Sunday, May 22, 2011

How Much this President will save by Eliminating Subsidies to the Oil and Gas Industries

    Are you cheering the President and the politicians for deficit or budget reductions by way of elimination of subsidies to large oil and gas companies.  Is it bad when oil companies do make a profit?  When a public company makes money, so do the people who hold that stock.  I believe maybe even public unions hold retirement funds in these companies.  It is a moot point as any saved/funny money will only be sent to alternative pet projects as our infrastructure continues to fall apart?

The Obama administration provided a loan guarantee of $737 million to SolarReserve on Thursday to construct the first large-scale solar power plant that stores energy and provides electricity 24 hours a day, 7 days a week. The solar power project will be constructed in Nevada. (Note that BrightSource Energy is at a similar stage in the development of a larger solar thermal power plant in the Mojave Desert, receiving a DOE loan guarantee of $1.37 billion in February 2010 and $168 million from Google this April.)
The SolarReserve power plant utilizes what is called thermal energy storage to store heat collected from the sun, which is then utilized by the power plant to boil water and produce steam. The steam then turns a steam turbine which generates electricity. This is a how a solar thermal power plant generally works, but keep in mind that there are different types of solar thermal power plants, some of which are not steam.

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