Tag Archives: energy

EIA Annual Energy Outlook 2022

The U.S. Energy Information Administration (EIA) has a new report out with projections through 2050. The graphs are worth staring at. Here are some takeaways for me.

  • Coal use has crashed from over 20% of energy consumption 10 years ago to around 10% now. The rise in renewable energy mirrors it, from less than 5% to nearly 20%. Natural gas also surged during this period to replace the decline in coal, from around 20 to 30+ percent. Oil just kind of bumps along in the 30-40% range. The projection in 2050 is something like oil 40%, natural gas 35%, renewables 20%, everything else less than 10%.
  • The carbon footprint of electric power generation a decade ago was greater than the transportation sector. It has declined significantly (I assume this reflects the substitution of natural gas and renewables for coal), and is projected to continue to decline. The carbon footprint of transportation and industry is projected to remain relatively flat.
  • The biggest gains in renewable energy are projected to come from solar. Solar is projected to grow regardless of changes in cost, whereas wind and other sources are shown as more sensitive to cost, meaning if cost is high their share stops growing. I assume this has a lot to do with the cost of solar being pretty low already.
  • They show solar energy and battery storage being used extensively to meet peak mid-day demand by 2050.
  • Somewhat disappointing and surprising to me, they show electric vehicles sales only slowly displacing a small portion of gasoline-powered (3%?) vehicle sales over the next 30 years. I hope they are wrong about this one.

I can imagine a past world where safe civilian nuclear technology had been used more widely over the last 50 years or so, and we are not in the climate mess we are in today. Maybe this is even a world where the proliferation of nuclear weapons is less prevalent, but I am not sure about that. This is not the world we live in.

I can imagine a near-future world where homes, businesses, industry, and vehicles are increasingly electrified, and electricity generation is increasingly shifted to renewables. I still think nuclear power might be able to play an important role in this world. But it does not seem like we are headed in the direction of this world, at least not quickly enough to avoid a major train wreck. I hope I am wrong.

February 2022 in Review

The horrible war in Ukraine is obviously the most frightening and depressing thing going on as of early March 2022, both in terms of human suffering and the risk of nuclear war. But I prefer to avoid commenting too much on fast moving current events. I’ll just say that if the world can get past the acute crisis and maybe start talking seriously about arms control again, that could be a possible silver lining. But it seems like we are months or years away from that point. So I’ll pick something else below.

Most frightening and/or depressing story: Philadelphia police are making an arrest in less than 40% of murders in our city, not to mention other violent crimes. Convictions of those arrested are also down. Some of this could be Covid-era dysfunction. But there is a word for this: lawlessness.

Most hopeful story: “Green ammonia” offers some help on the energy and environmental front.

Most interesting story, that was not particularly frightening or hopeful, or perhaps was a mixture of both: I found a 1992 Saturday Night Live skit about the Olympics more entertaining than the actual Olympics. May Phil Hartman rest in peace. I checked on Dana Carvey and he is 66 and doing okay.

2021: Year in Review

As per usual, I’ll list out and link to the stories I chose as the most frightening, most hopeful, and most interesting each month in 2021. Then I’ll see if I have anything smart to say about how it all fits together.

Survey of the Year’s Stories and Themes

Most frightening and/or depressing stories:

  • JANUARY: A China-Taiwan military conflict is a potential start-of-World-War-III scenario. This could happen today, or this year, or never. Let’s hope for the latter. This is a near-term existential risk, but I have to break my own “rule of one” and give honorable mention to two longer-term scary things: crashing sperm counts and the climate change/fascism/genocide nexus.
  • FEBRUARY: For people who just don’t care that much about plants and animals, the elevator pitch on climate change is it is coming for our houses and it is coming for our food and water.
  • MARCH: In the U.S. upper Midwest (I don’t know if this region is better or worse than the country as a whole, or why they picked it), electric blackouts average 92 minutes per year, versus 4 minutes per year in Japan.
  • APRIL: One of the National Intelligence Council’s scenarios for 2040 involves “far-reaching changes designed to address climate change, resource depletion, and poverty following a global food catastrophe caused by climate events and environmental degradation”.
  • MAY: The Colorado River basin is drying out.
  • JUNE: For every 2 people who died of Covid-19 in the U.S. about 1 additional person died of indirect effects, such as our lack of a functioning health care system and safe streets compared to virtually all our peer countries.
  • JULY: The western-U.S. megadrought looks like it is settling in for the long haul.
  • AUGUST: The U.S. is not prepared for megadisasters. Pandemics, just to cite one example. War and climate change tipping points, just to cite two others. Solutions or at least risk mitigation measures exist, such as getting a health care system, joining the worldwide effort to deal with carbon emissions, and as for war, how about just try to avoid it?
  • SEPTEMBER: The most frightening climate change tipping points may not be the ones we hear the most about in the media (at least in my case, I was most aware of melting ice sheets in Greenland and Antarctica, collapse of ocean circulation patterns). The most damaging may be melting permafrost on land and methane hydrates underwater, both of which contain enormous amounts of methane which could set off a catastrophic and unstoppable feedback loop if released in large quantities.
  • OCTOBER: The technology (sometimes called “gain of function“) to make something like Covid-19 or something much worse in a laboratory clearly exists right now, and barriers to doing that are much lower than other types of weapons. Also, because I just couldn’t choose this month, asteroids can sneak up on us.
  • NOVEMBER: Freakonomics podcast explained that there is a strong connection between cars and violence in the United States. Because cars kill and injure people on a massive scale, they led to an expansion of police power. Police and ordinary citizens started coming into contact much more often than they had. We have no national ID system so the poor and disadvantaged often have no ID when they get stopped. Everyone has guns and everyone is jumpy. Known solutions (safe street design) and near term solutions (computer-controlled vehicles?) exist, but are we going to pursue them as a society? I guess I am feeling frightened and/or depressed today, hence my choice of category here.
  • DECEMBER: Mass migration driven by climate change-triggered disasters could be the emerging big issue for 2022 and beyond. Geopolitical instability is a likely result, not to mention enormous human suffering.

Most hopeful stories:

  • JANUARY: Computer modeling, done well, can inform decisions better than data analysis alone. An obvious statement? Well, maybe to some but it is disputed every day by others, especially staff at some government regulatory agencies I interact with.
  • FEBRUARY: It is possible that mRNA technology could cure or prevent herpes, malaria, flu, sickle cell anemia, cancer, HIV, Zika and Ebola (and obviously coronavirus). With flu and coronavirus, it may become possible to design a single shot that would protect against thousands of strains. It could also be used for nefarious purposes, and to protect against that are ideas about what a biological threat surveillance system could look like.
  • MARCH: I officially released my infrastructure plan for America, a few weeks before Joe Biden released his. None of the Sunday morning talk shows has called me to discuss so far. Unfortunately, I do not have the resources of the U.S. Treasury or Federal Reserve available to me. Of course, neither does he unless he can convince Congress to go along with at least some portion of his plans. Looking at his proposal, I think he is proposing to direct the fire hoses at the right fires (children, education, research, water, the electric grid and electric vehicles, maintenance of highways and roads, housing, and ecosystems. There is still no real planning involved, because planning needs to be done in between crises and it never is. Still, I think it is a good proposal that will pay off economically while helping real people, and I hope a substantial portion of it survives.
  • APRIL: Giant tortoises reach a state of “negligible senescense” where they simply don’t age for a long time. Humans are distant relatives of giant tortoises, so maybe we can aspire to this some day. They are not invulnerable to injury and disease.
  • MAY: An effective vaccine for malaria may be on the way. Malaria kills more children in Africa every year than Covid-19 killed people of all ages in Africa during the worst year of the pandemic. And malaria has been killing children every year for centuries and will continue long after Covid-19 is gone unless something is done.
  • JUNE: Masks, ventilation, and filtration work pretty well to prevent Covid transmission in schools. We should learn something from this and start designing much healthier schools and offices going forward. Design good ventilation and filtration into all buildings with lots of people in them. We will be healthier all the time and readier for the next pandemic. Then masks can be slapped on as a last layer of defense. Enough with the plexiglass, it’s just stupid and it’s time for it to go.
  • JULY: A new Lyme disease vaccine may be on the horizon (if you’re a human – if you are a dog, talk to your owner about getting the approved vaccine today.) I admit, I had to stretch a bit to find a positive story this month.
  • AUGUST: The Nordic welfare model works by providing excellent benefits to the middle class, which builds the public and political support to collect sufficient taxes to provide the benefits, and so on in a virtuous cycle. This is not a hopeful story for the U.S., where wealthy and powerful interests easily break the cycle with anti-tax propaganda, which ensure benefits are underfunded, inadequate, available only to the poor, and resented by middle class tax payers.
  • SEPTEMBER: Space-based solar power could finally be in our realistic near-term future. I would probably put this in the “interesting” rather than “hopeful” category most months, but I really struggled to come up with a hopeful story this month. I am at least a tiny bit hopeful this could be the “killer app” that gets humanity over the “dirty and scarce” energy hump once and for all, and lets us move on to the next layer of problems.
  • OCTOBER: The situation with fish and overfishing is actually much better than I thought.
  • NOVEMBER: Urban areas may have some ecological value after all.
  • DECEMBER: Covid-19 seems to be “disappearing” in Japan, or at least was before the Omicron wave. Maybe lessons could be learned. It seems possible that East Asian people have at least some genetic defenses over what other ethnic groups have, but I would put my money on tight border screening and an excellent public health care system. Okay, now I’m starting to feel a bit depressed again, sitting here in the U.S. where we can’t have these nice things thanks to our ignorant politicians.

Most interesting stories, that were not particularly frightening or hopeful, or perhaps were a mixture of both:

  • JANUARY: There have been fabulous advances in note taking techniques! Well, not really, but there are some time honored techniques out there that could be new and beneficial for many people to learn, and I think this is an underappreciated productivity and innovation skill that could benefit people in a lot of areas, not just students.
  • FEBRUARY: At least one serious scientist is arguing that Oumuamua was only the tip of an iceberg of extraterrestrial objects we should expect to see going forward.
  • MARCH: One study says 1-2 days per week is a sweet spot for working from home in terms of a positive economic contribution at the national scale. I think it is about right psychologically for many people too. However, this was a very theoretical simulation, and other studies attempting to measure this at the individual or firm scale have come up with a 20-50% loss in productivity. I think the jury is still out on this one, but I know from personal experience that people need to interact and communicate regularly for teams to be productive, and some people require more supervision than others, and I don’t think technology is a perfect substitute for doing these things in person so far.
  • APRIL: Hydrogen fuel cells may finally be arriving. Not so much in the U.S., where we can’t have nice things.
  • MAY: I learned about Lawrence Kohlberg, who had some ideas on the use of moral dilemmas in education.
  • JUNE: The big U.S. government UFO report was a dud. But what’s interesting about it is that we have all quietly seemed to have accepted that something is going on, even if we have no idea what it is, and this is new.
  • JULY: “Cliodynamics” is an attempt at a structured, evidence-based way to test hypotheses about history.
  • AUGUST: Ectogenesis is an idea for colonizing other planets that involves freezing embryos and putting them on a spaceship along with robots to thaw them out and raise them. Fungi could also be very useful in space, providing food, medicine, and building materials.
  • SEPTEMBER: Philip K. Dick was not only a prolific science fiction author, he also developed a comprehensive theory of religion which could possibly even be the right one. Also, possibly related but not really, if there are aliens out there they might live in creepy colonies or super-organisms like ants or termites.
  • OCTOBER: I thought about how to accelerate scientific progress: “[F]irst a round of automated numerical/computational experiments on a huge number of permutations, then a round of automated physical experiments on a subset of promising alternatives, then rounds of human-guided and/or human-performed experiments on additional subsets until you hone in on a new solution… [C]ommit resources and brains to making additional passes through the dustbin of rejected results periodically…” and finally “educating the next generation of brains now so they are online 20 years from now when you need them to take over.” Easy, right?
  • NOVEMBER: Peter Turchin continues his project to empirically test history. In this article, he says the evidence points to innovation in military technologies being driven by “world population size, connectivity between geographical areas of innovation and adoption, and critical enabling technological advances, such as iron metallurgy and horse riding“. What does not drive innovation? “state-level factors such as polity population, territorial size, or governance sophistication“. As far as the technologies coming down the pike in 2022, one “horizon scan” has identified “satellite megaconstellations, deep sea mining, floating photovoltaics, long-distance wireless energy, and ammonia as a fuel source”.
  • DECEMBER: Time reminded us of all the industries Elon Musk has disrupted so far: human-controlled, internal-combustion-fueled automobiles; spaceflight; infrastructure construction (I don’t know that he has really achieved any paradigm shifts here, but not for lack of trying), “artificial intelligence, neurotechnology, payment systems and cryptocurrency.” I’m not sure I follow a couple of these, but I think they missed satellites.

Continuing Signs of U.S. Relative Decline

Signs of U.S. decline relative to our peer group of advanced nations are all around us. I don’t know that we are in absolute decline, but I think we are now below average among the most advanced countries in the world. We are not investing in the infrastructure needed in a modern economy just to reduce friction and let the economy function. The annual length of electric blackouts in the U.S. (hours) compared to leading peers like Japan (minutes) is just one telling indicator. In March, I looked at the Build Back Better proposal and concluded that it was more like directing a firehose of money at a range of problems than an actual plan, but I hoped at least some of it would happen. My rather low but not zero expectations were met, as some limited funding was provided for “hard infrastructure” and energy/emissions projects, but little or nothing (so far, as I write this) to address our systemic failures in health care, child care, or education. The crazy violence on our streets, both gun-related and motor vehicle-related, is another indicator. Known solutions to all these problems exist and are being implemented to various extents by peer countries. Meanwhile our toxic politics and general ignorance continue to hold us back. Biden really gave it his best shot – but if this is our “once in a generation” attempt, we are headed down a road where we will no longer qualify as a member of the pack of elite countries, let alone its leader.

The Climate Change, Drought, Food, Natural Disaster, Migration and Geopolitical Instability Nexus

2021 was a pretty bad year for storms, fires, floods, and droughts. All these things affect our homes, our infrastructure, our food supply, and our water supply. Drought in particular can trigger mass migration. Mass migration can be a disaster for human rights and human dignity in and of itself, and managing it effectively is difficult even for well-intentioned governments. But an insidious related problem is that migration pressure can tend to fuel right wing populist and racist political movements. We see this happening all over the world, and the situation seems likely to get worse.

Tipping Points and other Really Bad Things We Aren’t Prepared For

We can be thankful that nothing really big and new and bad happened in 2021. My apologies to anyone reading this who lost someone or had a tough year. Of course, plenty of bad things happened to good people, and plenty of bad things happened on a regional or local scale. But while Covid-19 ground on and plenty of local and regional-scale natural disasters and conflicts occurred, there were no new planetary-scale disasters. This is good because humanity has had enough trouble dealing with Covid-19, and another major disaster hitting at the same time could be the one that brings our civilization to the breaking point.

So we have a trend of food insecurity and migration pressure creeping up on us over time, and we are not handling it well even given time to do so. Maybe we can hope that some adjustments will be made there to get the world on a sustainable track. Even if we do that, there are some really bad things that could happen suddenly. Catastrophic war is an obvious one. A truly catastrophic pandemic is another (as opposed to the moderately disastrous pandemic we have just gone through.) Creeping loss of human fertility is one that is not getting much attention, but this seems like an existential risk if it were to cross some threshold where suddenly the global population starts to drop quickly and we can’t do anything about it. Asteroids were one thing I really thought we didn’t have to worry much about on the time scale of any human alive today, but I may have been wrong about that. And finally, the most horrifying risk to me in the list above is the idea of an accelerating, runaway feedback loop of methane release from thawing permafrost or underwater methane hydrates.

We are almost certainly not managing these risks. These risks are probably not 100% avoidable, but since they are existential we should be actively working to minimize the chance of them happening, preparing to respond in real time, and preparing to recover afterward if they happen. Covid-19 was a dress rehearsal for dealing with a big global risk event, and humanity mostly failed to prepare or respond effectively. We are lucky it was one we should be able to recover from as long as we get some time before the next body blow. We not only need to prepare for much, much worse events that could happen, we need to match our preparations to the likelihood of more than one of them happening at the same time or in quick succession.

Technological Progress

Enough doom and gloom. We humans are here, alive, and many of us are physically comfortable and have much more leisure time than our ancestors. Our social, economic, and technological systems seem to be muddling through from day to day for the time being. We have intelligence, science, creativity, and problem solving abilities available to us if we choose to make use of them. Let’s see what’s going on with technology.

Biotechnology: The new mRNA technology accelerated by the pandemic opens up potential cures for a range of diseases. We need an effective biological surveillance system akin to nuclear weapons inspections (which we also need) to make sure it is not misused (oops, doom and gloom trying to creep in, but there are some ideas for this.) We have vaccines on the horizon for diseases that have been plaguing us for decades or longer, like malaria and Lyme disease. Malaria kills more children worldwide, year in and year out, than coronavirus has killed per year at its peak.

Promising energy technologies: Space based solar power may finally be getting closer to reality. Ditto for hydrogen fuel cells in vehicles, although not particularly in the U.S. (I’m not sure this is preferable to electric vehicles for everyday transportation, but it seems like a cleaner alternative to diesel and jet fuel when large amounts of power are needed in trucking, construction, and aviation, for example.)

Other technologies: We are actually using technology to catch fish in more sustainable ways, and to grow fish on farms in more sustainable ways. We are getting better at looking for extraterrestrial objects, and the more we look, the more of them we expect to see (this one is exciting and scary at the same time). We are putting satellites in orbit on an unprecedented scale. We have computers, robots, artificial intelligence of a sort, and approaches to use them to potentially accelerate scientific advancements going forward.

The State of Earth’s Ecosystems

The state and trends of the Earth’s ecosystems continue to be concerning. Climate change continues to churn through the public consciousness and our political systems, and painful as the process is I think our civilization is slowly coming to a consensus that something is happening and something needs to be done about it (decades after we should have been able to do this based on the evidence and knowledge available.) When it comes to our ecosystems, however, I think we are in the very early stages of this process. This is something I would like to focus on in this blog in the coming year. My work and family life are busy, and I have decided to take on an additional challenge of becoming a student again for the first time in the 21st century, but somehow I will persevere. If you are reading this shortly after I write it in January 2022, here’s to good luck and prosperity in the new year!

Elon Musk and space-based solar

Charlie Stross says Elon Musk is trying to corner the market for space-based solar power.

Musk owns Tesla Energy. And I think he’s going to turn a profit on Starship by using it to launch Space based solar power satellites. By my back of the envelope calculation, a Starship can put roughly 5-10MW of space-rate photovoltaic cells into orbit in one shot. ROSA—Roll Out Solar Arrays now installed on the ISS are ridiculously light by historic standards, and flexible: they can be rolled up for launch, then unrolled on orbit. Current ROSA panels have a mass of 325kg and three pairs provide 120kW of power to the ISS: 2 tonnes for 120KW suggests that a 100 tonne Starship payload could produce 6MW using current generation panels, and I suspect a lot of that weight is structural overhead. The PV material used in ROSA reportedly weighs a mere 50 grams per square metre, comparable to lightweight laser printer paper, so a payload of pure PV material could have an area of up to 20 million square metres. At 100 watts of usable sunlight per square metre at Earth’s orbit, that translates to 2GW. So Starship is definitely getting into the payload ball-park we’d need to make orbital SBSP stations practical. 1970s proposals foundered on the costs of the Space Shuttle, which was billed as offering $300/lb launch costs (a sad and pathetic joke), but Musk is selling Starship as a $2M/launch system, which works out at $20/kg.

antipope.org

It just makes sense that you could intercept enormous amounts of solar energy in space and beam it down somehow. The sun is so unimaginably vast that only a miniscule fraction of its energy ever strikes the Earth. If you can position solar panels in orbit so they are not shading the Earth, it seems like there would be no practical limit to how much energy you could gather. Then you have the problem of beaming it down. The engineers who look into this assure us that it can be done at a low enough intensity that we would experience only a pleasantly warm sensation if you happened to walk through the beam, and they can do it in the middle of nowhere so that doesn’t even happen. Of course, members of the public are likely to be very skeptical of this if and when it does happen. Still, if most people are skeptical, a small country or multi-national corporation or two could create a nice carbon-free heavy industry setup and either out-compete or charge everybody else to use it.

Will oil companies be forced to cut emissions?

This article from Guardian talks about court cases and shareholder activism that may finally force oil companies to take climate change seriously. Even Exxon which, in my opinion, through its manipulation of the U.S. political system bears significant responsibility for the fact that we have a climate crisis in the first place, or at least for the fact that we have not made a significant attempt to deal with it.

A couple points. When we talk about an oil company “cutting emissions”, I don’t think we are talking about the emissions caused by people and businesses using the product. I think we are talking about emissions used in exploration, production, and transportation of the oil itself. Which is all good, but not the root of the fossil fuel emissions problem which is burning the stuff to liberate energy to do work. The fact that the amoral, possibly psychopathic financial industry is turning on the oil industry means they think we are going to be burning less of it going forward. An oil company that invests in “sustainable investments” other than oil is no longer an oil company. The electric utility industry and nuclear industries are completely different animals with existing players, so Exxon is not just going to take them over. So maybe Exxon will just evolve into some sort of venture capital fund looking for profitable investments for its dollars. And there are already plenty of other companies doing that for it to compete with, so I don’t see why Exxon would be particularly adept at it. If they don’t make it long term, good riddance. See you in hell, guys!

fun stats on U.S. blackouts

Electric blackouts are yet another area where the hard data shows the U.S. is slipping behind other developed countries.

To put it bluntly, this kind of situation doesn’t happen everywhere. In fact, it happens more often in the U.S. than in any other developed country, according to the University of Minnesota’s Massoud Amin, a founding expert in smart-grid technology. Amin has found that utility customers lose power for an average of 4 minutes annually in Japan, compared to 92 minutes per year in the Upper Midwest.

“We are behind all other G7 nations in our infrastructure, including the power grid,” Amin said.

Yale Climate Connections

One simple (i.e. low tech but expensive) solution suggested is to bury power lines, which provides protection against both storms and freezing. I have always thought it would make sense to put utility tunnels under roads and streets. Then you could put all your utilities in there (electric, gas, water, sewer, communications) and have access to them through manholes rather than having to dig up the street. Of course, this would require up front planning and expense, it might be hard to retrofit an existing city this way, and it would require coordinating the patchwork of mostly uncoordinated public and private entities that fund and operate our infrastructure systems. Or we could try to untangle that patchwork into something that makes more sense.

We’ll need to figure something out just to keep the system functioning as it ages. At the same time, extreme weather and other disasters seem to be getting worse. There is talk of electrifying vehicles on a large scale, and some locales are shifting away from natural gas and toward electrifying more homes and businesses. Then we have the move toward more decentralized, intermittent sources of energy. And finally, there is the risk of cyber attacks and plain old fashioned attacks, whether by a serious foreign adversary or just mischief makers. Right now, foreign adversaries and mischief makers may just be sitting back and laughing at the United States as we manage to spread deadly biological agents and let our critical infrastructure fail from neglect without their help.

Is Exxon going down?

We saw the value of coal companies collapse a few years ago, and it doesn’t seem like they are coming back. Could oil be next?

The big picture: Today,ExxonMobil is not even in the top 40 most valuable companies in America. It’s losing money, cutting staff, and stretching to maintain an unsustainable dividend…

Exxon has lost 54% of its value this year alone. That’s some $163 billion. By contrast, Chevron is down 42%, or $95 billion, while NextEra is up 23%, or $26 billion.

Felix Salmon, The Week

This drop in value could be a result of the Covid recession, if you ask me, and oil could come roaring back in the medium term, if you ask me. But the longer term story is one of renewables slowly but surely taking over.

Oil is a product that our civilization wants and needs to function. I don’t really blame companies for producing that product. Governments should have put an appropriate tax on the negative social and environmental consequences of it a long time ago. But there is a special level in hell for Exxon and some of its past leaders, because they knew the reality of global warming decades ago, and their decades of propaganda war against the American public have a lot to do with what many people believe about climate change today, and the failure of our political system to prepare and meet the challenge for at least 20 years, if not 50 years.

BP Statistical Review of World Energy

BP has put out its Statistical Review of World Energy 2020. I’m a little short on time so I’m going to quote CNN’s coverage of it. (At least I think this is the report CNN is referring to. I have noticed a trend recently where journalists talk about a “recent report” without naming it or linking to it.) At least, I’m going to try to quote it. WordPress’s block editor is getting harder and harder to use.

In a “business-as-usual” scenario, in which government policies and social preferences evolve in the same way as in the recent past, oil demand picks up slightly following the coronavirus hit, but then plateaus around 2025 and starts to decline after 2030.

In two other scenarios, in which governments take more aggressive steps to curb carbon emissions and there are significant shifts in societal behavior, demand for oil never fully recovers from the decline caused by the pandemic. That would mean that oil demand peaked in 2019…

”As difficult steps go, BP’s pirouette from traditional oil company to green energy giant ranks among the more challenging,” Susannah Streeter, a senior investment and markets analyst at Hargreaves Lansdown said in a note to clients.

CNN

What exactly is a “green energy giant”? Carbon capture might be a thing, eventually, but that seems like a risky bet as the only business strategy. If most things are going to electrify, it seems like the green energy giant will be the regulated electric utility business, at least in the United States, and it seems unlikely BP is trying to go there. They can try to supply that industry with things to burn, I suppose, like natural gas and liquid natural gas (coal and oil seem to be on their way out), but I am not sure that is a growth industry. Aviation might move toward hydrogen fuel cells eventually. There must be some tiny demand for rocket fuel. Chemicals, drugs, and plastics will continue to exist, of course, but I am not sure that would be a huge source of annual revenue growth for decades. They can manufacture solar panels, windmills, efficient transportation and electrical equipment of various sorts, get into the smart grid, smart buildings and materials, batteries, etc. But doing all sorts of little bits and pieces like this would seem to get them into industrial conglomerate territory, and there are plenty of companies already there. Maybe that is where they are headed – just make forays into lots of different markets and see if anything sticks.

November 2019 in Review

Most frightening and/or depressing story:
  • The Darling, a major river system in Australia, has essentially dried up.
Most hopeful story: Most interesting story, that was not particularly frightening or hopeful, or perhaps was a mixture of both: