Deployable solutions to the energy
crisis are in hand. The obstacle is our
inability to differentiate between
ideological
and strategic thinking.
Intelligent policy making requires
that effective strategies prevail over
ideological wishful thinking. “What
can we do?” and “When can we do
it?” must be our standards — not visions
of a perfect world.
1. A Realistic Deployable solutions to the energy
crisis are in hand. The obstacle is our
inability to differentiate between
ideological and strategic thinking.
Intelligent policy making requires
Energy Strategy
that effective strategies prevail over
ideological wishful thinking. “What
can we do?” and “When can we do
it?” must be our standards — not vi-
sions of a perfect world.
Policy criteria are concerned with
time (when something can be done)
and doability (what can be done).
By Tsvi Bisk Time refers to short term, intermedi-
ate term, long term, and deep long
Energy policy must be realistic or it term. In other words, how we get
from here to there and what the in-
won’t work, says strategy analyst termediate steps would be. Doability
Tsvi Bisk. Fortunately, clean and relates to practicality — a policy that
reflects how real people actually live.
sustainable energy is more Anything else is irrational. Thus, a
rational energy strategy must:
realistic than you may think. 1. Presume the middle class will
not change its lifestyle. Policy pro-
posals based on fundamental
changes of lifestyle will fail and close
minds to environmental arguments.
People are willing to change on the
margins — replace present gas guz-
zlers with hybrids or electric cars, re-
place incandescent bulbs with fluo-
rescent or LEDs, pay attention to the
energy consumption of appliances,
vacation closer to home, work closer
to home (or from home), etc. They
are not willing to give up hot water,
air conditioning, or the flexibility of
private transportation.
2. Mobilize multi-partisan political
support. Policies that irritate large
segments of public opinion are not
politically doable in postmodern de-
mocracies — a fact annoying to ex-
perts, but still a fact.
3. Conform to the laws of econom-
ics. Taxing big energy corporations
might be emotionally satisfying but
WFS PHOTO ILLUSTRATION BY C.G. WAGNER / IMAGES: PHOTOS.COM
will solve nothing, and, as with Pres-
ident Jimmy Carter’s tax regime in
the 1970s, probably will exacerbate
the problem. It is the equivalent of
kicking your dog because you are
angry it is raining outside.
4. Be equitable. A strategy cannot
depend on long-term direct or in-
direct subsidies, nor have a privi-
leged status before the law.
5. Include indirect costs and
yields. Internalizing the $50 billion a
year the United States spent in polic-
ing the Persian Gulf between the two
18 THE FUTURIST March-April 2009
3. ergy consumption of the rest of Latin uid fuel daily. coal would generate local jobs and
America will burgeon. Venezuela’s Incandescent bulbs should be augment local tax bases, garnering
production has declined significantly banned by 2010. Replacing a single support among the working and
under Chavez; more-competent gov- incandescent bulb with a compact middle classes. If we do not help coal
ernance will likely lead to increased fluorescent light (CFL) will keep half become a friend of the environment,
production but also increased do- a ton of carbon dioxide out of the at- we are in trouble. It is the fastest-
mestic consumption. The same is mosphere over the life of the bulb. It growing fuel source in the world and
true of Iran. If the Islamic regime is estimated that, if everyone in the the most ubiquitous, found on every
stays in power, production will con- United States used energy-efficient continent and in almost every coun-
tinue to stagnate. A progressive re- lighting, 50 average-size coal-pow- try. Millions of people depend on it
gime change will likely lead to in- ered plants could close. Similar sav- for their livelihood. Banning coal is,
creased production but also ings could be achieved in the for the time being, simply not do-
improved development and in- European Union, Japan, and South able. A rational environmental and
creased domestic consumption. Korea. Homes, businesses, and gov- energy strategy will have to make
Mexico’s constitution forbids for- ernmental offices could sell the green- room for it.
eign investments in the oil sector. Its house-emission credits thus earned to Coal-liquefaction installations
major fields are rapidly declining. a coal-liquefaction program. could be manufactured serially,
Domestic consumption is increasing. Alternative-energy companies much as Liberty ships were manu-
By 2020, Mexico’s exports to the could sell their products and services factured in World War II or F-16
United States could decline to a to homes and businesses as “loss fighter planes are manufactured to-
trickle. It might even be on the verge leaders” or “at cost” in order to accu- day, using the underutilized manu-
of becoming a net oil importer, like mulate greenhouse-emission credits facturing and human resources of
Indonesia this past year. It is already that they could also sell to a coal- America’s industrial heartland in the
down to a little more than a million liquefaction program, making the upper Midwest. Operating licenses
barrels a day, as production from its price of alternative-energy technolo- would be contingent on the coal
biggest field has dropped 34% in gies more attractive. Consequent in- companies purchasing greenhouse-
2008. Projections for Canadian oil creased volume of sales would gen- emission credits to offset liquefaction
sands cannot make up this differ- erate economies of scale and further emissions.
ence. lower the cost of dispersed solar and Within five years, the United States
Persian Gulf countries are now in- wind power. could be producing 1 million to 2
vesting huge sums in economic di- • Liquefaction of coal. The tech- million barrels of liquefied coal daily;
versification, which, along with pop- nologies for coal liquefaction have within 10 years, this could increase
u l a t i o n g ro w t h a n d i n c re a s e d been available since before World to 4 million barrels a day. The upper
standard of living, is pressuring ex- War II and can produce a barrel of oil amount would be limited only by the
ports downward. for about $30. Opposition derives availability of greenhouse-emission
from the fact that these technologies credits and new (cleaner) liquefac-
release more carbon dioxide in the tion technologies.
What Can Be Done?
conversion process than the extrac- The Coal-to-Liquid Fuel Promo-
• Conservation and accumulation tion and refinement of liquid fuel tion Act introduced in Congress in
of greenhouse-emission credits. from petroleum. 2007 provides a partial legislative ba-
Hybrids, plug-in hybrids, and elec- To assuage environmentalist oppo- sis for this strategy — especially as it
tric cars should be advantaged for li- sition, liquefaction installations has as a major aim of making the U.S.
censing and other taxes. All none- would be permitted to become oper- armed forces energy-independent
mergency vehicles purchased by ational on condition that they pro- (by implication recognizing the na-
governments (federal, state, and lo- duce a half a ton of CO2 for every ton tional security aspects of energy
cal in the United States) should be of greenhouse gases eliminated by crises).
hybrids, plug-in hybrids, or electric other methods of producing energy. Other countries with large coal de-
by 2010. Purchasers, whether private Trading half a ton of CO2 for a ton of posits could follow America’s lead.
or governmental, would earn green- CO 2, the environment would get a The aggregate impact on the world
house-emission credits they could two-for-one benefit. Trading half a energy supply within a short period
sell to the coal-liquefaction program ton of CO2 for a ton of methane, the could be enormous.
(see below), thus providing an addi- environment would get a 20-for-one • Capped wells. There are approx-
tional economic incentive advantag- benefit. This would give the coal in- imately 200,000 capped wells in the
ing these technologies. It is reason- dustry an economic incentive to get United States. With current technol-
able to assume that this policy would behind some of the green alterna- ogy, each well could produce five to
result in a decline in the consump- tives described below. 10 barrels of oil a day. Within one or
tion of liquid fuels for transportation The United States has the largest two years, these wells could produce
of 150,000 to 200,000 barrels a day recoverable reserves of coal in the more oil per day than ANWR would
every year from inception. By 2020, world — equal to the entire world’s after 20 years. What is needed are
the United States could be consum- proven oil reserves. An energy-and- sufficient government guarantees in
ing less than 18 million barrels of liq- environment program that includes the form of long-term contracts and
20 THE FUTURIST March-April 2009
4. low-interest loans as an incentive for also. Another modification might be further assuming conventional do-
small oil producers to bring these to convert the gas into methanol mestic oil production declining to
wells back into production. Given rather than liquefied natural gas. 5 million barrels a day, while con-
historical precedent, we can reason- This would advantage the concept of sumption has declined to 18 million
ably expect that new technologies flex-fuel engines and freedom of barrels a day, the United States
that increase production rates and choice in transportation fuels. would be importing 8 million barrels
well life-span would quickly follow. Wind replacing natural gas and a day, compared with 12 million to-
This policy would be environmen- liquefied natural gas or methanol re- day. If the optimal 10 million barrels
tally beneficial in several ways. It placing gasoline are both environ- is achieved, the United States would
would avert the use of bunker fuel mental pluses. Again, the sale of be importing only 3 million barrels a
for the tankers transporting im- greenhouse-emission credits to the day, mostly from Canada. If con-
ported oil. Bunker is the most pollut- coal industry would be an additional sumption declines to 17 million bar-
ing transportation fuel in use today. incentive. If hybrids and plug-in hy- rels a day as a result of other savings
The combined world merchant fleet brids were modified to use liquefied in home heating and industrial use,
spews as much noxious gas into the natural gas or methanol in their flex- NAFTA will have become a net fuel
atmosphere as does the entire United fuel internal-combustion compo- exporter.
States. Lower tanker traffic would nents, there would be a tremendous
also lessen the risk of tanker acci- multiplier effect in terms of reduced
Likely Developments within the
dents and oil spills and eliminate the oil consumption and environmental
Next Decade
ballast detritus that oil tankers flush benefit.
into the oceans before entering port. The above three steps could add • Ethanol and biofuel from algae,
Bringing these wells back into pro- between 5 million and 10 million sewage, manure, trash, and gar-
duction would neutralize the fact barrels of domestic liquid fuel pro- bage. There are dozens of companies
that capped wells are poorly super- duction by 2020. The conservative around the world funded by tens of
vised and often leak into ground- estimate of 5 million barrels would millions of dollars of venture capital
water. be a combination of 1.5 million to working intensively on alternative
Lastly, reactivating capped wells 2 million barrels for each of the fuels. The biomass is enormous, and
would generate local jobs and aug- above solutions. But let’s say that breakthroughs could generate mil-
ment the local tax base. Tens of thou- enough greenhouse-emission credits lions of barrels of additional liquid
sands of them are owned by thou- were accumulated to enable coal liq- fuel by 2020. Algae alone could gen-
sands of small oilmen who have uefaction to the tune of 4 million bar- erate 2.5 million barrels on a surface
been begging the government to look rels and that T. Boone Pickens’s opti- area the size of Connecticut (the
at this option for a short-term bridg- mal vision of 4 million barrels is also equal of several corn-growing coun-
ing solution to the energy crisis. realized. Let us further imagine that ties in Iowa). Algae are the ultimate
• The T. Boone Pickens plan. This a new technology for extracting oil sequester of CO 2, which is its pri-
oilman turned wind-power guru has from capped wells comes on line, mary feedstock for growth.
an interesting concept: Replace the greatly increasing productivity. Algae-growing installations could
22% of domestically produced natu- Global Resource Corp. of New Jer- be constructed vertically (to gain
ral gas used for electrical generation sey claims that its microwave tech- maximum surface area while opti-
with wind power. Turn the natural nology can extract 100 barrels a day mizing land use) adjacent to fossil-
gas into liquefied natural gas to be from abandoned wells. It is currently fuel power plants and other CO 2-
used for transportation. The amount in negotiations with one of the larg- emitting installations. One must
of natural gas obtained would be the est oil service companies in the wonder why the coal industry hasn’t
equivalent of 38% of America’s cur- world to bring 10,000 of these wells become a champion of this energy
rent oil imports — more than 4 mil- back into production over the next strategy.
lion barrels. Pickens claims that this seven years. It is also in advanced Landfills around the world create
could be achieved within 10 years negotiations with Pennsylvania offi- as much greenhouse gas in the form
and would cut hundreds of billions cials to bring the state’s 4,000 ancient of methane as all the vehicles in the
of dollars off of America’s trade wells back into production. Simple world. They leak toxic poisons into
deficit. math shows that these two deals groundwater and pollute the soil as
The obvious caveat to his proposal alone would add another 1.4 million well as coastal areas. Economically,
is that gas-fired plants less than 30 or barrels a day of production within a they are a stupid example of land
40 years old will not be decommis- decade. One must assume that the use. Very few if any sewage-process-
sioned even if wind power is avail- initial success of these two projects ing installations are hermetic and
able. If he modified his plan to de- would result in other deals, as well 100% efficient; they also pollute the
commission aging gas and coal-fired as the development of competitive groundwater and commercial fisher-
plants over the next 10 years, with technologies. Thus, the optimistic ies. In essence, waste-to-fuel would
the coal thus saved becoming avail- prediction of 10 million barrels a day be a recycling of hydrocarbons — civ-
able for liquefaction, this concept in aggregate becomes not so far- ilization eating its own waste (the ul-
could probably realize a replacement fetched. timate renewable) in order to en-
of several million barrels of oil a day But assuming the minimum and dure.
THE FUTURIST March-April 2009 21
7. studies show that driving on electric- the environment would gradually products. Energy for the solar econ-
ity, even from coal-fired grids, would cleanse itself back into a relatively omy would be provided by space-
reduce greenhouse-gas emissions. pristine state. Algae growth would solar energy generators capable of
Using renewables, the environmen- top off any fuel shortfalls. operating 24/7.
tal benefits would be multiplied. But energy productivity must be- Our home, this Earth, will have be-
come the dominant theme in policy come a bedroom community.
strategies. New lighting technolo-
The Deep Future
gies, smart materials, and super-light
Final Note: The Optical Illusion of
The focus of this article has been composites (along with 100% recy-
Plummeting Oil Prices
on the United States, but energy, es- cling of organic waste into energy)
pecially oil, is fungible. The Euro- will enable humanity to maintain a With the price of oil dropping over
pean Union, Japan, and the rest of rich consumerist civilization at de- $100 a barrel within a six-month
the Organization for Economic Co- clining cost to both the economy and span, the shortsighted temptation
operation and Development (OECD) the environment. The theoretical un- will be to dismiss the above. But
could do much to relieve the global derpinnings for such a vision already since futurists think about the future,
pressure on energy supplies. Man- exist in the Cradle to Cradle philoso- consider the following.
dating and advantaging hybrids and phy of Bill McDonough and Michael The International Energy Agency
electric cars, as well as compact fluo- Braungart. They are already com- has just published a report that the
rescent bulbs and LEDs, would be an mercializing their theory through the world’s 450 biggest oil fields are de-
obvious first step. for-profit design firm they co- pleting at a rate of 9.1% a year! This
Countries could focus their for- founded, McDonough Braungart De- means that, barring major new oil
eign-aid efforts on making the devel- sign Chemistry LLC. discoveries, world production could
oping world energy self-sufficient. By the end of the century, lighting fall 38% to 52 million barrels a day
On the principle of one-half ton of technologies will have transcended by 2013.
greenhouse-gas emissions for every CFLs and even LEDs. Buildings will Even if oil consumption held at the
ton saved, they could build coal- be built from smart materials that present 85 million barrels a day, there
liquefaction plants in many develop- heat when it is cold and cool when it is no way that new oil discoveries
ing countries. When waste-to-fuel is hot, as well as turn sunlight into could make up for a 38% drop in
technologies become commercial- electricity. They will also have mini- production from existing fields. All
ized, they could be put into opera- depolymerization units that turn do- the oil in the Arctic National Wildlife
tion in every developing country. mestic sewage and garbage into fuel. Refuge would supply the world for
Not only would this have economic Buildings will have become com- only six months (using the most op-
benefit, since developing countries pletely independent, self-sustaining timistic estimate of reserves). The
suffer the most from energy volatil- energy units. world would need four to five new
ity, but it would also create jobs and Airplanes, motor vehicles, and Saudi Arabias by 2030 just to stay at
promote public health, since smol- trains will be built from super-light 85 million barrels a day. Alaska,
dering landfills and running sewage composites (the proper use of hydro- deep-ocean drilling, new offshore
are one of the greatest threats to pub- carbons) that at present are prohibi- drilling, drilling in national
lic health in these countries. tively expensive but which industrial parks — i.e., raping the land for ev-
In short, if the free world resolves engineers will eventually learn how ery last drop of oil — could not even
that humankind be liberated from its to produce cheaply. Imagine the fuel begin to offset these declines. Add in
addiction to oil by 2020, and by do- savings if a jumbo jet weighed only the fact that, with our present energy
ing so greatly lessen greenhouse 50 tons rather than 400 tons. The paradigm, consumption is predicted
emissions, it will be done. same principle applies to cars, trucks, to grow to 130 million barrels a day
The above is essentially a bridging trains, elevators, ships, construction over the next 30 years or so, and we
strategy designed to get human civi- m a c h i n e r y, a n d p o r t i n s t a l l a - must conclude that this energy para-
lization to 2050 safely. The liquefied tions — in short, anything that con- digm is unsustainable.
natural gas/methanol, coal, and sumes energy in order to move. And “Enjoy” present oil prices while you
capped-well gambits, being finite, if the fuel is an algae or waste deriv- can. As the world’s economy recovers,
will also run out of steam within 30 ative (infinitely renewable), you will, we will be approaching $150 a barrel
to 40 years from inception. in effect, have solved the problem. for oil in the next four to five years. ❑
The future beyond 2050 will de- The possibilities of space might
pend on continued progress in algae also have become a reality by 2100.
growth and waste-to-fuel technolo- All mineral extraction could come About the Author
Tsvi Bisk is the director of
gies. Human civilization must start from the asteroid belt or the Moon,
the Center for Strategic
planning to become a closed system and we would enable our precious
Futurist Thinking and the au-
by 2100 — i.e., 100% recycling of all planet to heal its scars. Space eleva- thor of The Optimistic Jew: A
human waste and zero externaliza- tors would lift up toxic waste to be Positive Vision for the Jew-
tion into the commons. Sewage and disposed of in that great incinerator ish People in the 21st Cen-
waste-disposal systems would be- in the sky called the Sun and bring tury (Maxanna Press, 2007).
come the major source of fuel, and down raw materials and finished E-mail bisk@futurist-thinking.co.il.
24 THE FUTURIST March-April 2009