Bloomberg news ran a piece a few days back entitled: Energy Revolution Keeps Carbon on Top. The author of the piece is Nathan Myhrvold, the former chief strategist and chief technology officer at Microsoft Corp. Some key quotes from the article that bear on Delaware’s own taxpayer-funded venture investing:
Venture-capital investing is inherently high-risk, so it shouldn’t surprise or bother anyone that many of these startups failed — some rather spectacularly…
What is worrying is that almost a decade of energy investing hasn’t produced any home runs — no green-energy equivalents of eBay, Amazon, Google or Facebook. The modest, incremental advances we have seen don’t perceptibly move the needle on the energy problem.
While these non-needle moving investments have increased energy costs in Delaware, the traditional energy world is in the midst of a revolution, one that Delaware is studiously avoiding:
[A] real revolution has happened in traditional energy — one that poses a serious challenge to companies and investors betting on alternative energy. This breakthrough is arguably one of the greatest advances in energy production since the 1960s. And it came not from a Silicon Valley company, or from MIT or Stanford, but from the son of a Greek goatherd who immigrated to the U.S.
That’s right, while Delaware has banned most types of traditional manufacturing through the investment killing gross receipts taxes, regionally high energy costs, and an activist regulatory structure, we could be building a low cost power generation base that encourages jobs and employment growth. A state like North Dakota is now the 4th largest energy producing state with job openings available.
The new resources are so vast that they would last for a century at current rates of gas consumption. And this cheap form of energy isn’t under the control of a foreign dictator, stuck in the Arctic or submerged miles below the sea — it lies in the farmlands of New York,Pennsylvania and Texas.
Of course, the article does descend, however briefly, into the unproven area of man-made global warming:
A more serious problem is that both collecting and burning natural gas produce carbon dioxide, the main culprit in global warming.
But, we know from serious researchers within the climate change universe that:
Global warming is real. Perhaps our results [regarding land-based temperature records] will help cool this portion of the climate debate. How much of the warming is due to humans and what will be the likely effects? We made no independent assessment of that. [Source: WSJ (subscription required) editorial by Richard Muller – professor of physics at the University of California, Berkeley)
Aside from the oft-required nod to the mainstream media’s unproven view of manmade climate change, the article lays out the facts. The U.S. is in a long period (100 years or so?) of traditional energy dominance. Delaware has decided to fight this trend, meaning fewer jobs with lower pay. All because our political leaders have chosen to ignore the data and facts regarding climate change so that they can push their agenda. So, let’s all say thank goodness for government bailouts and transfer payments, otherwise, Delawareans would have no income at all.