Wednesday, January 27, 2010

Energy Industry Icon Calls Obama Renewable Energy Plan Threat to Stability of the U.S. Energy Market

Mr. Miller issued the following statement through his advisors that the Obama administration Energy Plan is threatening the long term stability of the U.S. Energy market. The current administration is just not listening to the American people on this matter.

Obama and the Democrats are indirectly pushing the energy sector towards Natural Gas by trying to jam a flawed renewable bill, as Natural Gas is the marginal fuel. So despite the waste of billions of taxpayer dollars, the natural gas sector will reap the benefits of this flawed initiative.

Mr. Miller supports a responsible renewable energy effort. However, Mr. Miller has increasingly expressed serious concern for the misguided direction that the Obama administration and the Democratic leadership has been taking during the last year evidenced by the proposed flawed cap-and-trade bill, called the American Clean Energy and Security Act passed by the Congress and other multi-billion dollar handouts for a renewable energy industry not equipped to manage nor deliver any meaningful results.

The Obama administration is simply not accepting reality that the U.S. Economy can't afford any more handouts to loss making enterprises, and they have no chance of passing the energy bill.

The Obama administration will not get a bi-partisan agreement on this, as industry executives have already drawn the line in the sand and declared it dead along with the Republican leadership and leading independents.

Mr. Miller who has a long history of implementing bipartisan development plans in the U.S. Energy industry has consistently counseled the current Obama administration and other industry officials that the multi-billion dollar stimulus and cap-and-trade bill is leading to disastrous consequences for the U.S. Energy industry and will not have any meaningful effect for the re-powering and re-fueling of US power generation industry nor will it deliver sustainable efficient energy production. Billions of dollars in taxpayer capital continue to be slated for waste.

A Summary of Mr. Miller's Advice is as follows:

· Government handouts and mandates do not work -- never have and never will, in any industry.

· The energy market is currently experiencing an interim period, from which a new energy market enigma has emerged; the renewable energy boom and bust cycle.

· The timing, force, and breadth of this renewable energy boom and bust cycle will be driven by anticipation, greed, and by innovation.

· Energy supply and demand will not rationalize for many years in the future, and it is likely, that at that time dependable base load demand will again significantly overshoot supply.

· There will again be energy shortages, increased fuel price volatility, and a marked need for new power generation, primarily natural gas due to its moderate construction time, proven efficiency and security of fuel supply.

· The length of time-between now and when the need will again become evident-corresponds roughly to the design and construction stages of nuclear and large coal fired plants. Those plants, once in place and with their lower generation costs, will be very well placed to participate profitably in the energy markets.

· This is the opportunity before the energy industry today: to face the boom and bust cycle head on, with considered and careful strategic planning, as the industry moves into yet another era.
Given the extremely poor state of the U.S. Economy and flawed economics of the renewable energy sector, there will be hundreds of distressed energy projects and companies for disciplined investors to pursue, as history has clearly demonstrated.

To view Mr. Miller's Full report: U.S. Renewable Energy: A Self Inflicted Crisis in the Making go to:
www.investorideas.com/News/062909c.asp

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