Saturday, November 28, 2009

Unemployment--the low carbon footprint life

The United States has finally started lowering its carbon foot print. The use of oil and coal is down in the past two years. This should make the global warming advocates happy. We are using 11% less oil than we were 3 years ago. That should be cause for great celebration. We are using 5% less electricity, most of which is generated from that carbon-spewing coal. Yes, the planet is being saved. The US is in the process of turning into a veritable Eden.

What's that? Huh? Unemployment? You mean low energy use equals people being thrown out of work? Let's look at the numbers.

Here is the chart showing U.S. oil consumption per day. The units are 1000's of barrels per day. The US uses around 20 million barrels of oil a day, or we did a couple of years ago. Now we are down to about 18 million per day. But look at what has hapened to the number of unemployed--which rises when we don't use energy.

We would like to take this opportunity, on behalf of the environmentalists, to personally thank the sacrifice of the unemployed in the cause of saving the planet. Yes, they are leading the way to the new world of environmental purity. Thank you all from the depths of our hearts for saving our planet from that evil carbon-spewing energy. We will soon follow your lead.

Let's look at US industrial electrical demand. You know the demand your factory has for electricity to run whatever machines are in your factory. Since electricity is made from burning coal and spewing CO2 into the air, the fact that we are using less electricity is a good thing, right?

There is really a very good correlation here, a negative correlation, between industrial electrical demand and jobs. When industry uses less energy, more people are unemployed. In the eyes of the enviro-wackos, this is a good thing. We should not be using coal. So, once again we must thank the unemployed for their leadership. They are showing us what our future low-carbon world will be.

Now, I can hear the objections. "We aren't talking about not having energy," the environmentalists say. "We want wind and solar". But they have no clue that you can't have wind and solar without oil, coal and natural gas. The wind tubines are made with resins that are petroleum based. No oil. No wind turbine. As for solar, to make a solar cell requires ovens with between 500 and 1400 deg C. That takes oil, coal or natural gas. As we march into that new low carbon footprint world of no jobs, we should know that wind and solar won't happen without carbon.

One final thing. The lack of use of oil has led to a surplus of oil in the storage tanks. Below are the international and US storage numbers. I think in the near term oil prices will fall (but so may everything else). You can see that they are high. So, why is the oil price going up? Because inflation has already begun. The US government is destroying jobs but printing money like crazy and this makes it appear that the price of oil is going up. But if denominated in gold ounces, oil hasn't risen very much.

1 comment:

  1. You're taking a pretty big leap of logic by inferring that less energy causes unemployment. It might be the other way around: less commuting causes less energy use. Or they could have a common root cause: less economic activity means less demand on the two main inputs, labor and energy. I'm not some environmentalist by the way; I'm an MBA student who found your blog doing a search on "'energy use' unemployment correlation". My objective was to study the energy industry and the macroeconomic factors that influence commodity and stock prices. So, point is, I've got no political/ideological opinion about this. I'm just not certain about your analysis... but then I just took a quick look at your past blog titles and it looks like the data is secondary to a point you're trying to prove. Maybe you are cherry picking data?