Monday, April 26, 2021

David Rosenberg's chronic gloominess

 - Jun 21, 2011 – CNBC: “:US Economy on 'Slippery Slope' to Recession.” - Rosenberg

- Jul 24, 2012 – Financial Post – “Seven 'extremely rare' signs that recession risks in America are rising.” - Rosenberg

- May 25, 2017 – Business Insider: 'We probably will have a recession next year.” - Rosenberg

- Dec 14, 2018 – BNN Bloomberg: Risk of 2019 recession 'higher than a lot of people think” – Rosenberg

- Sep 22, 2019 – Financial Post: “David Rosenberg pegs Canada's recession odds at 80%”

S&P TOTAL RETURN SINCE JUNE, 2011 = 188%; 13.5% Annual Equivalent

“Investors should look north (or further) because U.S. stocks are looking more and more overextended.” – David Rosenberg, Economist (National Post, March 4, 2021

"Housing is keeping Canada's economy going and that's bad news when the bubble pops" - David Rosenberg (National Post, March 26, 2021)

David Rosenberg: Housing is keeping Canada's economy going and that's bad news when the bubble pops

There is no reopening large enough to offset a housing reversal and all the negative multiplier effects that will reverberate across the entire economy

Tuesday, November 21, 2017

Stop the top smoking nonsense, in the name of ecomics anyways

“A major source of objection to a free economy is precisely that it gives people what they want instead of what a particular group thinks they ought to want." MF
      In a paper published in the Public Library of Science Medicine journal, Dutch researchers found that the health costs of thin and healthy people in adulthood are MORE expensive than those of either fat people or smokers. Because both the smokers and the obese people died sooner than the healthy group, it cost less to treat them in the long run.
- http://www.plosmedicine.org/article/info%3Adoi%2F10.1371%2Fjournal.pmed.0050037

Sunday, February 26, 2017

economic axioms I believe to be true thus far

1) "Capitalism, or more precisely, the free market system, is the most effective way to organise production and distribution that human beings have found … healthy and competitive financial markets are an extraordinarily effective tool in spreading opportunity and fighting poverty. …Without vibrant, innovative financial markets, economies would ossify and decline." (p  1)-Saving Capitalism from the Capitalists: Unleashing the Power of Financial Markets to Create Wealth and Spread Opportunity
2) taxing things decreases consumption, subsidizing things increase consumption.
3) there will always be arbitrages called “externalities” — costs that people impose on others without paying the price
4) the price of a stock's probability distribution is based on a normal curve. The more likely shape should be a fat-tailed curve ergo..."The Black–Scholes model of option pricing is based on a normal distribution. If the distribution is actually a fat-tailed one, then the model will under-price options that are far out of the money, since a 5- or 7-sigma event is much more likely than the normal distribution would predict." AND "...
"1. The Black-Scholes model overprices “at the money” call options, that is
S≈K The Black-Scholes model underprices call options at the ends, either deep “in the money”,
S>>K , or deep “out of the money”, S<<K ."
-https://www.math.unl.edu/~sdunbar1/MathematicalFinance/Lessons/BlackScholes/Limitations/limitations.pdf

Monday, October 31, 2016

The problem with antipoverty groups is that the most vocal for wealth distribution are the one's least likely to want to do anything to save their own plight aside from wealth distribution.

opportunity cost

Σ costs of path taken-Σ costs of path not taken=> max positive-best path
                                                                            positive-you didn't choose the worst path
                                                                            negative-you didn't choose the best path
                                                                            max negative-you chose the worst path

Where the costs are the sums of each path individually, not the costs of the paths added together
Recall mutually exclusive-"...two propositions (or events) are mutually exclusive or disjoint if they cannot both be true (occur)"
“Judge your success by what you had to give up in order to get it.” ― Dalai Lama
“It is very rare or almost impossible that an event can be negative from all points of view.” – Dalai Lama
"...In microeconomic theory, the opportunity cost of a choice is the value (NOT A BENEFIT) of the best alternative forgone where, given limited resources, a choice needs to be made between several mutually exclusive alternatives. Assuming the best choice is made, it is the "cost" incurred by not enjoying the benefit that would have been had by taking the second best available choice.[1] The New Oxford American Dictionary defines it as "the loss of potential gain from other alternatives when one alternative is chosen." Opportunity cost is a key concept in economics, and has been described as expressing "the basic relationship between scarcity and choice."[2] The notion of opportunity cost plays a crucial part in attempts to ensure that scarce resources are used efficiently.[3] Thus, opportunity costs are not restricted to monetary or financial costs: the real cost of output forgone, lost time, pleasure or any other benefit that provides utility should also be considered an opportunity cost."-wikipedia

what taxes do

A subsidy increases consumption. A tax decreases consumption.

Monday, November 2, 2015

THE MORAL CASE FOR FOSSIL FUELS A L E X E P ST E I N

SNEAK PREVIEW

IN STORES: November 13, 2014
For more info and to preorder, go to
www.moralcaseforfossilfuels.com
Contents
1
The Secret History of Fossil Fuels 1
2
The Energy Challenge: Cheap, Plentiful, Reliable
Energy . . . for 7 Billion People 37
3
The Greatest Energy Technology of All Time 65
4
The Greenhouse Effect and the Fertilizer Effect 89
5
The Energy Effect and Climate Mastery 119
6
Improving Our Environment 141
7
Reducing Risks and Side Effects 151
8
Fossil Fuels, Sustainability, and the Future 177
9
Winning the Future 187
Acknowledgments 211
Select Bibliography 215
Notes 219
Index 239
1
“You Must Make a Lot of Money”
“You’re an environmentalist, right?” the girl, college age, asked me.
It was 2009, in Irvine, California. I had stopped at a farmers’ market
near my office for lunch, and she was manning a Greenpeace booth
right next to it.
“Do you want to help us end our addiction to dirty fossil fuels
and use clean, renewable energy instead?”
“Actually,” I replied, “I study energy for a living—and I think it’s
good that we use a lot of fossil fuels. I think the world would be a
much better place if people used a lot more.”
I was curious to see how she would respond—I doubted she had
ever met anyone who believed we should use more fossil fuels. I was
hoping that she would bring up one of the popular arguments for
dramatically reducing fossil fuel use, and I could share with her why
I thought the benefits of using fossil fuels far outweighed the risks.
The Secret History of Fossil Fuels
1
the m 2 oral case for fossil fuel s
But fossil fuels cause climate change, she might have said. I agree,
I would have replied, but I think the evidence shows that climate
change, natural or man-made, is more manageable than ever, because
human beings are so good at adapting, using ingenuity and
technology.
But fossil fuels cause pollution, she might have said. I agree, I
would have replied, but I think the evidence shows that ingenuity
and technology make pollution a smaller problem every year.
But fossil fuels are nonrenewable, she might have said. I agree, I
would have replied, but I think the evidence shows that there are
huge amounts of fossil fuels left, and we’ll have plenty of time to use
ingenuity and technology to find something cheaper—such as some
form of advanced nuclear power.
But fossil fuels are replaceable by solar and wind, she might have
said. I disagree, I would have replied, because the sun and the wind
are intermittent, unreliable fuels that always need backup from a
reliable source of energy—usually fossil fuels, which is the only
source of energy that has been able to provide cheap, plentiful, reliable
energy for the billions of people whose lives depend on it.
But she didn’t say any of those things. Instead, when I said I
thought that we should use more fossil fuels, she looked at me with
wide-eyed disbelief and said, “Wow, you must make a lot of money.”
In other words, the only conceivable reason I would say that our
use of fossil fuels is a good thing is if I had been paid off by the fossil
fuel industry.
Even though this wasn’t true, I understood why she thought it. It
is conventional wisdom that our use of fossil fuels is an “addiction”—
a short-range, unsustainable, destructive habit.
Eighty-seven percent of the energy mankind uses every second,
including most of the energy I am using as I write this, comes from
burning one of the fossil fuels: coal, oil, or natural gas.1 Every time
someone uses a machine—whether the computer I am using right
now, the factory it was produced in, the trucks and ships that transTHE
SE CRET HISTO RY OF FOSSIL FUELS 3
ported it, the furnace that forged the aluminum, the farm equipment
that fed all the workers who made it, or the electricity that
keeps their lights on, their phones charged, and their restaurants
and hospitals open—they are using energy that they must be able
to rely on and afford. And 87 percent of the time, that energy comes
from coal, oil, or natural gas.2 Without exception, anyone who lives
a modern life is directly or indirectly using large amounts of fossil
fuel energy—it is that ubiquitous.
But, we are told, this cannot continue.
While it might be convenient to drive gasoline cars and get electricity
from coal in the short run, and while we might have needed
them in the past, the argument goes, in the long run we are making
our climate unlivable, destroying our environment, and depleting
our resources. We must and can replace fossil fuels with renewable,
green, climate-friendly energy from solar, wind, and biomass (plants).
This is not a liberal view or a conservative view; it’s a view that
almost everyone holds in one form or another. Even fossil fuel companies
make statements like the one the former CEO of Shell made
in 2013: “We believe climate change is real and time is running out
to take real action to reduce greenhouse gas emissions.”3 President
George W. Bush was the person who popularized the expression
“addicted to oil.”4 The debate over our addiction to fossil fuels is
usually over how dangerous the addiction is and how quickly we can
get rid of it—not whether we have one.
And the most prominent groups say we must get rid of it very
quickly.
For years, the Nobel Prize–winning Intergovernmental Panel on
Climate Change (IPCC) has demanded that the United States and
other industrialized countries cut carbon dioxide emissions to 20
percent of 1990 levels by 2050—and the United States has joined
hundreds of other countries in agreeing to this goal.5
Every day, we hear of new predictions from prestigious experts
reinforcing the calls for massive restrictions on fossil fuel use. As
the m 4 oral case for fossil fuel s
I write this, news about melting ice in West Antarctica is leading to
dire predictions of sea level rises: “Scientists Warn of Rising
Oceans from Polar Melt,” reports the New York Times; “Is It Too
Late to Save Our Cities from Sea-Level Rise?” asks Newsweek, citing
new research that “Miami and Manhattan will drown sooner than
we thought.”6
The message is clear: Our use of fossil fuels is going to destroy us
in the long run, and we should focus our efforts on dramatically
reducing it as soon as humanly possible.
So when the girl at the Greenpeace booth implied that I had sold
my soul, I didn’t get offended. I simply explained that, no, I wasn’t
being paid off; I had just concluded, based on my research, that the
short- and long-term benefits of using fossil fuels actually far, far
outweigh the risks and was happy to explain why. But she wasn’t interested.
Pointing me to the Greenpeace pamphlets giving all the
reasons fossil fuels are bad, she said, “So many experts predict that
using fossil fuels is going to lead to catastrophe—why should I listen
to you?” She made it clear that this wasn’t a real question and that
the conversation was over.
But if she had wanted an answer, I would have told her this: I
understand that a lot of smart people are predicting catastrophic
consequences from using fossil fuels, I take that very seriously, and
I have studied their predictions extensively.
And what I have found is this: leading experts and the media
have been making the exact same predictions for more than thirty
years. As far back as the 1970s they predicted that if we did not dramatically
reduce fossil fuel use then, and use renewables instead, we
would be experiencing catastrophe today—catastrophic resource
depletion, catastrophic pollution, and catastrophic climate change.
Instead, the exact opposite happened. Instead of using a lot less fossil
fuel energy, we used a lot more—but instead of long-term catastrophe,
we have experienced dramatic, long-term improvement in
every aspect of life, including environmental quality. The risks and
THE SE CRET HISTO RY OF FOSSIL FUELS 5
side effects of using fossil fuels declined while the benefits—cheap,
reliable energy and everything it brings—expanded to billions
more people.
This is the secret history of fossil fuels. It changed the way I
think about fossil fuels and it may change the way you think about
them, too.
Déjà Vu
When I was twenty years old, I decided I wanted to write about
“practical philosophy” for a living. Philosophy is the study of the
basic principles of clear thinking and moral action. While college
philosophy classes all too often present philosophy as an impractical
subject that involves endlessly debating skeptical questions
(“How do you know you exist?” “How do you know you’re not in The
Matrix?”), philosophy is in fact an incredibly practical tool. No matter
what we’re doing in life, whether we’re coming up with a business
plan or raising children or deciding what to do about fossil
fuels, it is always valuable to be able to think clearly about what is
right and what is wrong and why.
One valuable lesson philosophy taught me is that with any idea,
such as the idea that we need to get off fossil fuels, we should look
at the track record of that idea, if it has one.
Now, you might think: this idea does not have a history because
it is a new idea based on the latest science. This is certainly the impression
many of our leading intellectuals give. For example, in
2012 I debated Bill McKibben, the world’s leading opponent of fossil
fuels, at Duke University, and he presented his view of our addiction
to fossil fuels as cutting-edge: “We should be grateful for the
role that fossil fuel played in creating our world and equally grateful
that scientists now give us ample warning of its new risks, and
engineers increasingly provide us with the alternatives that we
the m 6 oral case for fossil fuel s
need.”7 This is the narrative we hear over and over: fossil fuels were
once necessary, but the latest science tells us they’re causing an imminent
catastrophe unless we stop using them and replace them
with cutting-edge renewables.
What is rarely mentioned is that thirty years ago, leading experts,
including many of today’s leading experts, were telling us that fossil
fuels were once necessary, but the latest science tells us they’re causing
an imminent catastrophe unless we stop using them and replace
them with cutting-edge renewables.
Take the prediction we hear today that we will soon run out of
fossil fuels—particularly oil—because they are nonrenewable. This
prediction was made over and over by some of the most prestigious
thinkers of the 1970s, who assured us that their predictions were
backed by the best science.
In 1972, the international think tank the Club of Rome released
a multimillion-copy-selling book, The Limits to Growth, which declared
that its state-of-the-art computer models had demonstrated
that we would run out of oil by 1992 and natural gas by 1993 (and,
for good measure, gold, mercury, silver, tin, zinc, and lead by 1993
at the latest).8 The leading resource theorist of the time was ecologist
Paul Ehrlich, who was so popular and prestigious that Johnny
Carson invited him onto his show over a dozen times. In 1971 he
said, “By the year 2000 the United Kingdom will be simply a small
group of impoverished islands, inhabited by some 70 million hungry
people,”9 and in 1974 he wrote, “America’s economic joyride is
coming to an end: there will be no more cheap, abundant energy,
no more cheap abundant food.”10
Another catastrophic prediction we hear today is that pollution
from fossil fuels will make our environment more and more hazardous
to our health—hence we need to stop using “dirty” fossil fuels.
This prediction was also made many times in the 1970s—with many
assurances that these predictions were backed by the best science.
THE SE CRET HISTO RY OF FOSSIL FUELS 7
Life magazine reported in January 1970 that, because of particles
emitted in the air by burning fossil fuels, “Scientists have solid experimental
and theoretical evidence to support . . . the following
predictions: In a decade, urban dwellers will have to wear gas masks
to survive air pollution . . . by 1985 air pollution will have reduced
the amount of sunlight reaching earth by one half . . .”11 To quote
Paul Ehrlich again, as he may have been the most influential public
intellectual of the decade (and is still a prestigious professor of ecology
at Stanford University): “Air pollution . . . is certainly going to
take hundreds of thousands of lives in the next few years alone,” he
said in 1970.12
And then there’s the prediction we hear most today: the supposedly
scientifically indisputable claim that CO2 emissions from fossil
fuels will cause a true climate catastrophe within a couple of decades.
13 Reading back in time, I saw that many of the leaders who
make that prediction now had, decades ago, predicted that we’d be
living in catastrophe today.
Here’s a 1986 news story about a prediction by James Hansen, the
most influential climate scientist in the world over the last thirty
years:
Dr. James E. Hansen of the Goddard Space Flight Center’s Institute
for Space Studies said research by his institute showed
that because of the “greenhouse effect” that results when gases
prevent heat from escaping the earth’s atmosphere, global temperatures
would rise early in the next century to “well above any
level experienced in the past 100,000 years.”
Average global temperatures would rise by one-half a degree
to one degree Fahrenheit from 1990 to 2000 if current trends
are unchanged, according to Dr. Hansen’s findings. Dr. Hansen
said the global temperature would rise by another 2 to 4 degrees
in the following decade.14
the m 8 oral case for fossil fuel s
Bill McKibben, when he told Duke students in 2012 that we were
on the verge of drastic warming, neglected to mention the results of
his decades-old claims, such as this one in 1989: “The choice of doing
nothing—of continuing to burn ever more oil and coal—is not
a choice, in other words. It will lead us, if not straight to hell, then
straight to a place with a similar temperature”; and “a few more
decades of ungoverned fossil-fuel use and we burn up, to put it
bluntly.”15
John Holdren, a protégé of Paul Ehrlich who serves as science
adviser to President Barack Obama, had a particularly dire prediction,
according to Ehrlich in 1986: “As University of California physicist
John Holdren has said, it is possible that carbon-dioxide
climate-induced famines could kill as many as a billion people before
the year 2020.”16
Just as the media today tell us these catastrophic predictions are
a matter of scientific consensus, so did the media of the 1980s. For
example, on the issue of catastrophic climate change: “By early
1989 the popular media were declaring that ‘all scientists’ agreed
that warming was real and catastrophic in its potential,” a 1992
study reported.17
If all the predicted catastrophes—depletion, pollution, climate
change—had occurred as thought leaders said they would, the
world of today would be much, much worse than the world of the
1970s. In the 1970s, Ehrlich went as far as to say, of the overall devastation
ahead, “If I were a gambler, I would take even money that
England will not exist in the year 2000.”18
And these were not idle predictions—the coming fossil fuel catastrophe
was so bad, these leading experts said, that we needed
dramatic restrictions on fossil fuel energy use. Ehrlich wrote: “Except
in special circumstances, all construction of power generating
facilities should cease immediately, and power companies should
be forbidden to encourage people to use more power. Power is much
THE SE CRET HISTO RY OF FOSSIL FUELS 9
too cheap. It should certainly be made more expensive and perhaps
rationed, in order to reduce its frivolous use.”19
In 1977, Amory Lovins, widely considered the leading energy
thinker of the 1970s for his criticisms of fossil fuels and nuclear
power and his support of solar power and reduced energy use, explained
that we already used too much energy. And in particular,
the kind of energy we least needed was . . . electricity, the foundation
of the digital/information revolution: “[W]e don’t need any more
big electric generating stations. We already have about twice as
much electricity as we can use to advantage.”20
In 1998, Bill McKibben endorsed a scenario of outlawing 60 percent
of present fossil fuel use to slow catastrophic climate change,
even though that would mean, in his words, that “each human being
would get to produce 1.69 metric tons of carbon dioxide annually—
which would allow you to drive an average American car nine
miles a day. By the time the population increased to 8.5 billion, in
about 2025, you’d be down to six miles a day. If you carpooled,
you’d have about three pounds of CO2 left in your daily ration—
enough to run a highly efficient refrigerator. Forget your computer,
your TV, your stereo, your stove, your dishwasher, your water heater,
your microwave, your water pump, your clock. Forget your light
bulbs, compact fluorescent or not.”21
All of these thinkers still advocate similar policies today—in
fact, today Bill McKibben endorses a 95 percent ban on fossil fuel use,
eight times as severe as the scenario described above!22 And all of
them are extremely prestigious. Since making these predictions,
John Holdren has become science adviser to President Obama,
Bill McKibben is called “the nation’s leading environmentalist”23
and more than anyone led opposition to the Keystone XL pipeline,
and Paul Ehrlich is still arguably the most influential ecological
thinker in the world. Energy historian Robert Bradley Jr.
chronicles his accolades:
the m 10 oral case for fossil fuel s
Ehrlich held an endowed chair as the Bing Professor of Population
Studies in the Biology Department at Stanford and was
elected president of the American Institute of Biological Sciences.
He was elected to the National Academy of Sciences and
received many awards and prizes, including the inaugural prize
of the American Academy of Arts and Sciences for Science in
the Service of Humanity, a MacArthur Genius Award, the Volvo
Environmental Prize, the World Ecology Medal from the International
Center for Tropical Ecology, and the International
Ecology Institute Prize.
He also received what is hyped as the equivalent of the Nobel
Prize in a field where it is not awarded—the Crafoord Prize in
Population Biology and the Conservation of Biological Diversity.24
Thus, today’s leading thinkers and leading ideas about fossil fuels
have a decades-long track record—and given that they are calling
for the abolition of our most popular form of energy, it would
be irresponsible not to look at how reality has compared to their
predictions.
Of course, predictions on a societal or global level can never be
exact, but they need to be somewhere near the truth.
So what happened?
Two things: Instead of following the leading advice and restricting
the use of fossil fuels, people around the world nearly doubled
their use of fossil fuels—which allegedly should have led to an epic
disaster. Rather, it led to an epic improvement in human life across
the board.
THE SE CRET HISTO RY OF FOSSIL FUELS 11
More Fossil Fuels, More Flourishing
Here is a picture summarizing world energy use since 1980.
Figure 1.1: 80 Percent Increase in Worldwide
Fossil Fuel Use 1980–2012
Source: BP, Statistical Review of World Energy 2013, Historical data workbook
From the 1970s to the present, fossil fuels have overwhelmingly
been the fuel of choice, particularly for developing countries. In
the United States between 1980 and 2012, the consumption of oil
increased 8.7 percent, the consumption of natural gas increased
28.3 percent, and the consumption of coal increased 12.6 percent.25
During that time period, the world overall increased fossil fuel usage
far more than we did. Today the world uses 39 percent more oil,
107 percent more coal, and 131 percent more natural gas than it
did in 1980.26
the m 12 oral case for fossil fuel s
This wasn’t supposed to happen.
The anti–fossil fuel experts had predicted that this would be
not only deadly, but unnecessary due to the cutting-edge promise
of solar and wind (sound familiar?). Then as now, environmental
leaders were arguing that renewable energy combined with conservation—
using less energy—was a viable replacement for fossil
fuels.
Amory Lovins wrote in 1976: “Recent research suggests that a
largely or wholly solar economy can be constructed in the United
States with straightforward soft technologies that are now demonstrated
and now economic or nearly economic.”27 Lovins was a sensation,
and around the globe governments gave solar (and wind
and ethanol) companies billions of dollars in the hope that they
would be able to generate cheap, plentiful, reliable energy.
But as the last graph illustrates, this did not happen. Solar and
wind are a minuscule portion of world energy use. And even that is
misleading because fossil fuel energy is reliable whereas solar and
wind aren’t. While energy from, say, coal is available on demand so
you can keep a refrigerator—or a respirator—on whenever you need
it, solar energy is available only when the sun shines and the clouds
cooperate, which means it can work only if it’s combined with a reliable
source of energy, such as coal, gas, nuclear, or hydro.28
Why did fossil fuel energy outcompete renewable energy—not
just for existing energy production but for most new energy production?
This trend is too consistent across too many countries to be
ignored. The answer is simply that renewable energy couldn’t meet
those countries’ energy needs, though fossil fuels could. While
many countries wanted solar and wind, and in fact used a lot of
their citizens’ money to prop up solar and wind companies, no one
could figure out a cost-effective, scalable process to take sunlight and
wind, which are dilute and intermittent forms of energy, and turn
them into cheap, plentiful, reliable energy.
THE SE CRET HISTO RY OF FOSSIL FUELS 13
So despite the warnings of leading experts, people around the
world nearly doubled their use of fossil fuels.
According to the predictions of the most popular experts, who
assured us that their conclusions reflected the best science, this
should have led to utter catastrophe. But the result was one of the
greatest-ever improvements in human life.
This book is about morality, about right and wrong. To me, the
question of what to do about fossil fuels and any other moral issue
comes down to: What will promote human life? What will promote
human flourishing—realizing the full potential of life? Colloquially,
how do we maximize the years in our life and the life in our years?
When we look at the recent past, the past that was supposed to be
so disastrous, we should look at flourishing—and that of course includes
the quality (or lack thereof) of our environment.
And there is an incredibly strong correlation between fossil fuel
use and life expectancy and between fossil fuel use and income,
particularly in the rapidly developing parts of the world. Figures 1.2
and 1.3 show recent trends in China and India of fossil fuel use, life
expectancy, and income.
There is no perfect measure of flourishing, but one really good
measure is life expectancy—the average number of years in the life
of a human being. Another good one, for less obvious reasons, is
average income. This is valuable because while in a sense “money
can’t buy happiness,” it gives us resources and, therefore, time and
opportunity to pursue our happiness. It’s hard to be happy when
you don’t know where your next meal is coming from. The more
opportunity you have to do what you want with your time, the more
opportunity you have to be happy.
Consider the fate of two countries that have been responsible for
a great deal of the increase in fossil fuel use, China and India. In
each country, both coal and oil use increased by at least a factor of 5,
producing nearly all their energy.29
the m 14 oral case for fossil fuel s
Figure 1.2: Fossil Fuel Use and Life Expectancy in China and India
Figure 1.3: Fossil Fuel Use and Income in China and India
Sources: BP, Statistical Review of World Energy 2013, Historical data workbook; World
Bank, World Development Indicators (WDI) Online Data, April 2014
Sources: BP, Statistical Review of World Energy 2013, Historical data workbook; World
Bank, World Development Indicators (WDI) Online Data, April 2014
THE SE CRET HISTO RY OF FOSSIL FUELS 15
The story is clear—both life expectancy and income increased
rapidly, meaning that life got better for billions of people in just a
few decades. For example, the infant mortality rate has plummeted
in both countries—in China by 70 percent, which translates to 66
more children living per 1000 births.30 India has experienced a
similar decrease, of 58 percent.
Not only in China and India, but around the world, hundreds of
millions of individuals in industrializing countries have gotten
their first lightbulb, their first refrigerator, their first decent-paying
job, their first year with clean drinking water or a full stomach. To
take one particularly wonderful statistic, global malnutrition and
undernourishment have plummeted—by 39 percent and 40 percent,
respectively, since 1990.31 That means, in a world with a growing
population, billions of people are better fed than they would
have been just a few decades ago. While there is plenty to criticize
in how certain governments have handled industrialization, the
big-picture effect has been amazingly positive so far.
Ours is a world that was not supposed to be possible.
Where did the thinkers go wrong? One thing I have noticed in
reading most predictions of doom is that the “experts” almost always
focus on the risks of a technology but never the benefits—and
on top of that, those who predict the most risk get the most attention
from the media and from politicians who want to “do something.”
But there is little to no focus on the benefits of cheap, reliable energy
from fossil fuels.
This is a failure to think big picture, to consider all the benefits and
all the risks. And the benefits of cheap, reliable energy to power the
machines that civilization runs on are enormous. They are just as fundamental
to life as food, clothing, shelter, and medical care—indeed,
all of these require cheap, reliable energy. By failing to consider the
the m 16 oral case for fossil fuel s
benefits of fossil fuel energy, the experts didn’t anticipate the spectacular
benefits that energy brought about in the last thirty years.
At the same time, we do have to consider the risks—including predictions
that using fossil fuel energy will lead to catastrophic resource
depletion, catastrophic pollution, and catastrophic climate change.
How did those predictions fare? Even if the overall trends are
positive, might the anti–fossil fuel experts have been right about
catastrophic depletion, catastrophic pollution, and catastrophic climate
change, and might those problems still be leading us to
long-term catastrophe?
These are important questions to answer.
But when we look at the data, a fascinating fact emerges: As we
have used more fossil fuels, our resource situation, our environment
situation, and our climate situation have been improving, too.
More Fossil Fuels,
More Resourc es, Better Environment,
Sa fer Clima te?
Let’s start with the popular prediction that we’re running out of
resources, especially fossil fuels.
If the predictions were right that we were running out of fossil
fuel resources, then nearly doubling fossil fuel use worldwide
should have practically depleted us of fossil fuels, even faster than
Paul Ehrlich and others predicted. That’s certainly what the experts
told us in the 1970s. In a 1977 televised address, Jimmy Carter,
conveying conventional wisdom at the time, told the nation, “We
could use up all of the proven reserves of oil in the entire world by
the end of the next decade.”32 A popular Saudi expression at the
time captured this idea: “My father rode a camel. I drive a car. My
son flies a jet airplane. His son will ride a camel.”33
THE SE CRET HISTO RY OF FOSSIL FUELS 17
Well, no one in the oil business is riding a camel, because as fossil
fuel use has increased, fossil fuel resources have increased. How is
that possible?
The measure for fossil fuel resources is “proven reserves,” which
is the amount of coal, oil, or gas that is available to us affordably,
given today’s technology. While these statistics are subject to some
manipulation—sometimes countries and companies can give misleading
data—they are the best information we have and we have
historically underpredicted availability.
Let’s look at reserves from 1980 to the present for oil and gas, the
fossil fuels we are traditionally afraid will run out. Coal is much
easier to find and extract and is considered to be the fossil fuel that
is least likely to run out. Notice how the more we consume, the more
reserves increase.
Figure 1.4: More Oil Consumption, More Oil Reserves
Source: BP, Statistical Review of World Energy 2013, Historical data workbook
the m 18 oral case for fossil fuel s
Figure 1.5: More Natural Gas Consumption, More Natural Gas Reserves
This is counterintuitive; the more we use, the more we have.
How did this happen? Stay tuned.
Why did so many expect catastrophic depletion? Again, there
was a failure to think big picture. Many experts paid attention only
to our consumption of oil and gas resources, but not our ability to
create new oil and gas resources.
It’s true that once we burn a barrel of oil, it’s gone. But it’s also
true that human ingenuity can dramatically increase the amount of
coal, oil, or gas that is available. It turns out that there are many
times more of each in the ground than we have used in the entire
history of civilization—it’s just a matter of developing the technology
to extract them economically.34 And in general, human beings
are amazingly good at using ingenuity to create wealth, which
means to create resources. We take the materials around us and
Source: BP, Statistical Review of World Energy 2013, Historical data workbook
THE SE CRET HISTO RY OF FOSSIL FUELS 19
make them more valuable; that’s how we went from starving in a
cave to producing a cornucopia of food that we can enjoy in comfortable
homes. The thought leaders did not sufficiently consider
these virtues of human beings.
What about the prediction that our environment would degrade
as we used more fossil fuels and more everything? Our escalating
fossil fuel use was definitely supposed to be punished with a much,
much dirtier environment.
What actually happened? We’ll look at all major measures of environmental
quality in chapter 8, but for now let’s look at clean air
and clean water. Both have increased substantially.
Here are measurements from the EPA of six major air pollutants.
As fossil fuel use goes up, they go down.
Source: U.S. EPA National Emissions Inventory Air Pollutant Emissions Trends Data
Figure 1.6: U.S. Air Pollution Goes Down Despite
Increasing Fossil Fuel Use
the m 20 oral case for fossil fuel s
And here are international data for the percentage of people in
the world with good water quality, which has gone up dramatically in
the last 25 years as countries have used more and more fossil fuels.
Figure 1.7: More Fossil Fuels, More Clean Water
Sources: BP, Statistical Review of World Energy 2013, Historical data workbook; World
Bank, World Development Indicators (WDI) Online Data, April 2014
Overall, the improvement is incredible. Of course, there are
places such as China that have high levels of smog—but the track
record of the rest of the world indicates that this can be corrected
while using ever increasing amounts of fossil fuels.
Once again, the anti–fossil fuel experts got it completely wrong.
Why?
Again by not thinking big picture, by paying attention to only
one half of the equation—in the case of fossil fuels, focusing only
on the ways in which using them can harm our environment. But
fossil fuels, as we’ll discuss in chapter 6, can also improve our enviTHE
SE CRET HISTO RY OF FOSSIL FUELS 21
ronment by powering machines that clean up nature’s health hazards,
such as water purification plants that protect us from naturally
contaminated water and sanitation systems that protect us from
natural disease and animal waste. Pessimistic predictions often assume
that our environment is perfect until humans mess it up; they
don’t consider the possibility that we could improve our environment.
But the data of the last forty years indicate that we have been
doing exactly that—using fossil fuels.
Finally, we have to look at what the trend is in the realm of climate
change. Catastrophic climate change is the most dire claim
about fossil fuels today, and it is associated with many prominent
scientific bodies, journals, and media outlets—although if we go
through the writings of the 1970s and 1980s, we see those same
bodies declare many things confidently about global cooling only to
contradict themselves several years later. In 1975, the American Meteorological
Society told Americans that the climate was cooling
and that this meant worse weather: “Regardless of long term trends,
such as the return of an Ice Age, unsettled weather conditions now
appear more likely than those of the abnormally favorable period
which ended in 1972.”35 In 1975, Nature said, “A recent flurry of papers
has provided further evidence for the belief that the Earth is
cooling. There now seems little doubt that changes over the past
few years are more than a minor statistical fluctuation.”36
In the late 1970s, the global cooling trend many expected to end
in disaster ended with no disaster whatsoever.
Since then, those who believe in catastrophic climate change
have overwhelmingly focused on global warming due to CO2 emissions
from fossil fuels. It has long been known that when CO2 is
added to the atmosphere, the greenhouse effect leads to a warming
impact—but before the 1970s and 1980s, there was not much fear
that it was of a significant enough magnitude to do major harm (or
good, for that matter). But starting in the 1970s and especially the
the m 22 oral case for fossil fuel s
1980s, claims of runaway global warming and resulting catastrophic
climate change became popular. How did they fare when compared
to reality?
Recall that in 1986 James Hansen predicted that “if current
trends are unchanged,” temperatures would rise .5 to 1.0 degree
Fahrenheit in the 1990s and 2 to 4 degrees in the first decade of the
2000s.37 According to Hansen’s own department at NASA, from the
beginning to the end of the 1990s, temperatures were .018 degree
Fahrenheit (.01 degree Celsius) higher, and from 2000 to 2010, temperatures
were .27 degree Fahrenheit (.15 degree Celsius) higher—
meaning he was wrong many times over.38
Recall also that journalist Bill McKibben, summarizing the
claims of Hansen and others, confidently predicted that by now we
would “burn up, to put it bluntly.”39 Looking at the actual data on a
graph, it becomes clear that he was completely wrong.
Here’s a graph of the last hundred-plus years of temperature
compared to the amount of CO2 in the atmosphere. We can see that
CO2 emissions rose rapidly, most rapidly in the last fifteen years.
But there is not nearly the warming or the pattern of warming that
we have been led to expect. We can see a very mild warming trend
overall—less than 1 degree Celsius (less than 1.5 degrees Fahrenheit)
over a century—which in itself is unremarkable, given that
there is always a trend one way or the other, depending on the time
scale you select. But notice that there are smaller trends of warming
and cooling, signifying that CO2 is not a particularly powerful
driver, and especially notice that the current trend is flat when it
“should be” skyrocketing.
Given how much our culture is focused on the issue of CO2-
induced global warming, it is striking how little warming there has
been.
But most striking to me are the data on how dangerous the climate
has become over the last few decades, during a time when all
THE SE CRET HISTO RY OF FOSSIL FUELS 23
of the predictions said that the Earth would become progressively
more deadly. The key statistic here, one that is unfortunately almost
never mentioned, is “climate-related deaths.” I learned about this
statistic from the work of the prolific global trends researcher Indur
Goklany, who tracks changes over time in how many people die
from a climate-related cause, including droughts, floods, storms,
and extreme temperatures.40
Before you look at the data, ask yourself: Given what you hear in
the news about the climate becoming more and more dangerous,
what would you expect the change in the annual rate of climaterelated
deaths to be since CO2 in the atmosphere started increasing
significantly (about eighty years ago). When I speak at colleges, I
Figure 1.8: Global Warming Since 1850—the Full Story
Sources: Met Office Hadley Centre HadCRUT4 dataset; Etheridge et al. (1998);
Keeling et al. (2001); MacFarling Meure et al. (2006); Merged Ice-Core Record Data,
Scripps Institution of Oceanography
the m 24 oral case for fossil fuel s
sometimes get answers such as five times, even a hundred times
greater death rates. And from the headlines, it does look as though
the tragedies like Superstorm Sandy are the new normal.
The data say otherwise.
In the last eighty years, as CO2 emissions have most rapidly escalated,
the annual rate of climate-related deaths worldwide fell by an
incredible rate of 98 percent.41 That means the incidence of death
from climate is fifty times lower than it was eighty years ago.
Figure 1.9: More Fossil Fuels, Fewer Climate-Related Deaths
Sources: Boden, Marland, Andres (2013); Etheridge et al. (1998); Keeling et al. (2001);
MacFarling Meure et al. (2006); Merged Ice-Core Record Data, Scripps Institution of
Oceanography; EM-DAT International Disaster Database
The first time I read this statistic, I didn’t think it was possible. But
my colleagues and I at the Center for Industrial Progress have mined
the data extensively, and it is that dramatic and positive. Because the
numbers are so startling, in chapter 5 I’ll explain them in depth.
THE SE CRET HISTO RY OF FOSSIL FUELS 25
Once again, the leading experts we were told to rely on were 100
percent wrong. It’s not that they predicted disaster and got half a
disaster—it’s that they predicted disaster and got dramatic improvement.
Clearly, something was wrong with their thinking and we need
to understand what it is because they are once again telling us to
stop using the most important energy source in our civilization.
And we are listening.
Why did so many predict increasing climate danger when the
reality turned out to be increasing climate safety as we used more
fossil fuels? Once again, they didn’t think big picture—they seemed
to be looking only at potential risks of fossil fuels, not the benefits.
Clearly, as the climate-related death data show, there were some
major benefits—namely, the power of fossil-fueled machines to
build a durable civilization that is highly resilient to extreme heat,
extreme cold, floods, storms, and so on. Why weren’t those mentioned
in the discussion when we talked about storms like Sandy
and Irene, even though anyone going through those storms was far
more protected from them than he or she would have been a century
ago?
Wha t’s at Stake
Imagine if we had followed the advice of some of our leading advisers
then, many of whom are some of our leading advisers now, to
severely restrict the energy source that billions of people used to lift
themselves out of poverty in the last thirty years? We would have
caused billions of premature deaths—deaths that were prevented
by our increasing use of fossil fuels.
What happens if today’s predictions and prescriptions are just as
wrong? That would mean billions of premature deaths over the
next thirty years and beyond. And the loss of a potentially amazing
future.
the m 26 oral case for fossil fuel s
Even if their predictions are partially right—certainly, fossil fuels
have risks that we need to identify and quantify so as to minimize
danger and pollution—we are in danger of making bad decisions
because of the tendency to ignore benefits and exaggerate risks.
Today, proposals to restrict fossil fuels are more popular than
ever. As mentioned earlier, the Intergovernmental Panel on Climate
Change (IPCC) has demanded that the United States and
other industrialized countries cut carbon emissions to 20 percent
of 1990 levels by 2050—and the United States has joined hundreds
of other countries in agreeing to this goal.42 And the UN panel reassures
us that “close to 80 percent of the world’s energy supply could
be met by renewables by mid-century if backed by the right enabling
public policies . . .”43 Around the world, it is fashionable to attack
every new fossil fuel development and every new form of fossil fuel
technology, from hydraulic fracturing (“fracking”) in the United
States to oil sands (“tar sands”) in Canada.
To think about dire measures like this without seriously reflecting
on the predictions and trends of the last forty years—and the thinking
mistakes that led to those wrong predictions—is dangerous, just
as it was dangerous for thought leaders to ignore the benefits of fossil
fuels while focusing only on (and exaggerating) the risks. At the
same time, we need expert guidance to know the present-day evidence
about the benefits and risks of fossil fuels. History doesn’t always repeat
itself.
But how do we know what—and whom—to believe?
Use Experts as Adv isers, Not Authorities
Remember the question from my Greenpeace conversation: “So
many experts predict that using fossil fuels is going to lead to catastrophe—
why should I listen to you?” She—and we—shouldn’t “listen”
to anyone, in the sense of letting them tell us what to do.
THE SE CRET HISTO RY OF FOSSIL FUELS 27
To be sure, we absolutely need to consult experts. Experts are an
indispensable source of information about the state of knowledge
in specific fields—whether economics or energy or climate science—
that we can use to make better decisions. But we can get this
benefit only so long as the expert is clear about what he knows and
how he knows it, as well as what he doesn’t know.
Too often we are asked to take some action because an expert
recommends it or because a group of experts favored it in a poll.
This is a recipe for failure. We have already seen that the people
revered as experts can be disastrously wrong, as Ehrlich was in his
predictions from the seventies. Such errors are common, particularly
among experts commenting on controversial political matters,
where thinkers are rewarded for making extreme, definitive predictions.
Think, for example, of all the economists who were convinced
in 2007 and 2008 that the economy was healthy and who were advising
people to take on more debt and purchase more property, inflating
the real-estate bubble further and further, until it finally
burst.
To avoid falling prey to this sort of “expert” advice, we need experts
to explain to us how they reached their conclusions, and make
sure they are not overstepping the bounds of their knowledge,
which is incredibly common.
No scientist is an expert on everything; each specializes in some
particular field. For example, a climate scientist might be a specialist
in paleoclimatology (the study of using ancient evidence to deduce
what ancient climates were like), and even then he might be an
expert in only one period—say, the Cretaceous (one of the periods
in which the dinosaurs lived). He is not going to be an expert in
climate physics, and the climate physicist is also not an expert in
human adaptation.
Whether our escalating use of fossil fuels is good or bad for us is a
complex interdisciplinary question, and everyone is a nonexpert in many
relevant issues. In this respect, we are all in the same boat. To reach an
the m 28 oral case for fossil fuel s
informed opinion, we need to draw on the work of experts in many
fields, working to understand and evaluate their opinions and to interrelate
them with one another and with our other knowledge.
Each of us is responsible for taking these steps—for doing his
best to find the truth and to make the right decision. This means
treating experts not as authority figures to be obeyed but as advisers
to one’s own independent thought process and decision making.
An adviser is someone who knows more than you do about the
specifics but knows only part of what you need and can be wrong.
An honest and responsible expert recognizes this, and so he takes
care to explain his views and his reasons for them clearly, he is upfront
about any reasons there may be for doubting his conclusions,
and he responds patiently to questions and criticism. He strives to
give the public access to as much information as possible about his
data, calculations, and reasoning. In this book, all the graphs are
based on data collected from nonpartisan international sources
(including arguably the three sources most respected by scholars:
the World Bank, the International Energy Agency, and the BP Statistical
Review of World Energy) and in-depth information about
the graphs and how to re-create them can be found at www.moral
caseforfossilfuels.com.
Seek the Big Picture
Ultimately, what we’re after in examining the benefits and risks of
fossil fuels is to know big picture how they affect human life and what
to do going forward.
What experts in specific fields give us is knowledge that we can
integrate into a big-picture assessment. For example, by learning
from a combination of scientists and economists and energy experts,
we can know how the risks of burning coal compare to the
benefits of burning coal.
THE SE CRET HISTO RY OF FOSSIL FUELS 29
Looking at the big picture requires looking at all the benefits
and risks to human life of doing something and of not doing it. To
do otherwise is to be biased in a way that could be very dangerous
to human life. One thing I noticed repeatedly when looking at the
wrong predictions was a distinct bias against fossil fuels. The focus
would be exclusively on the negatives of fossil fuels, which were often
exaggerated, and not on their positives, which, given the results,
were clearly overwhelming.
Often the cause of bias is an unacknowledged assumption.
For example, among those who disagree with catastrophic climate
change predictions, it’s a common assumption that it’s impossible
for man to have a catastrophic or even a significant impact on
climate. For example, Indiana Congressman Todd Rokita says, “I
think it’s arrogant that we think as people that we can somehow
change the climate of the whole earth . . .”—as if there is some preordained
guarantee that we can’t significantly affect the global climate
system.44 There isn’t; whether we are or not can’t be known
without first examining the evidence.
On the other side of the issue, among those who agree with catastrophic
climate predictions, it’s a common assumption that there’s
something inherently wrong with man having an impact on climate.
If you hold that assumption, you’re likely to assume that the impact
of man-made CO2 emissions is very negative, even if the evidence
showed it was actually mild or even positive.
We cannot assume things are good or bad. We must rigorously
seek out the big-picture evidence—hence the last issue: being clear
on exactly what we mean by good or bad.
Nam e Our Standard
Ultimately, when thinking about fossil fuels, we are trying to figure
out the right thing to do, the right choices to make. But what exactly
the m 30 oral case for fossil fuel s
do we mean by right and wrong, good and bad? What is our standard
of value? By what standard or measure are we saying something
is good or bad, great or catastrophic, right or wrong, moral
or immoral?
I hold human life as the standard of value, and you can see that
in my earlier arguments: I think that our fossil fuel use so far has
been a moral choice because it has enabled billions of people to live longer
and more fulfilling lives, and I think that the cuts proposed by the
environmentalists of the 1970s were wrong because of all the death and
suffering they would have inflicted on human beings.
Not everyone holds human life as their standard of value, and
people often argue that things are right or wrong for reasons other
than the ways they benefit or harm human beings. For example,
many religious people think that it is wrong to eat certain foods or to
engage in certain sexual acts, not because there is any evidence that
these foods or acts are unhealthy or otherwise harmful to human
beings but simply because they believe God forbids them. Their standard
of value is not human life but (what they take to be) God’s will.
Religion is not the only source of nonhuman standards of value.
Many leading environmental thinkers, including those who predict
fossil fuel catastrophe, hold as their standard of value what they call
“pristine” nature or wilderness—nature unaltered by man.
For example, in a Los Angeles Times review of The End of Nature,
McKibben’s influential book of twenty-five years ago predicting catastrophic
climate change, David M. Graber, research biologist for the
National Park Service, wrote this summary of McKibben’s message:
McKibben is a biocentrist, and so am I. We are not interested in
the utility of a particular species or free-flowing river, or ecosystem,
to mankind. They have intrinsic value, more value—to
me—than another human body, or a billion of them. Human
happiness, and certainly human fecundity, are not as important
as a wild and healthy planet. I know social scientists who remind
THE SE CRET HISTO RY OF FOSSIL FUELS 31
me that people are part of nature, but it isn’t true. Somewhere
along the line—at about a billion [sic] years ago, maybe half
that—we quit the contract and became a cancer. We have become
a plague upon ourselves and upon the Earth. It is cosmically
unlikely that the developed world will choose to end its
orgy of fossil-energy consumption, and the Third World its suicidal
consumption of landscape. Until such time as Homo sapiens
should decide to rejoin nature, some of us can only hope for
the right virus to come along.45
In his book, McKibben wrote that our goal should be a “humbler
world,” one where we have less impact on our environment and
“Human happiness would be of secondary importance.”46
What is of primary importance? Minimizing our impact on our environment.
McKibben explains: “Though not in our time, and not in
the time of our children, or their children, if we now, today, limited
our numbers and our desires and our ambitions, perhaps nature
could someday resume its independent working.”47 This implies that
there should be fewer people, with fewer desires, and fewer ambitions.
This is the exact opposite of holding human life as one’s standard
of value. It is holding human nonimpact as one’s standard of
value, without regard for human life and happiness.
Earlier we saw that human beings are safer than ever from climate,
despite whatever impact we have had from increasing the
concentration of CO2 in the atmosphere from .03 percent to .04 percent.
And yet Bill McKibben and others call our present climate
catastrophic. By what standard?
In his book Eaarth, McKibben argues that it’s tragic for human
beings to do anything that affects climate, even if it doesn’t hurt
human beings. He writes, referencing an earlier work:
Merely knowing that we’d begun to alter the climate meant that
the water flowing in that creek had a different, lesser meaning.
the m 32 oral case for fossil fuel s
“Instead of a world where rain had an independent and mysterious
existence, the rain had become a subset of human activity,”
I wrote. “The rain bore a brand; it was a steer, not a deer.”48
This means that something is morally diminished if human beings
affect it.
If fossil fuels changed climate, but not in a way that harmed humans—
or even helped them—would it be right to use them because
of their benefits to human life?
On a human standard of value, the answer is absolutely yes.
There is nothing intrinsically wrong with transforming our environment—
to the contrary, that’s our means of survival. But we do
want to avoid transforming our environment in a way that harms us
now or in the long term.
You might wonder how holding human life as your standard of
value applies to preserving nature. It applies simply: preserve nature
when doing so will benefit human life (such as a beautiful park
to enjoy) and develop it when it will benefit human life. By contrast,
if nonimpact, not human life, is the standard, the moral thing to do
is always leave nature alone. For example, in the 1980s, India had
an environmentalist movement, called the Chipko movement, that
made it nearly impossible for Indians to cut down forests to engage
in industrial development. It was so bad that a movement literally
called Log the Forest emerged to counter it. As one Indian who
tried to build a road said:
Now they tell me that because of Chipko the road cannot be
built [to her village], because everything has become paryavaran
[environment]. . . . We cannot even get wood to build a house . . .
our haq-haqooq [rights and concessions] have been snatched
away. . . . I plan to contest the panchayat [village administrative
body] elections and become the pradhan [village leader] next
THE SE CRET HISTO RY OF FOSSIL FUELS 33
year. . . . My first fight will be for a road, let the environmentalists
do what they will. [Italics in original]49
This is the essence of the conflict: the humanist, which is the
term I will use to describe someone on a human standard of value,
treats the rest of nature as something to use for his benefit; the
nonhumanist treats the rest of nature as something that must be
served.
We always need to be clear about our standard of value so we
know the goal we’re aiming at. Aiming at human well-being, which
includes transforming nature as much as necessary to meet human
needs, is a lot different from aiming to not affect nature. The humanist
believes that transforming nature is bad only if it fails to
meet human needs; the nonhumanist believes that transforming
nature is intrinsically bad and that doing so will inevitably somehow
cause catastrophe for us in the long run.
Because many of the people predicting dire consequences from
fossil fuel use avowedly do not hold a human standard of value and
because the vast majority of discussions on the issue are not clear
about the standard of value being used, we need to always ask, when
we hear any evaluation: “By what standard of value?”
The Mora l Case for Fossil Fuels
In my experience, if we follow these principles to get a big-picture
perspective on what will and won’t benefit human life, the conclusion
we’ll reach is far more positive and optimistic than almost anyone
would expect.
The reason is that the cheap, plentiful, reliable energy we get
from fossil fuels and other forms of cheap, plentiful, reliable energy,
combined with human ingenuity, gives us the ability to transthe
m 34 oral case for fossil fuel s
form the world around us into a place that is far safer from any
health hazards (man-made or natural), far safer from any climate
change (man-made or natural), and far richer in resources now and
in the future.
Fossil fuel technology transforms nature to improve human life
on an epic scale. It is the only energy technology that can currently
meet the energy needs of all 7+ billion people on this planet. While
there are some truly exciting supplemental technologies that may
rise to dominance in some distant decade, that does not diminish
the greatness or immense value of fossil fuel technology.
Ultimately, the moral case for fossil fuels is not about fossil fuels; it’s
the moral case for using cheap, plentiful, reliable energy to amplify
our abilities to make the world a better place—a better place for human
beings.
That’s where we will start. In chapters 2 and 3, I will make the
case that no other energy technology besides fossil fuels can even
come close to producing that energy for the foreseeable future (although
several can be valuable supplements).
In chapters 4, 5, 6, and 7, I will make the case that just as energy
dramatically improves our ability to deal with any aspect of life by
using machines—increasing our mental capacities with computers,
our medical capabilities with MRI machines, and our agricultural
capabilities with high-powered farming equipment—so it dramatically
improves our ability to make our environment healthier and
safer from natural and man-made threats. The data clearly show
that we have never had higher environmental quality and we have
never been safer from climate, despite—no, because of—record fossil
fuel use.
In chapter 8, I will make the case that fossil fuel use is not “unsustainable”
but progressive—by using the best energy technology
today and in the coming decades, we pave the way for fossil fuel
THE SE CRET HISTO RY OF FOSSIL FUELS 35
technologies not only to harness the copious amounts of fossil fuels
remaining in the ground, of which we have just scratched the surface,
but also to create the resources and time necessary to develop
the next great energy technology.
Finally, in chapter 9, I will make the case that we are at one of
those points in history where we are at a fork between a dream and
a nightmare and that the nightmare side is winning, thanks to decades
of underappreciation of fossil fuels’ benefits and massive misrepresentations
of fossil fuels’ risks. But the dream is absolutely
possible. It just requires that we truly, to our core, understand the
value of energy to human life.
Could everything we know about fossil fuels be wrong?
For decades, environmentalists have told us that using fossil fuels is a self-destructive addiction that will
destroy our planet. Yet at the same time, by every measure of human well-being, from life expectancy
to clean water to climate safety, life has been getting better and better.
How can this be?
The explanation, energy expert Alex Epstein argues in The Moral Case for Fossil Fuels, is that we usually
hear only one side of the story. We’re taught to think only of the negatives of fossil fuels, their risks and
side effects, but not their positives—their unique ability to provide cheap, reliable energy for a world of
seven billion people. And the moral significance of cheap, reliable energy, Epstein argues, is woefully
underrated. Energy is our ability to improve every single aspect of life, whether economic or
environmental.
If we look at the big picture of fossil fuels compared with the alternatives, the overall impact of using
fossil fuels is to make the world a far better place. We are morally obligated to use more fossil fuels for
the sake of our economy and our environment.
Drawing on original insights and cutting-edge research, Epstein argues that most of what we hear about
fossil fuels is a myth. For instance . . .
Myth: Fossil fuels are dirty.
Truth: The environmental benefits of using fossil fuels far outweigh the risks. Fossil fuels don’t take a
naturally clean environment and make it dirty; they take a naturally dirty environment and make it
clean. They don’t take a naturally safe climate and make it dangerous; they take a naturally dangerous
climate and make it ever safer.
Myth: Fossil fuels are unsustainable, so we should strive to use “renewable” solar and wind.
Truth: The sun and wind are intermittent, unreliable fuels that always need backup from a reliable
source of energy—usually fossil fuels. There are huge amounts of fossil fuels left, and we have plenty of
time to find something cheaper.
Myth: Fossil fuels are hurting the developing world.
Truth: Fossil fuels are the key to improving the quality of life for billions of people in the developing
world. If we withhold them, access to clean water plummets, critical medical machines like incubators
become impossible to operate, and life expectancy drops significantly. Calls to “get off fossil fuels” are
calls to degrade the lives of innocent people who merely want the same opportunities we enjoy in the
West.
Taking everything into account, including the facts about climate change, Epstein argues that “fossil
fuels are easy to misunderstand and demonize, but they are absolutely good to use. And they absolutely
need to be championed. . . . Mankind’s use of fossil fuels is supremely virtuous—because human life is
the standard of value and because using fossil fuels transforms our environment to make it wonderful for
human life.”
Alex Epstein started the Center for Industrial Progress to offer an alternative environmental philosophy
to America, one that is antipollution but prodevelopment. A popular speaker on college campuses, he
has publicly debated leading environmentalists. He lives in Orange County, California. Contact him at
alex@industrialprogress.net.