Posted By jonr on 07/23/2009 8:01 AM
If we make sure that the cost of energy to the end consumers is correct, then I agree, the free market will address the problem most efficiently. This cost needs to include environmental effects, health effects, security effects, deprivation of future generations, etc - not just the smaller drilling/pumping/refining/delivery costs. The energy industry is currently heavily subsidized in this way.
The environmentalists need to get realistic about conservation being a viable complete solution and should support nuclear power. Standardized reactor designs and streamlined regulations would help with this.
After watching the performance of the "free market" over the past few years, I do not have much confidence that they are the solution without a coherent Federal energy policy. Unfortunately, I do not have much confidence in the government's ability to do that, either.
To me a coherent energy policy involves rewarding conservation, penalizing consumption and promoting energy independence (in that order). The only energy that has no impact is the energy that is not consumed. That also means using our resources in the most efficient manner. I am no energy expert, but the following seems logical.
Because our dependence on the automobile, which is not likey to change because of the difficulties and the investment required for dependable public transportation, we will continue to consume a lot of oil even with efficient/hybrid/electric cars. Ethanol is not a viable solution and economical hydrogen is a long way off. That is not to say that we should not press on for alternative fuels, but let's not count on them to save us. I would like to minimize the use of oil by reducing automotive gasoline consumption and investing in technology to reduce oil consumption as an industrial feedstock. Our oil supply is limited, so let's use our oil for things that it can be most efficiently used for.
Natural gas is good for heating, is a valuable industrial fuel and, I believe (per Mr. Pickens), can be synthesized into gasoline. Our gas situation is a bit better than our oil situation, but making electricity is probably not its highest and best use.
Wind and solar can help generate electricity, but they will not satisfy demand. Nuclear power is really good for generating electricty (that can also power cars on a limited basis) and I think we need to ramp this back up. At the same time, the Chinese seem to be developing reasonably clean coal burning power plants.....why can't we? I am not crazy about the idea of creating more nuclear waste and gouging holes in the earth, but I think it CAN be done more responsibilty and in the end, I don't think we really have much choice if we want to minimize our foreign dependence.
Bruce