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Jeffrey Ball

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Energy: Who Cares?

Posted: 05/24/2012 12:57 pm

It's Memorial Day weekend, the official start of the U.S. summer driving season, when, in an annual rite, Americans get mad as hell about energy.

The seasonal one-two punch of a surge in road trips and, typically, a rise in gasoline prices invariably gets Americans griping about an energy system they see as stacked against them. But as the righteous indignation rises along with the pain at the pump, it's worth taking a deep breath and remembering that today's energy dilemma isn't beyond Americans' control. Plenty of places around the globe have made big changes in their energy systems -- when they have decided they have no other choice.

The U.S. itself has embarked on an energy shift, and now the question is how far the shift will go. President Obama today is scheduled to visit a wind-turbine-blade factory in Iowa, a stop where he no doubt will tout the goal of a more sweeping American energy revolution. But America's energy challenge is in important ways unique, and so an American energy revolution would require a particular kind of strategy -- one that's ruthlessly economically efficient.

On this holiday weekend of frequent fill-ups, it helps first to appreciate how much the U.S. energy system is changing already. There really are two energy markets -- one for electricity, the other for transportation fuels -- and both are being transformed by a jump in U.S. energy production. Technological breakthroughs in pulling hydrocarbons out of the ground -- breakthroughs known as hydraulic fracturing, or "fracking," and horizontal drilling -- have unlocked vast supplies of previously tough-to-get American natural gas and oil. The gas is burned to make electricity, which powers everything from lights to toasters to beer fridges, a Memorial Day plus. The oil is burned to move planes, trains and automobiles. Thanks to all this new supply, Wall Street analysts and Washington politicians alike are talking about the possibility of American energy independence.

That claim may be a bit too cute, because the U.S. still imports about 45% of the petroleum it consumes. And even energy independence wouldn't be an energy panacea, because America still would have to reckon with the environmental downsides of that domestic production: potential water contamination from natural-gas drilling, air pollution from power plants' smokestacks and cars' and trucks' tailpipes, and greenhouse-gas emissions from the burning of all kinds of fossil fuels.

That raises the question of the prospects for an even bigger U.S. energy revolution. Most green boosters want a world radically different from today's in two ways. It would be more energy-efficient, with buildings, machines and vehicles that require less energy of any sort. And its energy would come from solar panels, wind turbines and other forms of renewable energy, which, the boosters hope, would replace fossil fuels.

In this vision, renewable energy wouldn't replace just the coal and natural gas that today generates the bulk of the nation's electricity. It also would replace the petroleum that powers cars and trucks. Vehicles would run on liquid fuels derived from algae and other crops and on electricity generated from the wind and sun.

How plausible is this vision? No one knows, because the answer depends on how technologies play out. And experts' predictions are all over the map.

The map, though, is highly instructive about another, crucial, aspect of energy revolutions: what makes them happen. Around the world, the places that have achieved major energy shifts haven't done so because of environmental altruism or even, fundamentally, because of technological luck. They've done so because they've been hit with shocks to their fossil-fuel-based economies so jarring that they've concluded they needed to change in a big way. Crises, in other words, count.

Following the 1970s oil shocks, France shifted its electricity production largely from oil to nuclear power; Denmark improved its energy efficiency and then boosted development of wind power; and Brazil became a world leader in fueling a sizable number of its cars with ethanol. After the 1986 Chernobyl accident, which generated widespread fear in Germany about nuclear power, Germany began rolling out some of the world's most generous subsidies to for the solar industry. Today China, faced with a surging population and with urban air pollution often so thick you can taste it, is scrambling to diversify its energy mix.

The U.S. today doesn't face those acute types of energy shocks. Its energy demand is widely projected to remain essentially flat; much of its most severe air pollution has been brought under control; and its domestic oil-and-gas production is on the rise.

What's so hard about the U.S. energy situation is that the drivers for a major shift are so soft: concerns about climate change, about continued reliance on Mideast oil, about losing out to China and other developing economies in a global race to corner a new technology market. As I argue in an essay in the current issue of Foreign Affairs magazine, "Tough Love for Renewable Energy," the softness of those drivers means that renewable-energy technologies, and the generous U.S. subsidies that have supported them in recent years, will need to get much more economically efficient if the technologies are to have a real chance of scaling up. The essay outlines a more-efficient approach.

This holiday weekend, many Americans will feel what seems a powerful pain at the pump. But an American energy revolution that shifted meaningfully away from fossil fuels would require something more than episodic financial pain. It would require ongoing economic smarts.

Jeffrey Ball is scholar-in-residence at Stanford University's Steyer-Taylor Center for Energy Policy and Finance. Before coming to Stanford last fall, he spent 14 years as a reporter, columnist and editor at The Wall Street Journal, writing for much of that time about energy and the environment and serving most recently as The Journal's environment editor. Ball also wrote the essay "Tough Love for Renewable Energy" in the May/June issue of Foreign Affairs.

 

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HUFFPOST SUPER USER
aligatorhardt
Cut on the bias
01:31 AM on 05/27/2012
Here is an interesting interview. Nukes could save the day after all.......

http://www.pbs.org/wgbh/pages/frontline/shows/reaction/interviews/till.html
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HUFFPOST SUPER USER
aligatorhardt
Cut on the bias
08:18 AM on 06/01/2012
Ask people in the Ukraine and Japan about nuclear power destroying lives. Ask the parents of children with birth defects how much nuclear power has improved their lives. Ask the cancer patient.
Genders
Love, Tolerance, Enlightenment
07:03 AM on 05/26/2012
wow, talk about damning with faint praise.

Nukes get 500M$per reactor per breaks and fossils even more including oil wars, They have for 50 and 100 years, but you think it's time for the 1% of our breaks that go to solar wind and waste should be cut back?

wow.

Rooftop pv solar is already cheaper than nukes. offshore wind and waste bio fuels are half that, on par with oil. solar will beat coal and gas within a few years. But only if we stop giving the fossil and nukes companies billion of dollars in breaks per year! And let's plow it into green energy.

Your analysis left out the biggest fact in all the new energy sources in the last 100 years: breaks from the governments.
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HUFFPOST SUPER USER
aligatorhardt
Cut on the bias
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HUFFPOST SUPER USER
Nic the wonder puppy
When life throws lemons, throw them back
11:38 AM on 05/25/2012
You are right, I have too much gas
10:41 AM on 05/25/2012
"Around the world, the places that have achieved major energy shifts haven't done so because of environmental altruism or even, fundamentally, because of technological luck. They've done so because they've been hit with shocks to their fossil-fuel-based economies so jarring that they've concluded they needed to change in a big way."

Not true. Scotland for example has been moving toward becoming totally dependent on renewables since 2000, and will be within the next 8 years. This as policy, and not from a headless nudging evolution. Note their department of energy has been renamed the "department of Energy and Climate Change." Spain was on the same track with underground molten salt vats heated by solar power until recently when government administered austerity measures and the oil lobby combined to siphon off investment. Yes these countries have natural advantages, it's very windy most of the time in Scotland and Spain has over 300 days of sunshine a year, but the choice to head towards 100% renewables is sound long term policy.
11:05 PM on 05/26/2012
we have massive NG and untapped oil reserves. to not use them as renewables develop is just plain STUPID
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HUFFPOST SUPER USER
aligatorhardt
Cut on the bias
08:27 AM on 06/01/2012
Renewable energy is developed and ready to install now. Nat gas is a bridge to nowhere.
This user has chosen to opt out of the Badges program
11:06 PM on 05/30/2012
Scotland is NOT moving toward becoming totally dependent on renewables. You misunderstand what their stated goal is: As the Scottish Energy Minister stated "We are seeing great progress towards our goal of generating the equivalent of 100% of Scotland's electricity needs from renewables by 2020." In other words they hope to generate as much as electricity from renewables as they use, but they are not saying they are going to generate all the electricity they use. They recognize renewables, particularly wind, is not reliable and they will be relying on traditional sources either in Scotland or England to support the grid. I would love to see an hourly graph of renewable energy production in Scotland, or even a monthly graph of production, vs. consumption. Interesting they do not seem to make that information available. Also, at least some of the Scottish politicians believe they can afford it because they expect independence to result in them running off with a large portion of the North Sea oil production.
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HUFFPOST SUPER USER
aligatorhardt
Cut on the bias
08:39 AM on 06/01/2012
North Sea oil production is becoming increasingly difficult and expensive to obtain. It is only a matter of time before the fossil fuel economy is no longer possible. Those who plan ahead will be ready.  UK farmers turn to renewables for profit | Reuters

Marine energy in Scotland: A rising tide? | The Economist

Wind Power In Scotland: A Village Makes It | Earthtechling
lastpost
see biography
06:04 AM on 05/25/2012
"an energy system they see as stacked against them."
Reality, reality. Thou art a fickle wench. Wouldst that humanity, could have its ways with thee.

"when they have decided they have no other choice."
Needs must when the driver pays.

"the question is how far the shift will go."
How long is a loop of recycled string?

"fracking," and horizontal drilling -- have unlocked vast supplies"
Err… Recheck the fuel gauge. Production drops off a cliff, as soon as a narrow fracked layer exhausts.

"other forms of renewable energy"
As yet undreamed of, by current philosophies.

"How plausible is this vision?"
Slightly more plausible than putting a man on the Moon. Plus a lot less lunatic.

"experts' predictions"
like: It’ll never fly. Wright?

"What's so hard about the U.S. energy situation is that"
gas price signs don’t display the military-might-projection component.
What would happen to people’s perceptions, if they did?

"Tough Love for Renewable Energy,"
Or watch that lovechild emigrate, to seek a better future in China?

"It would require ongoing economic smarts."
If a “mature” economy is to be rejuvenated. Rather than retired to a condo in the boon-docks.
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HUFFPOST SUPER USER
Laurent Wagner
05:29 AM on 05/25/2012
Fracking is the future of U.S. domestic energy production.

U.S. oil production is on the rise entirely because of shale oil, it's the same situation with natural gas production.

In 2035, to meet U.S. natural gas demand, shale gas production will have to quadruple.
In 2035, to replace depleted oil fields, shale oil production will have to triple.
In 2035, in order to produce as much oil as in 1970 (10 million barrels per day), shale oil production will have to quintuple.
11:07 PM on 05/26/2012
unless we open offshore and Alaska. Its sheer stupidity to keep easily found and brought up oil under the ground.

and fracking has been around since 1949 - we are just better at it today and it does not pollute ground water...
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HUFFPOST SUPER USER
aligatorhardt
Cut on the bias
03:25 AM on 05/25/2012
The US acts in an eminently rational manner and it is for this very reason that "green" energy is a trace element. Part of the problem of global warming ... now weather change is that science can only predict change, vague disaster, imprecise time lines and directional but not specific troubles. Over hyped threats that may be motivated by good intentions serve only to remind people that the science is young. We face a far more imminent threat with healthcare costs and yet we pass a healthcare law that virtually ignores the cost model. Until crisis occurs, change will not happen.

I see little chance of unilateral US action that disadvantages the country over already fierce competition from India, China and Brazil. I do believe that both the solution and the unknown are technology leaps that actually deliver more economical and perhaps "greener" solutions.
11:09 PM on 05/26/2012
Correct. everything has its time. we need more oil and gas now and when the market delivers cost effective alternatives we will move to them - and not before.
12:10 AM on 05/25/2012
America could have cut down on its per capita energy consumption by 50% since 1970 without ANY new technology. It hasn't. That was a CHOICE. Now the consequences of this poor choice are coming home to roost. That's really all there is to be said about it.
12:48 PM on 05/25/2012
Well, since automobiles have about doubled their efficiency in that time, it must be the proliferation of the services of an affluent society that have offset efficiency gains.

Things like modern health care. So, if we get rid of health care and similar luxuries we can achieve that 50% per capita energy cut you advocate.
11:12 PM on 05/26/2012
and how could we have done that?
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itruth
fideistic deist with socratic tedencies
11:46 PM on 05/24/2012
There is a Very nice old professor that said there is this thing called exponetial growth.His name;Albert Bartlett;his game physics.If you have a few minutes i would watch that video!
12:13 AM on 05/25/2012
The one who said:

"The greatest shortcoming of the human race is our inability to understand the exponential function."

Yep, just look at how the American public failed to understand the compound interest formula for home loans just a few years ago...

:-)
oilfield
large employer per obamacare
11:18 PM on 05/24/2012
if you want more renewable energy have more states deregulate power....there are energy sources around america that cant be put back on the line or the utility offers 20% of their sell price.
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unfoxworthy
We:ScottOlsens,the misfits,out to change the world
08:48 AM on 05/25/2012
We want more Enrons?
oilfield
large employer per obamacare
10:26 PM on 05/26/2012
what does enron have to do with folks being able to put energy back on the line?
Chironomid
To read is human; to comprehend divine
10:33 PM on 05/24/2012
Simple fact is that, as much as we may grouse about 3.50 - 4.00 a gallon gas, that's still a stone deal compared to anything else. We have cheap energy here, period - no incentive to change anything really. And we just aren't really feeling the effects of climate change personally just yet. Yeah, it's a bit hotter some days, the winter is warmer, some far-off place is undergoing biblical flooding but seriously, how has it impacted your daily life right here and now?

I see it, you don't have to convince me of it, but the day-to-day of it just isn't that dramatic in the vast majority of the US.

We be loving the fossil for awhile yet, for good or ill.
HUFFPOST SUPER USER
rock0267
07:37 AM on 05/25/2012
uh, actually, anything over $3 a gallon is WAY too high. These prices are killing us. What we NEED is to see gas prices go back down to a reasonable level, say about $2.00 - $2.25 a gallon. That's pleny high enough. Anything else is just too hard on a family.
10:21 PM on 05/24/2012
Hey anyone read the USA Today article about US energy independence.Oil production in North Dakota is rising and probably rise in Montana which is also part of the Bakken shale formation.The Navy is now running tests on biofuels.Natural gas is cheap and clean compared to coal so the cost of electric
generation will probably fall also.The problem with renewable fuels is the price of fossil is falling fast.
10:09 PM on 05/24/2012
This article is whacked
The USA has more Oil than all of the rest of the world combined
with the right leadership we can quickly get back to $1.50/gal gas
and economic prosperity
drill baby drill is right!
10's of thousands of high paying jobs drilling and refining the oil
and we can pay off our national debt selling our excess oil
but we need the right leader
and Obama is no leader
03:16 AM on 05/25/2012
Well said!
08:48 AM on 05/25/2012
You could not be more wrong. Fossil fuel is a dead end technology, if Americans were not so greedy and stupid we would be much better off. Sorry you are like that...
09:35 AM on 05/25/2012
Not only does the USA hold Trillions of Barrels of oil under our feet but oil itself is a renewable resource.
The chemical reaction of intense heat, pressure & elements under ground is perpetually creating new oil
 
http://www.viewzone.com/abioticoilx.html
 
http://www.canadafreepress.com/index.php/article/3952
09:41 AM on 05/25/2012
None of us want to pollute and someday soon hopefully we will figure out a clean renewable energy source that works. But in the mean time there is no reason why Amercans cannot continue driving their awesome SUV's and Cadillacs.
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plans includingdog
what a nice day.
10:06 PM on 05/24/2012
Increasing demand will use up the last of the fossil fuels.Then we will need it.We should change as fast as we can to renewables since we we cannot increase climate change and the stress on the resource.We may in the future go cold turkey.
HUFFPOST SUPER USER
rock0267
07:38 AM on 05/25/2012
I doubt it.