Digifesto

Tag: natural gas

notes about natural gas and energy policy

I’m interested in energy (in the sense of the economy and ecology of energy as it powers society) but know nothing about it.

I feel like the last time I really paid attention to energy, it was still a question of oil (and its industrial analog, Big Oil) and alternative, renewable energy.

But now energy production in the U.S. has given way from oil to natural gas. I asked a friend about why, and I’ve filled in a big gap in my understanding of What’s Going On. What I filled it in with might be wrong, but here’s what it is so far:

  • At some point natural gas became a viable alternative to oil because the energy companies discovered it was cheaper to collect natural gas than to drill for oil.
  • The use of natural gas for energy has less of a carbon footprint than oil does. That makes it environmentally friendly relative to the current regulatory environment.
  • The problem (there must be a problem) is that the natural gas collection process has lots of downsides. These downsides are mainly because the process is very messy, involving smashing into some pocket of natural gas under lots of rock and trying to collect the good stuff. Lots of weird gases go everywhere. That has downsides, including:
    • Making the areas where this is happening unlivable. Because it’s harder to breathe? Because the water can be set on fire? It’s terrible.
    • It releases a lot of methane into the environment, which may be as bad if not worse for climate change than carbon. Who knows how bad it really is? Unclear.
  • Here’s the point (totally unconfirmed): The shift from oil to natural gas as an energy source has been partly due to a public awareness and regulatory gap about the side effects. There’s now lots of political pressure and science around carbon. But methane? I thought that was an energy source (because of Mad Max Beyond Thunderdome). I guess I was wrong.
  • Meanwhile, OPEC and non-OPEC have teamed up to restrict oil sales to hike up oil prices. Sucks for energy consumers, but that’s actually good for the environment.
  • Also, in response to the apparent reversal of U.S. federal interest in renewable energy, philanthropy-plus-market has stepped in with Breakthrough Energy Ventures. Since venture capital investors with technical backgrounds, unlike the U.S. government, tend to be long on science, this is just great.
  • So what: The critical focus for those interested in the environment now should be on the environmental and social impact of natural gas production, as oil has been taken care of and heavy hitters are backing sustainable energy in a way that will fix the problem if it can truly be fixed. We just have to not boil the oceans and poison all the children before they can get to it.
  • /

      If that doesn’t work, I guess at the end of the day, there’s always pigs.

energy, not technology

I’m still trying to understand what’s happening in the world and specifically in the U.S. with the 2016 election. I was so wrong about it that I think I need to take seriously the prospect that I’ve been way off in my thinking about what’s important.

In my last post, I argued that the media isn’t as politically relevant we’ve been told. If underlying demographic and economic variables were essentially as predictive as anything of voter behavior, then media mishandling of polling data or biased coverage just isn’t what’s accounting for the recent political shift.

Part of the problem with media determinist accounts of the election is that because they deal with the minutia of reporting within the United States, they don’t explain how Brexit foreshadowed Trump’s election, as anybody paying attention has been pointing out for months.

So what happens if we take seriously explanation that really what’s happening is a reaction against globalization. That’s globalization in the form of a centralized EU government, or globalization in the form of U.S. foreign policy and multiculturalism. If the United States under Obama was trying to make itself out to be a welcoming place for global intellectual talent to come and contribute to the economy through Silicon Valley jobs, then arguably the election was the backfire.

An insulated focus on “the tech industry” and its political relevance has been a theme in my media bubble for the past couple of years. Arguably, that’s just because people thought the tech industry was where the power and the money was. So of course the media should scrutinize that, because everyone trying to get to the top of that pile wants to know what’s going on there.

Now it’s not clear who is in power any more (I’ll admit I’m just thinking about power as a sloppy aggregate of political and economic power. Let’s assume that political power backing an industry leads to a favorable regulatory environment for that industry’s growth, and it’s not a bad model). It doesn’t seem like it’s Silicon Valley any more. Probably it’s the energy industry.

There’s a lot going on in the energy industry! I know basically diddly about it but I’ve started doing some research.

One interesting thing that’s happening is that Russia and OPEC are teaming up to cut oil production. This is unprecedented. It also, to me, creates a confusing narrative. I thought Obama’s Clean Power Plan, focusing on renewable energy, and efforts to build international consensus around climate change were the best bets for saving the world from high emissions. But since cutting oil production leads to cutting oil production, what if the thing that really can cut carbon dioxide emissions is an oligopolistic price hike on oil?

That said, oil prices may not necessarily dictate energy prices because the U.S. because a lot of energy used is natural gas. Shale gas, in particular, is apparently a growing percentage of natural gas used in the U.S. It’s apparently better than oil in terms of CO2 emissions. Though it’s mined through fracking, which disgusts a lot of people!

Related: I was pretty pissed when I heard about Rex Tillerson, CEO of Exxon Mobil, being tapped for Secretary of State. Because that’s the same old oil companies that have messed things up so much before, right? Maybe not. Apparently Exxon Mobil also invests heavily in natural gas. As their website will tell you, that gas industry uses a lot of human labor. Which is obviously a plus in this political climate.

What’s interesting to me about all this is that it all seems very important but it has absolutely nothing to do with social media or even on-line marketplaces. It’s all about stuff way, way upstream on the supply chain.

It is certainly humbling to feel like your area of expertise doesn’t really matter. But I’m not sure what to even do as a citizen now that I realize how little I understand. I think there’s been something very broken about my theory about society and the world.

The next few posts may continue to have this tone of “huh”. I expect I’ll be stating what’s obvious to a lot of people. But whatever. I just need to sort some things out.