I am not an energy expert. Certainly, no more than the next guy who pumps gas into his car and notices that it’s twice as expensive as it was two years ago. Yep, I don’t like it one bit. You don’t either. And of course, politicians really don’t like it because we don’t. But if I’m an expert in anything, it’s watching my personal budget and mine has been turned upside down since 2020.
Gas is really expensive. And yes, it is a function of the price of oil. During the pandemic in 2020, oil prices were lower. Why? Low demand and high supply. Then the pandemic began to abate and oil prices rose. Why? Higher demand and lower supply. Of course, when America’s President blasted the fossil fuel industry when he came to office, it sent a huge message to the oil industry. Don’t expand exploration or refineries because the U.S. government will pull the rug from under you in due time. In that environment, drilling new wells is not an attractive proposition. And believe it or not, oil companies have shareholders…you know, the people like you who may have a 401K. Sorry to bring that up, especially since a recession is occurring, inspired in part by an orgy of Federal spending. Yep, another Econ 101 lesson: too much money chasing too few goods. To be sure, Russia’s invasion of Ukraine has had an impact. But do not be mistaken. The current discussion on energy is, well, stupid.
Take President Biden’s calling on sole proprietor filling station owners to lower their prices, “now!” Mr. Biden needs to stop idiotic stuff like that, “now!” Equally dotish is the suggestion that if we all went out and bought electric cars, all would be fine. Really. Do they really believe that, as if electricity is magically generated by the wind or sun 24 hours-a-day with complete reliability? Sadly, many of the components of both technologies require fossil fuel to be manufactured.
Now we learn that the premier green energy member of the European Union—Germany—is bringing coal-fired power plants back online to meet its energy demands now that the plug has been pulled on Russian natural gas to produce electricity. What sweet irony that the country that was so morally superior to the rest of us in closing down its nuclear plants now must fire up the coal ones. From clean to less clean energy. Progress, right?
The coal rebound is also occurring in other places. Even in the U.S., coal demand has been up since late last year. But nowhere has it boomed more than in China where coal production has doubled. Even its dictator has explicitly stated that only a boost to coal production can stave off blackouts this summer. Now there’s a thought. Blackouts. They are on the way in America this summer since many states have migrated to renewables that—while clean—simply will not be able to keep up with demand. And if you think that people are unhappy about high gas prices, wait until the AC kicks off in 95-degree sweltering heat.
So, what’s the answer? Simple. All of the above. Our national energy portfolio must be realistic. Fossil fuels are in our future for many years to come. Think plastics. But so too are renewables as they demonstrate cost effectiveness and are appropriately scalable to address America’s energy needs. The idea that we’re done with gasoline is a special kind of stupid. We aren’t. America loves its automobiles and trucks. And no amount of new green deal sermonizing by woke baristas will change that one bit. As far as coal is concerned, it probably won’t make a long-term comeback, but we don’t have the luxury of foreclosing on any energy source when dictators can disrupt the world order overnight. Besides, coal is not kryptonite.
Which brings me to this point. If you want clean and reliable energy, nuclear power generation is ready when you are. But like eliminating fossil fuels, the people who think we’ll have wind-powered submarines, aircraft, and bulldozers are as clueless as a pig looking at a Timex watch. (Yes millennials, you may need to look up “Timex.”)
Americans must refute the scare tactics used to frighten the public about nuclear power generation. Nuclear is not only part of the solution, but it’s a major part of the solution to bridge us to the point when other sources of clean energy are capable of meeting our national demand. They aren’t yet. Nuclear is now. And we should press forward with it posthaste. Must we insist on safeguards both in design and the secure handling of nuclear waste? Of course, we should. Besides, nuclear is a smarter strategy than dumping on filling station owners. But energy moralizers can’t say nuclear.
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