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Home business strategy

The Key To The War Against Oil

by Dana Blankenhorn
August 28, 2008
in business strategy, Crisis of 2008, economy, energy, environment, ethanol, geothermal, innovation, investment, regulation, Science, solar energy, The War Against Oil, wind power
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Usdeptofenergyseal
The key to winning the War Against Oil will lie in the appointment of a new Energy Secretary.

The Department of Energy has been moribund practically since the day it was born, in part because the President who created it, Jimmy Carter, became so discredited he wasn’t even asked to speak at his party’s convention this week, despite two Nobel Peace Prizes.

It was designed to implement an industrial policy, but instead it became a political dumping ground, staffed by businessmen under Republicans and party hacks under Democrats.

We can’t afford that now.

The Department of Energy must deliver research and policy to guide public and private investment toward a hydrogen economy. Since people really began recognizing the priority we have seen scam-after-scam-after-scam get funding, get publicity, and get power.

  1. Ethanol is a scam. It raises food prices, and costs more in energy to produce than it delivers.
  2. Clean coal is a lie. The technology does not exist, yet. It might one day, but until it does new coal investments are counter-productive.
  3. T. Boone Pickens is a fraud. He wants government power, and subsidies, to turn West Texas into his own fiefdom, stealing and selling its water, running roughshod over property rights with special eminent domain laws.
  4. Wind efforts are being wasted. Power lines lose half the power getting it to market. There is, as yet, no infrastructure to turn that power into hydrogen and get it to market.

That’s not all. Nuclear power is making a comeback, even though we still don’t know what to do with the waste, or even how to protect it against dirty bomb makers. Drill here, drill now advocates threaten to seize the capital we need to make the future and re-enslave us to the past.

I have a very simple plan for the next Energy Secretary:

  1. Research. We need hard numbers on the total costs of various forms of energy development. Boone_pickens_2008
    We need to know all the externalities so capital can be used efficiently. This is the best possible subsidy we can give to industry, the information that will help them make the most money in the least amount of time with the least amount of waste.
  2. Publicity. The Energy Department needs to become the propaganda department for the War Against Oil, delivering the help people need to enlist in the fight. This includes a demand that hydrogen users practice water recycling. Don’t vent the water out of the car. Get it into the municipal system.
  3. Planning. The Energy Department needs to lead a complete re-design of the nation’s electrical grid, adding intelligence, driving investments in more-efficient high power lines, building infrastructure that enables companies to buy as well as sell power and develop a hydrogen delivery system.

None of this is outside the agency’s original mission. But that mission has been ignored and its time has come.

If America doesn’t turn around its energy infrastructure investments over the next four years, it will lose any hope of overhauling China, or of saving Florida.

I’m not naming names here, but I’m sure Al Gore can offer some.

Tags: Boone Pickensclean coalelectrical gridenergy investmentsethanolhydrogenSamuel BodmanThe War Against Oilwar against oilwind power
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Dana Blankenhorn

Dana Blankenhorn

Dana Blankenhorn began his career as a financial journalist in 1978, began covering technology in 1982, and the Internet in 1985. He started one of the first Internet daily newsletters, the Interactive Age Daily, in 1994. He recently retired from InvestorPlace and lives in Atlanta, GA, preparing for his next great adventure. He's a graduate of Rice University (1977) and Northwestern's Medill School of Journalism (MSJ 1978). He's a native of Massapequa, NY.

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Comments 2

  1. Jesse Kopelman says:
    17 years ago

    While I’m dubious of Ethanol as a viable gasoline replacement, I did hear something interesting on NPR’s science now that made me question the whole Ethanol raises food prices thing. The guy they were interviewing said the US actually had a 1 billion bushel corn surplus this year! That would imply that food prices are being influenced by speculators, not actual Ethanol production. He also talked about how Ethanol can be produced very efficiently from cat-tails as part of sewage treatment plants. Now this guy was obviously pro-Ethanol and maybe he is full of shit, but I do wonder about all these claims that Ethanol production is driving up food prices. Such reports are suspiciously light on numbers. I do know that Ethanol production is still pretty tiny compared to agriculture as a whole . . . I think deeper digging is needed here.

    Reply
  2. Jesse Kopelman says:
    17 years ago

    While I’m dubious of Ethanol as a viable gasoline replacement, I did hear something interesting on NPR’s science now that made me question the whole Ethanol raises food prices thing. The guy they were interviewing said the US actually had a 1 billion bushel corn surplus this year! That would imply that food prices are being influenced by speculators, not actual Ethanol production. He also talked about how Ethanol can be produced very efficiently from cat-tails as part of sewage treatment plants. Now this guy was obviously pro-Ethanol and maybe he is full of shit, but I do wonder about all these claims that Ethanol production is driving up food prices. Such reports are suspiciously light on numbers. I do know that Ethanol production is still pretty tiny compared to agriculture as a whole . . . I think deeper digging is needed here.

    Reply

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I'm Dana Blankenhorn. I have covered the Internet as a reporter since 1983. I've been a professional business reporter since 1978, and a writer all my life.

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