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inflation

Feb 27
Love69

Our Adaptable Planet

By Energy Rant No Comments
For years, I wondered how the national debt would result in Great Depression-level pain and a reset not unlike bankruptcy. The national debt doesn't need to be paid back like we often hear or read in the news. It just needs to be maintained at manageable levels, defined as not letting the borrowing cost get to a prompt supercritical situation that overwhelms everything else. Financing costs are becoming alarmingly high – already more than we spend on national defense – about $1 trillion annually. When tax revenues to finance the debt are insufficient, or if debt markets bomb, the Federal Reserve steps…
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Jan 08
Love62

Seven Chicken Bones for 2024

By Energy Rant No Comments
I was going to skip predictions for 2024, but due to popular demand, I’ll throw some chicken bones at the tarot card enthusiasts. Like other things in my life, I don’t make safe bets or set goals of high probability. If my guesses aren’t 50% wrong, I’m not sufficiently aggressive. Clean Energy Investment Curtailment Inflation will continue to chop block the economy, including clean energy investment. I have a saying that many have heard in recent months: inflation is no problem for those of us who don’t need food or shelter. The Wall Street Journal recently reported that manufacturing in…
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Aug 28
Love43

Modern Electric Rates from the Slide Rule Era

By Energy Rant No Comments
Last week, we looked at Total Resource Cost (TRC) tests that were developed decades ago to put a high value on avoided source energy costs. That was right for the time, but not today. I demonstrated that energy costs, mostly dominated by natural gas, are near historic lows, while zero-energy-cost renewables supply more electricity than coal-fired generation. Of course, renewable sources have zero source-energy consumption. Yet, utility commissioners are laser-focused on keeping electricity prices in check and maintaining the reliability of the electric grid. Electric Rate Basics Like the TRC, most utility rates (tariffs) are stuck in the 1970s. I…
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Jun 27
Love36
Image shows graphic of a bike, car and a plane.

Planes, Bikes, Automobiles, and the Deceptive LCOE

By Energy Rant No Comments
Lazard recently released its 16th levelized cost of energy or LCOE report. The LCOE represents the total cost of generating (or storing) electricity over the asset’s life divided by the total MWh or kWh delivered. The total cost includes construction, land, operations, maintenance, fuel, interest, etc. Questionable Comparisons The LCOE can be misleading, it's like comparing the levelized cost of transportation (LCOT) of a bicycle, automobile, and passenger jet. The LCOE only applies when comparing automobiles against automobiles, bikes against bikes, etc., for obvious reasons. Similarly, LCOE for electricity storage is mostly reasonable. However, comparing LCOE of renewable power generation…
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Jun 14
Love2

Energy Inflation and Resetting the Dislocated Shoulder

By Energy Rant No Comments
As of last week, year-to-date energy prices are up 58% for NYMEX crude oil, 91% for NYMEX gasoline, and only 39% for retail gasoline. Retail prices seem to have a long way to climb as the high NYMEX prices make their way to the local gasoline pump. This week we look at how inflation is hitting our industry of efficiency and electrification and what might lie ahead. Let’s start with one-year price changes for a basket of commodities and roll forward with that. Diesel Fuel is Food Diesel fuel is used to transport seed, chemicals, fertilizers, and equipment to the…
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Feb 22
Love0

Natural Gas – Shakedown, 1979

By Energy Rant 2 Comments
My, how quickly some things can change, almost overnight, like natural gas markets. It seems only a year ago we had more natural gas than we could consume, as far as the eye could see. Barely three years ago, I wrote that Permian Basin oil production resulted in flaring off $1 million worth of natural gas per day, during rock bottom prices even. That was enough to fuel 2,500 MW of electricity generation. Customers are pissed off about soaring heating costs, which are 50% higher than a year ago. The chart below shows the NYMEX commodity price for natural gas…
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Sep 26
Love0

Beware the New Guy

By Energy Efficiency, Energy Rant, Government, Renewable Energy, Stimulus, Sustainability No Comments
One thing I’ve learned many times over with approaching or ongoing energy efficiency projects with clients, mostly end users, is that when the decision maker is replaced for whatever reason – the guy took a different job, retired, moved to a different place in the company – you name it, it is time to pull over to the side of the road. The most common thing a new guy (androgynously) does upon taking over the helm of whatever ship he’s driving is say no, to everything.  I’m not sure why this is but I think it possibly has something to…
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Nov 09
Love0

Playing with Fire

By Energy Efficiency, Energy Rant, Stimulus, Tax Stuff 3 Comments
I was pretty much like every other 12 year old boy.  I liked fire, explosions, and crashes.  If you think I’m crazy, why are movies sometimes beginning to end filled with the same?  Enough said.  Growing up on the farm there were always plenty of things to burn.  One time I asked my dad if I could burn an old cattle feeder that we no longer used.  No problem. You never see these things anymore but they were wood structures, like a weekend cabin that could withstand an F4 tornado, except it was all wood, nails and fasteners – solid…
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All things energy. That’s our jam.

We talk a lot about energy – from the serious to the satirical.

All things energy. That’s our jam.

We talk a lot about energy – from the serious to the satirical.

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