Energy is the Master resource:
An insight into Net Energy, discovery and pertaining Economics.
INTRODUCTION: Before we get into energy economics from an infrastructural standpoint, we must first comprehend the significance of energy to every person on this planet. Animals rely on food, which is chemical energy, whereas plants rely on the sun, which is partially solar energy. Assume we are stuck in the desert with all of humanity’s plentiful resources, such as gold, silver, and crude oil, but no energy to extract or even use them for everyday survival. There is no use in having those resources if they cannot be extracted or used. As a result, you are unable to create an economy in your small desert.
As the great economist Julian Simon declared, “ENERGY IS THE MASTER RESOURCE,” whatever transaction that is carried out, no matter what the commerce is, energy is the criterion upon which the growth of humanity is dependent. Every time we wake up, we are surrounded by energy, beginning with the alarm, which operates on a stored energy called a battery. so, Energy is essential to the global economy. It is difficult, if not impossible, to picture a system or organization growing without energy. Therefore energy usage is not simply upward progress, but exponential growth as well.
The unhidden fact about energy is its affordability. The price we spend for each unit determines how much we use it. The entire supply chain concept is dependent on how economical available energy is to us.Energy forecasting is difficult. We commonly refer to an energy’s “20 year life.” That indicates the commodity under energy is only planned for 20 years.Energy, on the other hand, has fluctuated over time. The first found energy was fire; later, humans realized that they could extract energy not just from the surface, but also from the sky and the subterranean. That is essentially how evolution works.
THE EVOLUTION: In the 1870s, the primary source of energy was “Biomass.”Biomass was a success, in that it met the needs of 1.3 billion direct and indirect users. Later inventions and experiments led to the use of coal. Coal was and continues to be an energy hero since it is one of the most widely used, viable, and economical. Easy to manage resources over a long period of time. The first commercial ships and machines were conceived and developed with the use of coal in mind. There was a massive economy that was linked to COAL in some way. However, it should be noted that for coal to be used in a full-time operation, which was in the early 1910s, it took over 50 years for the dependents to transform. Yes, change is difficult. Consider this: if altering a single person takes a long time, what about the trillion-dollar investment capital economy? It is not easy to drastically alter an economy in a single night or month.
Just as coal was discovered, there was a gradual increase in the use of natural gas in the 1970’s. Even though it was a new notion of energy, its growth was favorable because it was a form of liquid fuel rather than an electrical energy like solar or wind. It took natural gas another 90 years to grow exponentially in the energy industry after its discovery in the 1910s. By the time coal and natural gas were at their pinnacle, the population had already expanded fivefold, resulting in more demand for energy than supply. As I have indicated, the energy shift occurs only because of the embedded capital that is dependent on that resource.
What about solar energy? Yes, it’s a fantastic renewable source, but can it meet all of the present demands for oil and gas? Is it conceivable to fly a commercial airplane from New York to Bangalore tomorrow utilizing solar power? The answer is more of a controversy because the above-mentioned circumstance is probable, but not tomorrow. Because, more crucially, will people feel safe flying if an aircraft is built, tested, and kept within a budget? Keeping all of those elements and tests in mind, this gain may take another 50 years ( just like Coal and natural gas).
Now the concerning Question is, Do we have that much time? 50 years of testing a new energy source while consuming perishing energy that we are attempting to save and protect. It is a global challenge, and people’s attitudes regarding energy are at an all-time low. This predicament has worsened as a result of all the social complexities that humans have created for themselves. Finally, all we do is blame the government. But do we ever consider what an energy budget is?
ENERGY BUDGET: The energy budget is similar to the budget our fathers construct using an excel file for carefully allocating the salary, ensuring that all demands are satisfied while leaving some money for the next months. They are classified as emergency fund /savings account.
Consider the same thing in terms of a trillion-dollar notion. Energy functions in the same way as money do. There is something used and something that is reinvested back into the system, which brings more to the system itself. “Invest more and wisely to receive more,” much like your index funds.
In the field of energy economics, this ratio is known as “EROEI” — energy returned on energy invested. As a result, the NET energy or “surplus energy” is the energy invested less than the energy received as a profit or loss. In energy economics, the only thing that matters is the “NET.” Let me use an example to demonstrate. Assume we require 1 barrel of oil energy to extract 100 barrels of oil. This gives us a net of 1:100. This was the case in 1930. The ratio was incredible. Then, by 1970, we had a net ratio of 1:25, a big fall from 100, but still not a bad deal, isn’t it? But by 1990, it was 1:10, and by 2000, it was 1:3. That’s when they close that particular oil refinery. Essentially, this is the dread that you and I should have: that our “net” energy is decreasing and that we will run out of oil one day. Investing in oil does not only go to the digging process; ten times more is spent yearly on exploration ships, drilling, and harvesting, and in some situations, due to a lack of appropriate planning, we may even have cases like deep ocean horizon. Consider losing an entire oil field.
I’ve noticed that if there is a tea time debate concerning politics or a system within, such as energy and water, we tend to give forth fresh ideas and suggestions to the government, such as why not use nuclear power, hydrogen, or in some extreme circumstances, corn ethanol. Wow.! Ethanol from corn!
- The truth about nuclear is that, while it is a clean fuel, it takes a lot of energy to generate what is now required. According to the numbers, we need 750 nuclear plants to create one hour of electricity in the United States (not the entire world), but we currently just have 117 nuclear power plants worldwide. So, how can we equal the figures provided by the oil industry? And, given the perils of nuclear power, the government has decommissioned the idea. Being the next big fuel is clearly not possible.
- Solar and wind power. Yes, they are valuable resources, but they only generate electric power; thus, what does a diesel vehicle have to accomplish right now? Which is still present in the transportation industry.
- Methanol: the proportion is 1:3. ( clearly a fail ) and
2:1 biodiesel ( no comments ) - Corn Ethanol: 1:1, I’d like to point you that this fuel has no application. This is clearly a time-consuming endeavor that most governments have begun despite the fact that researchers have stated that it would fail. If corn ethanol enters the market, millions of jobs would be lost, and the world’s economy will collapse in days. What I’m trying to say is that the entire population or economy is dependent on energy, not just a light bulb. Even now, the oil and gas industry keeps countries going. Though the gadgets are electric, the process of storage and conversion is only possible due of the oil and gas industry.
Today’s challenge for people is to develop energy that not only replaces oil and gas, but also has an impact on the environment. However, the main issue that arises is “DO WE HAVE THAT MUCH TIME LEFT?”
In the same vein, I’ll close this post with the quote “ Energy is the Master resource “.
-RUGAATHYA
