effective to produce.

The Problem that America currently faces is fiscal. We need to fix it. Acting like O&G companies are opposed to the advancement of clean energy so they can remain the antagonist and calling for their heads is not an answer. It is misdirected, uninformed fire.

They are far more cooperative and far more regulated than most companies because of Green watchdogs. Let’s not go overboard with all of this animus and forget that our current economic situation is dire and they are the key to getting out of the hole. Our problem is not ideological, it is $114.5 trillion in unfunded liabilities. We can’t afford to waste money on Solyndra while Oil and Gas companies are profitable and their compliance is growing.

According to Forbes magazine “Chesapeake boasts a $17 billion market cap, on track to generate $2 billion in profits on $9.5 billion in revenues. It employs 12,000 people, including 4,500 land scouts scouring every acre of America for drilling potential and added 3,300 employees so far this year.”

What does this mean? It means that companies like Chesapeake do not need government guaranteed, tax-payer funded loans to be profitable.

They can make their own money.

If solar energy was as easy and cost effective as is misrepresented, then everyone would own it.

Until it is both cost effective and a viable option it will not be profitable and it will not swim in an economically stormy sea.

More to come soon, stay tuned.

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