Tuesday, May 13, 2008

Peak Oil Panic - Enter the Nuclear Power Industry

I "lost" my argument about "peak oil" that I was having with my internet friend. He ovewhelmed me with facts and figures which were taken from the EIA, an independent government agency set up to monitor energy policy. I was resistant to the panic reaction of "peak oil" more than I was resistant to the facts. In short, I believe that U.S. energy markets can "turn" before "peak oil" is reached.

Alternative fossil fuel extraction and conversion techniques are constantly being improved. While I support wind and solar, they are by no means the "answer". Wind and solar have been vastl subsized over the past decade or so. EIA figures state wind & solar produces less than 1% of total electricity, even after huge subsidies for many, many years. Megawatt hour costs (EIA) for solar: $24.34. Wind:$23.37

By contrast, coal and gas susbsidies are .44 and .67 cents respectively. Noone wants to face the news that electricity from nuclear ($1.59 subsidy) is the best way of turning away from Middle Eastern oil. Subsidies can bankrupt the economy just as much as "peak oil" can.

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