Wednesday, May 30, 2007

Alternative Energy Sources or Subsidies

A major reason that alternative energy sources need publicity is that there are so many phony "alternative energy sources" out there. The worst recent phony source, no doubt, was the moth balls that you could add to your gas tank to increase gas mileage. Of course, no engineer, scientist, or half-way intelligent person paid attention to the moth ball claims but I am sure that many Americans seriously looked at the moth balls as the genuine article. The moth balls even received quite a bit of TV coverage. If we had a government that cared, someone would have gone to jail over the moth ball scam.

A few decades ago, solar energy was going to be our savior. Nothing could stop it! Driven any solar powered cars lately?

To be fair, solar energy is going to play an important role in the energy equation - - someday. The price per unit of electricity delivered is dropping rapidly and solar energy's "time on the stage" may not be too many years off. We certainly need to keep working on its development.

Ethanol is a alternative energy source that needs to be carefully looked at. Its production is being heavily subsidized by both the U.S. government and by foreign countries.

The reprocussions of the subsidies are beginning to be felt. Corn prices are rising rapidly and countries like Mexico where corn is a staple food are hurting.

Even the beer drinkers are hurting in Germany because of the ethanol craze. The growing of barley, the major grain used in German beer production is being reduced sharply in favor of growing subsidized crops better suited for ethanol production. The German beer drinkers (99% of the population?) are getting a little restless as beer prices rise.

So, we need to take a close look at so-called alternative energy sources that actually end up having a negative effect. I personally do not favor any long-term subsidies on any alternative energy source.

I don't want to give alternative energy sources a bad name. Many alternative energy sources, e.g., oil sands, LNG, hybrid cars, etc,. are going great. These sources will be discussed in detail in later posts.

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