Good morning; here's what the Oilman has for you today:

• Dept of Energy Really Wants to Ban Gas Stoves. Really.

• Canada Biofuel Makers Threaten Move to U.S.

• Tweet of the Day

Department of Energy Really Wants to Ban Gas Stoves. Really.

A month ago, a court of appeals struck down the city of Berkeley’s plans to ban new gas hookups in buildings.

Now, the city is fighting back. And the Biden admin has thrown its support behind it.

Gas stoves are bad, but federal law is worse

Berkeley wanted to ban new gas hookups to reduce emissions.

It didn’t phrase it quite this way, but that’s what it comes down to the war on emissions.

But the 9^th Circuit Court of Appeals said a ban would violate the 1975 Energy Policy and Conservation Act.

The act says only the DoE has the power to set energy standards for appliances.

Which means all the other cities in California that have gas bans in place might have to reverse them.

Unless, of course, the DoE interferes on their behalf.

Which is what it has just done.

In a “friend of the court” brief, the DoE, and the DoJ urged the 9^th Circuit Court of Appeals to reverse its decision.

That decision, they said, “throws a wrench” into the workings of the federal energy efficiency program.

It’s never been about efficiency

No gas stove ban is about efficiency.

Never has been.

Gas burns a lot more efficiently than electrical alternatives.

Ask any chef.

Especially the one who got an exemption from another gas stove ban in Palo Alto...

...after a suggestion was made, the ban could make him open his new restaurant elsewhere.

The bans have nothing to do with efficiency.

It’s about banning gas because emissions are evil.

Also, incidentally, there are all those wind and solar generators that are struggling to turn in a profit without a lot of help.

Just a coincidence, right?

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Canada Biofuel Makers Threaten Move to U.S.

Everybody wants a piece of the IRA subsidy pie, and Canadian biofuels makers are no exception.

They are now threatening to expand south of the border where they could take advantage of those subsidies, undermining the government’s net-zero efforts.

Free money this way!

Biofuels are a big and growing business.

In the U.S., this growth is being supported by the IRA.

No wonder refiners are switching to biofuels…(which are junk BTW)

But in Canada, there is no IRA-comparable support from the government.

It’s really a no-brainer, especially for local biofuel producers facing the competition of U.S. subsidized imports.

Somebody in Ottawa forgot to do their homework.

And now they’re facing the loss of $7.5 billion in investments…

…as the transition transitions from Canada to the U.S.

The subsidy-based economy

The story of the Canadian biofuels producers is the latest example of a new energy model: one based almost entirely on subsidies.

The EU was the first to cry foul when it heard about the IRA package.

The Biden admin was giving away $430 billion for things like wind, solar, EVs, and biofuels.

No business in its right mind would miss on such an opportunity.

And no business seems to be asking what happens when the money runs out.

That’s the problem with subsidies. Just ask China.

It had to stop approving new solar projects because it was behind on subsidy payments for old ones.

But nobody cares about that, not in Washington, at least.

Not in biofuels, solar, and wind, either. When you’re given free money, you take it.

Although it might be a good idea to check with EV makers how their sales are doing after the wind-down in state subsidies.

Hint: sales fell.

Around the Global Patch

🇺🇦 Ukraine conflict shaped by Mohajer-6.
🇰🇿 Kazakhstan's hydrocarbon field blowout.
🇷🇺 Potential EU ban on Russian natural gas imports.

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