On the Profitability of Investments in Energy Sector (discussion)
Related subjects: Carbon Emissions, Climate Change, Discussion Forum, Energy Supply, Quipu Economic Forum, Renewable Resources, Sustainable Development, TheHotSpring.net, Zero-combustion Paradigm Comments (0)
If we’re looking at a rise in overall global energy consumption as an “opportunity”, we should class all particulars of the debate in terms of the long-term viability of the energy resource to be exploited. While carbon-based commodities may see steep returns in the short term, heavy front-end investment in carbon-based fuels will reduce the long-term viability of those commodities as business models, thus curving down the benefit over time.
It is also increasingly viable for poorer countries to invest in renewable resources, as wave after wave of new renewable technology comes to market. Old machinery is replaced and made cheaper, able to be reused and installed at a fraction of the original cost. It is vastly cheaper to install and maintain localized wind turbines or solar panels, with a connection to a broader electricity grid than to build a major petroleum or natural gas pipeline to move carbon-based fuels.
With transport moving toward the zero-combustion paradigm (all-electric cars are reaching performance levels similar to petroleum-fueled vehicles and Solar Impulse is developing an all-solar-powered airplane), the relevance of carbon-based fuels will decline and the negative environmental impact (and related costs) will become more apparent and will more heavily influence public policy and private investment choices.
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