Gasland

The new documentary Gasland (torrent) has been released. It is an eye opening look at the poisoning caused by Hydraulic Fracturing, not to be confused with fraking, in natural gas extraction from shale. The film is an investigative report made by one man whose local water-source was under threat. As it stands, drilling companies generally do not even have to publish which chemicals they use in fracking. The film is worth seeing. It reveals how State and Federal governments, and particularly the Bush administration, trampled the interests of the environment and the people in favour of profit-motivated energy companies. Generally, energy companies refused to speak in the documentary, and so the film is unintentionally one-sided, yet probably accurate.

Environmental Accidents

The modern economy is utterly dependant on the scarce and non-renewable natural resource crude oil. Unfortunately, a failure to tax the price of crude and to mandate sufficient insurance, and to exact sufficient environmental penalties has created industries like nuclear power and offshore drilling which ought to be uninsurable in a well designed marketplace.

The failure of regulation aside, British Petroleum, Transocean, and Haliburton ought to be nationalised in the United States. The combined value of the companies at USD 200B is insufficient to cover the damages that they have caused through their excessive risk-taking and poor engineering. While there has been a response to try to stop the leak, it is a global emergency that requires the most urgent of responses from the world.

The Exxon Valdez incident should have been the turning point in the late 80s where the governments of the world should have agreed to property rights and regulations for activities on the Oceans and a penalty schedule for environmental accidents. Nothing of course has ever been agreed. Within the United States, a jury demanded only a modest penalty of $5B. Exxon fought this very light penalty and eventually the Supreme Court reduced the fee to a pitiful $500 million. The Supreme Court should have increased the fee 10 times rather than decreasing it 10 times. From an environmental perspective, it was the worst ruling the Supreme Court has ever made. Congress should have quickly enacted new legislation which would have exacted proper penalties for these disasters, but they too are a complete failure along with the executive branch. Other countries should demand compensation for these disasters, particularly the latest one which affects more than just the United States.

Petroleum and Obeisity

In the United States, a morbidly obese country, rising fuel prices will have a very positive effect on public health. Sustained high energy prices should accelerate the effect owing to increased investment in public transit and more rationally designed cities.

Green Energy Technology

Last Friday, on NPR Science Friday, two developers of clean energy technology were interviewed.

Klaus Lackner, director of the Lenfest Center for Sustainable Energy at Columbia University, presented technology which could relatively cheaply sequester carbon directly from the atmosphere. His breakthrough was not so much in the basic principle, but in significantly reducing the cost. He believes that very soon the CO2 from a litre of petroleum could be sequestered for merely an additional USD 0.07 per litre. Emissions could be sequestered into sodium bicarbonate (baking soda) or calcium carbonate (chalk, antacid).

Meanwhile, Jerry Woodall a very accomplished inventor at Perdue University has developed a simple means of using aluminum, gallium, and water to generate hydrogen. His proposed aluminum cycle could be a very useful way to allow hydrogen fuel portability at about 40% energy efficiency. The hydrogen could then be used in fuel cells or if necessary, combusted.

Today from New Scientist: University of Utah scientists have developed a means of recovering waste heat energy through an acoustic heat engine which converts heat to sound to electricity also at about 40% efficiency. One cubic centimetre of these small devices could recover about 1 W of power.

The Economics of Climate Change

In fall 2006, the Stern Review of the Economics of Climate Change,a British government commissioned study, was released. Most scientific or economic criticisms have said that the review did not go far enough in assessing the effect of climate change, although it did present extremely stark warnings for the future. Martin Weitzman has a upcoming book review of the Stern Review in the upcoming Journal of Economic Literature. Brad DeLong also has a great post on this topic. Combined with UN reports on climate change, the evidence for highly destructive global climate change is conclusive and undeniable. The solutions to this crisis are clear, and yet the corruption and inefficiency of the geopolitical system allows the perpetuation of such egregious harm to life on Earth and human well being. How and when will it end?

LEDs

A FT article about the development of the Blue LED, which makes possible white LEDs. This technology is set to vastly reduce world energy consumption and improve quality of life. Note the willingness of some corporations to completely screw employees that have made them billions of dollars for extremely little pay. Yet another reason to have a significant ownership or partnership interest in your company.

Energy Transfer Using Electromagnetic Resonance

This technology could be very effective at further improving our lives by freeing us of wires over moderate distances.

Mineral Slime

It is pitiful that despite all humanity has accomplished, burning dead plants is still the dominant energy source for developed economic activity. Advancing technology it seems has been lowering the costs of discovering and mining new sources of fossil fuel more than it has been developing alternative sources absent of negative externalities.

The latest oil discovery in the Gulf exemplifies this phenomenon. I was able this weekend to purchase petroleum at about 0.50 USD per litre. While on paper, the financial markets and economy are given a boost by this phenomenon, this masks the real destruction that finds like this have on a properly quantified economy which incorporates environmental and welfare statistics. The true cost of that petrol to society was something more like 1.50 USD per litre. In reality, new oil discoveries are like a methamphetamine addict getting their hands on a new bag of meth. While they may consider themselves much better off at the time, the long run consequences are dire and their behaviour in consuming it is irrational.

Nearly every sensible economist agrees that heavy carbon taxation is desperately needed worldwide to counter the negative externalities created from burning hydrocarbons. For a while, even good economists where questioning the true existence of a global warming phenomenon. Those days are past. The scientific evidence is irrefutable. The necessity is clear, but the political action has yet to be taken.