Showing posts with label Energy conservation. Show all posts
Showing posts with label Energy conservation. Show all posts

Thursday, April 14, 2011

Greenpeace disrupts offshore oil exploration

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Last weekend Greenpeace undertook some demonstration at sea in maritime waters north of NZ. The offshore seismic work was performed by Petrobras, the Brazilian national oil company. Such actions are illegal under common (maritime) and NZ statutory law, as well as UN conventions. Despite these laws, Greenpeace was able to sabotage disrupt exploration activity for a few days until the police was asked to interview by the Minister.
In the House, the leader of the ACT Party (part of the National Party coalition) asked the Minister of Police in the National Party why NZ Police had not enforced the law. Her answer was that the NZ Police has the discretion to charge Greenpeace or take into custody the persons obstructing the oil exploration vessel, but clearly had decided not to. This raises several questions:
1. Whether there is a need for the police to get involved at all. Clearly there is the opportunity for the explorer to call in the police. There is also the opportunity for Petrobras and its contracting body to prosecute Greenpeace under Common Law.
2. Under Common Law Greenpeace could also explore the legitimacy of the Seabed Resource Act, which assumes that the government ought to have control over such lands, and regulates the way in which such resources are administered.

What this display in parliament shows is:
1. How arbitrary the law is - both in enactment as well as enforcement
2. Rodney Hide is not an agent for law and order but punitive action against 'arbitrary' law breakers.



I don't dispel the possibility that Greenpeace could be conceived as engaging in an educational role by raising awareness of oil drilling in maritime areas of NZ. I do however this this oil exploration is in the best interests of NZ. An oil discovery would greatly transform the fortunes of NZ, a country which is an economic laggard with low wages by OECD standards. There are important issues however of resource ownership to raise, and Common Law is the appropriate 'logical' framework for discussing the issue. Statutory law is merely some extortion racket whereby some political party professes to be acting under some sanction of 'righteousness' or a 'mandate' which has no logical standing. No more standing than Hitler's democratic majority. Democracy is a rort, even if a sanctioned one. It ought to be abolished and the efficacy of Common Law restored.

People are protesting at sea because democracy sanctions the idea that 'might makes right'. Yes, democracy sanctions extortion. The implication is that Greenpeace is merely engaging in the same extortive practices as the government. The difference is that hundreds of years ago some monarch (i.e. autocrat) decided that statutory law developed by our parliaments had primacy over 'logical' common law. I would argue that there is no sound justification for this demotion of common law. That is not to say that common law cannot be improved...merely that it is a sounder basis for justice than extortion - whether by the public or private sector.
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Author
Andrew Sheldon

Saturday, August 28, 2010

Population growth - is it a problem?

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Recently there have been a number of calls by prominent Australians for curbing or ending population growth. These Australians come from Bob Carr, the former NSW Premier, who was promoting a book by Mark O'Connor called 'Overloading Australia', and also Dick Smith, the founder of the Australian electronics store and Australian Geographic Magazine. Now both of these people are environmentalists, so no surprise that they want to curb population growth. I want to however provide counter-arguments to all of their assertions....and I mean all of them.
Firstly I am not an advocate of strong population growth because I see the justification for it as self-serving government policy rather than a desirable feature for the Australia population. Governments want to expand population in order to increase economics activity. The reason that they resort to population growth (as well as 'inflationary' money illusion and debt-financed spending) is because the centralised government they entail, and the democratic foundation undermine the natural formation of capital and improvements in productivity. This issue is beyond this blog post, however my assertion is that centralised, democratic government undermines economic productivity, and population growth and ramped up consumerism/spending is intended to compensate governments for the 'control' they need over your money, lives and values.
So let me deal with the issues they draw attention to:
1. Climate change. Dick Smith argues that 75% of Australians disbelieve human-induced climate change. Firstly, I am surprised that that number display good judgement. His argument is that - we should curb population 'just in case we are wrong'. No, we should curb government powers if we are wrong, and any government intervention into economic activity could only impose unjustifiable costs in the short term, making us less able to deal with the problem in future. Also science is not a popularity contest. You bring conflicting views together to reconcile differences. The better argument wins. The climate change advocates don't want that debate because they are winning the 'popularity contest' with government.
2. Population growth. Dick Smith says we need to curb population growth because it is doubling every 30 years. True enough, but that is not going to be representative of future decades. The wealthier societies become, the fewer children they have. You cannot simply extrapolate these numbers. Those numbers also pre-date efforts to curb population growth with abortion, contraception and education.
3. Population limits. He cites arguments that Australia can only sustain a population of 26 million - when the current population is 21mil. I would argue that we can support billions in Australia. He of course wants to protect flora and fauna which I have little regard for. Life has appeared and disappeared throughout the Earth's existence. We have the power to create ecosystems which serve us. But Dick has this attraction for the 'intrinsic' natural system. Well, let him pay a premium for that. He is free to buy a piece of Kurringgai National Park in Sydney now.
4. He cites depletion of resources. This is also a nonsense. Australia is the driest continent, but it has vast amounts of water. Consider a number of issues...We hardly charge farmers to retain or utilise the stuff, so their use is very wasteful. Even our agricultural preferences (i.e. meat production) are wasteful. We have the power to recycle or process water...probably at select locations along rivers, when such processing is required. If there is a value, the money will be found...and we need food. So we will dump energy uses before we starve. It will be those 'breeding' Africans who will be incentivised to stop breeding if there are food shortages. Australia is of course a major food exporter. We could export 10x more grain if we did not export meat. I have not even made any allowance for technology, better use of land. He went to Japan. Did he notice that the Japanese use every inch of hill side for farming.
5. No need for population growth. Dick Smith throws the issue back at capitalists who argue there is 1000 years of coal in the ground, probably 50,000 years of uranium, and a constant stream of solar. He asks what is the benefit of population growth? Well I agree with him. Aside from the strategic need to keep up population numbers with a rapidly industrialising collectivising China, there is probably no great need to add to the global population, but no compelling reason not to either. So strategically, it helps us keep up with China. I would however argue that if we adopt a meritocratic government, and adopted a coherent and logical set of philosophical values, then maybe China would be more impressed by our economic model, and would be more inclined to join us, rather than beat us. But so long as we pursue democracy, we are stuck with 'low growth' inhibitors, and the need to offset these factors with stronger immigration and monetary illusion. Its a false economy, but if you like democracy, this is the hopeless policy you signed up for. If you want to reduce population growth, you ought to be repudiating democracy, and embracing a meritocracy, which would place greater emphasis on productivity rather than dubious economic activity measures of prosperity like GDP.
Finally to answer Dick Smith's question...what are the benefits of over-population...it is simply this...the right to have children. The desire to over-populate requires education. He has a platform, but really he is confronting the wrong issue. Such is the case with hopeless liberals like Dick Smith, Al Gore, Bill Gates, etc.
6. Do we want to live in a confining environment? He makes a comparison with living in a submarine. The analogy is hardly representative. Firstly society is transforming just as quickly as it is growing. Yes, the population has doubled in the last 20 years, our energy consumption per capita has greatly increased, but its now falling. Energy has got expensive, so we are cutting. The internal combustion engine is only 26% efficient. The next ones will be 50-60% efficient, and they will recover heat, so raising them to 85%. Already such fuel cells are available. These crude ones run on gas, and we have plenty of that. The next ones will run on concentrated solar, maybe uranium, and it only gets better.
7. Depopulation is ok. He does not know much about Japan. Property prices fell their because they were in a bubble, not because of depopulation. Of course there is cheap property in the rural areas because of depopulation. I guess he is against people migrating to the cities because they abandoned homes in rural areas to do that. The reality is that cities are vastly more efficient that rural village communities.
6. Cities allow the rural areas to be preserved in their natural or modified agricultural setting. They are dynamic places. He complains about population, but is very selective in his analysis. Japanese people love living in the cities. They like the space of Australia too, but most love Japanese city life. They just don't like the collectivist values which impose external standards upon them.
7. He argues that the USA was more prosperous in the 1950s, and seems to attribute its falling economic position to population growth. This is nonsense for a number of reasons. Firstly, the US wealth distribution is less equalised, 2nd the US has grown since the 1950s, just at slower rates, and that is largely because of increased size of government, and structural loss of competitiveness due to the liberalisation of oppressed Asia. The US has also been defending the world, a role it did not perform before the 1940s.
8. He offers a less than convincing reason for attacking economies of scale, in fact he seems to highlight it as a value for population growth. I will argue on his side, that economies of scale actually alienate consumers, and we will see more product differentiation in future. Why? Governments are currently favouring corporations. I think there will be more balanced perspective in future when we have a coherent concept for rights.
9. He makes the argument that its a finite world. It is essentially infinite when we watch technology transform our world. In future maybe we will alter human DNA so we are the size of dwarfs, so we need less food. Well I think dwarfs are 'hot'.
10. He makes claims that 'we are desalinating salt water - its obvious we have gone too far'. Nonsense, we didn't need to establish a desalination plant, we simply needed to charge people for water so they don't leave running taps. We could divert water into Sydney storages, or we could recycle, or we could recover water from the energy we use, and of course we can desalinate, and there is no harm in that.

Dick Smith argues that 'our system is addicted to growth'. Its not addicted, it just serves politicians who want to control us. Interestingly he adopted this campaign after talking to his daughter. He is trying to educate the world by offering $1mil to the best response from an under 30yo. Why? Does he value childish ignorance or wistful idealism more?
He calls himself a capitalist...no way...he's a liberal. How does a capitalist influence? He can't buy votes. He has to manipulate policy with coercion to do that.

Bob Carr has also jumped onto this issue. His arguments are even less compelling. He argues that we are not as 'agriculturally endowed' as the well-watered USA. Actually that is not true if you reflect on our wasteful water utilisation, the fact that we are a 'food basket for the world', that we waste water growing grain for cattle, when we are diet-wise better off eating more carbs. All the arid interior needs is water, and we can even induce that by using artificial structures to create rain. Consider the possibility of inducing orographic rain effects in Western Australia, not with mountains but artificial structures made from high-strength alloy steels. Australia has vast deposits of titanium and iron ore....and its mostly in WA. Perfectly located for 'mountain'building'. A dream? Maybe...as I'm sure there are more than a dozen ideas which will come to mind before this is an issue. The most likely is the normal course of recycling materials, efficiency drives as costs rise, less consumerism, fewer children, resulting in population topping out in about 30 years....yes 7 billion people later...and you will not even notice them, as they will be crowded into better designed cities....maybe in just 20m2 of ergonomically designed space, eating a low-carb diet. We won't even need the topsoil blowing into the Pacific Ocean. That will be fertiliser for the sea.
Really much of this thinking is about preserving a certain way of life. Australians seem to have this 'dreamy' view that that have a great life. Yet, if this is true, why are so many Australians and NZ'ers living abroad....in crowded cities like London, Tokyo. Are these not simply the rantings of proud, collectivist individuals?
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Author
Andrew Sheldon

Saturday, July 31, 2010

Further power privatisation in NZ

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Power privatisation has been a huge failure in NZ. The reason is that it was performed by self-serving politicians. So we are asked whether Trustpower should be sold? The answer is that it may as well be, since the market does not function efficiently anyway. Why is that? Well, not all markets are competitive. In fact if you structure markets the 'right way', they can be utterly 'cozy', real 'sleepers'. So that is the nature of the NZ power market. Expect power prices to rise by about 2-3% more than the rate of inflation until there is some political opposition, and market reform is adopted, or perhaps when coal seam gas is readily available.
There are two huge problems for competition in NZ:
1. The lack of competition in gas supply - its another oligopoly
2. The huge disparity in the competitiveness of the partially state-owned players
3. Most importantly, the disparity in operating costs between these players

This last issue is critical. Some 70% of NZ's hydro stations produce power at almost zero cost. There is 20% of capacity which carries a fuel (coal, gas) cost, so they are high cost base load producers, which always operate because they cannot afford (technically or financially) to stop. So this places a minimum price under power supplies. More importantly, at peak times the hydro producers can charge what they want. Why? Because how can new generators compete with old, fully-depreciated plants. For this reason, any new plants added merely fill 'gaps' in the market demand, they never result in competition or lower prices for the consumer. It does however result in efficient resource allocation, so that is a good thing. I guess you could argue its good if you want the country to develop more renewable (wind, solar) because it funds that. But now that its private, expect that those surpluses will go to government and shareholders. Utility users might be better off buying shares rather than complaining. I guess that is the appealing side of it. You can always profit from the utilities advantage. Mind you, the investment bankers and government got the best of you on privatisation in several respects:
1. The market structure robbed you with hidden 'taxes'. Kind of like the vested contracts used by the Victorian utilities during their privatisation. By structuring a 'consumer-unfriendly' market, the government was able to get a higher price for these assets, but that was with the prospect that consumers would be paying higher electricity charges, despite all the savings that would result.
2. The investment bankers were paid huge fees to rip you off. You may also have paid a huge premium for the shares too if you bought them in the float....so you were a 'jipped' shareholder as well? Too bad.
A lesson in not to trust governments....with anything.
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Author
Andrew Sheldon

Friday, July 23, 2010

Are greenies good for the environment?

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In a 'greenies world' we would see no development, no population growth, and thus no increase in pressure on the world's forests or increases in the concentration of atmospheric CO2. The problem however is that unthinking greenies are succumbing to the appeal of governments who utilise their deluded and misguided ideas to make all types of demands upon the productive end of the economy.
Consider the policy of reducing the consumption of hydrocarbons, whether coal or natural gas. It has resulted in the pursuit of more renewal options like wood waste, biofuels and geothermal. The problem with some of these options is that, whilst they might reduce CO2 consumption, they have other impacts on other areas, some of which are equally precious to environmentalists. i.e. Consider rainforests. The biofuels revolution has pushed up the demand for grains, and thus lands to grow them. This has displaced existing food production in the West, and resulted in developing countries clearing large tracts of forest in order to develop more food production capacity, as well as biofuel capacity.
Greedy capitalists will of course get the blame for their short-sighted actions, but the reality is that the greenies would have failed to adopt their ideas, which are misguided in themselves, but equally distortive when you consider their impact.
For more tips on how to be a well behaved environmentalist, see my global warming blog.
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Author
Andrew Sheldon

Friday, July 16, 2010

Labor burns Peter Garrett over home insulation scheme

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Further evidence that representative parliamentary democracy does not work. This time it comes in the form of 'Peter Garrett's head' - lopped off for really making a Economics 101 blunder. I did see him at Macquarie University one time. He must have been just a tourist because their 1st year economics courses were great! Oh well, I think he studied law. Maybe he should crusade for judicial activism....just maybe he'd give it his own slight 'judicial socialism'. Maybe its best if he stay on the backbench.
His mistake was an ill-conceived home insulation scheme. In fairness to Pete, there are not many 'rockers' around (aka Midnight Oil) who know how to manage money, so why should we expect any better from him. Also he was not the only minister to support such a scheme. They did the same in NZ, and probably elsewhere.....which just reaffirms my point. Democracy suxs...and it suxs badly. Not news to you? Well...why do you flipping vote for them! If you want change, you are going to have to participate! Coercion is a popular idea. Popular in school, corporations (usually in the form of extortion with incentives) and most of all government. Government is the peak body of corruption. It models subordinate sectors of the economy, just as the proto-parliament of England modeled the coercive powers of the monarch. We need to get away from unconditional love, as well as unconditional power. You get tax if you spend it well. If you don't, then you stop paying taxes. Why is everyone else expected to be accountable, but no one is. We are told by Dr Phil 'if there are no consequences, how do you expect him to learn'. The same rule applies to adults. Teach them to help themselves. They are like children!
Back to the home insulation scheme. The problem is that it involved government distortion in the market. Governments behave poorly because they get 'free money' they did not earn. It was extorted from 'earners' for the benefit of parasites, whether we are referring to the politicians, or the pragmatic politically-aligned business people who exist on government favours. Some business people don't even bother to get involved in such schemes because they understand the dubious nature of them.
Consider that - if you offer free or subsidised insulation - people rush to buy it. The problem is people are not deep thinkers, so they take the 'carrot', not recognising the other costs such as installation have been wildly overstated. They of course have no idea what installation involves, but they dive in, without even researching whether they would benefit from it. Cautioun is thrown to the wind. They don't even care about the quality because its cheap. The problem of course is that the wholesalers of the insulation and the installers cannot cope with all the demand, so they raise their prises. The implication is that we have a lot of installer millionaires around the country, and installation established which was probably not even justified. In many cases it was not installed properly. The rushed demand caused by the market 'distortion' of government resulted in house fires and even death. The problem is that roof lighting can ignite insulation if its not properly protected. So now we have law suits against government and people. All very silly! Its not a new problem....but it happens all the time, and people keep signing up for it. If you want an idea of how ill-conceived these schemes are - consider the same subsidies for 'heat pumps'. Heat pumps are great. But they make no sense if your house is poorly insulated. In some houses the best insulation is an "Eddie Bauer" jacket. It only costs $300 but it will keep you warm without heating the whole house.
A heat pump though is little more than a refrigerator in reverse. A refrigerator made in China can be bought retail for $500 these days delivered to NZ. A heat pump in contrast sells for $3000-6000 depending on its features. The implication is that it would be a better investment for you, and better for the environment for you to:
1. Defer your heat pump investment for 10-15 years until all those high-priced, unthinking Americans, Germans and Japanese have one, and then buy one. By that time they will likely integrate with your refrigeration, water distillation and home power solution.
2. You use the money saved to buy a wind turbine for zero future energy consumption. Or just buy some stocks, rather than go broke on government hand-outs.

Government is in the business of extortion because it does not know how to 'earn' money.
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Author
Andrew Sheldon

Monday, February 23, 2009

The politics of energy consumption

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I am not a greenie by any means. I don't think we should sacrifice human lives or wants for the environment, or the habitat of some obscure species until a personal value proposition can be made for saving such 'values'. If they can be made, then I think it should be a personal commitment, and not the role of government (alas taxpayers) to finance. I am still a little skeptical about greenhouse gas theory, partly because of the dubious rationalisations I have seen made by scientists over the years. There is one piece of evidence that scares me though - and that is the rising global concentrations of methane gas concentrations. One reason why this scares me is because around the world we are extracting methane from coal seams. Unlike conventional gas reservoirs, coal seam gas extraction occurs at depths of just 200-600m, not several kilometres down. The implication is that there is greater probability of methane researching the surface through faults and joints as the hydrostatic water pressure falls from the wells. I can't say I know the dynamics of gas migration, but this ought to be considered as a future time bomb issue given that methane is 100x worse as a greenhouse gas than CO2. I am not concerned with the CO2 extracted, but rather the smaller portion that is wasted, that leaks into the atmosphere.
Another issue that concerns me is the fact that:
1. Products are designed to waste energy - the remote control places appliances into sleeper mode, in which I understand a device uses a third of its operating power. This is a huge waste. I don't know if this is true of modern devices. I'd like to know. It seems to be manufacturer policy to encourage convenience, but is that what we need. Why don't we just build a TV with a bar fridge inclined, lest we have to walk to the fridge to get a beer.
2. Lights in office towers in CBDs around the world are left on 24 hours a day. Is this necessary? I'm sure its aesthetically pleasing.
3. Junk mail: I'm in NZ now, and daily I receive hoards of junk mail in my letterbox. This comes to me care of the government. The post office charges advertisers for postmen to place this material in your letterbox. Only a few of us can be bothered reading it. It is not very effective advertising. Its cheap because trees in the Amazon rainforests are cheap. People are too lazy to put 'No junk mail' on their letterbox. This is something you could campaign to your government about. I think its the same problem in every country. Advertisers should not be able to send you unsolicited paid 'junk' mail. Just they use the government.

Its not all bad news. Here are some positive developments:
1. Annual reports: Several years ago I lamented the waste receiving annual reports by snail mail every year for every stock investment, which I never read because I would read them online, or not at all because the information in an annual report is superficial at best, and its 3 months old by the time you receive it. Now you can elect to receive them by email, download them off the internet or receive a mailed copy.
2. Snail mail for bills: For years now I have been lamenting the slow pace at which utilities and banks have moved to online billing. The banks have been very slow in this respect, but faster than other enterprises. I travel, and live in foreign countries, so its nice to be able to receive my bills by email. I also want to retain a paperless office. We are slowly moving in that direction. My bank has all statements online now EXCEPT my Mastercard statements.
3. Online trading: Its now far easier to buy products online 2nd hand which you would otherwise have bought new. We are setting up a house in NZ, and we purchase most of our home contents online for 1/3-1/2 price. Its good to find a use for other people's rubbish, and it saves a lot. We bought 500 bricks for just $10 on one occasion, a canoe, and some furniture. Auctions, recycling depots and charitable organisations offer even cheaper products.

I am not against businesses advertising. I am against unsolicited junk and WASTAGE. I do love and appreciate our natural environment. Fortunately I am living in a clean, green environment in NZ, but interestingly here they are more neglectful than anywhere. My country town does not recycle at door. You have to use recycling depots. At least there is an option.

Change is very slow in the world. But the message is slowly leaking out.
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Andrew Sheldon www.sheldonthinks.com

ConvinceMe.Net - Anyone up for a debate?