S. A. Shelley: Over the last couple of months there has been a lot of discussion about tariffs. The Trump administration is keen to apply tariffs on Mexico and Canada, and a host of other nations (except maybe China?). In terms of the percentage of GDP that international trade contributes to their economies, it is obvious that the US can sustain a trade war quite well compared to other nations or regions (Fig. 1).
Continue reading Our World of Tariffs (Canada, the Great Whine North)Category Archives: Guest Blog
Our World of Navies: The Return of Privateers
S. A. Shelley: After the fall of the Berlin Wall, the global trade order allowed for unprecedented bounties of consumer goods to flow to more and more people while lifting hundreds of millions out of poverty. But it also allowed the political class of the West to become self-deceived and inured to the continued dangers to our way of life. I’m not a Marxist, but I will definitely agree that society has been a constant struggle for power across all spectrums since antiquity. Consequently, in the west we built institutions around law, order and good governance to assuage that struggle, while in the East they went the authoritarian route to hammer that struggle into remission. But while Western politicians splurged on largesse for the masses, the more authoritarian ones did not forget to splurge on defense. We did and we will pay dearly for it shortly.
Continue reading Our World of Navies: The Return of PrivateersEnergy Insecurity: America Should Be OK, the Rest of the World Not Really
S. A. Shelley: In a recent article in The Telegraph, Norway is a Cautionary Tale, the author argues that Europe as a whole has made itself energy insecure because of adding renewables to the energy mix. I agree somewhat mostly with that conclusion about energy insecurity, but I do not agree that this is because of renewables. It is true that the wind doesn’t always blow and that the sun doesn’t always shine. But, over time, technologies will arise that can compensate for such variance. Thus, I believe that the energy insecurity in which most Western states find themselves is a result of the mad dash to renewables foisted upon us by somewhat well meaning, but technically and fiscally clueless politicians (a common refrain of OWOE staff). Politicians always promise things faster than can be delivered by reality. Politicians have put us into this precarious position by building wind farms without sufficient energy storage or grid improvements to support such a rapid build out.
Continue reading Energy Insecurity: America Should Be OK, the Rest of the World Not ReallyThe Ghost of Enron Past
S. A. Shelley: For those of you too young to remember, in the late nineties and early naughts (naughties?), there was a super major company called Enron. Enron was a darling of Wall Street and was hugely profitable in trading energy. It was an inventive company, too, in that it developed things such as weather derivatives and dubious accounting schemes. But it was mostly a scam, a fraud undertaken on a massive scale. The company eventually collapsed, and from time to time in Houston, you can still meet a former Enron employee in a pub who, after a beer or two, will tell you wonderful tales of excess at that company.
Continue reading The Ghost of Enron PastWe Need Area 51
S. A. Shelley: At OWOE, we have repeatedly advocated for a North American Energy Alliance of some kind to ensure cheap and robust energy supplies at reasonable costs and with minimal geopolitical risk. In some forms, it already exists when you consider how the Northeast is supplied by cheap Newfoundland hydropower via Quebec (after a huge markup), or how the overwhelming majority of Alberta Oil is shipped to the Gulf refineries.
Continue reading We Need Area 51We Are Our Own Worst Enemies
Guest blog by S. A. Shelley: When it comes to energy matters, as in all matters that affect our health or fiscal wellbeing, we tend to be our own worst enemies. There are two components to the global warming surge: greenhouse gases, which insulate the planet and prevent heat energy from radiating into space, and heat exhaust generated by human activity. The latter is often overlooked and forgotten by most people but is just as critical a factor in global warming. We wrote a blog a few years back highlighting the thermal inefficiency of internal combustion engines (ICEs) which on aggregate pump out a heck of a lot of waste thermal energy compared to their transport energy use (Throwing Away 3 of every 4 Gallons of Gasoline Bought). This is one area in which electric vehicles (EVs) crush ICEs: EVs use a much greater proportion of their energy to move people and stuff and emit far, far less waste thermal energy. Point to EVs. But there is a myriad of other personal choices that people can make today, without switching to EVs, that will on aggregate reduce the rate of global warming.
Continue reading We Are Our Own Worst EnemiesA Short List of People Who Can Bite My Shiny Metal Ass*
Guest blog by S. A. Shelley: As is usual every spring, many large entities ranging from super major oil producers to large Wall Street firms and global organizations release annual energy statistics, reports and forecasts about the world’s energy state. Invariably discussed are subjects like energy mix, demand or supply projections. Often these entities will venture into discussing oil prices and associated forecasts. All those entities have big research budgets and teams of analysts, statisticians and economists pouring over mountains of data. However, even with all those highly paid personnel, and I suspect some added AI, those big entities are at best equal to the analysis undertaken by OWOE staffers, but more often than not, much worse. Apparently, nobody can beat curiosity, whisky and voodoo.
Continue reading A Short List of People Who Can Bite My Shiny Metal Ass*Natural Gas is God’s Gift to Humanity
Guest blog by S. A. Shelley: OK, another inciteful blog but that’s the OWOE writing team’s style, gleefully stoking controversy.
The term “fossil fuels” is one of the greatest marketing triumphs that the environmentalists ever adopted. “Fossil” suggests old and outdated, coming from some pre-historic, ancient, way-back, long-ago-dead biologic entities. The uses for fossil fuels also reflect “old” technologies, cooking, training and steam shipping (Fig. 1).

Fig. 1 Using Fossil Fuels from Ancient (left) to Modern Times (right)
Continue reading Natural Gas is God’s Gift to HumanityThere Are Some Good Government Entities
Guest blog by S. A. Shelley: The U.S. Federal Government is a huge organization that is staffed by some very bright people. There are also nearly 1,000 advisory committees in Washington, comprising leaders from industry, science and the arts. For the most part, the advisory committees concern themselves with publicly available information and have public meetings, but there are a few which require security clearance and concern themselves with confidential matters of state. These advisory committees are a valuable resource upon which the Federal Government can call to review policies and assist with formulating strategies.
Continue reading There Are Some Good Government EntitiesInteresting Energy Stories You May Have Missed
Guest blog by Manny Topiques Here are some interesting and somewhat offbeat energy stories that haven’t gotten much media attention over the past year.
Is coal the new future for clean energy? In an amazing new discovery just announced by NASA (National Aeronautics and Space Administration), the Perseverance Rover discovered an outcropping of high quality space coal not far from the spacecraft’s 2021 landing site. Using its rotary percussive coring drill, the rover was able to penetrate approximate 6 meters below the planet’s surface to confirm that this outcropping was the surface exposure of a large deposit of anthracite space coal. Further exploration on future missions will be required to determine if this deposit is native to Mars or the remains of a meteor that impacted the surface in the distant past.
Continue reading Interesting Energy Stories You May Have Missed