Tag Archives: #energy policy

Energy & World Peace

The United Nation’s Highest Priority In November 2021 to Save The Planet Was COP-26. Which Is More Important , Peace in the World, The Paris Climate Agreement or Avoiding World Famine and Improving the Quality of Life For All of the People of the World, Including Ukraine?

By Dick Storm

Introduction

Horrible crimes against humanity are being committed in the Russia-Ukraine war. Innocent people are being murdered, homes demolished by military bombardment and artillery, world food production slowed(3,4,5) and what are the leaders of the world concerned about? Manmade Climate Change, the most successful scientific hoax in the history of the world. Three world leaders could improve world peace and start the correction of the mess the world is in today if they would change the priorities of the UN. Who am I referring to: Joe Biden, Justin Trudeau and the United Nations Secretary General, António Guterres.

Remember the UN priorities in November 2021? If not, here is a review of what these three leaders considered the most sinister problem the people of the world would face in the future. Flashback to Scotland, November 2021:

Biden arriving in Scotland for COP-26
Guterres Addressing COP-26, Stating the need for “Climate Action”
Justin Trudeau at COP-26 in Scotland

What is The Purpose of the United Nations and The Paris Agreement? World Peace? Protection of the Environment?….or One World Government to Control The People of The World?

As the world is on the threshold of nuclear war with a world food crisis likely next winter from reduced fertilizer availability and massive unproductive farmland in a war zone, these three leaders and many other sycophants have the Paris Agreement for Climate Change Policies as their top agenda, instead of the best interests of their constituents, world peace and improving the human development index of the people of the world.

I feel strongly that the top priority of these leaders and the U.N. is not concern for the planet that drives them. It is politics and control of the world’s citizens. In short, power over people. For example, the UN Secretary General’s background is copied below. This is from his Bio on the UN web page, From Mr. Guterres Curriculum vitae: “For many years Mr. Guterres was active in the Socialist International, a worldwide organization of social democratic political parties.”

Let me digress and quote the past president of the Czech Republic on the “Climate Zealots” such as Guterres, Biden, Kerry, Gore, Trudeau and many more.

Vaclav Klaus is Past President of The Czech Republic and grew up under Communism then had to wrestle with policies by the “Greens” of Europe. An Economist by training. His words, from about 2007…..“Global Warming is a false myth and every serious person and scientist says so. It is not fair to refer to the U.N. panel. The IPCC is not a scientific institution: it’s a political body, a sort of non-government organization of green flavor. It’s neither a forum of neutral scientists nor a balanced group of scientists. These people are polititicized scientists who have arrive there with a one-sided opinion and a one-sided argument”(49)

Justin Trudeau also could help guide the United Nations to a truly serious priority, but according to Peter Schweizer’s recent book, “Red Handed”, Trudeau also ranks political power above world peace. See page 187 describing the Trudeau family and links to China: Justin Trudeau is quoted in 2013: When asked which country he admired the most replied “There is a level of admiration I actually have for China….because their basic dictatorship is allowing them to turn their economy around on a dime and say, ‘we need to go greenest, fastest—we need to invest in solar’ I mean, there is flexibility that I know Stephen Harper (the Canadian PM at the time) must dream dream about having a dictatorship that he can do everything he wanted, and I find that quite interesting”      

Avoiding Famine

It should be blatently obvious that ranking peace and the world food supply should be more important than the Paris Climate Agreement which is based on a scientific hoax anyway. Ukraine alone supplied about 12% of the global wheat before the war, and was the biggest producer of sunflower oil. About two-thirds of the country’s wheat exports had already been delivered before the invasion, but the rest is now blocked, and farmers may be unable to continue with spring planting, or take in grain harvests in the summer. A headline in the “Times of Israel” reads, “Israel scrambles for solutions as Ukraine war chokes off egg, wheat imports”Industry figures predict egg shortage and sky-high wheat prices just in time for Passover holiday. The prospect for the world later this year is shortages of food across the globe. (3,4,5, 30) 

Ukraine Grain Field from Times of Israel

Energy impacts Fertilizer too! Ukraine and Russia are also major producers of fertilizer, prices for which had already leapt under high energy prices – and the war is sending energy prices higher still, with further impacts on agricultural production costs.

Fertilizer costs in the U.S. have also tripled this year. Partly because of Biden’s energy policies and exacerbated by the Russian invasion of Ukraine.  The impact of energy on food availability goes beyond higher cost Diesel fuel for shipping transportation fuel in the supply chain. Fertilizer and farmland in areas of conflict are a huge problem. (2,3,4,9,10)

Perhaps better kept as a separate subject to write on, but most people are not aware that between 30 to 40% of the U.S. corn crop is used to produce Ethanol for a gasoline additive that lowers the energy equivalent of gasoline and reduces auto mileage. Suffice it to say, energy and environmental policies that promote burning food for fuel also affects the world food supply.(16,17)

How is Energy Linked to World Peace?

I began this essay on the priorities of the leaders of the world and the priorities they saw as top priority in November 2021. Well, if you think the Mainstream Media has been duped and indoctrinated then you are not alone. While the world’s media attention was on the War on Carbon, very serious problems were brewing and under-reported. Kindly take a look at the six charts below: 1. Total primary energy of the world, 2. Coal Consumption by Region, 3. COEmissions of the World, 4. Total Energy by Source for China and 5. Total End Use of Coal Fuel for Products and 6. China, The World’s Superpower of Manufacturing. 

Over 50% of the world’s Fossil Fuel energy is being used by China to manufacture over 50% of the world’s steel, aluminum and just about every other product needed by the free world. These are easily verifiable facts reported by Our World in Data, IEA.org, the United Nations, EIA  and Statista. Energy and Economic Prosperity are inextricably related.

Energy Use by China, U.S.A., Japan, EU and India By IEA
IEA Graph of Total CO2 Emissions from Combustion Processes 1900 2021

So what is driving the recent rapid increase in world CO2 emissions? According to the IEA, it’s mainly China:

The rebound of global CO2 emissions above pre-pandemic levels has largely been driven by China. . . . China’s CO2 emissions increased by 750 Mt over the two-year period between 2019 and 2021. China was the only major economy to experience economic growth in both 2020 and 2021. The emissions increase in China more than offset the aggregate decline in the rest of the world of 570 Mt between 2019 and 2021. . . . With rapid GDP growth and additional electrification of energy services, electricity demand in China grew by 10% in 2021, faster than economic growth at 8.4%. The increase in demand of almost 700 TWh was the largest ever experienced in China. With demand growth outstripping the increase of low emissions supply, coal was called on to fill 56% of the rise in electricity demand.(47)

Total Energy Supply (TES) By Source, People’s Republic of China, 1990-2019

The South China Morning Post” reported April 1, 2022, quoting “China’s Zhang Jianhua, chief of the National Energy Administration: “It signed an agreement to be supplied with 100 million metric tonnes of Russian crude oil over the next 10 years and a 30-year gas supply contract.

The world’s second largest economy suffered a nationwide energy crunch in September of last year amid local decarbonisation and energy saving campaigns, which has forced policymakers to adjust energy policies.

In the 14th five-year energy plan for 2021-25 released last week, Beijing said it would set annual crude output at around 200 million metric tonnes and lift natural gas output to more than 230 billion cubic metres from 205.3 billion cubic metres.

Coal and thermal power will remain the bedrock of China’s energy security strategy, Zhang wrote in the article.” (31)

The above is a direct quote from the SCMP, except the bold and underlining of the last line which was by me.

A recent post in WUWT stated, “China Continues To Laugh At Western “Green Energy” Foolishness”(47)

Why? The graphs above show China’s energy  sources and growth in consumption. Economic prosperity is powered by Energy and China has used a lot of energy to become the world’s largest manufacturer.

Russia is the World’s Gas Station, China is the World’s Largest Manufacturer, Still think the UN Has it Right with the War on Carbon as their Top Priority?

China continues to power their mammoth manufacturing might with coal plants. We should remember our history, do you remember the term “The Arsenal of Democracy” when America provided the remarkable production of airplanes, tanks, guns, ships, arms and materiel to help the Allies win WWll? Some say “History Repeats”…..and if we switch to current events, Russia and China are very cozy with each other at this horrible time for Ukraine.

My point is that energy is a pre-requisite for economic prosperity. China gets it. China, Environmental Extremists, Socialists and Russia have duped the UN and the world leaders into believing the planet is imperiled by 0.041% carbon dioxide that is in the atmosphere. Meanwhile, China burns over half of the world’s coal to power their industries. Russia remains the world’s gas station and holds Europe hostage to Russia’s gas (and more) while the Green’s of Germany shut down safe, proven, reliable and reasonable production cost coal and nuclear power plants, making them beholden to Russian energy. This is nuts.

China has risen from a “Developing Country” in 2000 to the second largest economy in the world. They not only manufacture much of the steel, aluminum, rare earth minerals for batteries, solar panels and wind turbine components, they also manufacture much of the Pharmaceuticals used in the world and in the U.S. Have you tried to purchase a made in U.S.A. Drug lately? This brings me to banking. As a small businessman about thirty years ago, I remember how important banks were to sustain our business. To provide business loans for expansion, cover payroll until the invoice for products or services was paid and for conducting commerce in other countries. Banks and the size of banks is one metric to use to judge a country’s economic prosperity.  China seems to me, to be pretty slick in their approach to dominating the world. They quietly support Russia and other rogue nations while they focus on producing products, acquiring world natural resources and taking over the world by using the weaknesses of Democracy & Capitalism to exploit their Financial muscle. Let’s take a look at China’s financial muscle. To be perfectly honest, the ranking of the world banks surprised me and I thought I kept up with world business news.

China and Banking

China now has five of the world’s ten largest Banks. Yes, being the world’s largest manufacturer has it’s advantages. It creates wealth which can then be converted into International Influence. The China “One Belt, One Road” or “Belt and Roads Initiative” is an example that is playing out around the world. Also, I am told by a financial expert, China holds about 4% of the U.S. Treasury debt.

A lot of people who have not run a business do not understand the need for working Capital. When a company cannot get loans to cover everyday costs or to finance future improvements they go out of business. We might ask some questions regarding the ESG Movement and Regulations that are pending with regard to discouraging or demonizing investments in fossil fuels (and suppliers to fossil fuel producers) by US investors. Is there a sinister, foreign influence side to the ESG movement and Federal Regulations? Here is the list of the top ten banks of the world. Yes, five of the top ten are Chinese.

My point is, manufacturing requires lots of energy. Especially primary metals and heavy manufacturing. As seen from the graphs above, China has grown enormously in manufacturing capacity since they entered the WTO in 2001. To put it in perspective, China built more electric generation capacity in twenty years than the U.S. did since the days of Thomas Edison and George Westinghouse 100+ years ago.

Getting back to finance, did you catch the small news item last week? As it is related to energy, Saudi Arabia is considering acceptance  of the Chinese Yuan for oil and China will be pushing to use other currency than the USD as they continue to grow their economy. (50)

Let’s Review the Sources of the Dependable, Dispatchable and in 2020, Reasonable Cost Energy that We Depend On

If you take what you see in the newspapers and on TV seriously, you would think that we only have a little way to go to convert our economy to zero carbon. This is not true!

I cite the example of a usually conservative Newspaper, the Wall Street Journal. This is a screen shot of a video they had last year which was based on facts, but at the same time misleading the public on the success of “Green Energy”.

WSJ Video, Screen Shot with my Text Added to Be Wary of Headlines such as this

Yes, the 90% of “NEW GENERATION” in 2020 was Renewable, but the true useful energy production was less than 4% of the total energy provided to the U.S.A.

This is a reminder, over 90% of America’s energy is provided by conventional fuels such as oil, natural gas, coal, nuclear, waste to energy, biomass and old hydroelectric power stations.  The Lawrence Livermore Labs Sankey Diagram, in my opinion, is the best single illustration to show true energy flows from the sources to end use. It is copied below for the year 2019. This is simply the true facts of where we obtain our energy:

America has been using right at 100 Quadrillion Btu’s of energy for decades. The next chart below, shows the historical energy use from 1950-2019.  This is a useful chart to consider the transfer of energy from fossil fuels to electric vehicles. Notice that only 3.78% of our Total Energy was provided by solar and wind in 2019. Now imagine the futility of replacing the 37% of our Total Energy now provided by petroleum, with EV’s. The Government Net Zero Carbon plans to replace not only the petroleum but also Natural Gas and Nuclear. The Total Energy supplied by Petroleum is about 37%, Gas 32%, Coal 11.4% and Nuclear 8.5%. These “Conventional sources of energy total 88.9%. Replacing this energy with renewables by 2030 or even 2050 will require an enormous technological breakthrough. The government should not promote policies based on miracles.

To keep our same freedom and high quality of life, it requires each of us 331 million Americans to utilize an average of about a million Btu’s in energy each day.  Averages are often misleading, consider the millions of Btu’s used by the world elitists that traveled to Scotland for COP-26. My understanding is that there were over 400 private jets and that the fuel used for these delegates exceeded the total petrol used by Scotland for an entire year. That should provide a clue regarding the sincere interest of the participants in the UN Climate talks to save the planet.   It is reasonable for each of us living in the Developed World to continue using our allotment of about a million Btu’s of energy each day.

America’s Total Energy Use has been steady at about 100 Quadrillion Btu’s each year for the last 20 years, EIA

My Suggestion, On How to Fix this Energy, World Peace and Food Supply Mess

The War of Carbon in my viewpoint is contributing to International conflicts and harming world peace. If Joe Biden would  rescind most of his Executive orders  including drilling on Federal Lands, Building the Keystone Pipeline and scrapping the Paris Climate Agreement, it would, in my opinion, contribute to world peace and much more. (1,2,3,5,13)  

The Biden administration is testing new depths of mind-blowing political dysfunction, by begging OPEC for more oil, while at the same time maintaining their attack on the US domestic oil industry. (28) Speaking of attacks on the energy producers that we depend on…..

ESG, One of America’s Self Inflicted Roadblocks for a Sane Energy Policy

The (ESG) movement is harming U.S. productive capacity of conventional fuels that are needed. (See above Sankey Diagram to show what we need) These actions are pushed by environmental groups, by government and by big business. (33, 34, 35, 36, 37, 38, 39, 40)  These ESG punitive actions have been ramped up, such as Biden’s “Whole Government Approach to Climate Control Policies” with involvement of the Securities and Exchange Commission, the EPA, IRS Tax policies and more. 

Meanwhile, NGO’s also are attacking US Energy producers. Does this look to you like it could be coordinated with America’s world competitors or enemies? It does to me. Check reference #44 entitled, “What Divestment From Russia Means for Activism Against Fossil Fuels” then the sub title: “It’s time to scale up fossil fuels divestment”(44). When 80% of the energy we depend on is from oil, gas & coal, does this seem like a Patriotic and good action? Not in my book. Another excellent reference on the good that Fossil Fuels do to keep America strong and to improve the quality of life for all of the people of the world.  The publication by Liberty Oilfield Services is entitled “Bettering Human Lives, 2020 ESG Report”(45)  

It could be argued, that keeping America energy independent and the Free World less dependent on rogue nations is important for national security. Look at the mess Europe is in now with their dependence on Putin’s Russian natural gas. The Greens helped push Europe toward Green Energy and they are working hard here in the US too. The environmental extremists were successful in stopping all major new coal plants from being constructed in the US since about 2012. The last major Utility scale clean coal plants I am aware of are Turk in Arkansas and Longview in West Virginia. Even then to obtain operating permits, the environmental extremists were paid off in settlements. These settlements were millions of dollars.(46)  Quite honestly, it is extortion which was enabled by the US government. How does this make America stronger and more energy independent?

How About Clean Air?

Before Biden’s Executive orders to push America toward intermittent green energy, our air was and remains amongst the cleanest in the world. The EPA Graphic copied below shows the trends of cleaner air from 1970-2020. This is regarding the six major pollutants that are a real threat to health. I just like everyone else enjoy and appreciate clean air and clean water. I also like my freedom and the American life style that I have enjoyed all of my life.

From EPA website

From my personal experiences of traveling around the world, I can honestly say America’s air is as clean or cleaner than most other countries that I have visited either on business or pleasure. Note the EPA chart above does show the increases in population and GDP from 1970 to 2019, as the six aggregate named pollutants were steadily reduced. There does come to be a point of diminishing returns on air pollution controls just like most other problems. That is, unless you are a Bureaucrat and wish to keep making more and more and stricter yet Regulations. That is the case, in my opinion of the restrictions on COand the Net Zero Carbon and Extreme Green policies.  These Regulations and Executive Orders are harmful for American competitiveness and harmful for Peace and Prosperity of the world.

Conclusions

  1. The Net-Zero Carbon Climate Policies are contributing to turmoil in the world by weakening America and NATO Allies. The Paris Agreement for working toward Net Zero Carbon is politically driven, not by concern to save the planet.
  2. The Green Energy Movement in Europe should be an example for the U.S. to learn from. They have had extreme cost escalations and, in some cases, rolling blackouts.
  3. Conventional Fuels of Natural Gas, Coal, Oil, Nuclear, Hydroelectric and Biomass provide over 90% of our energy. Ramping up Renewable solar and wind from about 4% to 100% is unrealistic and impossible to achieve without technological breakthroughs.
  4. The ESG Movement (Environmental Social and Governance) is Discouraging needed investments in oil and gas production as well as harming most all Energy Producers. Check references 33 through 39 for more details.
  5. If Net Zero Carbon was really needed or important, then the Government would encourage the building of more nuclear power plants. Hundreds of them as most of the about 20% of our electricity and over 50% of our carbon free electricity is produced by nuclear now. Most of these nuclear plants were started up in the 1970’s and 1980’s. (41, 42, 43)
  6.  World Peace and Prosperity could be better achieved if the world leaders were to focus on the true problems of the world, rather than a war on carbon.

The foregoing are selected facts and data to support my claim that if President Biden were to rescind his 2021 Executive orders and roll back EPA, Dept of the Interior and other Government Regulations to those in effect when he took office, America could begin a recovery of correcting inflation, supply chain issues, increased food production for the world, improved economic growth & Prosperity and even leading the world to peace.

Respectfully submitted,

Dick Storm, April 5, 2022

References and Resources for Further Reading to Support My Conclusions:

  1. Joe Biden Executive Orders List From January 20, 2021: https://www.marketwatch.com/story/all-of-president-bidens-key-executive-orders-in-one-chart-2021-01-21
  2. Peace Through Strength & Free Markets are what built America, Phil Gramm and Mike Solon, March 2, 2022: https://www.wsj.com/articles/peace-through-strength-economic-freedom-open-trade-china-ccp-economy-america-competes-act-antitrust-biden-11646154226?cx_testId=3&cx_testVariant=cx_130&cx_artPos=7&mod=WTRN#cxrecs_s
  3. World Food Supply Insecurity, WSJ: https://www.wsj.com/articles/ukraine-war-stokes-insecurity-in-the-worlds-food-supply-11647343035?mod=Searchresults_pos20&page=1
  4. Fertilizer Prices Worldwide are increasing, WSJ: https://www.wsj.com/articles/ukraine-war-hits-worlds-farmers-as-russia-cuts-fertilizer-supplies-hurting-brazil-11646487815?mod=article_inline
  5. Surging Fertilizer Prices Push Farmers to shift Planting Plans, Raise Prices : https://www.wsj.com/articles/surging-fertilizer-costs-push-farmers-to-shift-planting-plans-raise-prices-11639580768?mod=itp_wsj&mod=djemITP_h
  6. IEA Energy Profile of China: https://www.iea.org/countries/china
  7. Germany’s Energiewiende description by World Nuclear Association. : https://world-nuclear.org/information-library/energy-and-the-environment/energiewende.aspx
  8. German Magazine Der Spiegel article on the importance of coal in Nov. 2021: https://www.spiegel.de/international/business/troubling-addiction-the-world-is-failing-to-phase-out-coal-a-6d2007de-8196-4466-aaca-8b6a2714ec78
  9. World Food Crisis Likely due to Russia-Ukraine War, The Guardian, March 14, 2022: https://www.theguardian.com/world/2022/mar/14/ukraine-invasion-worldwide-food-crisis-warns-un
  10. Eleven-year-old article on the importance of Ukraine Grain, the Guardian: https://www.theguardian.com/world/2010/jul/20/ukraine-grain-farming-exports
  11. Top Banks in the world, lexis Nexis: https://risk.lexisnexis.com/insights-resources/article/bank-rankings-top-banks-in-the-world
  12. Saudi Arabia considers payment for oil with Yuan, Bloomberg, March 15, 2022: https://www.bloomberg.com/news/articles/2022-03-15/yuan-surges-after-report-on-saudis-accepting-currency-for-oil
  13. Biden’s Plan to starve Americans of Fossil Fuels, Paul Driessen, CFACT: https://www.cfact.org/2022/03/27/bidens-plan-to-starve-america-of-fossil-fuels/
  14. “Greenpeace Environmentalism in Europe, Allowed Putin to Invade Ukraine”, CFACT: https://www.cfact.org/2022/03/09/greenpeace-environmentalism-allowed-putin-to-invade-ukraine/
  15. Competitive Enterprise Institute, Background on the Clean Power Plan: https://cei.org/clean-power-plan/
  16. Scientific American, Rethinking our Corn to Ethanol Policy: https://www.scientificamerican.com/article/time-to-rethink-corn/
  17. Corn for Ethanol, Univ. of Nebraska: https://cropwatch.unl.edu/bioenergy/corn
  18. Why your Electric Costs are Surging and likely to go higher, March 15, 2022: https://www.wsj.com/articles/why-your-electric-bill-is-soaringand-likely-to-go-higher-11647250380?mod=hp_featst_pos4
  19. Germany’s Nuclear Surrender Opinion, Dec. 24, 2021: (See last reference #51 below)
  20. Factories close in UK due to High Energy Costs, WSJ: https://www.wsj.com/articles/surging-energy-prices-close-u-k-factories-another-bottleneck-in-a-world-full-of-them-11631792586?mod=Searchresults_pos5&page=1
  21. Behind the rise of U.S. Solar,  Built with a Mountain of Chinese Coal WSJ: https://www.wsj.com/articles/behind-the-rise-of-u-s-solar-power-a-mountain-of-chinese-coal-11627734770?mod=Searchresults_pos18&page=9
  22. If Renewables are so Cheap, then Why is Germany’s Electricity so Expensive? American Experiment : https://www.americanexperiment.org/if-renewables-are-so-cheap-why-is-germanys-electricity-so-expensive/
  23. United Nations News, November 2021, COP-26: https://news.un.org/en/news/topic/climate-change
  24. United Nations, News regarding “World Peace and Sustainability” March 22, 2022: https://news.un.org/en/story/2022/03/1115272
  25. Scottish News, “Private Jets of Climate Elites Blast More CO2 to Travel to COP-26  than 1600 Scots Pump Out in a Year”: https://www.dailyrecord.co.uk/news/scottish-news/private-jets-flying-cop26-blast-25338840
  26. Donn Dears articles on the true facts and Common Sense of the Importance of Energy, including “How Europe Dithers” while the Russians prepared for war: https://ddears.com/donns-articles/
  27. WUWT Blog, “Arab Nations Respond to Global Energy Demand for Energy Security”, April 3, 2022: https://wattsupwiththat.com/2022/04/02/whos-talking-climate-change-now-arab-states-respond-to-global-demand-for-energy-security/
  28. Biden Suspends Oil and Gas Leases to Protect the World from Climate Change, WUWT January 2021: https://wattsupwiththat.com/2021/01/21/biden-suspends-federal-oil-and-gas-permits-because-climate-change/
  29. Toronto Sun, “Oh the Hypocrisy of Climate Change”: https://torontosun.com/news/world/oh-the-hypocrisy-private-jets-pack-scotlands-climate-conference
  30. Times of Israel, “Israeli’s Scramble For Food” : https://www.google.com/url?q=https://toi.by/nwkDto&source=gmail&ust=1649072066572000&usg=AOvVaw1zxNxuPXllU7WBiaJoMgyM
  31. South China Morning Post, Energy News regarding Russia-Ukraine War, April1, 2022: https://www.scmp.com/economy/china-economy/article/3172764/china-vows-bolster-energy-security-ukraine-war-stokes-period
  32. IEA, Total Primary Energy Use for World 1971-2017: https://www.iea.org/data-and-statistics/charts/total-primary-energy-supply-for-the-eu-and-selected-countries-1971-2017 ESG and Climate Related Financial News to Cripple U.S. Conventional Fuels Production:
  33. BANK OF AMERICA CEO, Nov. 9, 2021: https://www.wsj.com/articles/why-financing-the-multi-trillion-dollar-transition-to-net-zero-isnt-that-hard-11636018200
  34. Who is Driving “Climate Funds”: https://www.wsj.com/articles/climate-funds-whos-driving-growing-demand-11637165424?mod=latest_headlines
  35. WSJ Citi Bank to eliminate some Clients that are not “Green” enough, Dec. 7, 2021: 
  36. https://www.wsj.com/articles/citigroups-jane-fraser-expects-to-shed-some-clients-for-climate-purposes-11638912251?mod=business_minor_pos15
  37. WSJ Finance ESG Conflict of Interests, Jan 29, 2022: https://www.wsj.com/articles/wall-streets-green-push-exposes-new-conflicts-of-interest-11643452202?cx_testId=3&cx_testVariant=cx_5&cx_artPos=0&mod=WTRN#cxrecs_s
  38. ESG Investing Nov. 18, 2021: https://www.wsj.com/articles/climate-and-environment-focused-funds-dominate-esg-11637092844
  39. SEC Requirements for Climate Change Disclosure March 21, 2022: https://www.wsj.com/articles/sec-to-float-mandatory-disclosure-of-climate-change-risks-emissions-11647874814?mod=djemalertNEWS
  40. Blackrock Climate Policies to Make Money Jan. 7, 2022: https://www.wsj.com/articles/larry-fink-wants-to-save-the-world-and-make-money-doing-it-11641484864?mod=itp_wsj&mod=djemITP_h
  41.  Small Modular Reactors, WSJ, Aug. 2021 : https://www.wsj.com/articles/utilities-eye-mini-nuclear-reactors-as-climate-concerns-grow-11627905600?mod=article_inline
  42. WSJ Saturday Essay on the Future of Nuclear Power in a Carbon-Free World: https://www.wsj.com/articles/is-nuclear-power-part-of-the-climate-solution-11641571176
  43. World Nuclear Association, Nuclear Power Facts: https://world-nuclear.org/information-library/country-profiles/countries-t-z/usa-nuclear-power-policy.aspx
  44. An interesting post by the Sierra Club, entitled, “What Divestment from Russia Means for Activism Against Fossil Fuels From Russia” March 22, 2022: https://www.sierraclub.org/sierra/what-divestment-russia-means-for-activism-against-fossil-fuels
  45. Liberty Oilfield Services, 2020 ESG Report, “Bettering Human Lives”: https://www.libertyfrac.com/bettering-human-lives-2020-esg-report/
  46. Settlement of John Turk Power Plant with Environmental groups, Arkansas Times, 2011: https://arktimes.com/arkansas-blog/2011/12/22/sierra-club-audubon-settle-with-swepco-on-turk-power-plant  and https://www.aep.com/news/releases/read/1235/AEP-
  47.  China Continues To Laugh At Western “Green Energy” Foolishness, April 2, Manhatten Contrarian: https://wattsupwiththat.com/2022/04/03/china-continues-to-laugh-at-western-green-energy-foolishness/
  48. China’s Energy Dream, Patricia Adams, GWPF: https://www.thegwpf.org/content/uploads/2021/12/Adams-Chinas-Energy-Dream.pdf
  49.  Vaclav Klaus Book, “Blue Planet in Green Shackles”, published in English in 2007 by Competitive Enterprise Institute
  50. Saudi Arabia considers acceptance of Yuan for Oil payments, WSJ March 15, 2022: https://www.wsj.com/articles/saudi-arabia-considers-accepting-yuan-instead-of-dollars-for-chinese-oil-sales-11647351541

51. Germany’s Nuclear Surrender:

93.5% of America’s energy is used in Heat-engines to drive our economy and power our comfortable lives: 80% is from fossil fuels

This huge amount of energy is not easily replaced by alternative fuels! My response to an ASME webinar on forcing a “Green Grid” on America.

From EIA Annual Energy Outlook Jan. 2021

All Fuels Are Important, but Thermal Power Generation Is Still Number 1

Last month I participated in a continuing education webinar presented by the ASME Mechanical Engineering Magazine. I was upset by the lack of practicality and missing common sense of the presentation. Thus, I wrote a letter to the ASME Magazine’s Editor. The text is copied below.

Throughout my career—and also through the ASME’s long history (ASME’s, American Society of Mechanical Engineers, Boiler and Pressure Vessel Code, B&PV Code saved millions of lives and advanced our country!)—thermal power generation has been the greatest source of dispatchable electricity generation. In my view, policymakers have run a very good and smooth evolution of power generation diversity off the rails. The Biden Administration (probably with advisors like Dr. Jenkins) and Democrat Congress policies constitute an anti-American war on carbon. These policies, if continued, will in fact be extremely harmful to the country’s economy, national security, and eventually, when considering bans on oil and gas production and pipelines in the U.S., our freedoms. Further, if continued as Jenkins, Biden, Kerry, Et Al wish, will contribute to the decline of western civilization. (by strengthening China, Russia, Iran and their allies)

There is not space here to debate climate change, whether manmade or natural. Suffice it to say, I believe climate and weather changes are, for the most part, driven by natural forces of solar activity, ocean currents, volcanoes, tilt of the earth, and other uncontrollable dynamics. The pressure to rejoin the Paris Agreement is driven by other countries that wish to see America decline in power and influence in the world. China will gain the most by America’s decline. Princeton’s Dr. William Happer provides an excellent summary with a segment beginning at minute 24 where the effects of CO2 are discussed. https://bit.ly/3zsXcS6

Reasonable cost, and abundant, energy and electricity are crucial for our economy and the functioning of our society. Over the years, it has been well-documented that all advanced economies grow in proportion to energy use. America’s economy grew in direct proportion to its energy use over the 130-plus years since Edison’s Pearl Street Station commenced operation. 

China’s economy grew from being a poor and developing country in the year 2000 to now being the world’s largest manufacturer and world’s second-largest economy. China produces more than 50% of the world’s steel and aluminum, as well as being the largest producer of manufactured products. China plans to become larger than the U.S. and is likely to pass America as the world’s #1 economy in a few years. Biden’s policies will accelerate the growth of China’s economy and the decline of America’s. To reach the status of the world’s largest manufacturer and largest producer of steel and aluminum, China built more electric power generation in the past 20 years than America did since Westinghouse and GE were founded. Remember George Westinghouse? One of America’s finest engineers.

Energy and economic prosperity go hand in hand. So, let’s look at where our energy comes from. America has used right at 100 quadrillion Btus per year for about the last 10 years or more.  (last year was about 93 Quads due to the pandemic) According to the U.S. Energy Information Administration (EIA), the U.S. used 100.2 quadrillion Btus in 2019. 

More than 90% of the U.S.’s primary energy consumption in 2019 was provided for use by thermal heat engines. This is comprised of about 36.8% petroleum, 32.1% natural gas, 11.3% coal, 8.4% nuclear, and 4.9% biomass. The total renewable energy consumption (excluding biomass) was 6.4%, and a significant portion of that bulk power (40%) was from hydroelectric. This primary energy use includes transportation, commercial, residential, and industrial use. Electricity consumption of our total primary energy was 37.1%.

When politicians and the mainstream media talk about energy- and planet-saving electric vehicles and renewable power generation, I think it would be wise to consider that, if we like our status in the world, and our current comforts and conveniences, then we will need at least 100 quadrillion Btus of energy per year for the foreseeable future. At present, about 93.5% of our total energy is used in heat engines and only about 6.4% is supplied by non-biomass renewables. That’s right. Check the EIA website to see for yourself.

To say changing from 93.5% heat engines to renewable power generation and electric vehicles will be disruptive is a gross understatement. In time, renewable power advances and green hydrogen from renewables will eventually come. But for the next 10 years or more, America should stay the course with modernizing our current fleet of natural gas, nuclear, and coal plants. These are what we depend on and the mid-February rolling blackout experiences in Texas should be a wake-up call to policymakers.

Another example is Hawaii, which plans to shut down its lowest cost power plant—Barbers Point coal plant. As the state moves toward its version of the new “Green Deal,” Hawaii has the highest cost electricity in the nation. Not a problem for an economy based on tourism and government facilities, but $0.25 kilowatts will not permit competitive primary metals production or competitive manufacturing in the contiguous 48 states.

In my adopted state of South Carolina, about one-third of the total electricity is used by industry. South Carolina has a thriving industrial sector, and it depends on reasonable-cost and reliable electricity. Sacrificing reasonable-cost conventional power generating plants to replace with renewables will drive much manufacturing overseas (again). 

As I read the plans for South Carolina’s coal plants, all of which I have worked at and know very well, I see that several more coal units are planned to be shut down in the next 10 years. These are to be replaced with solar or other renewables. Currently, more than 55% of South Carolina’s electricity is generated from nuclear power. Therefore, replacing coal with renewables may not be a problem, if the South Carolina nuclear units keep running indefinitely. However, several of these nuclear units are into their second licenses and will begin shutting down in the 2030s. As I see it, this sets ourselves up to follow California, Hawaii, and Texas into higher-cost power production and less-reliable power supplies. All fuels are important!

Let’s review the last 15 years of fuel changes in the U.S. In 2004, electric power generation was about 92.4% thermal generation. In 2019, the percentage of thermal generation was still the highest at 83.6%. Natural gas made the largest gain at the expense of coal. Wind grew from 0.4% to 7.1% over the 15-year period. Now, if policymakers are concerned about electric reliability and competing in the world with manufactured products, they should rethink the trends toward more intermittent non-dispatchable renewables.

Americans have lived through disruptions before. I lived in a small town in North Carolina, which the county seal showed textiles and aluminum production as being the most important for its economy. Then, after the North American Free Trade Agreement (NAFTA) went into effect, the textile mills closed down, killing about 7,000 jobs in a county with 60,000 people. A few years later, Alcoa Corp. shut down the aluminum smelting plant that had been in operation for more than 100 years, causing another 750 or so jobs to be lost. Aluminum smelting is very energy intensive, it takes about 5 kWh to produce one pound of aluminum. It doesn’t take a world class Economist to understand how China has become the world’s largest producer of steel and aluminum. China uses about 57% of the world’s coal to power their industry. True, China uses more coal than all of the rest of the world put together.

In Texas, I did much work from 1978 onward at an Alcoa plant in Rockdale, as well as at numerous coal plants. Rockdale was the largest aluminum smelter in North America, and it was shut down in 2008 due to oversupply of aluminum from China. Over 6,000 MW of reliable, reasonable-cost coal power generation has been shut down in Texas since 2008. Had these coal plants not been retired, perhaps the events in mid-February may have played out differently.

Energy and economic prosperity are inter-related. The Green New Deal and more renewable power will harm America’s competitive advantage. If we think February was a bad month for electric reliability, imagine what the Green New Deal and further accelerated disruptive changes to renewables will do to the rest of the U.S. Preserving our good lives requires about 100 quadrillion Btus per year. In my view, obtaining this energy from all available fuels within our borders is important.

I suggest that the ASME publications and energy programs consider the facts of All Fuels and why they are important for our country.

Respectfully submitted,

Richard F. Storm, PE

Sustainability of our high quality of life depends on reasonable cost electricity

Energy, is the only universal currency”

The author of several books on energy, Vaclav Smil is quoted as saying “Energy is the only universal currency: one of its many forms must be transformed to another in order for stars to shine, planets to rotate, plants to grow, and civilizations to evolve.”

Most American citizens simply take abundant, reliable and reasonable cost energy for granted. It is not until a major pipeline is shutdown as the Colonial Pipeline was last year by hackers. Or, there is severe weather such as a hurricane that shuts down refineries and/or topples electricity transmission towers. Only then does the average American notice just how important energy is to our lives. As important as energy is to us, we are allowing politicians who know very little about the production of energy, electricity generation, transmission and distribution of energy to, “Completely transform America’s energy infra-structure with the Green New Deal” I wrote last year on Hawaii’s path toward the “Green New Deal”, Here is the link: https://wordpress.com/post/dickstormprobizblog.wordpress.com/32

I used Hawaii as an example, because Hawaii is literally an energy island and is not connected to the American Electric Grid. Thus, it provides a perfect laboratory to expose the results of going green, or at least moving in that direction. Because of the isolation from competitive electricity supplies, the change to more green generation is making a much faster impact on electricity pricing. There is not the ability to import low cost coal or natural gas power from other states as say, California can. Because of the intermittant nature of renewable power (Non-Dispatchable), much of Hawaii’s electricity is generated from oil fuel. In fact, you can get a real time update on the generation source here: https://www.islandpulse.org

Oahu has a very reliable and clean coal plant, Barber’s Point. The real time screen shot above shows 14% of Oahu’s power was being provided at this moment. Unfortunately, because of unreasonable Political reasons, the coal plant is scheduled for premature shutdown. Just because the elected officials have their own war on carbon. Their intentions may be pure but in reality to keep the power supply reliable, much of the electricity generation is from oil fuel. (no natural gas pipelines in Hawaii either, thus, oil backup power) Most of the cost of electricity (about 75% for coal and 90% fuel cost component for natural gas or oil) production from a Thermal Power Plant is for fuel. Therefore, using Diesel Fuel which second only to hydrogen, is the most expensive fuel available. As time goes on, the higher production cost of electric generation must be passed on to the Rate-Payers. Thus, Hawaii has the highest electricity costs in America. Note the chart below provided by the Electric Choice.com web site. The average retail cost of electricity in America is about $0.13/kWh. As shown below, Hawaii’s is $0.327/kWh

Critics can say that electricity is a small cost of our household expenses. That, high electric costs such as Hawaii and California have is not a big deal. Well, in my state of South Carolina, manufacturing (jobs) is still a large part of our economy. We have NUCOR Steel and Century Aluminum manufacturers. The production of vital steel and aluminum that we need is very electricity intensive. So, perhaps Hawaiians can enjoy life and their economy thrive. Tourism and government facilities can absorb the high electric costs, competitive manufacturing cannot. My state cannot. Just for reference, over 50% of our electricity in SC is generated by four well run nuclear power plants. These nuclear plants plus reasonable cost natural gas and coal plants keep our electricity costs below the National average. The generation is “Dispatchable too!” That means, electricity load can be increased or decreased as customer demand fluctuates.

All of us should be aware of China’s dominating world manufacturing. China produces over 50% of the world’s steel, aluminum and concrete. China uses over 57% of the world’s coal production for electric power. Yes, China is the most productive and least cost producer of many products manufactured in the world. China the last time I checked, produces about 28% of the world’s manufactured goods. I submit that electricity prices matter. Reasonable cost electricity is absolutely required for competitive manufacturing.

My presentation to the Delaware County Bar Association in July 2016 has some facts and information on how China crushed ALCOA’s aluminum production. This is at this link:

https://wordpress.com/post/dickstormprobizblog.wordpress.com/24

My personal experiences included working (as a contractor/consultant) for ALCOA all over the world at their Alumina and Aluminum smelting facilities. I made many friends with Alcoans from 1978 till about 2012. Then, huge plants such as the Rockdale Texas Smelting operation, the smelter at Suriname, SA and others were shut down. Why? Becuase aluminum requires about 5 kWh per pound to produce the metal. This is just for the smelting operation. More energy is required for alumina production and transportation. Energy costs matter for economic prosperity. For many of my friends at ALCOA, the Chinese dumping of aluminum on the London Metal Exchange, meant early retirement or job changes.

The “Green New Deal” is anti-American and will weaken America’s competitive capacity. Conversely, the “Green New Deal” will strengthen China’s grip on world manufacturing. Their dominance in solar panel manufacturing is well documented.(4) The Green New Deal if passed will be a (another) huge gift to China.

Donn Dears has an excellent website where he provides information on energy, Net Zero Carbon, Electric Vehicles electricity generation, nuclear power generation, hydrogen and much more. Here is the Power for the U.S.A. Blog address: https://ddears.com/donns-articles/ I strongly recommend reading Donn’s articles. He has a knack for writing short concise posts with ample facts and references.

Conclusion:

The changing of America’s electric power generation to becoming carbon free is not practical and in fact, with today’s technology, impossible. I submit the case study of Hawaii’s experiences to show the fallacy of committing to new renewable power sources to quickly. California and Texas have experienced Blackouts because of too much intermittant renewable power and not enough reliable and Dispatchable generation capacity. (Key phrase, Dispatchable Electric Generation capacity) Why would we enact policies and Regulations that make America weaker and less competitive with China?

Dick Storm, August 20, 2021

References:

  1. Island Pulse website by Blue Planet Foundation for real time electric generation data for Hawaii Electric on the island of Oahu. https://www.islandpulse.org
  2. Electric Choice.com for electric rate comparisons of 50 states.

3. Donn Dears Blog: Power for the U.S.A. An excellent collection of relevant articles on energy and electric power generation. https://ddears.com/donns-articles/

4. Coalition for a Prosperous America, report on Solar Panel Manufacturing and dominance of China: Coalition for a Prosperous America report on Solar Panels from China: https://prosperousamerica.org/cpa-releases-report-on-reclaiming-the-us-solar-supply-chain-from-china/