Corn Hits Ten Year High

Corn hit almost $4.50 a bushel today. Soybeans are at their highest levels since 2004. Hey, but there's good news - the Fed says inflation isn't a problem. I went to an event where U.S. Bank economist John Mitchell spoke yesterday, and he called a chicken "corn that has been turned into meat." All the ethanol plants that are currently under construction are going to make trips to the grocery store more expensive. We need to keep trying to steer politicians away from ethanol and towards EV's powered by wind, solar, etc.

NY Times Article on Global Warming Economics

This is worth a read, but I wonder if there is something missing from the argument. Namely, how much more of the natural resources of the world should we continue to consume at the expense of future generations. I would argue that the moral imperative should outweigh the economic arguments. Furthermore, consumption does not have to linearly relate to economic growth. Sustainable business practices can yield economic growth and slow consumption patterns.

Here's the link:

http://www.nytimes.com/2007/02/21/business/21leonhardt.html?ex=1329714000&en=19a3fa1a7bf060b5&ei=5089&partner=rssyahoo&emc=rss

Marketwatch Article on Corn-Based Ethanol

I'm still hoping that ethanol fever will die down soon. It seems that the mainstream press is picking up on the downside of ethanol. The stock market has taken a rather dim view of late. Pull up a chart of AVR, VSE, or PEIX if you want to see what the markets think of corn-based ethanol right now. Here's a link to the article:

http://www.marketwatch.com/news/story/corn-based-ethanols-flawed-concept/story.aspx?guid=%7BEC55D7AD%2D6E1C%2D4AD8%2D912F%2DA2A0BD4D4299%7D

Vestas Web Site

Vestas has a great web site with a lot of interesting information (Vestas is the largest manufacturer of wind turbines in the world). I have added a link to their site. I recently watched a TV series online that Vestas has linked on their site. It details the history of Vestas. The program has english subtitles, since it was produced in Denmark. The series is worth watching if you are interested in wind power.

Response to Jonah Goldberg Column

Jonah Goldberg has a column out today in the Seattle Times which can be read at the following link: http://author.nationalreview.com/latest/?q=MjE5NQ==

I think it is a very misleading commentary, and here is my response:

Dear Mr. Goldberg,

I would like to point out to you that your commentary is not factually correct on two very important points:

You state “there are no solutions in the realm of the politically possible”. I would submit that the United States can dramatically increase its use of wind power to generate electricity. Because wind power is widely distributed across the United States, and is strongest in the middle portion of the country, there is a broad base of support for wind power. There are some NIMBY areas where wind power will not catch on, but this is the exception, not the rule. Furthermore, wind power is cost competitive with coal-based power plants.
Secondly, plug-in hybrids, electric vehicles, better diesels, and other advances in automobile fuel efficiency are capable of dramatically reducing the amount of fossil fuels burned for transportation. These technologies may raise the purchase price of the vehicle, but they are offset by lower operating economics. Therefore your question “why throw trillions of dollars into ‘remedies’ that even their proponents concede won’t solve the problem?” is extremely misleading.

You may be aware of the fact that many environmental organizations do not support increasing the use of ethanol. Ethanol has been promoted by the Bush administration, however, if you take a look at the stock prices of ethanol companies, you will see that the ethanol bubble has already burst. Midwest farmers and landowners would be far better off focusing on wind power and crops for biodiesel. While companies such as ADM may initially suffer as this reality takes hold, other large corporations such as GE will benefit from increasing our reliance on wind power. Therefore I would submit that there is a politically feasible solution to our reliance on fossil fuels.

Sincerely,
Keith Harrell
Snohomish, WA

A Tale of Two Speakers – Peak Oil and The API

This week on Wednesday and Thursday night I had the opportunity to hear from opposite sides of the aisle regarding the state of the oil and gas industry and our energy future. Wednesday night I listened to a speaker on Peak Oil, while Thursday I heard the president of the American Petroleum Institute (API) speak. I found both speakers interesting, but lacking, because both failed to present a broader view than their particular area of interest.

So, are we running out of oil or not? Is that the question we should even be asking? The key message that keeps running through my mind is the saying from the Clinton campaign of the ‘90’s – “It’s the economy, stupid”. What both speakers harped on (from different perspectives) was the critical role that energy plays in driving the economy. Everyone knows that China, India, and the rest of the developing world’s economies are growing rapidly, and that means they require more energy. However, here’s where I have a problem with the message that is being given by both these camps. Their message is essentially – “More carbon = more energy = more economic growth”. However, we know that is essentially incorrect, because renewable sources of energy don’t fit this equation. Also, generating energy from hydrocarbons more efficiently doesn’t fit the equation either.

Let’s rewrite the equation as “More available energy = more economic growth”. We can make more energy available to everyone by using it more efficiently. Furthermore, wind power is cost effective today – we should be putting up wind turbines as fast as we can in the United States if we really care about the strength of our economy. Rather than focus on the need to secure energy resources abroad, we should be building our domestic energy supply.

Interest groups that are against carbon limits or are clamoring for securing petroleum for domestic consumption on the basis that to do otherwise would imperil our economy are misleading the American public. It is vital that people understand that changing our energy policy can improve our lives, not ruin it, as so many would have us believe.

Book Review - Big Coal

I've just finished reading Big Coal - The Dirty Secret Behind America's Energy Future by Jeff Goodell. Wow, this is a sobering read. I definitely recommend it. I had been skeptical of the "Clean Coal" slogan before I read this book, but I am now firmly convinced that we should not build another coal-fired power plant in the United States unless it replaces an old plant. Goodell paints a grim picture of the costs of our dependency on coal. He also reveals the ugly side of political influence, especially how the coal industry has cozied up to the Bush administration over the past six years.

Report on Renewables, Energy Savings

I haven't had a chance to read this yet, but it looks very worthwhile. There's a brief summary of the report at this link:

http://www.ases.org/climatechange/

Jobs Created or Lost Due to Carbon Caps?

The White House contends that jobs would be lost if we had to live with a carbon cap. Let's see - would you rather have a job building wind turbines or mining coal? Would you rather have a job updating the electric grid or drilling for oil? Would you rather have a job accelerating Solid State Lighting or no job (we already know how to make cheap, inefficient incandescent light bulbs). We have a more productive economy when we use less energy to produce things. That's what will result from carbon caps. We will have a better economy and more jobs, not less. Here's the article that prompted this entry:

http://www.cnn.com/2007/POLITICS/02/02/us.climate.reax.ap/index.html?eref=rss_topstories

Electric Excitement - Watch the Video

Check this out....very cool!

http://video.google.com/videoplay?docid=6062890668995958197&q=Electric+Car+Drag+Racing&hl=en

Who Will Produce Electricity The Cheapest?

As we move towards more electric cars, the race will be on to see who can produce electricity at the lowest price, with the fewest environmental impacts. Here's a link to a related story.

http://news.com.com/Power+plants+in+the+basement+heat+up/2100-11392_3-6154894.html

Seattle Times Article on Pollution Effects

Here's a link to a story that offers another argument in favor of EVs powered by wind and other renewable energy sources.

http://seattletimes.nwsource.com/html/localnews/2003550558_airpollution01m.html