You are energy efficient!mspooner
If you listen to extreme environmentalists, you’d think the entire human race was oblivious to the fact that many of the resources we use are non-renewable, and that our fate is to irresponsibly destroy the planet.
Well I have some good news. According to the U.S. Energy Information Adminstration’s (EIA) most recent Residential Energy Consumption Survey (RECS), U.S. homes built in 2000 and later consume only 2% more energy on average than homes built prior to 2000, despite being on average 30% larger.
I recall the brouhaha created when in 1972 (yes, I’m that old) when the Club of Rome (a distinguished think-tank) published a study called Limits to Growth. Many folks have since criticized the work, and still others have tried to defend it (by re-interpreting the study “using modern language” or some other sleight of hand). The prediction was that humanity’s pursuit of constant growth and consumption of resources (energy, food, trees etc.) would use up the planet within 100 years. Yes, Limits to Growth did suggest that if mankind undertook to minimize greed, control population growth and take advantage of technology that things might not turn out so bad, but it was unequivocally pessimistic about this possibility. Quite a stir was caused by the publication.
We had another panic more recently: The Association for the Study of Peak Oil and Gas (ASPO) suggested regular conventional oil reached an all time peak in 2005. The ‘theory’ was that we’ve used up half of the oil the earth has to offer, and so it’s all downhill from now on.
So how can it be that suddenly the U.S. is expected to be almost energy self-sufficient?
“The United States, which currently imports around 20 per cent of its total energy needs, becomes all but self-sufficient in net terms — a dramatic reversal of the trend seen in most other energy-importing countries,” the Paris-based International Energy Agency said in its World Energy Outlook released Monday Nov. 12, 2012.
What these ‘studies’ and occasional panics fail to take into account is the greatest innovation ever – CAPITALISM! Shortages and surpluses are corrected by economics. The laws of supply and demand and the unencumbered adjustments in pricing ensure that there are very few limits to growth. We’ve come to appreciate over the years that a ‘price’ isn’t necessarily a dollar amount. Increasingly some things are just too expensive if they also cause irreparable harm to the environment. When one non-renewable resources becomes just too expensive, we find substitutes (biofuel, gas, nuclear, clean coal and hydroelectric).
I’ve read that recent polls show falling support for capitalism all over the world. This is sad when you consider the alternatives. Was it better when no system existed? I visited Africa several years ago and learned that some areas had long ago been cleared of all indigenous tree varieties. In a primitive society everything belongs to everyone, and everyone managed to destroy every tree. A quick study of the former Soviet Union should make it clear that communism inflicted serious environmental damage and scarcity. The population of China only stopped starving once a more capitalist system was tolerated.
So fret not my friends. You are energy efficient, and no doubt one day your home will consume no fossil fuels at all. You will no doubt substitute an electric vehicle for your hybrid. Personally, I pray there will be enough oil and gasoline left, no matter how expensive, so that I can still ride my Harley-Davidson motorcycle.
Posted: February 20th, 2013 under Asset Allocation, Finance, Financial Planning, General, Investments, Oil & Gas.
Tags: biofuel, club of rome, coal, consumption, demand, economics, efficient, energy, environment, gas, hydro, limits to growth, mal, malvin, maverickinvestors.com, nuclear, nucliear, oil, peak oil, residential, self-sufficient, spooner, supply, U.S., world