Redux
The last few weeks I have touched on three key topics and want to revisit them today as each has made headlines, reiterating my concerns, or in one case giving hope and contradicting my thoughts. Last week I touched on energy policy, the failure of the Department of Energy to meet its mandate by President Carter, and cornucopian ignorance by conservatives. The prior week I alerted you to my concern over failing state governments. Three weeks ago I hit on the issue of entertainment and sports prevailing as the interest to Americans instead of citizenship. I typically write this column on the weekend preceding publication so it has been fascinating to watch thoughts, predictions, and trends materialize.
Snowstorms battered the mid-Atlantic and northeast again this past week reiterating my focus on state governments running budget deficits and the upcoming economic malaise. The same week I wrote my column the governors of the states met and voiced concern over impending shortfalls. In world headlines, Greece continues to make the news, but the state of California is the eighth largest economy in the world and remains on the brink of failure. On the U.S. east coast snowstorms may bankrupt individual states. For example, Georgia has no budget for snow removal but has spent $5 million. Virginia has suffered; outspending its $79 million snow removal budget by another $70 million. Those are critical monies ordinarily available for social services, schools, libraries, and road maintenance. In Virginia, the state DOT has stated all major road projects will be postponed until next fiscal year.
Thursday of last week brought the much anticipated healthcare debate. In anticipation the pundits from both the liberal and conservative views voiced excitement over the possible outcomes: would President Obama save himself and his party from defeat in 2010 or would Republicans present a concrete plan revolutionizing healthcare? Ironically with the hype to finally add transparency to the healthcare debate, most citizens will never know what took place. First, most people cannot give six hours of a weekday to watch government officials be dogmatic providing campaign like speeches. Second, the networks gave up and changed to “more interesting” programming. Thus, once again the people chose Oprah, ESPN, and daytime soap operas over engaging themselves in the strenuous process of governing America and instead will rely on media opinions and polls to persuade them.
I enjoyed writing last week’s column regarding energy policy and praising President Obama’s decision to provide loan guarantees to build two nuclear power plants in Georgia. As a follower of Peak theories, and a Chemical Engineer, I understand the mass and energy balances required to calculate the inputs required to fuel the surpluses in our society we enjoy every day. Without inexpensive fuels we would not have 2% of our society working to feed us, fertilizers and pesticides, bottled water, or cross America in a commercial jet for just $400. The ability to obtain energy cheaply provides us the lifestyle of kings; a gallon of gas bringing the energy equal to one person working nonstop for twelve weeks. Last week though, a revolutionary new fuel cell was debuted: the Bloom Box, featured on 60 Minutes, USA Today, and Forbes brings technological revolution. Ordinarily I look away, comparing such news to rainmakers invading the dustbowl in the 1930’s. However, this may be the cornucopia sought by many, a former NASA mechanical engineer has developed an ink and sand based fuel cell. The Bloom Box delivers the economic promise of powering cars and homes through a distributed network. This loaf of bread sized device may be in every home in just a few years.
Showing posts with label Peak Oil. Show all posts
Showing posts with label Peak Oil. Show all posts
Wednesday, March 03, 2010
Energy Policy
America’s energy policy over the last 40 years has been lacking direction, but President Obama took a big step forward last week. Prior to 1972 America was an exporter of oil, not only supplying all of our own needs but exporting oil to other countries. It is hard to imagine, but in the early 20th century oil literally flowed to the top of the ground in places like Pennsylvania, no wells, no deep sea drilling; it could be had by scraping it off the ground. In 1956 a geophysicist, Dr. M. King Hubbert predicted by 1970 America would reach its “peak”, the point where U.S. oil production would peak. However, the concept of “Peak Oil” is scoffed at since we continue to discover more oil reserves, dismissing that every new barrel costs more to obtain than the previous. In 1973 the OPEC crisis catalyzed our country’s quest for energy independence; seven presidents since influenced America’s energy policies, but yet we remain hostage to foreign sources.
In 1977 President Carter created the Department of Energy; a bloated bureaucracy failing to meet its original mandate. Specifically, the DOE was created to ensure “the U.S. will never again import as much oil as it did in 1977.” At its creation, America imported 8.6 million bbls/day, now we import 10.4 million bbls/day. The DOE has grown from zero employees and zero budget to over 16,000 taxpayer paid civil servants, 100,000 contractors and an annual budget of $28 billion. Today America remains as dependent on foreign sources of energy as in 1977. Contrastingly, President Reagan brought a different view to office regarding energy. Sadly, his view is one that has stayed with Republicans during the last 25 years. Regan, a cornucopian, believed an innovative, technological solution, would appear in time to save us from the tragedy of our misdeeds. Of course, President Reagan, and his British counterpart Margaret Thatcher, were saved by the huge North Sea oil discoveries in the 1980s. Thus, the UK had a thriving economy and postponed energy policy decisions and likewise America did the same.
In the summer of 2008 every American received a wake-up call to energy policy. Stunned, we watched the price of gasoline at the pump soar past $4.00/gallon, considered buying “Smart” cars and left the SUV in the garage. Of course, this brought out the charlatans and snake-oil salesmen seeking government monies and investors for wind farms, off-shore wave generators, battery powered cars, oil sands recovery, and the now famous food-for-fuel, or ethanol disaster. However, grabbing a calculator and doing some math will show many of these methods require more energy than produced, do more environmental damage, or are just silly when considering large-scale implementation.
This past week President Obama made an excellent decision regarding energy policy; announcing $8.3 billion in loan guarantees to build two nuclear reactors in Georgia, the first in the U.S. in 30 years. Ironically, it is a decision that defies his party’s typical philosophy regarding nuclear energy and I am certain the likes of Jane Fonda, and the rest of the anti-nuke crowd, are troubled by this. However, the Hollywood crowd driving Toyota Prius automobiles must understand their energy requirements will come from the “grid”. President Obama, as a Senator and candidate, has consistently supported nuclear power. I would suggest the President add geo-thermal energy to the quest for clean-energy independence. With the unspent stimulus monies President Obama could focus a moonwalk like quest on energy and lead us out of recession and away from dependence on our enemies in the middle-east and South America.
America’s energy policy over the last 40 years has been lacking direction, but President Obama took a big step forward last week. Prior to 1972 America was an exporter of oil, not only supplying all of our own needs but exporting oil to other countries. It is hard to imagine, but in the early 20th century oil literally flowed to the top of the ground in places like Pennsylvania, no wells, no deep sea drilling; it could be had by scraping it off the ground. In 1956 a geophysicist, Dr. M. King Hubbert predicted by 1970 America would reach its “peak”, the point where U.S. oil production would peak. However, the concept of “Peak Oil” is scoffed at since we continue to discover more oil reserves, dismissing that every new barrel costs more to obtain than the previous. In 1973 the OPEC crisis catalyzed our country’s quest for energy independence; seven presidents since influenced America’s energy policies, but yet we remain hostage to foreign sources.
In 1977 President Carter created the Department of Energy; a bloated bureaucracy failing to meet its original mandate. Specifically, the DOE was created to ensure “the U.S. will never again import as much oil as it did in 1977.” At its creation, America imported 8.6 million bbls/day, now we import 10.4 million bbls/day. The DOE has grown from zero employees and zero budget to over 16,000 taxpayer paid civil servants, 100,000 contractors and an annual budget of $28 billion. Today America remains as dependent on foreign sources of energy as in 1977. Contrastingly, President Reagan brought a different view to office regarding energy. Sadly, his view is one that has stayed with Republicans during the last 25 years. Regan, a cornucopian, believed an innovative, technological solution, would appear in time to save us from the tragedy of our misdeeds. Of course, President Reagan, and his British counterpart Margaret Thatcher, were saved by the huge North Sea oil discoveries in the 1980s. Thus, the UK had a thriving economy and postponed energy policy decisions and likewise America did the same.
In the summer of 2008 every American received a wake-up call to energy policy. Stunned, we watched the price of gasoline at the pump soar past $4.00/gallon, considered buying “Smart” cars and left the SUV in the garage. Of course, this brought out the charlatans and snake-oil salesmen seeking government monies and investors for wind farms, off-shore wave generators, battery powered cars, oil sands recovery, and the now famous food-for-fuel, or ethanol disaster. However, grabbing a calculator and doing some math will show many of these methods require more energy than produced, do more environmental damage, or are just silly when considering large-scale implementation.
This past week President Obama made an excellent decision regarding energy policy; announcing $8.3 billion in loan guarantees to build two nuclear reactors in Georgia, the first in the U.S. in 30 years. Ironically, it is a decision that defies his party’s typical philosophy regarding nuclear energy and I am certain the likes of Jane Fonda, and the rest of the anti-nuke crowd, are troubled by this. However, the Hollywood crowd driving Toyota Prius automobiles must understand their energy requirements will come from the “grid”. President Obama, as a Senator and candidate, has consistently supported nuclear power. I would suggest the President add geo-thermal energy to the quest for clean-energy independence. With the unspent stimulus monies President Obama could focus a moonwalk like quest on energy and lead us out of recession and away from dependence on our enemies in the middle-east and South America.
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