Guest blog by S. A. Shelley: It is very difficult to keep up with all the energy changes in the world. Every week, some Big Government Agency, NGO, International Think Tank or Big Company proclaims some new solution to the looming global energy problem of too much of the wrong kind of energy and too often from the wrong place. While most of the analysts and prognosticators seem knowledgeable and well intentioned, OWOE analysts cannot conclude for certain that the resultant big government plans foisted through bureaucrats onto ordinary citizens are based upon sound knowledge and understanding of energy markets, resources, technology and costs. I emphasize technology and cost because most government edicts are based more upon woke and vote political expedience than anything technically attainable without causing significant long term economic pain, e.g., recent decisions to shut down nuclear reactors. Nor have governments shown themselves to understand the political issues of energy supply, as we now see with Europe stuck paying for Russia’s conquest of Ukraine. We have some insightful and interesting comments about the Russian war, but these won’t be discussed in this blog – maybe later.
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.
Very Small Modular Reactors There has been a lot of press coverage for Small Modular Reactors (SMRs) recently, with some touting them as the solution to the world’s energy challenges to others expressing doubt that they can actually be successful (see also OWOE blog Nuclear Power: Climate Solution or Hype). However, a new version of these nuclear reactors has just been announced that may actually meet the high expectations. William Fences, the entrepreneur and philanthropist, and his company MicroPower, claims to have developed the first Very Small Modular Reactor (VSMR). This is a stand-alone suitcase-sized micro nuclear reactor for both private and commercial use. The reactor includes: molten salt nuclear fuel module, molten salt pump, thermo-electric battery with inverter to export power at 480v, water coolant system that connects directly to the home or business water supply, and auxiliary air cooling motor that plugs easily into a standard 220v power receptacle, all enclosed withing an easily movable case (see Figure 1). Although not yet available for purchase, MicroPower is planning to sell units with power generation capability ranging from 5kW to 50kW.
Guest blog by S. A. Shelley: The answer is no, there is no limit to how dumb governments can get in terms of irrational legislation, fanciful proclamations and of course impossible energy policies. There are a few fundamental things that governments need to do right for society to survive, let alone thrive. Amongst them are protecting their citizens from external threats (military or viral, for instance) and protecting individual rights to conduct commerce or disagree with the government. After that, arguments start about everything else that people think governments should do or not do. I won’t argue those points, but I will argue that governments all around the world, except for China, are being complete idiots when it comes to energy trade and transition.
Guest blog by S. A. Shelley: In early November of 2021, the UN’S COP 26 climate conference wrapped up in Glasgow with all sorts of politicians pledging this or that with respect to greenhouse gas emission reductions, renewable tech investments and invoking equity across the world. But really, what are the actions that followed those ballyhoo words bantered about in public? The staff at OWOE took at look at some of the subsequent oil production announcements away from the public spotlight. The following summarizes planned increases / decreases and shares what we found is the most amusing quote associated with each country’s plans.
Guest blog by S. A. Shelley: Earlier this year, the Colonial Pipeline, carrying gasoline and jet fuel from Houston to the southeast US was hacked. The perpetrators got away with 75 bitcoins, at the time worth just under $5 million US. Nobody really hurt, so no harm, right?
Guest blog by S. A. Shelley: September 2021 has been an interesting month as energy supply crunches of all forms appeared all over the world. China is suffering from rolling power outages that are affecting residents and industry and the authoritarian government there has ordered traders and industry to secure as many energy supplies as quickly as possible. In Europe prices for electrical power and natural gas are climbing to record highs and in the UK petrol stations are running out of petrol to sell to consumers. Pressure on energy prices is starting to manifest itself in the United States as well, with California already experiencing an increasing number of rolling brownouts, sorry “flex alerts“. Traders are starting to buy options on future contracts for oil at $200 / bbl. They are not far off, with natural gas prices in Europe in terms of energy equivalent at $140 / bbl (see note 1).
Guest blog by S. A. Shelley: At OWOE we try to be objective in our analysis and evaluations of energy matters. But we can’t always be emotionless, or in my case, I can’t always refrain from smacking my forehead when politicians do questionable things: I’ve been near comatose for the last few weeks on account of the politicians.
Guest blog by S. A. Shelley: I know that this is supposed to be an energy blog, but for quite some time energy has become entangled with the environment, and rightly so because energy extraction and energy use affect the environment.
Guest blog by S. A. Shelley: Most readers have probably heard of the Law of Unintended Consequences, the more good that one intends then the more harm results (see also the Cobra Effect). Politicians have an intrinsic ability to apply this without fail. Then to make everything worse, there is Pournelle’s Law of Iron Bureaucracy, ensuring that even the slightest of good intentions are inevitably smashed by the insufferable protocols of bureaucracy. Such is the realm of politicians. But in the information age, the woke minority and sometimes business tycoons also suffer from these laws. Business tycoons can correct for such things, otherwise they go bust. Woke progs will often ignore reason and facts, those remnants of patriarchal suppression, in order to validate horrific outcomes. Eventually, though, the smoldering landscape or the increasing number of coal plants being built in Asia should overwhelm Woke feelings. Unfortunately, politicians and governments are with us for as long as their privilege and pensions last and they rarely admit mistakes let alone mitigate or fix them.