Energy Concerns Are Mounting
Monday, September 13, 2010
Executive Summary
- Many interlocking factors have caused current economic woes.
- Most of the issues are still almost strictly economically driven; energy’s role is still to come.
- World energy consumption, at current rates of growth, will double in 35 years.
- Alternative fuels cannot displace oil use, but they can be helpful in electricity production and other areas.
- We should be using our highly-concentrated energy sources to capture less-dense alternative energy sources.
- The next energy shock is closer than most people realize.
- The perception of scarcity will create scarcity.
- Now is the time for prudent preparations.
In my last Insider entry, I made a number of claims that sparked a lot of good comments. I will respond to a sampling of them here. If I don’t address your comment, please know that I read and considered every one. I value and encourage continued input through comments, forum posts, and email.
There are multiple interlocking topics embedded in the question, “Why is the economy down right now?” I don’t see any one particular cause. Yes, there was too much debt, but there was also falling net energy from flat petroleum production between 2004 and 2008. Oil also happened to spike in price. Which one ’caused’ the economic meltdown and the deep freeze that followed? All of these factors, and a few others besides.
As user Travlin wrote:
I agree with your conclusion that the economy depends on energy, and that the transition has already started. I can see that the oil price spike of 08 tipped an already failing economy into the current turmoil. But considering the global decrease in energy use due to the slowed economy, and the drop in oil prices, your argument breaks down when you say no economic measures can work to restore our economy because of energy problems. I think stimulus measures are doomed for economic reasons anyway, but that is not what you assert.
What energy constraints do you see that are holding us back currently? Is it the rising oil demand from China and India? Is it because the price of oil is still high by historical standards even though it is now around $74/barrel compared to the peak of about $150?
by ready 
