When Democracy Threatens to Destroy the World
Citizens electing their leaders to decide what is best for the country (and the world) within a framework that protects the rights of the minority it a pretty awesome system.
But the key flaw in all this is, or course, the word "elections." Because at election time, the thing that most often concerns these alleged "leaders" is their own reelection.
So as we all drown in $4-per-gallon gas and heating oil bills that may mean our kids won't go to college, energy has become an election football.
As I blogged on June 26 and July 3, the tax break for alternative energy sources is set to expire soon unless Congress gets its act together.
(Did I just say the words "Congress" and "act together" in the same sentence? Somebody slap me.)
Well, as Reuters reported in this article, an attempt to move a Senate bill extending those tax breaks forward, which needed 60 votes but received only 51, was foiled by Republicans convinced the way to move away from our addiction to oil is to drill for more oil, particularly in environmentally sensitive places where it is currently banned.
Never mind that oil companies hold hundreds of leases to drill on public lands that they are not utilizing, the Republicans believe voters will believe that a crisis is the time to decide what to let oil companies do with our future, and have said as much -- publicly!
These same companies seem to be doing OK without the Senate's help.
As CNN reported here Exxon Mobil just posted the largest quarterly profit in U.S. history Thursday, posting net income of $11.68 billion on revenue of $138 billion in the second quarter.
That profit works out to $1,485.55 a second. That barely beat the previous corporate record of $11.66 billion, also set by Exxon in the fourth quarter of 2007."The fundamentals of our business remain strong," Henry Hubble, Exxon's vice president of investor relations, said on a conference call. "We continue to capture the benefit of strong industry conditions."
That's an understatement if ever I read one. I can see why Senate Republicans feel moved to rush to their aid.
The extension of the tax breaks isn't dead yet, but I think "on life support" is not an unfair way to characterize them.
But as the Senate Republicans try to convince voters we can drill our way out of an energy crisis, those tax breaks will expire (I wonder how John McCain will vote on this matter?) and our nation's nascent entrepreneurial attempt to get ahead of the curve on energy will suffer a setback, perhaps a fatal one.
And so elections will imperil all of us to live with the consequences of the need to curry favor with oil companies in order to increase campaign donations.
But fear not oh faithful reader, all hope is not lost. Some vision remains.
This story by McClatchy newspapers that says the U.S. will soon be the world's number one wind power producer, suggesting that we may be succeeding without tax breaks.
But be careful of jumping to too many conclusions. As Mark Twain is said to have said, "figures don't lie, but liars figure."
The American Wind Energy Association is expected to release a survey next month that calculates that the US wind industry now tops Germany in terms of how much energy is being produced from wind. But that has more to do with how windy America is than any visionary investment level by us. Maybe all those senate blow-hards are a natural resource we should begin taking advantage of.
Germany still has more installed capacity - 22,000 megawatts compared with 17,000 in the US at the end of 2007. But the average wind speed is stronger in America, which means more energy is being generated, the group said.
Not surprisingly, the newspaper group also reports that many of the world's leading wind companies are not US companies, and they will need to move manufacturing jobs to the US as the wind industry grows, Swisher said. His group says 4,000 wind-related manufacturing jobs have been added in the US since 2007.
Before you get too excited, you should know that currently, wind provides about 1% of US electricity.
The cost of wind power is almost comparable to fossil fuels such as coal, at between 4.5 and 7.5 cents per kilowatt hour, but building a wind farm costs more than a fossil-fuel plant - between $1.5m and $2m per megawatt of capacity compared with $800,000 for a natural-gas plant.
Once constructed, though, wind plants have no fuel costs compared with coal and natural gas plants.
Since Germany far surpasses the U.S. in solar power generation, despite our sunnier weather patterns, I'd call this one a draw.
But also in the promise for the future category, consider this idea. What if the weather didn't matter?
As O. Glenn Smith, a former manager of science and applications experiments for the International Space Station at NASA’s Johnson Space Center, writes in this New York Times opinion piece, maybe the best idea is to harvest solar energy from space.
Smith, who seems to know what he's talking about, said it's not as James Bond as it sounds. As solar panels get lighter and thinner, this idea is more and more financially feasible.
Basically, you launch a bunch of solar collectors into space, which is a much more efficient way to collect solar energy, and then beam it back to earth. (Yes, I said "beam it.")
Smith writes: "Once collected, the solar energy would be safely beamed to Earth via wireless radio transmission, where it would be received by antennas near cities and other places where large amounts of power are used. The received energy would then be converted to electric power for distribution over the existing grid. Government scientists have projected that the cost of electric power generation from such a system could be as low as 8 to 10 cents per kilowatt-hour, which is within the range of what consumers pay now."
And if you want justification for what would surely be an expensive undertaking, Smith urges us to consider that: "Over the past 15 years, Americans have invested more than $100 billion, directly and indirectly, on the space station and supporting shuttle flights. With an energy crisis deepening, it’s time to begin to develop a huge return on that investment."
Now if only we could figure out some way turn that into a campaign contribution, then it might actually happen. (Sigh.)
Labels: CNN, Exxon Mobil, Germany, McClatchy, New York Times, solar energy, space, wind power
1 Comments:
"That profit works out to $1,485.55 a second. That barely beat the previous corporate record of $11.66 billion, also set by Exxon in the fourth quarter of 2007."The fundamentals of our business remain strong," Henry Hubble, Exxon's vice president of investor relations, said on a conference call. "We continue to capture the benefit of strong industry conditions." They made record profits due to the fact they sold record amounts of product. The average oil company margin is 8% after everything from an accounting point of view. Obama wants to tax oil firms a "windfall"
tax to give the public refunds. Hell, Mcdonald's makes a much higher margin than oil companies. Should Mcdonald's be taxed a "windall" tax tax to be used for purchase of excercise equipment for the obese ? As to energy, why weren't gas guzzler purchases hit with a surcharge ? You get my point.
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