The Secret Marriage of the “E”s

Over the past few weeks I have read several books and articles exploring both the Economy, and Energy, the “E”s. I had been taken aback in these various readings, discovering that there was a disconnect within their narratives. Many of these were written as if the Economy and Energy not only were not married, but not even close friends.

I began to wonder if perhaps the authors were trying to paint a happy face on an otherwise somber situation. It is hard to find any good news about either our energy or our economic dilemmas. Many authors seem almost oblivious to the fact that Energy and Economy are married and have a very close relationship. I sometimes find even my own thinking tainted by the idea that the two “E”s can pretty much exist apart, one without the other.

Many writers seem persuaded that most of our energy woes can be solved by alternate technology or energy, without a thought being given to how can we borrow enough money to pay for these alternate sources to be developed. For example, the media darling that is trotted out frequently is the notion of travel by high speed electric rail across the US. The only fly in the ointment is that Energy’s spouse, Economy, somehow has to come up with hundreds of billions, or more, to implement Energy’s vision.

There is the notion that Economy is getting stronger every day, but with no thought being given to Economy’s spouse, Energy. Little or no acknowledgement is given to the fact that Economy’s feasting and growth is directly dependent upon “spouse”, Energy, burning itself out each and every day at work. Complicating things, Energy is becoming harder to supply to Economy’s job site.

Over the years, I have developed a visual image of the Energy/Economy marriage. It is a boiler. The contents of the boiler are money, facilities, raw material, machines and people (ie; Economy). Some money is used to acquire the energy that has to be burned under this boiler so that its contents can do meaningful work. A boiler with a small energy fire underneath it eventually will get warm, but not enough steam will be produced to perform meaningful work. It takes massive Energy input in order for Economy to flourish. Unfortunately it is catching our attention that Energy is less plentiful and more expensive than it has been in the past.

That means the Energy fire beneath the boiler is going to be turned down. Adding more contents to the boiler in the form of money, as our government has been doing for many months, will accomplish nothing if the energy input under the boiler becomes less intense, and requires more of the economic contents in the boiler to acquire. Energy’s spouse, Economy, cannot continue to live as in the past.

Soon, our media outlets will finally begin to realize that Energy and Economy indeed have been married for a long time, and that many of the upsets in Economy have been tied directly to the behavior of “spouse”, Energy. As in any marriage, an upset spouse is sometimes the result of an action taken by the other spouse without consultation or coordination. So it is with the marriage of Energy and Economy. One reacts in relation to the actions of the other.

Watching the interactions between this couple, I am concerned that they may now be far beyond counseling. How soon will we have irreconcilable differences and both Energy and Economy go their separate ways, each being reduced from what they were together?

As with any marriage involving children, a marital breakup is usually hardest on the children.
We are Economy’s and Energy’s children.

Chuck Peak Oil Blues