Strange Things Happen Under The Midnight Sun By The Men Who Moil For Gold

With apologies to Robert Service but strange things happen as well under the midnight sun by men and women who moil for energy.

The components of an energy journey are at best known but with little appreciation of complementary systems.  Over approximately three hundred years the five parts of source, generation, transportation, distribution and consumption have seldom, if ever, been regarded as the challenges themselves.

In the case of energy sources much has changed as wood, whale oil, and manufactured gas and kerosene have fallen by the wayside. Today at least in the developed world, coal is fast losing dominance. Natural gas is replacing coal, oil continues to expand, hydropower has a substantial place, nuclear is undergoing a resurgence, biomass, and geothermal are making progress, hydrogen remains a significant potential source and fusion has long term potential. Solar and wind are both sufficiently established and have encouraging futures.

New generating, transmitting, distributing and consuming parts are now in play. Adding these to the mix immediately multiplies the permutations and combinations of how energy can arrive at the consumer’s doorstep. For the moment this is exemplified by the arrival of the electrical vehicle which is energized without going near the traditional fuelling station.

Often unintended consequences that detract from the successes are repeated. Harmful byproducts  from the combustion of all fossil fuels, the drastic reduction of supply in the cases of wood and whale oil, environmental interference in the case of hydropower, the potential aftermath of nuclear installations and the presence of solar and wind installations all surface.

Prosperity is a positive outcome with the caveat that all parts of the globe have not participated equally.

Alongside achieving the successful introduction of a new energy source is overcoming the economic, political and social barriers. Existing suppliers have much at stake, governments need to at least sustain their revenue sources and employers must retain and motivate staff, who may be facing career losses.

The very nature of capital markets works against the evolution of inventions that require long and treacherous paths. Early results are expected to sustain capital inflow accompanied by frequent investor participation. The energy industry is all about the long term. Emerging impactful energy systems are anything but in the short term.

In efforts to shorten the time to a successful new energy system some jurisdictions employ methods including public funding, subsidies, taxation, research support and policies that point toward eliminating carbon dioxide as a byproduct. Capital generated from private investors and the capital markets are considered by some as the only legitimate financing. Political battles are the result. Governments rise and fall as a result.

So where are we under the midnight sun where strange things happen to those who moil for energy? Every aspect of the energy journey is changing. Clearly global warming is the driving force. Coal has lost dominance in the economically developed world. Less prosperous countries will follow. Natural gas is replacing coal.

New sources are emerging as solar and wind have established viable parts.

One of the more vexing problems are the delivery systems. Distributions systems are inadequate. Moving energy by transmission lines, liquids, gas, liquids and solids are expensive, energy consuming, hazardous, and politically fraught. Surge capacity and storage are useful parts of improved logistics.

Those toiling under the midnight sun sees an avalanche of issues related to geopolitics. The emergence of vehicles powered by electricity is creating new issues at every turn. Fossil fuels, a large and powerful industry is undergoing a renaissance of a magnitude never seen before. New providers are in play, established ones retooling and countries with little or no present market share are aggressive.

Geography points to building new energy industries. An example is the coexistence of consistent winds for electrical generation with water as a source of hydrogen. The west coast of Chile meets these criteria, short of an economic way of delivery/Hydrogen is available everywhere making it impossible to establish a cartel.

Middle Eastern countries have amassed more than sufficient financial resources to the extent that renewable energies are easily within their reach. Dubai is signifying a position in the electrical energy space with the construction of major solar facilities.

The vehicle progression towards electrical energy is a remarkable story. E V’s are a tale for the century. Lead by Tesla, automobiles seem to have no limit in moving aside the internal combustion powered cars and light trucks. Most certainly there are barriers which are slowing the process, none of which are fatal.

Firstly the system is undergoing changes related to energy sources, energy generation, energy transmission, energy distribution and energy consumption. All of the five components to the process are under assail as EV’s build market share.

Evidence indicates that all of the current auto producers are in the game. New manufacturers are surfacing as are new countries.

China is in the midst of a program with the intention of dominating the industry. No doubt their preparations are well considered. From a trading point of view, pricing will ensure competitiveness. Countries with large positions in the industry will respond, by applying duties on vehicles made in China.

So what does moil mean?  Definitions include to work hard. To that end activity, on all fronts are underway to build competitive energy systems.