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Energy

The 7 most important truths about our energy future

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17 minute read

From EnergyTalkingPoints.com

By Alex Epstein

At Jordan Peterson’s ARC (Alliance for Responsible Citizenship) conference I was asked to share the most important truths about our energy future.

I boiled it down to 7. Understand these and you’ll be a better thinker than 97% of energy or climate “experts.”

GIM 7 most important truths

Energy Truth 1

To decide what to do about fossil fuels and other forms of energy, we must carefully weigh their benefits and side-effects.

  • When evaluating what to do about a product or technology—e.g., a prescription drug—we need to carefully weigh the benefits and side-effects of our alternatives.

    But most “experts” just focus on fossil fuels’ negative climate side-effects.

  • It is particularly crucial to weigh any negative climate side-effects of continuing fossil fuel use against the climate mastery benefits that come with them, as those benefits can neutralize or overwhelm negatives.

    E.g., more energy powering heating and cooling, irrigation, building, etc.

  • Example of fossil-fueled climate mastery overwhelming negative impacts: drought.

    Any contribution of rising CO2 to drought has been overwhelmed by fossil-fueled irrigation and crop transport, which have helped reduce drought deaths by over 100 times over 100 years as CO2 levels have risen.1 drought deaths

Energy Truth 2

Fossil fuels for the foreseeable future will remain a uniquely cost-effective (affordable, reliable, versatile) and scalable source of energy.

  • Myth: There are no real benefits of continuing fossil fuel use because it can be rapidly replaced by mostly solar and wind.

    Truth: Fossil fuels are and for decades will remain uniquely cost-effective: affordable, reliable, versatile—on a scale of billions of people in thousands of places.

  • Myth: Fossil fuels are being rapidly replaced in an “energy transition” to solar and wind.

    Truth: Fossil fuel use is 80% of the world’s energy and still growing despite 100+ years of aggressive competition and 20+ years of political hostility and massive solar and wind favoritism.2 primary energy consumption by fuel

  • Myth: Fossil fuel use will soon rapidly decline because countries know “green” energy will be cheaper.

    Truth: Countries that care most about cheap energy are pro-fossil fuels.

    E.g., China, which uses mostly coal to produce “green” tech, has over 300 planned new coal plants designed to last over 40 years.3

  • Myth: Solar and wind are growing fast by outcompeting fossil fuels with superior economics.

    Truth: Solar and wind are growing fast only when given massive government preferences—mandates, subsidies, and no penalty for unreliability—along with crippling government punishments of fossil fuels.

  • Myth: Solar and wind are now cheaper than fossil fuels.

    Truth: For the overwhelming majority of the world’s energy needs, solar and wind either can’t do what fossil fuel can—e.g., non-electricity energy uses such as airplanes or cargo ships—or are far more expensive.4

  • Myth: Solar and wind electricity is getting so cheap that it will lead to rapid electrification of the 4/5ths of today’s energy that is not electricity.

    Truth: When you factor in full cost of the 24/7 life support that unreliable solar and wind electricity need, they are far more expensive.5 TX freeze 2021

  • Fossil fuels are uniquely able to provide energy that’s low-cost, reliable, and versatile on a scale of billions of people. This is due to fossil fuels’ combination of remarkable attributes—fossil fuels are naturally stored, concentrated, and abundant energy—and generations of innovation by industry.
  • There is currently only one energy technology that can match (actually exceed) fossil fuels’ combination of naturally stored, concentrated, abundant energy: nuclear. Nuclear may one day outcompete all uses of fossil fuels, but this will take radical policy reform and generations of innovation and work.

Energy Truth 3

The more cost-effective and scalable energy is, the more human beings can flourish on this naturally deficient and dangerous planet.

  • Myth: The Earth will be a highly livable place—stable, sufficient in resources, and safe—as long as we don’t impact it too much.

    Truth: Earth is very inhospitable—dynamic, deficient, dangerous—unless we have the productive ability to transform and impact it to be abundant and safe.

  • The more energy is cost-effective—affordable, reliable, versatile—and scalable to billions of people in thousands of places, the more people can use machines to produce the values they need to flourish on this naturally deficient and dangerous planet.
  • Thanks to today’s unprecedented availability of cost-effective energy (mostly fossil fuel) the world has never been a better place for human life. Life expectancy and income have been skyrocketing, with extreme poverty (<$2/day) plummeting from 42% in 1980 to <10% today.6 Poverty headcount

Energy Truth 4

Given that the vast majority of the world is energy-poor, the world needs far more energy as quickly as possible.

  • The world needs much more energy.

    Billions of people lack the cost-effective energy they need to flourish. 3 billion use less electricity than a typical American refrigerator. 1/3 of the world uses wood or dung for heating and cooking. Much more energy is needed.7 primitive biofuel use

  • Myth: Poor countries will “leapfrog” fossil fuels and go right to solar and wind.

    Truth: No rich country has been able to abandon fossil fuels even at huge cost, while every dramatic increase in wealth has involved fossil fuels: Japan, Singapore, South Korea, China, etc.

    Poor countries are not guinea pigs.

  • The desperate lack of life-giving, cost-effective energy means that any replacement for fossil fuels must not only provide energy to the 2 billion who use significant amounts of energy today but to the 6 billion who use far less. Rapidly eliminating fossil fuels would be mass murder.
  • Summary: Fossil fuels are a near-term irreplaceable source of the scalable energy humans need to flourish.

    With fossil fuels billions more people can have the opportunity to flourish. Without them, billions of energy-starved people plunge into poverty and early death.

Energy Truth 5

Any negative climate side-effects of our massive fossil fuel use so far have been completely overwhelmed by their climate mastery benefits—as evidenced by the 98% decline in climate disaster deaths over the last 100 years.

  • Myth: We are more endangered than ever by climate because of fossil fuels’ CO2 emissions.

    Truth: We have a 98% decline in climate disaster deaths due to our enormous fossil-fueled climate mastery abilities: heating and cooling, infrastructure-building, irrigation, crop transport.8 climate disaster deaths

  • Myth: Even if climate-related disaster deaths are down, climate-related damages are way up, pointing to a bankrupting climate future.

    Truth: Even though there are many incentives for climate damages to go up—preferences for riskier areas, government bailouts—GDP-adjusted damages are flat.9 weather losses

Energy Truth 6

Mainstream climate science predicts levels of warming and associated climate changes that human beings can continue to master and flourish with.

  • Myth: Even if we’re safe from climate now, we can expect future emissions to lead to disaster.

    Truth: Since today’s unprecedented safety exists after 100+ years of rising CO2, and with 1° C warming, we should be skeptical that further CO2 rises will somehow overwhelm us.

  • Climate mastery is so powerful that for CO2 emissions to be apocalyptic enough to justify rapid fossil fuel restriction, let alone elimination, they’d need to have unprecedented impacts like:
    • Seas rising feet per decade
    • Storms becoming 2 times more powerful

    Science shows nothing like this.

  • Myth: Future warming is ominous because heat-related death is already such a catastrophic problem.

    Truth: Even though Earth has gotten 1°C warmer, far more people still die from cold than heat (even in India)! Near-term warming is expected to decrease temperature-related mortality.10 fewer cold deaths

  • Myth: Future warming is ominous because it will be worst in hot areas.

    Truth: The mainstream view in climate science is that more warming will be concentrated in colder places (Northern latitudes) and at colder times (nighttime) and during colder seasons (winter). Good news.11 warming pattern

  • Myth: Future warming will accelerate as CO2 levels rise.

    Truth: Mainstream science is unanimous that the “greenhouse effect” is a diminishing effect, with additional CO2 leading to less warning.

    Even IPCC’s most extreme, far-fetched scenarios show warming leveling off.12

  • Myth: We face catastrophically rapid sea level rises, which will destroy and submerge coastal cities.

    Truth: Extreme UN sea level rise projections are just 3 feet in 100 years. Future generations can master that. (We already have 100 million people living below high tide sea level.)13 sea level projections

  • Myth: Hurricane intensity is expected to get catastrophically higher as temperatures rise.

    Truth: Mainstream estimates say hurricanes will be less frequent and between 1-10% more intense at 2° C warming. This is not at all catastrophic if we continue our fossil-fueled climate mastery.14 hurricane projections

  • Myth: We face catastrophic increases in dangerous wildfires, an “Earth on fire.”

    While the media increasingly reports on fires and draws connections to warming, the world burns less than 20 years ago and far less than 100 years ago. Fire danger primarily depends on human mastery.15

  • Summary: Continuing fossil fuel use will lead to levels of warming and other changes that we can master and flourish with.

    Policy implications

    • Energy freedom —> CO2 levels rise, life continues to get better and better
    • Net zero —> CO2 levels rise more slowly, billions of lives ruined

Energy Truth 7

A policy of energy freedom, including but not limited to fossil fuel freedom, is the fastest path both to more plentiful energy and to more cost-effective alternatives.

  • What are “energy freedom policies”?

    Government actions to protect the ability of producers to produce all forms of energy and consumers to use all forms of energy, so long as they don’t engage in reasonably preventable pollution or endangerment of others.

  • Energy freedom policies include:
    • Protecting the freedom to develop fossil fuels and other forms of energy. E.g., deep geothermal development.
    • Protecting the freedom to use fossil fuels and all other forms of energy. E.g., “decriminalizing nuclear.”
  • Energy freedom policies are more likely to lead to long-term emissions reductions.

    Because they accelerate the rate at which nuclear and other alternatives become globally cost-competitive. (The only moral and practical way to reduce global emissions.)16 China and India increasing emissions

  • Fact: The 2 biggest instances of CO2 reduction have come from energy freedom policies:
    • Nuclear: Freedom led to cost-effective and scalable nuclear power until the “green” movement virtually criminalized it.
    • Gas: Freedom led to significant substitution of gas vs. coal.
  • “Net zero by 2050,” by failing to recognize the unique benefits of fossil fuels, is catastrophic when barely implemented and would be apocalyptic if fully implemented.

    Energy freedom gives billions more people the energy they need to flourish and unleashes truly cost-effective alternatives.

References


  1. UC San Diego – The Keeling Curve

    For every million people on earth, annual deaths from climate-related causes (extreme temperature, drought, flood, storms, wildfires) declined 98%–from an average of 247 per year during the 1920s to 2.5 per year during the 2010s.

    Data on disaster deaths come from EM-DAT, CRED / UCLouvain, Brussels, Belgium – www.emdat.be (D. Guha-Sapir).

    Population estimates for the 1920s from the Maddison Database 2010, the Groningen Growth and Development Centre, Faculty of Economics and Business at University of Groningen. For years not shown, the population is assumed to have grown at a steady rate.

    Population estimates for the 2010s come from World Bank Data.

  2. Energy Institute – Statistical Review of World Energy

  3. As of July 2023, China has over 300 new coal-fired power stations in various planning and construction phases. Global Energy Monitor – Coal Plant Tracker, Coal Plants by Country (Power Stations)

  4. Alex Epstein – The ultimate debunking of “solar and wind are cheaper than fossil fuels.”

  5. U.S. Energy Information Administration – Hourly Electric Grid Monitor

  6. World Bank Data – Poverty headcount ratio at $1.90 a day (2011 PPP) (% of population)

  7. IEA – Access to affordable, reliable, sustainable and modern energy for all

    Robert Bryce – A Question of Power: Electricity and the Wealth of Nations

  8. UC San Diego – The Keeling Curve

    For every million people on earth, annual deaths from climate-related causes (extreme temperature, drought, flood, storms, wildfires) declined 98%–from an average of 247 per year during the 1920s to 2.5 per year during the 2010s.

    Data on disaster deaths come from EM-DAT, CRED / UCLouvain, Brussels, Belgium – www.emdat.be (D. Guha-Sapir).

    Population estimates for the 1920s from the Maddison Database 2010, the Groningen Growth and Development Centre, Faculty of Economics and Business at University of Groningen. For years not shown, the population is assumed to have grown at a steady rate.

    Population estimates for the 2010s come from World Bank Data.

  9. Roger Pielke Jr. – Weather and Climate Disaster Losses So Far in 2022, Still Not Getting Worse

  10. Zhao et al. (2021)

    Bjorn Lomborg – Climate Change Saves More Lives Than You’d Think

  11. NOAA – Climate change rule of thumb: cold “things” warming faster than warm things

  12. IPCC AR6, WG1, chapter 4

  13. IPCC AR6, WG1

  14. NOAA – Global Warming and Hurricanes

  15. Roger Pielke Jr. – What the media won’t tell you about … Wildfires

  16. Reuters – Analysis: China no closer to peak coal despite record renewable capacity additions

    Reuters – India rejects net zero carbon emissions target, says pathway more important

    Alex Epstein – A pro-human, pro-freedom policy for CO2 emissions

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Business

Premiers fight to lower gas taxes as Trudeau hikes pump costs

Published on

From the Canadian Taxpayers Federation

By Jay Goldberg 

Thirty-nine hundred dollars – that’s how much the typical two-car Ontario family is spending on gas taxes at the pump this year.

You read that right. That’s not the overall fuel bill. That’s just taxes.

Prime Minister Justin Trudeau keeps increasing your gas bill, while Premier Doug Ford is lowering it.

Ford’s latest gas tax cut extension is music to taxpayers’ ears. Ford’s 6.4 cent per litre gas tax cut, temporarily introduced in July 2022, is here to stay until at least next June.

Because of the cut, a two-car family has saved more than $1,000 so far. And that’s welcome news for Ontario taxpayers, because Trudeau is planning yet another carbon tax hike next April.

Trudeau has raised the overall tax burden at the pumps every April for the past five years. Next spring, he plans to raise gas taxes by another three cents per litre, bringing the overall gas tax burden for Ontarians to almost 60 cents per litre.

While Trudeau keeps hiking costs for taxpayers at the pumps, premiers of all stripes have been stepping up to the plate to blunt the impact of his punitive carbon tax.

Obviously, Ford has stepped up to the plate and has lowered gas taxes. But he’s not alone.

In Manitoba, NDP Premier Wab Kinew fully suspended the province’s 14 cent per litre gas tax for a year. And in Newfoundland, Liberal Premier Andrew Furey cut the gas tax by 8.05 cents per litre for nearly two-and-a-half years.

It’s a tale of two approaches: the Trudeau government keeps making life more expensive at the pumps, while premiers of all stripes are fighting to get costs down.

Families still have to get to work, get the kids to school and make it to hockey practice. And they can’t afford increasingly high gas taxes. Common sense premiers seem to get it, while Ottawa has its head in the clouds.

When Ford announced his gas tax cut extension, he took aim at the Liberal carbon tax mandated by the Trudeau government in Ottawa.

Ford noted the carbon tax is set to rise to 20.9 cents per litre next April, “bumping up the cost of everything once again and it’s absolutely ridiculous.”

“Our government will always fight against it,” Ford said.

But there’s some good news for taxpayers: reprieve may be on the horizon.

Federal Conservative leader Pierre Poilievre’s promises to axe the carbon tax as soon as he takes office.

With a federal election scheduled for next fall, the federal carbon tax’s days may very well be numbered.

Scrapping the carbon tax would make a huge difference in the lives of everyday Canadians.

Right now, the carbon tax costs 17.6 cents per litre. For a family filling up two cars once a week, that’s nearly $24 a week in carbon taxes at the pump.

Scrapping the carbon tax could save families more than $1,200 a year at the pumps. Plus, there would be savings on the cost of home heating, food, and virtually everything else.

While the Trudeau government likes to argue that the carbon tax rebates make up for all these additional costs, the Parliamentary Budget Officer says it’s not so.

The PBO has shown that the typical Ontario family will lose nearly $400 this year due to the carbon tax, even after the rebates.

That’s why premiers like Ford, Kinew and Furey have stepped up to the plate.

Canadians pay far too much at the pumps in taxes. While Trudeau hikes the carbon tax year after year, provincial leaders like Ford are keeping costs down and delivering meaningful relief for struggling families.

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Economy

Gas prices plummet in BC thanks to TMX pipeline expansion

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From Resource Works

By more than doubling capacity and cutting down the costs, the benefits of the TMX expansion are keeping more money in consumer pockets. 

Just months after the Trans Mountain Expansion (TMX) project was completed last year, Canadians, especially British Columbians, are experiencing the benefits promised by this once-maligned but invaluable piece of infrastructure. As prices fall when people gas up their cars, the effects are evident for all to see.

This drop in gasoline prices is a welcome new reality for consumers across B.C. and a long-overdue relief given the painful inflation of the past few years.

TMX has helped broaden Canadian oil’s access to world markets like never before, improve supply chains, and boost regional fuel supplies—all of which are helping keep money in the pockets of the middle class.

When TMX was approaching the finish line after the new year, it was praised for promising to ease long-standing capacity issues and help eliminate less efficient, pricier methods of shipping oil. By mid-May, TMX was completed and in full swing, with early data suggesting that gas prices in Vancouver were slackening compared to other cities in Canada.

Kent Fellows, an assistant professor of Economics and the Director of Graduate Programs for the School of Public Policy at the University of Calgary, noted that wholesale prices in Vancouver fell by roughly 28 cents per litre compared to the typically lower prices in Edmonton, thanks to the expanded capacity of TMX. Consequently, the actual price at the gas pump in the Lower Mainland fell too, providing relief to a part of Canada that traditionally suffers from high fuel costs.

In large part due to limited pipeline capacity, Vancouver’s gas prices have been higher than the rest of the country. From at least 2008 to this year, TMX’s capacity was unable to accommodate demand, leading to the generational issue of “apportionment,” which meant rationing pipeline space to manage excess demand.

Under the apportionment regime, customers received less fuel than they requested, which increased costs. With the expansion of TMX now complete, the pipeline’s capacity has more than doubled from 350,000 barrels per day to 890,000, effectively neutralizing the apportionment problem for now.

Since May, TMX has operated at 80 percent capacity, with no apportionment affecting customers or consumers.

Before the TMX expansion was completed, a litre of gas in Vancouver cost 45 cents more than a litre in Edmonton. By August, it was just 17 cents—a remarkable drop that underscores why it’s crucial to expand B.C.’s capacity to move energy sources like oil without the need for costly alternatives, allowing consumers to enjoy savings at the pump.

More than doubling TMX’s capacity has rapidly reshaped B.C.’s energy landscape. Despite tensions in the Middle East, per-litre gas prices in Vancouver have fallen from about $2.30 per litre to $1.54 this month. Even when there was a slight disruption in October, the price only rose to about $1.80, far below its earlier peaks.

As Kent Fellows noted, the only real change during this entire timeline has been the completion of the TMX expansion, and the benefits extend far beyond the province’s shores.

With TMX moving over 500,000 barrels more per day than it did previously, Canadian oil is now far more plentiful on the international market. Tankers routinely depart Burrard Inlet loaded with oil bound for destinations in South Korea and Japan.

In this uncertain world, where oil markets remain volatile, TMX serves as a stabilizing force for both Canada and the world. People in B.C. can rest easier with TMX acting as a barrier against sharp shifts in supply and demand.

For critics who argue that the $31 billion invested in the project is short-sighted, the benefits for everyday people are becoming increasingly evident in a province where families have endured high gas prices for years.

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