by Kingcoal » Mon 21 Jul 2008, 11:06:33
After a couple years of thinking about it, the only savior for our economy and way of life is to devote all our resources towards a state of the art, renewable electrical grid. The funniest thing about it is that the idea goes all the way back to the Great Depression. FDR and his advisers threw us into the oil age after determining that the country could exploit it's abundant oil reserves to build infrastructure, creating jobs and lasting value (wealth.) The Hover dam is a lasting example of that period. That idea hung on until the Reagan administration, who changed the course of the country with a view that free markets should be fed with cheap oil and allowed to steer the country wherever it goes. Free markets have only short term tolerance for investment. That combined with the policy of the government, who now saw it's only role as maintaining cheap oil at almost all costs, produced our current predicament.
A growth based economy needs a feedstock. Our current feedstock; oil, is no longer cheap, so it is no longer a viable feedstock for an economy and has risen to being a part of the economy. Oil is now an asset to be invested in. That's why our economy is broken and continues to get worse. Cheap, abundant electricity can be the new 'oil' for a new economy. The problem with our current oil based economy is that it is based on a commodity that is not "limitless." Electricity is not limitless, but a huge scale renewable electrical grid is pretty close to it. Such an infrastructure could be depended on for hundreds of years because solar, wind, hydro, geothermal are all based on energy sources that are for our purposes, limitless once harnessed.
The big problem is that we should have started all this back in the '70's. The ironic thing is that I remember the big plans that were being discussed about projects like this back then. It all ended abruptly when Reagan took office. Saddam Hussein, backed by the CIA, rose to power in Iraq and accomplished his mission of going to war with Iran. Both countries, now embroiled in war, broke with OPEC and started producing and selling oil as fast as they could causing the '70's energy crisis to end.
Now, we are strapped. Any huge, country wide construction projects are going to have to be built with much more expensive oil. Also, we are going to have to compete with emerging economies like China for other resources. It's tough, but still doable IMO and it is inevitable because the alternative is simply slow death, as PO doomers have predicted.
How will super cheap, available electricity save us? Home heating would go 100% electric as would many other processes in industry which are currently fossil fuel supported. Just like cheap gasoline did in the early part of the last century, cheap electricity would reach into the transportation markets. Cheap electricity could be used to make liquid fuels, for example. Also, having an electrical engineering background, I have no doubt that advances in battery technology will eventually make electric cars a reality. We don't have to completely replace oil, that's a no brainer. We have plenty of oil left to support industry that makes products out of those hydrocarbons. What we have to do is stop BURNING oil, which has become akin to burning money. We burn well over 70%, probably in excess of 90% of all oil produced. In the future, that will be looked upon as complete insanity. Oil is very valuable as a feedstock for making products, petrochemicals, etc, not for burning up in internal combustion engines. Assuming we quit burning distillates completely, we have enough oil left over for hundreds of years probably.
"That's the problem with mercy, kid... It just ain't professional" - Fast Eddie, The Color of Money