Posted on 06/16/2008 9:53:35 AM PDT by newbie2008
Don Boudreaux of George Mason University talks with EconTalk host Russ Roberts about the recent surge in energy prices. They talk about why prices have risen, the implications for America's standard of living and the implications for public policy.
KEY TERM: “Increased Available Energy”
To make energy more affordable to all, you need to increase the amount of energy that is available to be used.
When the energy supplier is choosing/obtaining a source of energy, when finished, they must have increased the useable available energy, or you are going to lower the standard of living for everyone, no matter how many jobs you create. And the company if unsubsidized will be wasting resources/money.
The key term to use in any debate is, does your/their solution increase the “available energy”
KEY TERM: “Increased Available Energy”
Here are a few examples of how to “increase available energy”. And then one or two ways that do not increase available energy.
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It takes one Gallon of Oil to produce 40 gallons of Oil
A 40 to 1 increase in net available energy
Now lets do a few more:
It takes ten pounds of Coal (strip mined) to produce 2000 lbs of Coal
A 200 to 1 increase in net available energy
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One ounce of 6% enriched Uranium produces 600 ounces of 6% enriched Uranium (6% +/- is standard for most refueling of nuclear power plants vs. a nuclear bomb uses 99.9 % enriched uranium)
A 600 to 1 increase in net available energy
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1 Therm of Natural Gas is needed to produce 100 Therm’s of Natural Gas ,
A 100 to 1 increase in net available energy
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Five Solar cell’s life span/usable energy will produce 1 solar cell
A 500 percent decrease in available energy
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One Windmill life span including operation will produce 1.5 windmills
A 1.5 to 1 increase, not a good resource/investment
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One pound of Corn will produce 1.5 pounds of Corn
A 1.5 to 1 increase, not a good resource/investment
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As the price of Oil / electricity increases these numbers for Corn, windmills and solar cell’s will go down not up.
It is very simple to tell which is the best energy to use. Just use the test below.
To produce Oil, they use oil as their energy source. To produce Corn they use Oil, when they start to use corn to produce Corn (unsubsidized ethanol) , then it will be a good deal ! Which will never happen.
To produce a solar cell the manufacture’s use electricity produced by, Oil, coal, nuclear or Hydroelectric. When Solar cell manufactures start to use Solar cells to produce their products, you will know it is a good deal and that will never happen. Because you loose energy building them. Solar cells are great where no other power is available but only then. example : remote areas
The way it is today, using solar, wind or corn, waste money/energy and is bad for the environment .
The most precious resource we have, are time and money. When you waste either or both as you do with Solar, wind and ethanol you hurt the environment. Because time and money are always converted at one point or another into a natural resource. So wasting one is wasting the other.
When choosing an energy source there must be a good return on the resource to be sustainable.
An energy source that does not have a good increase in available energy is unsustainable, as you will build power plants to sustain your unsustainable but politically correct idea.
Example: Building a nuclear power plant will return , depending on the price of oil and gas, a 10 to 20 % yearly return (not to mention capital gains), so in five years it could be a resource neutral and with a life span of 50 or 100 years, clearly a big resource gainer. A windmill will return negligible returns per year and perhaps a substantial loss. Clearly not a good return on your resources.
Permit me some logic ....... Since resources are fungible via money as money is fungible, any waste of resources harm the environment. True friend’s of the environment are people who embrace, Capitalism with the ethics of Christianity.
Capitalism conserves all types of resources, while a true ethical system respects what God has made.
However, Capitalism and Christianity to the typical environmentalist is oil and water, they just won’t mix, because the typical environmentalist would have to humble themselves to admit they are wrong and it is the rare man, Christian or not who will humble themselves.
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1 ton of trash (burning it) produces enough energy for the Trash Hauling services to pick it up for free and pay you $10.00 per ton! Plus add billions of Megawatts of power to the grid lowering everyone’s power bill. Not to mention the waste of land, time and money putting it into the ground. This method truly recycles 100 % of trash, a giant step forward. 100 %
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The larger the increase in net available energy equals the greater standard of living. Since energy is required in every aspect of living. The cheaper energy is, the better your lifestyle will be.
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In the example for solar cell’s....... Don’t let someone try to tell you otherwise with a simple watt to watt comparison. Solar cells produce DC current at very low voltages, which can’t be used other then to charge batteries and then you must invert them to a higher usable AC voltage, a process which is costly and is more wasteful then the cells themselves.
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Final thought........... If you take the extra 15,000 dollars that you spent on your hybrid and invested in Exxon/Mobile ....... you would never have to buy gas again, your dividends / capital gains will more then cover your fuel cost. And it is way better for the environment.
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All the calculations were done based on the BTU content of the fuels, there selling prices and the industry average cost to produce. Admittedly, they are rough. It would be nice to have a Study done and get exact numbers but now that would just make too much sense! And would forever condemn solar cells and wind mills, the savior’s of fools.
Great stuff tieman, is it your own? I’m going back into doing some energy related work, I NEED FACTS like the above.
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