Editor Note: This commentary is reproduced, with slight revision, from the December 2009 issue of POWER magazine.
As director of public policy analysis in my last seven years at Enron, I participated in many legislative and regulatory debates involving electricity, although the public policy thrust of the company was the opposite of what I personally believed was good social policy.
While I favored free markets, the business model of Ken Lay (a PhD economist with years of Washington regulatory experience) centered on special government favor. Enron, for example, had seven profit centers geared to government pricing/rationing of carbon dioxide (CO 2) emissions. And in the 1990s, the company was squarely behind a Btu tax. Today, Enron would be pushing cap and trade and a federal renewables mandate–and a lot of mandated energy efficiency with its profit centers in mind.…
Continue ReadingPosts at Knowledge Problem acknowledge the range of results from Part I and Part II in my series; Katzenstein and Apt; and an article by Michael Milligan et al, Wind Power Myths Debunked, but attribute much of the differences to characteristics of the power system to which wind power is added.
However, although results will vary by jurisdiction, the differences I reported are not derived from this consideration but from general issues with respect to wind power integration. Milligan claims low reductions from the theoretical maximum (negligible to 7 per cent), apparently from Gross et al’s literature review, but this does not survive critical assessment.
The work of Katzenstein and Apt is cited in the bibliography to Part I, even though they show that as much as 75–80 per cent of the CO2 emissions reductions presently assumed by policy makers is realized.…
Continue ReadingFor some peak oil advocates who are nervous about the idea of a post-apocalyptic vision of society, it has become popular to argue for a peak and plateau rather than a peak and decline of 3–5% per year, as some of the original work postulates. This seems more palatable than calling for a global upheaval, Hollywood notwithstanding.
The original peak and decline scenario was based on the bell curve popularized by M. King Hubbert. A number have disputed the shape of the curve, arguing for a Gaussian curve instead, for example. But they are avoiding the basic question of causality. The appearance of a bell curve appears to be more coincidence than anything else, since it is not often replicated in reality. The 1998 Scientific American article, “The End of Cheap Oil,” by Colin Campbell and Jean Laherrere, contained the laughable figure of several stylized oil fields’ production curves surmounted by a bell curve and the assertion that the one aggregated to the other.…
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