Today's date is December 12, 2009 and the world population is 6,967,462,229. The population has roughly doubled since 1966, and now more than ever before in the history of the world, more people are relying on fewer resources. The world's middle class is expected to swell by 1.8 billion people over the next 12 years, and China and India's automobile markets will nearly double from 5.8 to 11 million and 1.5 to 2.6 million vehicles by 2014. BP Oil projects we have already consumed around half of the 2.2 trillion barrels of discovered oil. As burgeoning middle classes in developing countries begin pursuing consumerist lifestyles similar to Americans, only one question remains; "will our limited natural resources continue to support us for much longer?" Embracing a platform of renewable energy integration will help to not only minimize the costs associated with burning fossil fuels and our dependency on foreign petro-dictatorships, but also it is an investment that continues to decrease in costs, reinvigorating job growth and securing a sustainable future for our children.
The U.S. Department of Energy believes that from 1975 to 2005, our fossil fuel addiction has cost the U.S. $7 trillion and caused a $1.16 trillion trade deficit. In 2008 the U.S. imported 12.9 and exported 1.8 million barrels of oil daily, exporting $475 billion. In April 2009 alone, the U.S. imported 68% of its oil, investing $18.6 billion in foreign governments, fueling their economies and indebting ours. Over 30 years ago, higher U.S. vehicle economy standards helped to lessen our dependence on the Soviet Union. While fossil fuels are limited, all countries have the potential to harness renewable energies necessary for securing a cheaper domestic energy supply and preventing petro-dictators from holding the rest of the world hostage.
Fossil fuels have many invisible costs that are paid for by our environment and society, rather than the companies that produce this energy. By reducing the air pollution in just four of the world's largest cities, we could prevent 64,000 premature deaths and 37 million lost workdays over the next two decades. The pollution from burning fossil fuels elevates rates of infant mortality, asthma, cardiovascular problems, respiratory ailments, and avoidable deaths. In California, respiratory illnesses caused or made worse by airborne particulate matter cause 9,300 deaths, 16,000 hospital visits, 600,000 asthma attacks, and five million lost work days each year.
Nuclear power plants can take decades to build, with billions in sunk costs required before any energy is produced. Contrarily, wind and solar energy producers can provide 20-year fixed-price contracts, install systems and begin producing a return in just months. Single turbines or whole wind farms can be built, whereas 10% of a coal power plant can not be built for immediate benefit. Solar panels are self-sufficient, have no moving parts, are low maintenance, and reliable.
The increased costs of transportation, plant construction, material, and financing are driving up fossil fuel prices. Once renewable energy platforms are installed, they are not only carbon free and have minimal variable costs, but they can also be sold back to the grid for a profit. Turbines are being designed better and larger in order to adapt to altering winds. The increase in Chinese poly-silicon-making Companies and their heavy exports to Europe and the U.S. are contributing to a 30% drop in world solar-power prices, and they are expected to drop a further 20% by 2010. In the 1980s, solar panels could covert 16 percent of the sun's rays into electricity, and in 2009, nearly 40%. As the renewable energy market matures, economies of scale will drive down prices.
Denmark's 2008 renewable energy exports totaled $9 billion, 0% of their energy comes from the Middle East, industry employment has risen 118% from 1997 to 2008, and 20% of their energy is derived from wind. Canada plans to double its renewable wind energy by 2013, Brazil is oil import independent, and the German Green-Tech sector has just added 120,000 new jobs. In October, Shenyang Power Group in China agreed to supply 240 turbines to the U.S., and China has a 30% share of the global solar panel market. The Department of Energy finds that oil imports account for almost one-third of the total U.S. deficit which leads to unemployment, and that 27,000 American jobs are lost for every $1 billion in trade deficit. While the world turns, the U.S. produces a measly 1.2% of its energy from wind. It is no wonder why the U.S. has 10% unemployment nationally and 30% in cities like Detroit, where policy is targeted instead at reviving inefficient industries. Researches believe that $1 trillion will be invested in new wind power globally by 2020, creating 1.75 million jobs, and that the wind energy industry will achieve growth rates of 20% over the next 15 years. Countries that fail to adopt a "Green Revolution" will soon find themselves importing more debt and energy, while exporting more investment and jobs.
While concluding my thoughts, I opened up the WallStreetJournal.com and read these headlines: DECEMBER 15, 2009; China: The World's Top Polluter Emerges as Green-Technology Leader. Either we continue the innovation that shaped America for so many years, or we stand back and watch another country absorb our talent, investment and prosperity. More than a new form of energy power, "Green" is a new form of national power. With the vast growth in the world population magnifying the effects of tightening energy supplies and ever scarcer resources, it is not only in our financial interest to embrace this inevitable change, but also necessary for the long term sustainability of this planet and its inhabitants. As Thomas Friedman wrote in his book Hot, Flat and Crowded; "If we want things to stay as they are - that is, if we want to maintain our technological, economic, and moral leadership and a habitable planet, rich with flora and fauna, leopards and lions, and human communities that can grow in a sustainable way -things will have to change around here, and fast."
Steven M. Saules
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