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In The Bottomless Well: The twilight of fuel, the virtue of waste, and why we will never run out of energy, Peter Huber and Mark Mills argue that the massive energy “losses” during energy production aren’t bad, as outside critics of the U.S. energy economy want to assert. They are actually the most necessary and beneficial part of America’s energy use—they refine energy sources into usable energy.

The Bottomless Well was published in 2005

To put it as bluntly as it can be put, the “waste” of energy is virtue, not a vice. It is only by throwing most of the energy away that we can put what’s left to productive use. The cold side of the engine—where we discard most of the energy—is as essential as the hot, where we suck it in. More essential, in fact. It is by throwing energy overboard that we maintain and increase the order of our existence.

The electricity at the plug arrives from the enormous generator in some utility’s central power plant. What spins the generator’s shaft is a steam turbine. The steam comes from a boiler, which is heated by furnace, which most probably burns coal. In the very best power plants, half of the raw heat available in the coal is consumed inside the plant itself in converting the other half of the heat into electricity. Less efficient power plants—smaller ones used as stand-by generators, for example—consume two-thirds of their heat to refine the other one-third into electricity. The whole business, in short, reeks of a Ponzi scheme, with each successive tier of the pyramid feeding voraciously off the one beneath—and with new tiers constantly being added at the top. Small wonder that so much of our energy economy is often characterized as wasteful. Casual observers are easily convinced that there must be a better way.

The energy Ponzi scheme is invariably framed—and lamented—as a symptom of grotesque waste. In the standard graphical presentation, the noble pyramid is portrayed, instead, as a squid-like creature, expelling waste through every tentacle. Updated versions of the energy squid are now routinely wheeled out to demonstrate how most of the energy we use goes to “waste” or (more colorfully) disappears down a “rat hole.”

But something far bigger than a wasteful rat hole is at work when you are looking at the 95 percent or more of total demand. That much demand can’t all be blamed on bad engineering. If the main use of energy is to condition energy itself, then “energy” isn’t the right metric at all, and the “energy economy” must in fact center on something quite different. Engines and generators are obviously doing something for us that isn’t captured by any of the conventional metrics of energy and power.

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Post image for The Greenest Propaganda Grows in New York

Earthworks’s Oil and Gas Accountability Project has recently commissioned a report on behalf of anti-drilling special interests, and delivered it to the New York State Department of Environmental Conservation, donning the title: “A Human Rights Assessment of Hydraulic Fracturing for Natural Gas.”  This flagrant instrument of green propaganda alleges that the “environmental damage” created by hydraulic fracturing (“fracking”), the contentious natural gas extraction process that involves blasting a mixture of water, sand, and chemicals underground, poses “a new threat to human rights.” The basis of this accusation rests upon a citation of a recent United Nations Resolution that states, “environmental damage can have negative implications, both direct and indirect, for the effective enjoyment of human rights.”  Again, the archetypal environmentalist assumes the posture of the humanitarian do-gooder, when in reality, their green agenda with the “at-all-costs” underpinnings will ravage the already depressed economies of those areas in upstate New York where natural gas development offers hope for impoverished people.

The report enumerates the possible (not affirmed) risks to air quality, ground surface waters, climate change, soils and ecosystems that qualify as “violations” of human rights (26 violations, to be exact), even though they admit that “the current state of knowledge about potential human health and environmental impacts of these airborne and waterborne contaminants, as well as of their mixtures and interactions, is poor.” It goes to the level of labeling fracking a “human rights” issue because it overrides all other possible policy tests.  The report states, “Human rights standards are recognized as trumping other types of policy considerations such as utility, cost-benefit analysis, economic value, social policy, etc.”  The cherry on top of this outrageous assessment is that the last two listed human rights accused of being violated by fracking pertain to the Nuremberg Code— a document that assures the rights of medical subjects that came out of the World War II Nuremberg Trials where Nazi doctors were rightly accused of performing atrocious experiments on prisoners in the concentration camps.  As stated, there is no evidence that fracking poses a threat to the environment, let alone to human rights. To parallel real human suffering with an industrialized process that mitigates human struggle by creating wealth is insulting and absurd.

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Post image for The Keystone XL Pipeline: A Line in the Sand for America’s Future

Ask people about the future of energy, and you’ll probably hear mention of “solar,” “wind,” and “ethanol.”  These developing energy technologies have been invested in, loaned to, subsidized, and mandated—yet they’ve repeatedly fallen short.

If the vaunted renewables aren’t yet ready for prime time, what will we do if, for example, Iran makes good on its threat to close the Strait of Hormuz and blocks a significant supply of the world’s energy? Just the fear of a supply disruption bumped up the price of oil.

The geopolitics provide a perfect backdrop for pushing the pipeline that will boost the economy through more jobs and price stability, provide energy security, and help balance the trade deficit. Opponents see building the Keystone XL pipeline as a flashpoint for the struggle between old and new energy paradigms—yet with the failure of so-called future energy, the pipeline is representative of our energy future.

Untold billions of taxpayers’ dollars have been spent trying to force renewables into an unnatural economic timeline with the expectation that the laws of nature will bow to the laws of politicians. Yet, not one of them produces a significant percentage of our energy needs. If we lost 20% of our renewable energy, we’d never feel it. If we lost 20% of our oil supply—the amount that goes through the Strait of Hormuz, we could be back to the rationing and gas lines that are reminiscent of the Carter administration.

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An Occupy Orange County protester decries mankind’s existence: “Our very existence is bad for the planet.”  “Another protester told” an interviewer “that human beings are parasites,” adding that “if you take humanity off this planet, the planet would explode with prosperity.”

In May, a group of Nobel laureates and others gathered to put humanity on trial, to decide whether humanity had breached its relations with the planet.  Representing “the planet” was none other than Obama science and technology advisor Mario Molina.

Delegates to a U.N. climate change conference signed a petition to ban water, which the petition referred to using an obvious chemical name for water that anyone who has studied science or taken a chemistry course would logically recognize (as “dihydrogen monoxide”).  The petition cited the fact that water can erode rock or metal over time.

The Washington Post gave a thumbs-down to the billions of dollars dumped into electric vehicles by the Obama Administration, noting that these electric vehicles are not a “solution to America’s dependence on foreign oil, or to global warming, in the near future. They simply pose too many issues of price and practicality to attract a large segment of the car-buying public.”  It pointed out that subsidies for electric vehicles are “trickle-down economics” that benefit a wealthy few at the expense of taxpayers.  (Each Chevy Volt costs taxpayers up to $250,000).

The Post also criticized the costly ethanol subsidies backed by the Obama Administration, noting that a recently-expired ethanol tax credit “badly distorted the global grain market, artificially raised the cost of agricultural land and did almost nothing to curb greenhouse gas emissions. A federal law requiring the use of 36 billion gallons of ethanol for fuel by 2022 still props up the industry, but the tax credit’s expiration is a victory for common sense just the same.”  The Obama Administration supports ethanol subsidies, even though they have a history of  spawning famines and food riots overseas. It has forced up the ethanol content of gasoline through EPA regulations, even though ethanol production results in deforestation, soil erosion, and water pollution.  Back in 2008, leading environmentalists lamented the devastating impact of ethanol subsidies on the global environment and the world’s poor in the Washington Post. They noted that thanks to ethanol mandates, “deadly food riots” had already “broken out in dozens of nations,” such as “Haiti and Egypt.”

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From the 12/30/2011 Cooler Heads Digest:

This week the EPA finalized the 2012 biofuel volume mandates under the Renewable Fuel Standard, as established by the Energy Independence and Security Act of 2007. The controversial cellulosic “mandate” is currently set at 8.65 million gallons, down from an initial “requirement” of 500 million gallons as set by the EISA. In previous years, the EPA has held cellulosic requirements at levels greater than zero gallons, despite it being commercially unavailable. As a result, refiners have been required to purchase cellulosic “credits” from the EPA in lieu of purchasing the (nonexistent) cellulosic ethanol. Refiners expect to spend roughly $8 million complying with this bogus program in 2012 unless cellulosic ethanol finally materializes.

In related ethanol news, this week also marks the end of the ethanol tax credit (VEETC) and the corresponding tariff on ethanol imports. As the Wall Street Journal noted today: “Congress created ethanol subsidies in 1978, expanded them in a 1980 bill, and then rinsed and repeated in 1982, 1984, 1988, 1990, 1992, 1998, 2004, 2005 and 2007.” The more damaging mandate, the Renewable Fuel Standard, remains in effect.

The RFS will require oil refiners to blend 15.2 billion gallons of biofuels into our fuel supply this year, and will increase to 36 billion gallons by 2022. How this will be possible remains to be seen, as consumers have shown little interest in purchasing vehicles that run primarily on ethanol, and there are a number of difficulties in requiring that non-modified cars run on gasoline containing much more than 10-15 percent ethanol.

 

Post image for Cooler Heads Digest 30 December 2011

In the News

Obamacar for the 1 Percent
Henry Payne, Planet Gore, 30 December 2011

Should We Fear the Methane Time Bomb?
Marlo Lewis, GlobalWarming.org, 29 December 2011

Bring on 2012!
Robert Bradley, Master Resource, 29 December 2011

Why “Beyond Petroleum” Gave up on Solar
Paul Chesser, National Legal and Policy Center, 28 December 2011

Don’t Miss the Energy “Technolution”
Kirk Spano, Market Watch, 28 December 2011

The Circular Logic of Energy Independence
Jonathan Thompson, High Country News, 27 December 2011

Dingell’s Volt Goof
Dan Calabrese, The Michigan View, 26 December 2011

News You Can Use

Chevy Volt Subsidy up to $250,000 Per Car

Marlo Lewis

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Post image for Should We Fear the Methane Time Bomb?

A favorite doomsday scenario of the anti-carbon crusade hypothesizes that global warming, by melting frozen Arctic soils on land and the seafloor, will release billions of tons of carbon locked up for thousands of years in permafrost. Climate havoc ensues: The newly exposed carbon oxidizes and becomes carbon dioxide (CO2), further enhancing the greenhouse effect. Worse, some of the organic carbon decomposes into methane, which, molecule for molecule, packs 21 times the global warming punch of CO2 over a 100-year time span and more than 100 times the CO2-warming effect over a 20-year period.

The fear, in short, is that mankind is fast approaching a “tipping point” whereby outgassing CO2 and methane cause more warming, which melts more permafrost, which releases even more CO2 and methane, which pushes global temperatures up to catastrophic levels.

In a popular Youtube video, scientists flare outgassing methane from a frozen pond in Fairbanks, Alaska. A photo of the pond, with methane bubbling up through holes in the ice, appears in the marquee for this post. Are we approaching the End of Days?

New York Times science blogger Andrew Revkin ain’t buying it (“Methane Time Bomb in Arctic Seas – Apocalyplse Not,” 14 Dec. 2011), nor does his colleague, science reporter Justin Gillis (“Artic Methane: Is Catastrophe Imminent?” 20 Dec. 2011).

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Randal O’Toole used to be a mainstream environmentalist until he saw how government operated. In Gridlock: Why We’re Stuck in Traffic and What to Do About It, O’Toole (known as the Antiplanner over on his blog) describes how “behavioral” solutions to environmental problems fail, and why technical solutions that get the government out of people’s behavioral choices is the way to go.

Gridlock was published in 2009

When I went to college at Oregon State University, Ralph Nader came to Oregon and inspired students to form the Oregon Student Public Interest Research Group to do research on social and environmental issues. In the summer of 1972, I was one of the group’s first student interns, and I worked on air pollution issues….

Because of traffic congestion, Portland’s worst pollution was downtown. So I proposed that Portland’s three-year-old transit agency, TriMet, contract with churches on the city’s periphery to use their parking lots as weekday park-and-ride stations. This would allow commuters to leave their cars well outside of downtown.

Once downtown, people still might need to get around, so I proposed that Trimet create a demand-responsive jitney bus system. Signal boxes on every street corner would allow people to call a bus. The nearest bus would pick them up and, after picking up or dropping off other people, drop them off at their downtown destination. The hardware and software for such a system was commercially available but had never been used in the U.S.

Portland’s traffic engineer had a very different solution to the city’s air pollution problems. Cars pollute the most at low speeds, he pointed out. So his idea was to install a traffic signal coordination system on downtown at faster speeds. According to his department’s calculations, this program, combined with the EPA’s stricter air pollution controls on new cars, would bring the city in compliance of EPA’s pollution standards by 1980. I worried speeding up downtown traffic would simply bring in more traffic, which would offset the clean-air benefits of higher speeds. But the city adopted the traffic engineer’s plan….

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Two nights ago, I was invited to speak on Fox Business Channel’s Cavuto show, about renewable energy subsidies. To find out whether I am for or against taxpayer handouts to politically favored industries, watch the video below.

Post image for Update on Fight against EPA’s Regional Haze Power Grab

I’ve spent much of the last five months following (and fighting) the Environmental Protection Agency’s power grab on visibility policy. As I explain here, EPA is hybridizing disparate provisions of the Clean Air Act in order to engineer greater regulatory authority for itself. The Agency is using this trumped up authority to run roughshod over state decision making on policy to improve visibility.

At issue is a provision amended to the Clean Air Act in 1977, known as Regional Haze, that requires measures to improve vistas at federal National Parks and Wilderness Areas. A hallmark of the program is state primacy over EPA. The Congressional Record for the 1977 Clean Air Act amendments explains that the House of Representatives and Senate passed markedly different Regional Haze provisions. The House’s version gave EPA primacy; the Senate version made states the lead decision-makers. The Conference Committee, whose duty it is to reconcile the differences between the bills passed by the two chambers of Congress, adopted the Senate language. In the seminal case American Corn Growers v. EPA, a federal court remanded EPA’s proposed Regional Haze rule, because it insufficiently accorded states the lead role in policymaking to improve visibility. EPA’s own rules recognize the Agency’s secondary role. According to the preamble of EPA’s 2005 Regional Haze Guidelines, “…the [Clean Air] Act and legislative history indicate that Congress evinced a special concern with ensuring that States would be the decision makers (70 FR 39137).”

The legal and regulatory record is clear: States get to make visibility policy.

Fast forward to January 2009: President Barack Obama takes office, and launches a war on coal. On the supply-side, the administration moves to end surface coal mining in Appalachia. On the demand side, the administration is trying to force every existing coal fired power plant to install the most expensive controls—namely “selective catalytic reduction” systems for nitrogen oxides,  “scrubbers” for sulfur dioxide, and electrostatic filters for particulate matter—regardless whether these retrofits are warranted. For the average 500 megawatt coal fired power plant, costs of these controls range anywhere from $400 o $600 million. Presumably, EPA’s idea is to raise the price of generating electricity with coal, and thereby “bankrupt” the industry, to borrow a term turned by the President.

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