LifeItself

On May 17th, 2013, Joe Nocera of the New York Times wrote an editorial, Energy Exports Are Good!   In it he follows the classic paradigm of neoliberalism: Let the "markets" decide what will happen with natural gas and let us export it if someone so desires. According to Wikipedia, neoliberalism in economics was originally coined in 1938 by the German scholar Alexander Rüstow at a colloquium that defined the concept of neoliberalism as “the priority of the price mechanism, the free enterprise, the system of competition and a strong and impartial state.” To be "neoliberal" meant that – in the name of liberalism – a modern economic policy was required. So far so good, especially if everything can be traded over infinitely long times (centuries for us) with a perfectly smooth substitution of one resource for another and one product for another.  But this assumption does not hold for depletable resources, whose production does not adjust easily and instantaneously t...

In the previous post I compared electricity production and imports in California and Texas. I told you that renewables generate about the same fraction of electricity in both states. Texas produces all of its electricity, while California imports coal and gas - as electricity and for electricity generation - almost five days a week. It is important for you to understand that California will need to import a lot of carbon as natural gas to continue "decarbonizing" its economy by, for example, switching to plug-in vehicles. Without all that extra carbon, California's economy will undergo a miracle slimming diet . Such are the laws of physics. What I didn't tell you in the previous post is that roughly half of all natural gas in California is used to generate electricity. The residential sector uses 22 percent of the other half. Of that amount, 88 percent is used by space and water heating.  So, if there are problems with imports of natural gas to California, not on...

On January 10, 2011 - 11:49am, the Oildrum posted an article by  Luis de Sousa  Peak Coal: the Olduvai perspective . It is an interesting article and we appreciate the author's arguments against the peak of global rate of coal production.  However, here are a few facts on the ground recorded by Greg Croft and me: Last year, China imported 150/690=22% of all seaborne steam coal traded worldwide in 2010, and projections are that China will try to import more this year.  China also has firm plans of of limiting energy use and shutting down 2,000 coal-intensive industrial facilities.  In short, it seems that China's coal production has peaked.  China produces roughly 1/2 of world's coal. The Oildrum article does not seem to address the ever-increasing mine depths that will ultimately curtail and stop coal production from these mines. Mozambique is going to become the second biggest exporter of metallurgical coal, which is not the same as the second ...