The Cogeneration Stopgap

The prospect of going through a cold winter with inadequate heat is a real one. More and more Americans are putting their winter heating fuel on credit, increasing their level of debt and the burden of servicing it. This cannot continue indefinitely. When the ARM resets or the credit cards max out, the whole house of cards (including paying the mortgage) falls down. Foreclosure is the problem in the mid-term, but freezing strikes as soon as there’s no fuel for the furnace.

This problem is made much worse by fuel shortages and the consequent price spikes. As fuel supplies go down, prices go up. The alternative is rationing, but this has costs too; if commerce is shut down, employees don’t get paid and the problem of paying for heat is much the same.

The problem comes down to affordability.

The Oil Drum