Is ‘Green’ Energy Worth Pursuing?
For those who have disdained economic laws like supply and demand, and who have propounded the idea that economies can be manipulated by government fiat for the common good, the current situation is a reminder that the laws of economics are like the law of gravity. In short, you cannot overcome them no matter how hard you try. If you attempt to suspend an apple in the air, it will not work. Gravity always will win. And if you want lower prices at the same time that supply is restricted or demand is rising, it won’t work.
Even the drop in the housing market showed how free-enterprise automatically corrects
itself no matter what people want or think. In that case, market forces informed homeowners that perhaps
their suburban bungalow was not worth the $1 million that they thought it was
worth.
If you turn on the television these days and catch a government hearing on food
prices or gasoline prices, you will witness much grandstanding. You may have
heard New York Democrat US Senator Charles Schumer talking about average
American families being “floored by prices” of food and energy.
In a recent televised hearing on C-SPAN, Schumer ticked off food item after food
item and its price rise from 2001 until 2008. He mentioned items rising in price
from 20% to 40% without ever mentioning that the natural rates of American inflation
in this period would have caused food prices to rise by at least 15%
to 25% in that period anyway. But Schumer repeated the
bigger numbers in order to shock people into thinking the worst.
This is the way that Democrats manipulate statistics, particularly when they can
use those stats to blame President Bush. They never tell you ‘the other side of
the story.’
That does not mean that food prices have not risen substantially in the last
year. They have. And it is always important to be honest in any debate about a
serious issue like the prices of food and energy. But in debate after debate,
the Democrats have demagogued, blaming the oil companies, the food processors,
the farmers, Bush, Cheney etc., without ever looking at the underlying issues in the recent
price rises. Or in the mirror.
In 2005 and 2006, many respected American economists were
calling the
So how did all this happen in such a short time? Just by
chance?
No, it happened because several short-term and long-term market trends have been
pointing us in this direction.
First, the housing market was fueled artificially by too-low interest rates
suggested by Greenspan after 9/11 to prevent an economic downturn. The interest
rates drew too many people into the market and pushed up prices.
In the food crisis, the world’s population is rising, and so food is in
increasing demand. This will never change. Thankfully for the world, the United
States over the last 100 years has been developing an advanced method of food
production using the latest technologies not only in farm machinery, cultivation
techniques, pesticides and herbicides, but also in agricultural biotechnology
that all has combined to produce modern, high-yield, disease-resistant crops
that have been adapted by a growing world.
Today, we Americans are the best-fed
people in history, while poor nations in most cases have a more stable and
bountiful food supply than ever before because of advances developed here in the
As demand is always rising, the current food price rises
also are attributable to some natural causes like
But it is the man-made factors that have sent food prices soaring most,
all coming out of the environmental
movement.
First, many environmentalists, backed by liberals the world over and by people like Senator Schumer here in the US, have contributed greatly to food shortages by opposing all forms of advanced bio-technology. These ecologists have actually been warning poor nations, and rich nations too, away from bio-engineered food, calling it ‘Frankenfood’ and using scare tactics to make people fear genetic engineering. Despite the fact that many poor nations need food desperately, enviros actually have convinced them to deny themselves the miracle of modern ag technology.
In the recent food price spikes, however, even liberal/left Europeans suddenly
have decided that the ban on genetic engineering should be eased, while the
Japanese have decided same.
The second enviro-caused reason for rising food prices is the production of
alcohol fuel (ethanol) from corn. By diverting corn to make fuel and taking it
away from human consumption primarily as feed for hogs, chickens and cattle, but
also as raw food export to poor nations, the price of corn has risen and pushed
up the prices of American food, and food exports too.
Ethanol, of course, was the brainchild of environmentalists as a way to ease our
energy problems, when in fact it has increased them by consuming large amounts
of traditional energy to produce marginal amounts of energy from ethanol.
It has never been proven that 1,000 BTUs of
traditional energy input (to power the machines to grow and transport the corn,
and to process that corn into alcohol) even produces 1,000 BTUs of ethanol
energy in return. Many claim that the ethanol produced is actually less than 1,000
BTUs while others say that the energy in the ethanol is at best 3,600 BTUs, or a
very small 3.6 return on energy investment. In both cases, government subsidies are
the only way that ethanol survives.
Meanwhile, the environmentalist-caused energy crisis is a primary reason for the
oil-price spikes and the food-price crisis.
Rising petroleum costs are pushing up the prices of all agriculture through
higher costs for herbicides and pesticides (derived from petroleum) and for fuel
to run farm machinery, for all energy to operate food processing operations, and
for fuel to transport food products from farm to processor, and from processor to
your local supermarket.
Why are energy prices rising? Because of enviro obstruction of energy supplies, with the help of people like Senator Schumer in the Congress blocking virtually all new energy development here in our energy-rich nation; nuclear power, oil drilling in Alaska's Arctic National Wildlife Refuge (ANWR), oil drilling off the coasts, refinery construction etc.
So both situations – increasing the world’s food supply and its fuel supply --
can be ameliorated by keeping at bay the environmentalists and their liberal left
friends in Congress so that the world can proceed in an orderly way to provide
for its people.
In a May 2008 speech before state business leaders, Democrat Massachusetts
Governor Deval Patrick said “the age of fossil fuels is coming to an end”,
urging that those business leaders join in the state’s effort to produce
renewable energy sources like solar, wind and biofuels like ethanol.
Unfortunately Patrick must have been reading a doomsday environmentalist
pamphlet before the speech, because in the March 8, 2008 edition of
The
Wall Street Journal, Nansen G. Saleri,
formerly head of reservoir management at Saudi Aramco, the state-owned oil
company, wrote in an article called The
World Has Plenty of Oil, that mankind has used only about 7% of the globe’s
total estimated petroleum resources (crude oil, oil shale (oil mixed into rock
formations) and tar sands (oil mixed with dirt)).
What is really interesting is that Saleri does not even
mention
Of the world’s petroleum reserves, Saleri says, “As a matter of context, the
globe has consumed only one (trillion barrels) out of a grand total of 12 to 16
trillion barrels underground.”
Saleri sees a boon to the world oil supply if there could be modernization of
state-run oil companies, which control 90% of the world’s crude. “Hundred-dollar
oil will provide a clear incentive for reinvigorating fields and unlocking extra
barrels through the use of new technologies,” he writes.
Unfortunately these state-owned companies, which represent the same
kind of static state socialism that the environmental movement and Senator
Schumer reflect, are notoriously derelict in adapting new technologies because these
companies are famously corrupt and bureaucratic and are primarily interested in
enriching a certain political elite in their societies, not in efficient
production.
But Saleri has hope. He writes of modernization: “The
consequences for emerging oil-rich nations like
Mr. Saleri states, “The world is not running out of oil anytime soon… A gradual
transitioning on the global scale away from a fossil-based energy system may in
fact happen during the 21st century. The root causes, however, will most likely
have less to do with lack of supplies and far more with superior alternatives.”
So who should we be listening to, a politician/lawyer like Deval Patrick who is
supported financially by environmentalists and who says the oil age is drawing
to a close, or someone like Saleri who
has been intimately involved in the oil industry during his entire working life?
The answer is obvious.
Our current oil price spikes are emerging primarily from high
demand and strained supply, and from one factor in particular and that is what
is called ‘spare production capacity’, or those few places in the world that are
not pumping oil at 100% capacity. Currently the only nation capable of pumping
more oil (2 million barrels) and reducing the supply/demand gap, is
(Thank you Saudi Arabia, after the US military saved you from destruction at the
hands of Saddam Hussein in 1991…)
When virtually all the oil wells in the world are pumping as much as they can, as they are today, any disruption in supply causes the prices to rise dramatically, just as any company that is producing all the widgets it possibly can must hire new workers and rent more production space to accommodate increased demand, pushing up the price.
If, however, the
But along with enviro and congressional obstruction of Alaska's ANWR
development, other worldwide factors are causing the supply gap including:
*Falling production in
*Militant attacks on oil installations in
*Hugo Chavez’s nationalization of his huge oil supply (130
billion barrels) in
*Aging oil fields in Mexico and Russia are not getting infusions of new
technology because they are controlled by inefficient state-owned companies that have not
adapted the new technology coming out the private American and European oil
industry.
(Note:
Labor strikes in
Despite the fact that it is socialists/environmentalists themselves who causing
the rise in the price of oil and, consequently, food, these same people are
complaining loudest and using the most extreme doomsday rhetoric for two
reasons: To get more
contributions for their organizations like the Sierra Club, and to get more
power for government bureaucrats like the Democrat party. It is to their
advantage to keep the public in fear and want.
In a typical speech about our current energy situation,
very liberal Democrat
Yet these casual references to melting tundra and to the inability of a massive oil strike like ANWR (estimated at 15 billion barrels or more) to contribute positively to the oil supply/demand problem are the kind of flip feints that environmentalists spread through the media, and then publish in their own pamphlets… because they heard it through the media.
First, Cantwell's obvious implication that man is causing
the tundra to melt is being challenged over and over. The latest example
was an article in the
May 1 issue of Nature magazine from a
report issued by
“Those natural climate variations could be stronger than the global-warming
trend over the next 10-year period,” said Richard Wood, a research scientist at
the Met Office Hadley Centre, a British information service on enviro and
weather issues.
So if this cooling is due to “natural climate variations”, why cannot ‘global
warming’ trends be the same, as conservatives and others assert? Because we know for certain that earth’s climate
has warmed and cooled repeatedly over the last 1,000 years, and certainly before
that.
Why would
(Answer: Because it was green during the last prolonged 400-year warm spell from
900 AD to 1300 AD.)
Cantwell’s reference to ANWR coming on line in “10 or 20 years” also is nonsense. It
will be pumping in only a few short years if only she and her Senate colleagues
would allow it because the site is known and the technology is ready. But
Democrats, and some Republicans, will not authorize it because the US Senate has
power over ANWR since the drill site is on federal land.
Well, actually, it is on land that was declared federal in the late 1970s by
Jimmy Carter, just as environmentalists are seeking to federalize as much
resource-rich land as possible, and then to deny resource extraction on those
lands even though resource extraction always has been intended as an integral
part of federalized lands policy (the other part is recreational use).
Cantwell and the other senators opposed to ANWR are part of
the same coalition that fought the construction of the 800-mile
Still angry over their failure to defeat the pipeline, enviros are foursquare
opposed to any ANWR drilling and for more than one reason. And here is the
kicker: Since the original
pipeline legislation contains a clause saying that the pipeline must be torn
down when Prudhoe runs out, they are seeking to run out the clock on ANWR
drilling, whose crude would need to be pumped through the same pipeline.
Prudhoe is expected to run dry by 2015, and enviros want to tear down the
pipeline at that time and to therefore cut off permanently the easily available crude oil
supply in ANWR and at other northern Alaska sites including the
National (i.e., belonging to all the
people) Petroleum Reserve west of Prudhoe, a 160,000 square mile tract, bigger
than the entire state of Montana,
with massive petroleum potential.
And Cantwell’s assertion that ANWR’s oil will only cause prices to fall “a penny
per gallon” is typical environmentalist subterfuge. Environmentalists always
drop these casual off-the-cuff remarks that offer only the worst-case scenario
for oil and nuclear power, while they wildly exaggerate the most optimistic
predictions for solar and windmills when in reality the truth is always the
opposite.
Interestingly the 2 million barrels a day that we could be
pumping out of ANWR equals the 2 million barrels of ‘spare production capacity’
that is not being pumped in
By Cantwell’s reckoning and that of environmentalists everywhere, oil is not worth pumping at all because each supply will have only a small effect. But obviously the effect is cumulative, something that enviros do not wish for us to ponder. Rational people know that oil is worth pumping, and each contribution to the world oil supply eases the supply/demand gap, which is how all the world’s resources are made available. It is ludicrous for environmentalists to state that each source only has such-and-such amount of oil, and that it is not enough to make a difference.
Ultimately, the question is: Do environmentalists wish to help the world’s
people by easing the energy crunch?
And the answer is a resounding NO. They are completely nature-focused. They have
no regard at all for the people of the world just as they have recommended
for years that poor nations starve rather than grow genetically-engineered food.
What environmentalists really are seeking to do it to make energy and food more
expensive and scarce so as to methodically squeeze human populations in favor of
wilderness.
"Oh, never," you might say.
Which is what they want you to think. But the reality is much harsher.
In a separate speech before the C-SPAN cameras, Democrat US Senator Jay
Rockefeller of West Virginia looked and sounded like a dying old man as he
recited a litany of high gas prices all over his state and then proposed a LIGAP
(Low-Income Gasoline Assistance Program) program, similar to the heating oil
LIHEAP program, to help consumers pay for gasoline.
Yet Rockefeller is another Democrat US Senator who has
obstructed not only the 15 billion barrels that are estimated to be under ANWR,
but all oil drilling in
Other Democrats have blamed the oil prices spikes on speculation in the oil
futures market, and certainly there is some speculation going on. But
markets attract speculation only when the timing is right, and the time is right
now in oil. Speculators are not hovering over housing markets in withering
Midwestern towns; they invest where the action is. So as investors have pulled
their capital out of stocks and, now, housing, much capital has gone into
commodities which is perfectly natural.
New energy sources in
The futures market is absolutely necessary for a modern, global economy, and it
has worked well for decades. Now that this market suddenly has turned sour for a
few months is no reason to abandon it. This oil market speculation easily could
come down as fast as it has gone up, and it certainly will drop if we increase
supply.
But the very mention of “speculators” gives environmentalists and Democrats yet
another way to blame faceless and anonymous business people (i.e.,
Republicans, oil companies etc.) for a problem
created by environmentalists and Democrats themselves.
The futures market was established to give businesses stable price regimes for
future growth. In that market, they buy a commodity at a fixed price for
delivery in the future so that they can budget their future accounts on a
predictable cost. Futures are a necessary market component for all the
commodities that we use today, and today’s oil market ultimately is controlled
by one underlying factor – the supply/demand gap.
While Democrats like Cantwell and Rockefeller go on C-SPAN to wring their hands
over energy, Republicans appeared on C-SPAN in a group to give not grim lectures
about our terrible situation, but to offer brief one-minute speeches about the
optimistic side of our energy supply, each suggesting that we can open ANWR
(just a 3-square-mile site, while Alaska is 570,000 square miles); drill on the
Continental Shelf off our shores; and convert our Colorado oil shale into gasoline from a 1
trillion barrel supply, which is equal to the whole world’s energy consumption
since 1859 to the present.
Alaska Republican Ted Stevens recommended ANWR drilling and
said that the original estimates for the
Meanwhile
Other Republican Senators speaking at
the C-SPAN press conference talked bluntly. “It’s time to get real about
energy,” said Kit Bond of
Said Pete Domenici of New Mexico, “We have to do what we can do with American
production,” pointing out the paradoxical nature of environmentalists’ NIMBY
(Not in My Back Yard) policies, which forbid energy exploration close to home,
then prohibit it thousands of miles away in the wilderness of Alaska as well.
So where exactly do environmentalists expect our energy supplies to come from?
Which approach seems more likely to produce results, the
falsehood that “the age of fossil fuels is coming to an end” from a liberal
governor of
Enjoy the essay below taken from the
Thinking Points section of Nikitas3.com:
We are Wasting Most of Our Gasoline
Are we wasting most of the gasoline
that we use today in the
Yes.
Is this waste caused when we drive to work, and when we use our cars for
pleasure and fun.
No. We waste it because environmentalists have pushed us into making stupid
decisions about energy.
Here is how:
Because of environmentalists' irrational fear of nuclear
power, the
But since environmentalists have spread a malicious fear of
nuclear energy, we have stopped building nuclear plants.
Natural gas-fired plants consume more than 5 TRILLION cubic feet of natural gas
per year, and generate 22% of our current electrical demand.
Their total combined energy production is roughly 770,000 megawatts.
All of this coal and natural gas is being consumed unnecessarily. If we used
nuclear power instead, we could be generating this electricity thousands of
times more efficiently than coal or natural gas can. And rational people have
been arguing this point for decades.
Even major environmentalists have come over to the reasonable side of nuclear
power. James Lovelock, the British founder of the enviro movement, is
pro-nuclear. So is Patrick Moore, founder of Greenpeace (read his essay on the
subject in the Thinking Points section of this website) along with many others.
If all the plants that currently burn coal and natural gas had instead been
built as nuclear power plants, we could have been, and could today be converting
all that coal and natural gas into fuel for cars and trucks. Rough calculations
show that the coal and natural gas we now burn in power plants every year could
be converted into the equivalent of more than 3 billion barrels of gasoline or
about 80% of the gasoline that we now burn annually. This could replace ALL of
our oil imports because coal and natural gas are domestic American resources.
This conversion would save our nation more than $600 billion a year in payments
to foreign suppliers of crude oil. This would strengthen the dollar and would
lower world energy prices dramatically by reducing by a whopping 12% world crude
oil demand. And it would reduce air pollution by huge amounts every year
from the coal-burning power plants.
This is not pie-in-the-sky environmentalist rhetoric about solar panels and
windmills. This is pure mathematical calculation based on what we already
consume.
See how these environmentalists have ruined our energy supply? See how much
damage they are causing our economy? There is no need whatsoever to be paying
these high gas prices. We are wasting vast amounts of resources and paying
higher prices for one reason only -- because of the policies that the
environmental movement has forced on us.
Lawyer/governor Patrick of Massachusetts never said a word
about nuclear power, or about developing our domestic petroleum resources. And
despite his description of the creation of a small number of ‘green’ jobs in
No, Governor Patrick only talked about “green collar jobs” to manufacture solar
panels and windmills and biofuels. But the disastrous result so far on ethanol
fuel should make us suspicious about enviro rhetoric versus its reality.
And recent stories about other ‘green’ energy projects
should give us pause as well. The leading opponent of
The Cape Wind case is not an isolated incident, and two
headlines in the May 5, 2008 Berkshire
(County, Massachusetts) Eagle should
makes us wonder how far wind power ever will be able to take us… if it ever gets
off the ground in the first place, that is. The first headline said
Wind Turbine Project Slows; Environmentalists challenge permits for
The story involved the installation of twenty 1.5 megawatt turbines (each 450
feet tall, the same height as a 40-story building) that is being challenged by environmental groups which have been
opposing the project since 2004. These legal challenges have driven up the
project’s costs substantially just as endless legal maneuverings by enviro
groups are driving up the cost of all resources from crude oil to coal to
timber.
Of the project, the
Eagle reports that enviro groups are
‘opposing road construction across 12 streams on the way to the turbine sites on
Here is an excerpt from the article about the project which indicates just how environmentalists themselves are on the one hand blocking nuclear power and advocating wind power, and on the other hand blocking wind power too:
‘More than two years later, in May 2007, Administrative Magistrate Natalie S.
Monroe ruled against the (Massachusetts Department of Environmental Protection)
permit. She took issue with the standards for determining annual flood level
measurements in the construction zone, and she predicted potential damage to
protected wetland zones during construction.’
‘She noted that the open-bottom culverts used for roads crossing the streams
would threaten vegetation on stream banks.’
This is a perfect example of how environmentalists micro-manage every single
aspect of any development project. Because Judge Monroe knows nothing about
stream culverts except that which environmentalists tell her. And these
ecologists are high-pressure activists who inhabit every university and every town
in Massachusetts, and are intervening in virtually every economic
development project in America.
Of course, conservatives agree that wind energy is far too detrimental to the
environment for its low yields. Ironically many conservatives find themselves
on the same side of the argument as some environmentalists. The difference is
that conservatives are offering an alternative… nuclear power. Environmentalists
have no solutions at all.
Meanwhile, the other wind-turbine project in
But in that article Framingham Minuteman Wind company
owner Don McCauley, looking at opposition to the Florida/Monroe project said
that ‘litigation might become a factor in the development phase’ of the
“We don’t know what opposition will appear after we apply for permits,” said
McCauley for his 12.5 megawatt project.
So the question is: What exactly do environmentalists plan
to do to assure a future energy supply for the
The next question is: Is their ‘green energy’ even worth pursuing at all?
Consider the facts: Wind energy is producing small amounts of energy for a huge
enviro impact. At 1.5 megawatts and 450 feet tall each, the United States would
need 613,000 giant wind generators to power the nation since our
current installed capacity is 1.1 million megawatts (613,000 X
1.5 = 1.1 million). That’s a huge number of wind generators and their
construction alone would consume vast amounts of energy and steel since they are
built on steel towers.
And here’s another problem: Since wind generators spend small or large amounts of time idle when the wind dies down, we would need to install many extra generators just to make up the difference between stated output and actual output, maybe up to 100,000 extra generators or more.
Here’s why:
Imagine you want to install 22.5 megawatts of generating capacity using 1.5
megawatt turbines. If a 1.5
megawatt wind generator is only running 75% of the time, it is going to produce
75% of 1.5 megawatts over the long run, or 1.12 megawatts. So we would need to install not just 15
generators to make 22.5 megawatts of capacity (15 generators X 1.5 megs = 22.5
megs). We would need
to install 20 generators, or 30 megawatts of capacity, since they only are
running 75% (since 75% of 30 megawatts if 22.5). This is a huge overkill of
necessary investment compared to a nuclear or coal-fired plant which runs at
much higher levels of capacity. In other words, it is a highly inefficient
investment.
Wind generators also have a big, negative enviro impact. They can be seen on mountaintops for miles around. Their sites must be cleared, roads built and power lines strung, often in wild areas, for their installation and maintenance. While a nuclear generating station may require 100 acres of land for a 2,000 megawatt generating station, often in areas already developed, we would need to install 1,334 1.5 megawatt wind generators for the same capacity (1,334 X 1.5 megs = 2,000 megs), requiring 1,334 separate one-acre sites for the same installed power production. This does not include the difference between predicted output and actual output. Depending on efficiency, more than 1,600 wind generators might be needed. This could end up using more than 15 times as much land as nuclear just for the generators themselves, often in sensitive wilderness areas.
And meanwhile, every road and power line represents many, many times the acreage than the generators themselves.
So which is the more efficient use of our land? Are we willing to install
windmills everywhere and build all the roads and power lines into rural areas to service them? And how about all the gasoline needed to power service trucks to get to each
remote site, often on mountaintops, to service windmills one by one? Isn’t this
a waste of our energy resources?
Another even bigger question is: Where should our energy investment be
going? After all, we do not have limitless capital. If we did, the whole world
would be rich.
To put this question into context, we should consider
another ‘environmentally friendly’ energy source, a solar-energy installation on
an American home to make hot water. Today few American homes have solar
hot-water heaters because they are too expensive. Come up to
(Question: If these solar collectors are such simple, ‘passive’ energy sources, why have
so many of them
stopped working? Answer: Because they are much more complicated than you think,
and can easily break down and become useless.)
First, consider solar systems. They require the installation of solar panels on
the roof of your house. Yet any carpenter will tell you that the last place you
should be poking big holes is in the roof of your house.
Second, the systems require the circulation of ethylene glycol, or anti-freeze.
This toxic substance needs to be constantly circulated through pipes from the basement hot
water heat exchanger up to the rooftop solar panels. This requires large amounts
of electricity, driving up your electric bills. If, hypothetically, a solar
system circulated 200 gallons per day of ethylene glycol, that would require the
pumping of almost one ton of liquid every day from the basement to the roof.
This uses lots of electricity.
But isn’t solar energy supposed to save
energy?
Yes, hypothetically.
These solar systems also are highly inefficient uses of capital and resources.
To install a solar hot-water system, homeowners actually are installing a whole second energy system in addition to the hot-water heater they already have in the basement. That means an average of $12,000 in costs, which includes the installation of solar panels on the roof (which must be removed and re-installed if the roof needs replacing) electric pumps, copper piping and an additional heat-exchanger storage tank.
And after snowstorms, some panels remain encrusted in snow for long periods and
need to be cleaned off manually.
In many climates in
Is this efficient? Or does this really represent massive
inefficiency and ultimately a waste
of resources and money?
Should we be putting major investments into ‘green’ energy only to
face rising costs and uncertain supplies?
The same question might be posed over food costs. Is it in our interest to grow
food efficiently using economies of scale on large agribusiness farms with
bioengineered crops and stable energy supplies provided by petroleum and nuclear
power?
Or should each homeowner maintain a garden and all the
facilities to process and preserve garden produce for consumption throughout the
year?
What is the best investment of time, money and human energy?
Which, in the end, is more efficient?
Does the average American have the time and energy to grow and maintain a huge
garden, and to process and preserve its produce?
Or is our time, energy and money better spent otherwise?
Should our society be investing huge sums in low-yield inefficient resources
like growing our own food and putting up windmills and solar panels, or in high-yield sources like nuclear power and petroleum to fuel efficient agribusiness?
We can listen to people like politicians and environmentalists and mankind
certainly will suffer the consequences Or we can be pragmatic about our energy resources and
have a brighter future.
It is up to us to decide.