Guest blog by S. A. Shelley: For several years, Bitcoins and similar digital currencies have been the rage, heralded as a true medium of exchange and value that is independent of government manipulation, as is seen with all fiat currencies. However, Bitcoins in particular have also generated rage amongst environmentalists because the energy consumption and carbon emissions required to support Bitcoins approach the total annual consumption of states like New York or exceed the total energy consumption of nation states like the Netherlands or Argentina.
For comparison, in Europe as of 2020 there was about 40 GW of offshore wind turbines installed. Depending upon the source, the production of every third or fourth of those wind turbines would be required to power all bitcoin mining in 2020. Of course, advocates of Bitcoin claim that many of the mines (rows and rows of ASIC computers) run on renewable power. I can think of better uses for that renewable power. Energy consumption for Bitcoin mining will only get worse as the number of Bitcoin mining operations keeps increasing; it takes more and more computers every year to mine the same number of Bitcoins.
Considering carbon emissions, it is just as horrible, if not worse. Every year 52,560 bitcoins are generated and in 2020 this produced over 1,000 tonnes of CO2 emissions for every bitcoin mined. The average American passenger car emits only 4.6 tonnes of CO2 per year driving an average of 11,500 miles. Think about that for a moment: One would need to remove about 11 million passenger vehicles from American roads in order to offset the carbon emissions generated by one year of Bitcoin mining.
It doesn’t end with one Bitcoin mined. The electronic blockchain ledger is also an energy hog and carbon pig. Again, analysis suggests that compared to other digital transactions, Bitcoin takes the prize, with just one Bitcoin transaction consuming as much power as the average American home consumes in 30 days (approximately 1100 kWh).
And it’s going to get worse. Governments are now planning to launch their own digital currencies (the Economist and Washington Examiner). Quoting the Economist article: “These ‘govcoins’ are a new incarnation of money. They promise to make finance work better but also to shift power from individuals to the state.” Thus, we’re going to get a double whammy out of this, more carbon emission and energy consumption and more government control and overwatch of everything that we do. What is wrong with cash currency? Corruption? Graft? It’s not the middle or poor class that have that luxury, it is the domain of the ruling elite class and one only needs to look at the current Federal Government in Canada to see how that manifests and ruins a democracy. (L’etat ce n’est pas toi, Monsieur Premier ministre).
Though I believe in the utility of blockchain technology, Bitcoins are a prime example of how progressive zeal for the adoption of new technology is, in the reality of this universe, very regressive and horrible for the planet. The reason that so few people object to Bitcoin is because so many people have or see only a little slice of Bitcoin; Divide poop into enough small pieces and nobody will notice the stench. Or they just don’t understand the technology and cannot comprehend the consequences. Just say no to drugs? No, better to say no to Bitcoins.
Vive l’Alberta Libre
Shut Down Line 5!
Guest Blog by S. A. Shelley: Pipeline politics have come to dominate energy discussions domestically and internationally. Probably the most well-known of these are the Nordstream 2 Pipeline in the Baltic to bring Russian Gas to Germany and of course the Keystone XL Pipeline which would have brought more Canadian Heavy Oil to American Refineries. Believe it or not, pipelines can bring benefits. For Nordstream 2 it will bring Russia a new vassal state. Keystone XL, had billions in money set aside to utilize renewable power and hire unionized workers; It would have been the world’s first “net-zero” pipeline and probably the world’s first equity built pipeline. Unfortunately, for both pipelines the tactical thinking won out over the strategic benefit.(more…)
Guest blog by Mr. R. U. Cirius: Here are some interesting and somewhat offbeat energy stories that haven’t gotten much media attention that OWOE readers might have missed.(more…)
Guest Blog by S. A. Shelley: Since 2016, OWOE staff have been watching energy markets change as new technologies and phenomenon entered society, or as old problems and business practices ossified. While 2020 was a wild year that laid bare the ineffectiveness of most major governments to handle crisis, it also exposed some of the fallacies upon which western societies are built: Namely the need for business executives to fly around the world for meetings, the need for hordes of people to commute to digital jobs, and of course the lack of economic robustness in most realms. For certain, the pandemic surge and economic drop of 2020 that cut travel, commuting and similar highly energy intense activities resulted in a major drop in oil demand (Reuters, US BLS), and a noticeable drop in CO2 emissions along with a corresponding improvement in overall air quality in many urban settings. But, and here’s the real issue, as the pandemic ends, energy demand is increasing again.(more…)
Guest Blog by S. A. Shelley: The last decade has seen an explosion of new digital tech incessantly infiltrating all areas of our lives. There were cells phones before 2010 as well as websites and such, but with the advent of smart phones, 5G, the internet of things, everything is now wirelessly connected. New things such as crypto currency and EVs have also made significant inroads into society in the last 10 years. Many of these technologies are, of course, promoted as green and helping the world. Such is always the case when new technologies arise, and there are enough people to advocate for their favorite thing: Bud or Bud Light, Democrat or Republican, Trudeau fan or intelligent person.(more…)
OWOE Staff: So what’s going on with the power grid in Texas? Last week the state was hit by a polar vortex winter storm (Uri) that brought snow and ice and record low temperatures. Such storms aren’t especially rare – it snows and ices in Houston about every ten years. But this time it created one of the biggest power outages in US history (Fig 1), and the Texas power grid came within minutes of failure. Then the real fun began. The Governor blamed the power failures on the wind turbines in West Texas freezing up, but had to retract the comment almost immediately when the grid operator, ERCOT (Electric Reliability Council of Texas), announced that the majority of the power outages were due to gas supply shortages and freezing of the conventional thermal power plants. A former Texas Governor claimed that Texans would rather endure power failures than have more regulation of the industry. Senator Ted Cruz, from Texas, who had a history of denouncing renewable energy as the cause for California’s power outages fled the cold to take his family to Cancun and immediately had to fly back due to public outrage. A photo of a helicopter deicing wind turbines in Texas went viral as an example of renewable power being dependent on fossil fuel and chemicals, until the photo was identified as actually being an extreme case of deicing an old-style turbine in Sweden from 2014. Texans who signed up for electricity plans that charge based on wholesale electricity prices are now facing bills in the thousands of dollars. Etc, etc.(more…)
OWOE Staff: It’s a new year, we have a new president and administration, and we have new hope that the plan to vaccinate Americans is going to finally end the pandemic. What we don’t have is new thinking on what this country should be doing for a long term, rational and strategic energy policy. OWOE believes it is the right time to propose a comprehensive energy policy that balances America’s needs with the planet’s needs and is based on sound economics, realistic technology and good common sense. The OWOE energy policy combines several key elements, including: firm commitment to dramatically reduce dependence on fossil fuels in a planned and rational manner, sustainable investment in renewable technologies, and establishment of a North American Energy Alliance (NAEA) between the US and Canada to aggressively develop and globally sell our existing energy resources.(more…)
By OWOE Staff: Happy 2021 dear readers and supporters of OWOE. As everyone is aware, 2020 was a most unfortunate series of events, beginning with the release of a virulent pathogen from China which resulted in a wide range of foreseeable acute and long range economic, social and energy consequences. Thus, OWOE staff are working hard to analyze these consequences to provide meaningful insight about energy matters going forward. We plan a variety of interesting updates to our core energy information, tools and blogs this year and perhaps even a contest involving energy self-sufficiency at the local level. Many of the changes happening in the world of energy are the cumulative results of individual changes in consumption resulting from economic turmoil compounded by inept government policies and continuing industry business practices.(more…)
Guest Blog by S. A. Shelley: For almost all of human history, trade has been facilitated by water borne craft. Mesopotamia? They had boats on the rivers and in the gulf. Egypt? Boats on the river. Rome? Boats hauling grain from Egypt to Rome. China? The Chinese were sailing and trading along East Asia for thousands of years. By the time of the Clipper ships, naval architects had mastered wind power such that a clipper ship could make a transatlantic voyage in about 12 days . A modern fossil-fueled container ship can make the same voyage in about 8 days. By 2018 goods carried on ships amounted to nearly 11 billion tonnes with some economists estimating that between 80% to 90% of all goods produced globally travel by ships across some water at some stage of production.
Ships today tend to be powered by fossil fuels, and when looking at the amount of CO2 emitted per tonne of cargo moved per kilometer, ships are by far the most efficient way to move goods (Fig. 1).(more…)
Guest blog by S. A. Shelley: On the morning of October 25, on CNN, Ms. Alexandria Ocasio-Cortez spoke about fracking and how it is necessary to ban all fracking in the U.S. by 2025.
Fracking for energy is responsible for the overwhelming majority of gas supplies that feed America’s economy, including the heating of homes. As noted in previous blogs and based upon scientific fact, not woke feelings, burning natural gas is one of the cleanest ways to continue powering economies while economies transition. Yes, there are problems with fracking, including leakage of methane from poorly tapped wells, but with political imperative these problems can be fixed, now-ish without doing major economic damage.(more…)