Energy Independence Too – Alternatives

We have been here before. Harry Truman started the first big alternative fuels project. President Carter promised that the U.S. would never again import as much foreign oil as it did in 1977. Twenty-nine years later, President Bush warned about our addiction to oil (BTW more than in 1977). What did we learn? Cheap oil trumps policy promises and alternatives. Sowaddawedo?

First, we need to recognize that the problem is political, social and economic, but not really technical. This is important, because we keep on trying to apply the technical solutions and they never work. We use oil because it is cheap. We use foreign oil because it is even cheaper. We want to continue to use oil because it supports the lifestyles we enjoy at a price we accept. Unless we change part of that equation, we will always come up with the same answer – more oil.

Before going on, let me break the problem down into two parts. The one part is oil as an environmental problem. The second part is FOREIGN oil as an economic and geopolitical problem. They are separable. You could solve one and not the other. For example, foreign oil can be replaced by American oil from ANWAR, oil shale from Utah, Colorado & Wyoming or from oil sand from Alberta (yes a foreign country but nearby and generally stable). This oil will cost a little more in terms of dollars and a lot more in terms of environment, but we can achieve reasonable energy independence in this way. This is not the way to go, IMO.

Oil use as an environmental threat is the bigger challenge. Remember why we use oil, but then figure in the external costs. This makes oil less of a good deal.

Rand Corporation has recently released a study indicating that falling costs of ethanol, wind power and other forms of renewable energy could allow them to supply 25% of U.S. energy by 2025 at little or no additional expense. (Renewables currently account for only 6% of our energy, and about half of that comes from hydroelectric dams.) This assumes that the price of oil does not decline by very much. Low cost oil (reaching its lowest point in 1998) has destroyed hopes for alternatives before. So let’s make sure the prices do not drop very much.

Once they get started, renewables have a big constituency, especially in farm states. The most promising, IMO, is ethanol from wood chips. I admit a personal interest in that. Also interesting are various ways to make methane from manure and other wastes. Read more about these things here.

Promising as all this is, read the number very carefully – 25%. That is the optimistic scenario. That still means 75% has to come from someplace else. We will still be using oil, coal and gas for a long time. The most promising large scale clean alternative is nuclear (the French get 78% of the electric power from nukes; we get about 20%). We might be able to squeeze a little more out of energy conservation. If we just build smarter we can save money, be comfortable and help the environment at the same time. A sustainable resource house, BTW, need not be built out of straw or sticks and it can be very attractive and comfortable.

So let’s address the energy problem, but let’s address the right one in the right way. Recognize that we have the energy mix we have today because it is what we chose and what we continue to choose. We need not blame others or talk about the stupidity of past generations. We chose what we have and that means we have the choice to choose alternatives too.

Lawrenceville, VA

Our tree farm is about seven miles west of Lawrenceville. The property records are in Lawrenceville and that is where we made the buying deal. The city was founded just after the Civil War. It is a pretty little town, but kind of dead. Incomes are low. Everyone was friendly to me and very informal.

A very interesting are the accents. It is not quite the usual southern accent, more like a mixture of tidewater and upland.

Here are some pictures.

American Indian Museum

I really don’t like the American Indian Museum, but I really love the grounds. You can see natural plants and plantings around the place. I recall when it used to be just a field. I used to run there. It is nicer now.

Tobacco was a big part of Indian culture and the first crop English colonists really could make money selling. It built the colony of Virginia. These are some picture of Indian tobacco. Recently when I was down at the farm the hunters told me about tobacco. Southern Virginia used to be a big tobacco growing area, now less so. The tobacco lands have often been turned over to loblolly. When the tobacco grows, the bottom leaves turn yellow. These are the first harvests. Later the whole plant is dried.

If you look closely at the first picture, you notice the no smoking sign. I dislike smoking with a passion, but it is funny that we forget the importance of this particular crop.

I am hoping to build a pond on my land, so I took lots of pictures of the pond they have at the museum. I like the mix of cattails, lilies and the bald cypress. You would not guess this was right in the middle of urban Washington.

Energy, Water & Food/Government, Science & Markets

Energy, water and food. Providing ourselves with these prosaic necessities is the challenge of the next decade. This is a worldwide challenge, so let’s look to good practices worldwide. Brazil has been working on alcohol fuel for four decades. Arid Australia is a leader in allocating scarce water resources. Although not currently the world leader, it might be India that soon leads the world in biotechnology.

Brazil provides an excellent example of the interaction of market forces, political will and good luck. Brazil’s military dictators stared the program back in 1975. There is some doubt whether a non-authoritarian government could have taken the initial steps to make it happen. Even with subsidies, favorable laws and official sponsorship, Brazil’s ethanol program languished and almost died in the very low oil price environment in the 1990s. The history of Brazilian ethanol once again confirms the necessity of a higher price of oil to encourage alternatives. When prices rose, the ethanol program once again made economic senses.

The lesson: Government intervention may be necessary to jump start an alternative energy program. A big change in infrastructure is something individual firms cannot handle alone. However, it is clear that the government can propose and encourage, but the market ultimately decides. Luck played a big role in Brazil. If the price spikes had come just a few years later, the Brazil energy program may well have been left for dead and very difficult to revive.

Fuel is important, but water is even more crucial to survival. Ironically, energy solutions such as Brazil’s use of sugar cane to make fuel will worsen water shortages. Unlike fuel, however, we do not produce water; we do not use it up. It is the ultimate renewing resource. What matters is quality and location. This renewing aspect has fooled us into thinking water is (or should be) free. Most water is not really allocated at all. In non-arid areas, we just assume there is enough water and even in arid ones, we generally give precedence to whoever is nearer or who was there first. This ensures that water is wasted. We have to stop treating water like a free good and begin to distribute it according to market principles.

This will seem very unjust. A long time ago, I watched the Milagro Beanfield War. It is natural to sympathize with the little guy, but if more people practiced his primitive methods it would drive everyone into poverty. He just wants to grow some beans – in the middle of the desert. He doesn’t know it, but he just wants to waste water, increase the salinity of his soil and ultimately make it useless. Only the free market (including rule of law, reasonable regulation & market mechanisms) will allow diverse decision making can achieve a fair result. You can still cheer for Joe Mondragon, but recognize that he is part of the problem.

The lesson: We have to look at the bigger picture and think of water as a regional, maybe even a world resource. If done properly, it can be done justly and gradually with most people given choices that improve their lives. If we pretend we can go on the old fashioned Milagro Beanfield way, everybody suffers and some people die.

But in the end we might have some great options from the science of biotechnology. Biotechnology can produce plants that require less water, fertilizer and energy to produce. But the connection is even more direct. Biotechnology is already contributing to the production of biofuels and may soon make the production of ethanol from cellulous faster and easier. Cellulous alcohol is the holy grail of liquid fuels. That would mean we could make fuel out waste products such as wood chips or stalks, or from easily grown and ecologically benign crops such as switchgrass.

Lesson: Paradigms change and we can make them change. If we think only about how things are today, we can never solve our problems. In fact, it is likely that today’s problems CANNOT be solved with today’s methods. We can do it. It requires a leap of faith, but it is a leap of faith in human intelligence and our ability to learn & adapt.

We are standing at a crossroads where our provision of energy, water and food are radically changed. These three factors will be more completely integrated than every before. All change is difficult, but if done right this one will make all (or at least most) of us much better off and make our lifestyles more sustainable.

Forest Visit

Chrissy and I drove down to the farm for father’s day. It was a hot day (about 90) but it didn’t seem so bad because it was not too humid and there was a decent breeze. We took the hybrid. It gets a lot worse mileage when you use the air conditioner. Last time I went to the farm, I got 42 miles/gallon. This time it was only 36.

This is me with the trees of heaven, an invasive species native to China. It has become a problem in the U.S. The trees dominate native species and give off a toxin that hinders competition. There are about ten acres of them around the farm. I have to kill them all or they will spread. We chop the truck with a machete and then apply the herbicide “Arsenal”. You can just spray it all over the leaves, but that overuses the chemical, bad for the environment and not cheap. Chop and apply is much more labor intensive, but better. Besides, I can get the boys to help, so labor costs are minimal.

Above shows the scale. That is our car parked on our dirt road. The big trees are boundary trees. The ones in the back are on the far side of State Road 623. These trees get pretty big. We own about 10 acres on the far side.

These are little plantation pines on an old landing area. They are not as big as some of the others that are growing on better (and less compact) soils. In the long run, however, the will grow well up here. The stumps in this area are pretty big.

A little description. Most of our land is in loblolly pine plantation, planted in 2004. The previous owner sprayed to kill off the nascent hardwoods. Two streams run across the place. Near them, the timber was left standing to protect the watershed. The trees there are big. We have beech, oak, maples and walnut. These are the climax species, so this part has been left for a long time. We also have a wetland that has cattails, willows and some sycamores. It is hard to get near the wetland because of the multiflora rose. This is an invasive species sometimes called the living fence because it forms a thick and thorny living wall. It gets nice looking flowers, but generally is a negative. Eventually I will have to hack through some of them, but for now I am going to go after the trees of heaven. They are the bigger menace. The multiflora rose forms an understory and will not interfere with my trees very much. It is just literally a pain to walk through.

A couple weeks ago, the boys and I shifted 20 tons of A1 rip-rap to stabilize our road by one of the streams. It took us five hours to get it done. The dump truck could not get all the way down, so we have to do a lot of moving. The rocks cost $490.00 delivered. These are our rocks.

Alex’s Graduation

I am proud of my boy.

Alex graduated today. That night, he went on a road trip with his friends to a Slayer concert in East Rutherford, NJ. I am glad he went, but they planned not at all. I had to give them this map. I think their plan until that time was to just go north.

Here the graduates come into the hall. Girls in blue; boys in red. It was a beautiful day, warm but not too hot. We walked around DC near the Whitehouse after the ceremony.

Alex is happier now with the HS pressure gone. He is working at the local mulitplex and learning about the world of work. I think that going back to school will soon begin to look better.

Realists, Not Hysterical Hypocrites

The evidence for human induced global warming is less conclusive than proponents say, but it is impressive. Some argue that we need not act until the threat is imminent, but if we wait for it to fully and perhaps suddenly emerge, all actions, all words, and all recriminations may come too late. So what do we do?

If you look at the literature and even entries on other parts of this blog, you will see that a common response to the politics of global warming is to indignantly claim that it is the fault of Bush, Republicans, the U.S. or big corporations. The subtext is, “If only THEY weren’t so greedy, WE could address this problem.” The idea seems to be that if we would just sign on to Kyoto, or legislate properly, the problem would go away. It won’t.

Proper regulations and government incentives will be required. But these are means, not ends. Legislations by itself will do nothing. What is it that we want the legislation to do? There are several things that are required.

Raise the price of energy. Why do we depend on oil? We use oil because it is cheaper and easier to use than the alternatives. If there was a cheaper alternative, we would already be using it. One of the pernicious effects of cheap oil is that it preempts development of alternatives. Worse, the price of oil tends to drop as soon as alternative look promising and the would-be alternative producers are driven to bankruptcy. We need to guarantee a high price for oil and gas.A high energy price is the fastest way to encourage conservation. We saw that historically. Energy efficiency increased when prices were high in the 1970s and 1980s and flattened in the late 1980s and 1990s when oil was cheap. The presidents’ policies seemed to have little effect. We saw it recently when the prices went up after Katrina. Suddenly SUVs were out and hybrids were in. Price succeeds. Politics fails.

Go nuclear. It is a paradox that so many environmentalists oppose nuclear power. Nuclear power produces no greenhouse gas and no pollution. It is safe (nobody has ever been killed in an American nuclear power accident). And we don’t need to import anything from the Middle East. We can solve the waste problem or at least not using nuclear power is a greater risk.

Beyond that, a revived nuclear industry can be a growth and export industry for us.

Share technologies. The big polluters of the future are China, India and other developing countries. We need to partner with them to make sure they don’t go the dirty route. President Bush’s proposed deal with India and the Asia Pacific Partnership are good steps. Kyoto addressed the problems of the past and was outdated the day it was negotiated and the sooner everybody figures that out the better.

Encourage and protect biotechnology & nanotech. Biotech may make it easier to process cellulose (wood chips, switchgrass etc) into methanol. It may produce other forms of energy. Biotechnology and nanotechnology are the future. Don’t let a misguided precaution strangle innovation in the cradle. If/when climate change does occur, biotechnology will allow the rapid development of new varieties of crops suited to the new conditions.

I didn’t mention research into alternatives, because I don’t have to. If we do the things above, price and the market will encourage the changes. If you insist on putting some government money into R&D, that’s fine. Just don’t expect much.

So let’s cut the foolishness and get to work. The solution is not easy, but it is simple.

BTW – some of you might recognize the cadence in my initial post. I think the situations are parallel.

Teach a Man to Fish; Don’t Make Fish an Entitlement

It is as blessed to receive as to give. Giving w/o some expectation sets a man down the road to perdition & too much self-esteem destroys self-respect. If we are going to do welfare and charity, we ought to learn to do it right.Americans are the most generous people in the world both in absolute terms and per capita. Some see this merely as a failure of government. Charities, they say, must step in where the safety net is frayed. This misses the point. The act of charity is beneficial for both the giver and the receiver. When the government steps in with its coercive power, it often destroys much of the good because it neglects most of the aspects I mentioned in the introduction.

I never give anything without the expectation of getting something from the recipient and I think anybody who does is craven. My motivation is sometimes altruistic; sometimes not. If I give something to an individual, I expect that he will become a more productive citizen and maybe do something for someone else later on. If I give to a charity, I expect some useful and desirable result.

You can show no greater contempt for a person than to believe that he cannot in some way repay a gift you have bestowed on him, no matter how poor. You are doing him no favors if you just fill his stomach, better to let him hunger physically than to break his sprit and self-respect. When government programs have really worked to alleviate poverty it is usually because they came with stings attached. Take the GI Bill, which successfully brought lots of poor people into the middle class and was probably the single most successful government social program in history. The government provided help in return for good behavior, first by serving the country and second by going to school and studying. It was not an entitlement that you got because of who you were. It was a benefit you earned by what you did.

Charity (in both the original and modern sense of the word) is transactional and always has been. When Jesus saved the adulteress from the mob he told her to, “Go AND sin no more.” In the parable of the candlesticks, the Bishop tells Jean Valjean to become an honest man. There would have been no redemption if they had talked about victim status and made no demands for behaviorial change.

One of the most successful development schemes has been the Grameen Bank, whose founder Muhammad Yunus recently won the Nobel Prize. The bank LENDS money. The loan recovery rate is 98.85%. It does not give it away, although the recipients are certainly poor and downtrodden enough to “deserve” it. If it gave money it would be another worthless giveaway that destroyed the sprit of the people it was meant to help.

Our government once understood this concept too. Most of the New Deal programs, including Social Security, required some contribution from the individuals involved. They were based on behavior, not membership in a group. We lost sight of that during the 1960s, when we found victims everywhere. We were supposed to feel guilty for their plight. Guilt is a foolish emotion which makes people do foolish things and too many people assuage their guilt at the cost of someone else’s self-respect.

I say self-respect and not the more PC self-esteem. A lot of losers have high self-esteem. They think they are worthy and entitled. Most abusers enjoy very high self-esteem. They will not accept any insults or slights. What they lack is self-respect. They know they are rotten and hollow inside. That is why they demand outside respect.

Government is learning the lesson. Welfare reform explicitly took behavior into account. It went against 40 years of PC orthodoxy and it worked. We are also experimenting with self help/government support mechanisms such as the earned income credit, thrift savings plans & IRAs, as well as health savings accounts. The Lord helps those who help themselves and government should take the hint.

When the history of charity in our times is written, they may say that we lost our way for a while and let the government behave like an indulgent parent, ensuring physical comfort but neglecting character. For nearly a half century, we let guilt and foolishness dominate our relationships with our less fortunate fellow citizens. But I hope historians will also record that we came to our senses and remembered to care for the sprit as well as the body.

PS – Speaking of being poor, take a look at the growing list of necessities. We can never overcome poverty, since it is a moving target.

PSSS – Give a man a fish and you feed him for a day. Teach a man to fish and all he will want to do is sit out on the lake and drink beer.

Our New Forest

We bought 178 ½ acres of land in Brunswick County, Virginia. For comparison, Humboldt Park in Milwaukee is around 90 acres. Owning a forest has long been my dream. This will be a forest soon. It was cut over in 2001 and replanted with loblolly pine in 2003. Loblolly is the most important timber tree in the Southeast. Southern pine (which include loblolly, slash, shortleaf and longleaf pine) supplies 58% of the timber used in the U.S.

The pines on our land are genetically superior super trees and will grow fast. I took the pictures below in June. When I went back in August, some had literally doubled their size and some were taller than I was.

We also have a lot of hardwood on the place and three creeks. The hardwoods are about as old as I am. I have a wonderful little grove of beech trees near one of the creeks and some very big white oak, tulip tree and sweet gum. The under story bushes are American holly. It grows wild down here. The land will just get nicer each year. I am looking forward to growing my trees and taking care of things like the wetlands.

There is a group of hunters who lease hunting rights. They are local guys who take care of the land for me. They claim to have hunted this land for more than 100 years (their families at least). They tell me they will run off anyone who tries to cause trouble and I believe they will.

I also joined the Virginia Forestry Association. Next year I will be the communications director for the Virginia Tree Farm. It doesn’t pay anything, but I think it will be fun. I hope also to meet people who can help me figure out how to best care for my land.

You can tell how excited the kids were to be there.

Science Improving Nature

Big changes come on little cat feet to envelop us. Then we forget what life was like before. Polio, the scourge of childhood, disappeared like many other afflictions nobody much remembers. Most American kids don’t get cavities any more – amazing to those of us old enough to recall one cavity per dental visit was a great result. Change often comes in little packages, but it is compounding* and that makes a difference.

One recent great event that happened without our notice is biotechnology. If you are wondering whether you should use biotech products, forget it. I said happened, not happening. Almost all of you have eaten biotech foods, probably today. The cotton in your t-shirt was probably grown with the help of biotech. If you buy a new house you will be living in a partially bioengineered structure. Biotechnology will revolutionize the manufacture of medicines, the production of energy and the preservation of the environment.We have been cultivating biotech crops commercially for about ten years now. 400 million hectares (hectare = 2.47 acres) of genetically enhanced biotech crops have been grown. Farmers are adopting biotech crops faster than any crop varieties in the history of agriculture. Since their introduction in 1996, genetically enhanced biotech crop use has grown at a rate of more than 10% per year. In 2004 it was up to around 20%. The main crops carrying biotech genes are soybean (56%), maize (14%), cotton (28%), and canola (19%). Percentages are of the worldwide acreage for these crops. In the U.S., biotech soybean (herbicide resistant), maize (herbicide and insect resistant), and cotton (herbicide and insect resistant) account respectively for approximately 85%, 75%, and 45% of total acreage. 

Want renewable energy? We can talk about wind, solar AND biotech. Advances in biotechnology have enabled the production of large amounts of inexpensive cellulases that convert cellulose to simple sugars that that can be fermented into fuels such as ethanol. Biotechnology could enhance biomass yield density, improve processing of biomass feedstock and decrease the need for water, fertilizer, and pesticides. In other words, we can literally turn garbage into gasoline substitute.

This is really nothing new. We have been altering plants and animals since before we were fully evolved humans. But biotech can do it faster and with fewer unplanned side effects. We can use less fertilizer, less pesticide and we can do it with less work. Read the story of wheat.

A big innovation comes on little cat feet. It sits looking over our lives on silent haunches and then moves on (with apologies to Carl Sandburg). When it’s over we just think that is how it always was. But we are better off.

* Albert Einstein called compound interest the most powerful force in the universe.