Pickens Plan

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The Pickens Plan is an energy policy proposal announced July 8, 2008 by American businessman T. Boone Pickens. Pickens' stated intention is to reduce American dependency on imported oil by investing approximately US$1 trillion in new wind turbine farms for power generation, which he claims would allow the natural gas currently used for power generation to be shifted to fuel trucks, buses and automobiles. Pickens claims that his plan could reduce by $300 billion (43%) the amount the country spends annually on foreign oil.[1] Though the plan has received broad public support, several important technical issues and some questions over Pickens' true motives have been raised.

Proposal

Map of available wind power for the United States. Color codes indicate wind power density class.

The main proposals of the plan are:[2]

  1. Private industry would fund the installation of thousands of wind turbines in the Great Plains, which Pickens refers to as the potential "wind corridor" of the United States due to favorable wind resources and geographic location. Pickens estimates that these turbines could generate enough power to provide 20 percent or more of the country's electricity supply.
  2. Although the wind turbines would be built with private investment, all electricity users would pay for electric power transmission lines to connect the turbines to the power grid. They would provide energy to the Midwest, South and Western regions of the country.
  3. With wind energy providing a large portion of the nation's electricity, the natural gas that is currently used to fuel power plants could be used instead as a fuel for thousands of vehicles. To increase efficiency, the plan puts an emphasis on natural gas-burning fleets of trucks and buses.[3] Thus, the demand for petroleum products made from imported oil would be reduced.

Timetable

Pickens thinks his plan that would provide 22% of electricity from wind power and the conversion for vehicles from gasoline to gas could be accomplished in less than 10 years with the "right leadership".[4] However, according to Chuck McGowin, senior project manager at the Electric Power Research Institute in Palo Alto, the time table is too tight.[5] Dave Hamilton, director for global warming and energy projects at the Sierra Club agrees "That is extremely aggressive ... But it's in the right direction. It's a good thing we have an oilman saying we can't drill our way out of this problem."[6] At the other extreme, former U.S. vice president and Nobel Prize winner Al Gore said that all electricity generation should be completely fossil-fuel free in the same 10 years.[6]

Effects on the environment

Cow in front of wind turbines

By shifting a percentage of electricity production from natural gas combustion to carbon neutral wind generation, Pickens' plan could significantly reduce carbon dioxide emissions. Although vehicles using natural gas would still produce CO2, they would produce about 25% less than those using gasoline.[7] Combustion of gasoline also produces much larger amounts of nitrogen oxides (NOx, which cause smog) and other air pollutants than combustion of natural gas.[7]

Pickens Plan vs. Gore's Global Warning

Both T. Boone Pickens and former Vice President and Nobel Prize winner Al Gore want the same thing - to lessen the dependence on fossil fuels. Pickens specifically wants to see less dependence on foreign fuel and burn domestic fossil fuels instead and Gore wants to eliminate the burning of fossil fuels altogether to stop global warming. Both share an understanding of the problem ahead and want to solve it.[8]

Technical hurdles

Power generation and transmission lines

High voltage transmission lines

Pickens says that his plan could generate enough wind power to provide 22 percent of the country's electricity.[4] The Institute for Energy Research (IER), an organization that advocates off-shore drilling[9] and is "funded by the oil industry"[10] disagrees. The IER claims that Pickens' plan relies on government subsidies and that producing large amounts of wind power is not a viable option. Instead, the IER advocates "less government for more abundant and affordable energy."[11]

Pickens acknowledges that natural gas would still be required for peak electricity demand and additional infrastructure would be needed to distribute the wind energy across the country[4] One of the big challenges with using wind to replace natural gas is that the wind doesn't blow all the time. But Sierra Club's Dan Becker, director of the Sierra Club's energy program, does not believe it is a major issue. He said that technological advances will allow several wind farms from varying regions of the country to be tied together in the same electricity grid. When some are idle, others could make up the difference.[6] To help make sure enough power is available when the wind isn't blowing, backup power plants would be needed, said Paul Fremont, an electric-utility analyst at the investment bank Jefferies & Co.[6] Natural gas plants can quickly be brought online during periods of low wind. Additionally, storing excess wind electricity by pumping water uphill when the wind is blowing, then releasing it through hydro dams when the electricity is needed, can be a source of backup energy. TVA's Raccoon Mountain Pumped-Storage Plant near Chattanooga, TN is just one example of many such installations that already exist in the US.

New transmission lines, worth $64 billion to $128 billion, would be needed to carry the power from the windmills to the cities.[5] Pickens testified before the Senate Homeland Security and Government Affairs Committee and said the government should begin building transmission lines for wind-generated power in the same way that President Eisenhower by declaring an emergency to build the interstate highway system in the 1950s and 1960s. As an alternative, Pickens proposed that the government should provide the right of way on private land and extend tax credits so the private sector can build the lines.[12] Kenneth Medlock III, an energy fellow at the James A. Baker III Institute for Public Policy and a critic of Pickens' Plan, said "A lot of what he's trying to do is add value to a stranded asset"[13]

Making the transition

CNG Powered Bus

Pickens' Plan proposes that the natural gas that is currently used to fuel power plants could be used instead as a fuel for thousands of vehicles. Ken Medlock says that the US will continue to use natural gas for electric power generation. Natural gas burns cleaner than coal, making it an increasingly popular fuel for power plants. Gas plants also produce fewer greenhouse gas emissions.[5]

The technology needed for Compressed Natural Gas (CNG) vehicles such as City buses, fork lifts and passenger cars with CNG drivetrains is available right now. Honda sells the Civic GX, with a 170-mile range. In addition, it is possible to convert vehicles to run on CNG in addition to leaving the conventional fuel injection intact, allowing the driver to switch back and forth at will. Kits are available for the do-it-yourselfer. One can buy a CNG compressor called Phill that hooks up to the city natural gas line making it possible to refuel a CNG car at home.[14] On the other hand, the IER believes that natural gas vehicles are "a niche product."[11] Patricia Monahan, believes "It's going to be a big price tag" to switch to CNG vehicles. Monahan considers CNG an excellent fuel for running small fleets of vehicles, such as buses and garbage trucks.[5]

Peak gas

US gas production 1936-2007

The use of natural gas is a key component to Picken's proposal. There are concerns however that gas production may soon reach its maximum production rate, a point in time known as peak gas. After this time, the rate of production enters a terminal decline. Peak gas has already been confirmed by Exxon's CEO Lee Raymond. In 2005 he said to Reuters that "Gas production has peaked in North America."[15] The Reuters article continues to say "While the number of U.S. rigs drilling for natural gas has climbed about 20 percent over the last year and prices are at record highs, producers have been struggling to raise output."

Brent P. Nelson, a top scientist at the Department of Energy assessed the Pickens Plan. Among his findings is that he sees a coming peak gas crisis that could be as dire and economically burdensome for the nation as the peak oil crisis the U.S. is passing through right now.[citation needed] Nelson, notes that "we’ve already used around one half of our domestic gas". He sees the future of transportation coming from electric vehicles and sees the dwindling natural gas supplies as too precious to be squandered on electricity generation or transportation: “Natural gas, as a space-heating fuel, has almost no alternatives.”

Dependence on foreign fuels

Pickens estimates that his plan would cut oil imports by 38 percent. Patricia Monahan, deputy director of the clean vehicles program at the Union of Concerned Scientists thinks differently. She questions the wisdom of trying to replace large amounts of imported oil with another fossil fuel, especially considering that the United States already has to import 19 percent of the natural gas it uses.[5]

No mention of plug-in hybrids and electric vehicles

All-electric Tesla Roadster

To some, this plan seems to ignore one of the most fruitful paths to cut into America’s foreign oil addiction: plug-in hybrids and fully electric vehicles. Wind generated electricity could directly fuel America’s ever-more electrified transport sector. Some hybrid owners argue the part that using compressed natural gas as a transportation fuel does not make sense especially when the new wave of electric and hybrid-electric vehicles that are expected to hit the market in the coming years.[16] The US government is already promoting the adoption of PHEVs and EVs. The $700 billion bailout bill signed by President Bush in 2008 includes tax credits up to $7,500 for US buyers of electric vehicles and plug-in hybrids.[17] Pickens does not believe that all electric vehicles are viable, especially trucks. He says "the battery won't move an eighteen wheeler"[18]

Pickens' motive

The CATO Institute, a libertarian think tank, says that the Pickens Plan amounts to market rigging in favor of his business interests and would raise energy costs for consumers. The institute believes the best energy plan is to remove all energy subsidies and let market forces decide. [19][20] [21] However, Pickens insists his interest is more in the country's future, than his personal wealth.[22]

According to an article in Popular Mechanics, if the plan is accepted, Pickens stands to reap a significant profit by building pipelines to pump billions of gallons of water from an aquifer under land in the Texas Panhandle, for which he controls the water rights. The proposed pipeline could follow the same 250-mile corridor as the electric transmission lines from the wind farm, which would be seized for utility use from private owners through eminent domain.[23] Pickens owns more water than anyone else in the U.S.[24] However, Pickens claims he has no need for the money,[25] and that Texas law provides alternative ways for public water supply districts (such as the one formed by Pickens[26]) to obtain pipeline right-of-ways.[23]

In mid September 2008, it was reported that Pickens had suspended the water pipeline plan. Jay Rosser, a spokesman for Pickens, claimed there was no immediate buyer for the water and Pickens was more interested in focusing on the power transmission lines.[citation needed] Rosser also claimed that "this has nothing to do with a Department of Justice ruling in August on the Roberts County Fresh Water Supply district".

Support campaigns

Pickens anounced that he would spend $58 million on a multi-media effort to promote the Pickens Plan, not only through old media (such as newspapers and television), but also by using new media (including YouTube, Facebook, MySpace, and Twitter),[27] and the creation of a new social network on the Pickens Plan website (powered by Ning).[28] As part of this effort, Pickens has appeared on The NewsHour with Jim Lehrer, ABC's Good Morning America, the CBS Evening News, CNN, The Tonight Show with Jay Leno, Lou Dobbs Tonight, Larry King Live [29], MSNBC's Race for the White House [30], and Fox News.[31] Pickens' efforts are further supported by his spokesperson Jay Rosser and political ad firm Joe Slade White & Co.[31]

To raise political support, Pickens planned to organize supporters by Congressional districts[28] He has also met with the main party candidates for the 2008 United States Presidential election to discuss his plan. He met with Barack Obama on August, 17, 2008,[32] and with John McCain on August 15, 2008.[33]

Endorsements

Carl Pope, executive director of the Sierra Club, has expressed support for the Pickens Plan and stated “To put it plainly, T. Boone Pickens is out to save America”.[25][34] Former Clinton Chief of Staff and current president of the Center for American Progress John Podesta supports the plan.[35] Democratic Presidential nominee Barack Obama has also stated he supports many elements of the plan.[36]

See also

References

  1. ^ Andy Vuong (2008-07-11). Tycoon's plan taps wind ""Tycoon's plan taps wind"". Denver Post. Retrieved 2008-08-08. {{cite news}}: Check |url= value (help); Italic or bold markup not allowed in: |publisher= (help)
  2. ^ Staff (2008-07-13). ""Pickens backs renewable energy plan"". San Antonio Business Journal. Retrieved 2008-07-08. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  3. ^ Pickens, Boone (2008). The First Billion is the Hardest. Crown. pp. pp 194-95. ISBN 9780307395771. {{cite book}}: |pages= has extra text (help)
  4. ^ a b c Jeff Smith (2008-07-10). "Pickens promotes wind, gas at energy forum Billionaire Texan says U.S. could cut imports 38%". Rocky Mountain News. Retrieved 2008-10-04.
  5. ^ a b c d e David R. Baker (2008-09-01). "Experts wary of Pickens' clean-energy plan". San Francisco Chronicle. Retrieved 2008-10-04. Cite error: The named reference "Baker09012008" was defined multiple times with different content (see the help page).
  6. ^ a b c d Steve Hargreaves (2008-07-31). "Wind power: A reality check". CNNMoney. Retrieved 2008-10-05.
  7. ^ a b "Natural Gas Vehicle Emissions". Alternative Fuels and Alternative Vehicles Center, U.S. Dept. of Energy. Retrieved 2008-10-07.
  8. ^ Marianne Means (2008-07-23). "Al Gore, T. Boone Pickens are unlikely allies". Seattle Post-Intelligencer. Retrieved 2008-10-06.
  9. ^ "Election-Year Energy". Forbes. 2008-09-10. Retrieved 2008-10-04.
  10. ^ "Offshore Drilling Is Coming to a Vote". Washington Post. 2008-09-13. Retrieved 2008-10-04.
  11. ^ a b Rob Bradley (2008-07-10). "Picken's plan leaves U.S. energy security blowing in the wind". Institute for Energy Research. Retrieved 2008-08-08.
  12. ^ "Texas Oilman: Clear Path For Wind Power". CBS news. 2008-07-22. Retrieved 2008-10-04.
  13. ^ "Critics: Profit drives Pickens energy plan". UPI. 2008-08-07. {{cite web}}: Unknown parameter |acccessdate= ignored (|access-date= suggested) (help)
  14. ^ Mike Allen (2008-09-15). "Pickens Overlooks Existing Natural Gas Cars in Energy Plan: Reality Check". Popular Mechanics. Retrieved 2008-10-04.
  15. ^ "Exxon says N. America gas production has peaked". Reuters. 2005-06-21. Retrieved 2008-10-04.
  16. ^ "Pickens Plan Promotes Compressed Natural Gas Vehicles". Hybrid Cars. 2008-09-17. Retrieved 2008-10-07.
  17. ^ "Congress Throws Cash At Plug-In Hybrids". Hybrid Cars. 2008-10-04. Retrieved 2008-10-07.
  18. ^ "T. Boone Pickens Disagrees with Al Gore on Energy".
  19. ^ Jerry Taylor (2008-08-19). "Pickens' Plan to Rig the Market". Cato Institute. Retrieved 2008-10-07.
  20. ^ Will Wilkinson (2008-07-31). "Energy Plan Ads Just a Bunch of Wind?". Cato Institute. Retrieved 2008-10-07.
  21. ^ Jerry Taylor (2008-07-24). "T. Boone Hard-Wired for Subsidies". Cato Institute. Retrieved 2008-08-08.
  22. ^ Steve Carmody (2008-10-01). "Pickens Plan". Public Broadcasting. Retrieved 2008-10-04.
  23. ^ a b Michael Milstein (2008-07-25). ""Beyond Wind Plan, Pickens Eyes Pipelines in Drought-Ridden U.S. Popular Mechanics"". Popular Mechanics. Retrieved 2008-08-08. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  24. ^ Susan Berfield (2008-06-12). ""There will be water"". Business Week. Retrieved 2008-08-08. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  25. ^ a b Dan Reed (2008-07-11). ""Texas oilman T. Boone Pickens wants to supplant oil with wind"". USA Today. Retrieved 2008-08-08. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  26. ^ http://www.robertscountyfwsd.com/ Retrieved 2008-09-14.
  27. ^ Adam Schreck (2008-07-08). ""Pickens backs renewable energy plan"". Business Week. {{cite news}}: |access-date= requires |url= (help); Italic or bold markup not allowed in: |publisher= (help)
  28. ^ a b Tom Weber (2008-07-08). ""T. Boone Pickens, Facebook Guy? 'Pickens Plan' Taps Social Networking"". Wall Street Journal. Retrieved 2008-08-08. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  29. ^ "Larry King Live - Transcript of The Energy Crisis". CNN. 2008-08-04. Retrieved 2008-10-07.
  30. ^ "Race for the White House - Transcript, October 6, 2008". MSNBC. 2008-10-06. Retrieved 2008-10-07.
  31. ^ a b Allison Fass (2008-07-11). ""Pickens Goes For The Grass Roots"". Forbes. Retrieved 2008-08-08. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  32. ^ "Obama discusses energy issues with Pickens". USA Today. 2008-08-17. Retrieved 2008-08-17.
  33. ^ Corsaro, Ryan. "McCain Meets With T. Boone Pickens, Dodges Question About Anti-Obama Book". CBS News. Retrieved 2008-08-17.
  34. ^ Dean Calbreath (2008-07-25). "Pickens pitches plans to shift U.S. away from oil". Union-Tribune. Retrieved 2008-10-07.
  35. ^ Scott Conroy (2008-08-27). "T. Boone Pickens Predicts $200 A Barrel Oil". CBS News. Retrieved 2008-10-07.
  36. ^ Neil Cavuto (2008-08-20). "Obama Praises Republican Oil Tycoon T. Boone Pickens". Fox News. Retrieved 2008-10-07.

External links

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