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The Pickens Plan
I'm not entirely sure what to make of the new energy plan from T. Boone Pickens, but his piece in the Wall Street Journal is worth reading. After detailing the environmental, economic and foreign policy problems that our reliance on oil involves, Pickens writes...
I want to reduce America's foreign oil imports by more than one-third in the next five to 10 years.
How will we do it? We'll start with wind power. Wind is 100% domestic, it is 100% renewable and it is 100% clean. ... In 2008, the Department of Energy issued a study that stated that the U.S. has the capacity to generate 20% of its electricity supply from wind by 2030. ...
My plan calls for taking the energy generated by wind and using it to replace a significant percentage of the natural gas that is now being used to fuel our power plants. ... We can use new wind capacity to free up the natural gas for use as a transportation fuel. That would displace more than one-third of our foreign oil imports.
The Pickens Plan is outlined at his website. My own thoughts...
- When a billionaire puts a lot of his own money behind a project, it's a good idea to pay attention.
- If this is such a good idea, why isn't profit and success sufficient to drive us in that direction?
- Joseph Romm raises interesting questions about what wind power should replace, as well as the efficiency of natural gas in transportation. So does FuturePundit.
- Sending money to tyrannies is a security problem, but we don't need a re-run of the old "buy American" protectionism.
- I believe more domestic production of oil is a marginally useful thing, but a long-term solution probably requires (short term) diversified energy sources - more plausible as technological progress allows us to capture, e.g., wind and solar energy more efficiently and to increase battery storage capacity - and (long term) nuclear energy.
- I believe the lack of fueling infrastructure is a significant barrier to using natural gas for transportation.
- I believe the scientific evidence that anthropogenic climate change is occurring is solid.
- I believe the cost of oil is significantly higher than the price of oil and the negative externalities of our oil-driven economy are a problem that needs to be resolved.
- I believe regulatory solutions to environmental problems are likely to result in path dependencies and inefficiencies that do more to shift costs around than to actually address them. An effective solution must be market-based so that it works with incentives, rather than against them. To Pickens credit, that seems to be the direction in which he is pressing. With his own money.
Overall, I'm glad to see Pickens launching this project. Private businesses charting profitable paths forward is far better than governments picking winners and losers.
- Jon Henke's blog
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Comments
T-Boone...I put a Sail on my Toyota..it's NOT MOVING !!
After we Pump the 500 years of Oil out West, after we Drill ANWAR, Florida, etc.....then we can Talk Wind.
This is dumb....Wind Power is fine, you just can't FILL UP with it and Drive off.
um...wow
Please stop reading the propaganda and start doing the research - the Department of Energy's own study said that if we open ALL the coastal waters to drilling it would barely contribute to world supply til 2030 and after that will have only an "insignificant" effect on prices
http://www.eia.doe.gov/oiaf/aeo/otheranalysis/ongr.html
even if your 500 year figure were not laughably untrue, it doesn't matter. Having a million dollars in the bank doesn't help you if you can only withdraw a dollar a day.
Natural Gas Fix
I loved the article by Picken's, and I think he offers a viable solution.
His theory is that Natural Gas can be a good bridge for our oil problem until we develop other technologies, such as Hydrogen. I think he's right on the money. What he wants to do is create another viable source for power plants to generate electricity using wind, and use natural gas as transportation fuel instead of it currently being used in electric power plants. He's putting his money where his mouth is, and has invested a lot of money in his project.
We could easily use natural gas as an alternative for gasoline. Many vehicles already use it, and converting cars is not too difficult. A lot of municipal vehicles have been converted because of the enormous fue savings. The best part is, the overwhelming majority of natural gas comes from the U.S., so we wouldn't be at OPEC's mercy.
Natural Gas could cure our addiction to oil. It also burns MUCH cleaner than gasoline or diesel. It's also less than half the price of gasoline. Honda currently builds a Civic that runs on Natural Gas, and they can't build them fast enough. You can refill it at home, and in some states, natural gas currently costs only 63 cents a gallon.
I really believe the U.S. should encourage the use of natural gas as much as possible. It's a much better solution than Ethanol, which is more of a subsidy scam than anything.
Switch to Turbo Diesels
We'd gain more efficiency if we switched all new vehicle production to using modern turbo diesel engines, which I've been proposing for years. We'd gain 40% efficiency for not much more money then current gas powered vehicles. Diesel is much more standardized also, and once production increased to match any new demand, the price would come down some amount.
Converting an existing car to use natural gas is fairly economical. Buying a new hybrid is not the most economical alternative for many people. Heck, buying a new car isn't always an economical alternative. So I can see why he's proposing this as a stop gap measure.
It also makes a lot more sense to convert to natural gas then using feedstocks to make ethanol.
You can find alternative fuels around your place here.
You know I differ with you on global warming, but agree that there are things we could do that make sound economic and ecological sense. However, there's always another peice of research comming out that throws more doubt at the "consensus." For instance: Cleaner skies explain surprise rate of warming!!!
Obviously, climate modeling and our choices need to be researched a bit more, before we enact plans that will both ruin our economy, our standard of living, and might not do anything to solve the problem.
We need short, mid and long term solutions to our transportation and energy needs.
Government first solution
One other thing we should demand, the government should lead the way.
All they have to do is pass a law requiring everything but emergancy vehicles have to use an alternative fuels, and you'll increase the demand for alternative fuels. I would also include a governor to limit the speeds to the local max speed limit. I'm tired of seeing state vehicles cruising on by me at 75-80MPH.
Lead where?
I'd don't know... probably lobbists would end up making the decisions, rather than deciding rationally what alternatives to use.
Electric
Actually, this discussion is the main reason electric cars could be so powerful. Electricity splits the production of the energy and the storage. (Actually hydrogen has this ability as well.. but the storage issues make it less desirable. Not that electric doesn't already.)
The point isn't that electric cars will immediately cut back on emissions immediately, but that they give us the flexibility to cut back later as we swap out the large scale energy production plants from fossil fuels to cleaner technologies like solar, wind, geothermal and nuclear. Plus much of the infrastructure is already there (power lines). Then the next step would be adding charging capabilities to current gas stations and reducing the charging time.
So, whichever combination of technologies we start using to generate pwer in the future, we won't need to keep recreating our transportation infrastructure.
Recharge at Parking Lot/Garage
Actually, parking lots/garages would be a much more natural place for charging stations. Charge up at home during night, top off during the day at work, and when shoping.
I agree that electric is a good long term solution. But who has the money to convert, or buy a new electric vehicle?
Another consideration with a mass movement to electric, is do we have the power generating capacity to handle it? We already have places that have brownouts in the summer months. What does adding the demand for recharging cars in the middle of the day do to that?
More production could be added, and frankly the most economical short term is still coal or natural gas, but that's still a multi-year process. Especially when you have the environmental coallitions figting it every step of the way.
Have you and T-Pick left out the middle?
If we want to go from now to the future of energy independence using renewal energy, getting there (the middle) involves infrastructure. And while I think it's great that Tito is an optimist when it comes to his belief that much of the infrastructure is already there, in fact the viability of what is there is extremely fragile and prone to failure. Renewable energy coming from wind generators needs to be safely and securely transported from rural...forget rural - uninhabited, sometimes uninhabitable areas - to urban areas where the power is needed. The infrastructure challenge is a big one for two reasons:
The NIMBY issue is a big one. I live in a state that can now claim Fire as a form of weather. Part of this is due to the idiot environmentalists who refuse to allow controlled burns which might prevent the horrific CO2 emissions resulting from thousands of square miles burning simultaneously as they have been for the past several weeks, for example. These are people who really leave out the middle and then wail about Global Warming without taking any responsibility whatsoever for their part in contributing to it unnecessarily. This is gross incompetence coupled with extreme ideology unconstrained by any legislative, judicial or electoral common sense. I left out the Executive leadership because for all practical purposes we have none in the form of Arnold Schwarzenegger, with the exception of the exemplary leadership he's shown in promoting The People's Republic of California.
But back to the NIMBY issue, approximately 20-25% of California brush fires start from sparks resulting from downed power lines on untended land. And there do appear to be some potential health and safety issues associated with generating huge amounts of electricity next to human and animal habitation. This is from a Wiki on electric power transmission:
I think it's a great plan, very visionary, and I'm delighted to see someone with credibility, power and capital pursuing it. At the same time, I don't believe this is a panacea. I believe that, as Kudlow recommends, we should manage a complete portfolio of energy options and develop all of them to suit specific purposes. In the case of renewables, I think we really need to do the following:
Kudlow--lol
You lose all credibility when you site Kudlow for anything other then being a Neo-con hack!!! First as an economist he has been wrong on almost every economic subject he speaks on. Oil, gold, inflation, the dollar, debts and deficits, taxes, and the stock market. If you were to go back a couple of years and review what he has been saying (not just the last few months) you would be stunned at how wrong he has been on everything. In the financial industry he is known as "the king of crazy town" and is more or less the laughing stock of CNBC! But hey if you want to follow this delusional fool down the rabbit hole, be my guest.
Been reading the Huffington Post much?
You wrote:
What are you, some kind of Pittsburgh Steelers fan? Don't you know that Rabbits are a protected minority, eligible for a-fur-mative action? Don't tread on us with your racist, Rabbitist smears.
Actually that was just a gratuitous pretense to exhibit this fun and remarkably accurate new video from NozzleRage:
One more thing that intrigues me about Pickens
Is that even if he doesn't care much for McCain's energy policy, he's throwing his ten-gallon hat into the ring to totally assist McCain by defining a policy that's even attractive to Indies and centrists and - dare I say? - Liberals!
Because he's Mr. Big Oil, Pickens is, in essence, thrashing the Obama Progressive intention to punish capitalists in general and Big Oil in particular. Pickens is saying "Hey look y'all, I'm a Big Oil man and I can use all my profits to do something really worthwhile for the environment by investing heavily in renewables. I have a real plan for energy independence, and this is good for the the country, good for your jobs, good for your wallet and good for the future of your kids and your grandchildren - so before you vote for the guy who represents the Far Left, many of whom have already told you they'd love to nationalize my company, y'all might wanna think good and hard about voting for John McCain instead."
I think that our benevolent patron Mr. Pickens will be a real GOP angel by the time November comes around.
Transmission Lines Needed
Historically, the reason the centralU.S. hasn't been used as a large wind power production center is that the remote areas where the wind blows aren't connected to transmission lines. This, interestingly, is partly a regulation problem and partly a $/risk problem.
One of the main things that has held renewables back is that they can only be built in specific places (eg, where the wind blows, the river runs etc) while you can plunk a gas or coal fired plant down just about anywhere.
Building large lines like that is extremely difficult because of all the government regulation (largely at the local level) in the way. Think land use and NIMBY ("not in my back yard"). There's also the problem that no individual developer wants to shoulder the entire cost of building the infrastructure themselves. It's an insane amount of risk.
I'm curious to see what Pickens' solutions to this one is.
Want to see an effective website
http://push.pickensplan.com/ looks like it has all the good pickens (pun intended) of the pot when it comes to activism.
Good Lord, this isn't a "Plan", this is a MOVEMENT!
You guys have got to see this website. This is how it's done, kids. For the first time in decades we are seeing real leadership. It's very, very exciting.
Great link Keith, thanks so much for including it.
We're not a movement yet...
I think that's one of the big problems with the right/conservative side of things. We're a collection of groups, ideas and policies, not a movement.
Pickens Plan - Loose with facts?
Building the transmission lines and wind turbines might be a one-time cost, but there's also replacement and maintenance costs.
Putting his money where his mouth is....
At least T. Boone is putting his money (or maybe investors' money) where his mouth is. While most of his plan seems economically sound (he didn't get rich by making stupid, money-losing investments), it does have some issues.
Modern, multi-megawatt wind turbines are actually cost competetive with natural gas power plants. The problem is that current demand for these wind turbines has far exceeded supply. The waiting period for delivery of one of these utility scale wind turbines is now almost 5 years. T. Boone has $2 billion worth of them currently on back-order.
Another issue is that his wind power business model likely requires a 15 or 20 year life from these wind turbines. Recent experience has shown their actual service lives to be significantly less than that, and replacing expensive turbine components will drive up the cost-of-energy produced from those wind turbines.
And finally, there is the thorny issue of load balancing a power grid heavily dependent upon fickle winds. You still need to have huge amounts of conventional generating capacity idling and ready to take over at a moment's notice if the wind stops blowing.
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