Geology/Crude oil electricity generation
Will the US government take initiatives to produce more electricity generation by crude oil in future? I hope it should be more and more viable with price decline in fossil fuels and higher capital cost of renewable energy.
As you know, electricity can be generated by coal, oil or gas combustion. What you probably do not know is the government does not generate our electricity, private companies do. So private investors have to raise funds and build new plants, which can take years and large investment.
The recent drop in prices is a short term thing caused by the increase in oil on the market caused by OPEC wanting to do one or several of the following things: 1) curtail the growth of the shale oil boom by lowering the price of oil below the commercial operating price. 2) punish Iran and the Russians by lowering prices when almost 50% of their income comes from oil sales.
OPEC does claim responsibility but the evidence says otherwise. They did the same thing to help the fall of the Soviet Union, at the behest of the Reagan administration in 1987. Price dropped from a high of $32 to $8 almost over night due to Saudi over pumping. Today, despite the fall in prices, the OPEC countries are pumping at full capacity and some plan to increase their pumping rates. This says they fear losing market share to the US. We just approved exporting oil, which had been banned since the 1970's.
In any event, with the price of natural gas mirroring the decline in oil prices, I see no reason for private energy companies to shift to oil from coal or natural gas since in all likelihood the prices will start to rise in a few months.
Our government only sets national energy policy by passing laws making it legal or illegal to do certain things. For energy this gets the EPA involved. The EPA is the Environmental Protection Agency. A law was passed to form the EPA in the 1960's. The EPA promulgates or writes regulations that control what companies can and cannot do with regard to the environment. So the EPA has been twisted and perverted into a political tool. The president can tell the EPA he wants to do certain things and they pass regulations to enforce them, whether or not they are supported by science, whether they make sense or even help the environment. This has been going on for the last 6 years. Most Americans despise the EPA and see it for what it is, a political tool, that costs each American thousands of dollars each year for minimal benefit.