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Tuesday, September 27, 2011


Donald Pay

Mexican oil production in its most productive fields overtopped "peak oil" in 2005 and has been steadily declining. This has been well known to anyone who has paid attention to energy matters. This is the result of geology, not failed state dynamics. Canada oil production from standard wells is about at peak oil and may be close to declining. Canada is substituting more expensive tar sands production, so that tends to mask.

Your subsidy data fail to include the national security subsidies for nuclear and petroleum, the subsidies due to externalization of wastes and their costs, subsidies provided by loan guarantees to the nuclear and fossil fuel industry, federal liability limitations under the Price Anderson Act, and the compounding of these subsidies over decades, Essentially your chart expresses the usual voodoo economics of the bought-off right. By the way, the year you provide for those subsidies is 2007, when George Bush ran things.


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Ken Blanchard

Donald, you amazing man! Do you really believe that investments in Mexico are as attractive as investments in Canada? Even if you do, doesn't that make an equally strong argument for turning to Canada, which somehow seems to be increasing their oil production?

As for the subsidies argument, you love to talk about "externalization of wastes and their costs" and such things, and you seem to think that this changes the calculation. Subsidies move wealth from one source to subsidize something else. The wealth has to come from somewhere, doesn't it? It isn't coming from wind farms or solar arrays. It isn't coming from corn. It is coming from fossil fuels and nuclear power.

Maybe George W. possessed demonic powers, but he didn't control physics. I ask again, what would happen if all federal subsidies for energy production ceased? I humbly submit that we would continue to produce energy, but that almost all generation of power by wind farms and solar arrays would come to a grinding halt. I know you don't want to recognize that fact. It is a fact.

Donald Pay

Really, KB? You need to bone up on basic knowledge of world energy. Do you realize that Mexico long ago nationalized its petrochemical industry? So, asking me about where I'd like to invest in oil is really not a relevant question. I wouldn't want to invest in oil at all. My own investments include renewable energy funds, and I turned down an opportunity to invest in an oil well in North Dakota, and will be forced pooled. So, there you are. I put my money where the future is, not where crony Republican capitalism demands.

Here's something to chew on. It looks at government subsidies over the first fifteen years of subsidies for each energy source (based on a constant dollar value.


solar power

Thank you for this post this is just what I needed to read.


That would mean ending all such subsidies, and the chart above tells what that would do to the breezy and brilliant forms of energy.

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