The Real Winners Of The Global Economy

Something strange happened on the road to our much-celebrated post-industrial utopia. The real winners of the global economy have turned out to be not the creative types or the data junkies, but the material boys: countries, states and companies that have perfected the art of physical production in agriculture, energy and, remarkably, manufacturing. The strongest economies of the high-income world produce oil and gas, coal, industrial minerals or food for the expanding global marketplace. --Joel Kotkin, Forbes, 6 March 2013

The rise of the US to become the world’s largest petroleum producer in November is another important milestone in America’s new era of energy abundance, and reflects the importance of the breakthrough, revolutionary extraction technologies (hydraulic fracturing and horizontal drilling) that have brought a true shale energy revolution to “Saudi America.” --Mark J. Perry, AEIdeas, 5 March 2013

UK energy market participants have told ICIS they expect the UK government to back-track on controversial plans to introduce a carbon floor price because the burden on the country’s already flailing economy will be too much to bear. “The pressure to ditch could start as early as next month with the budget announcement,” said independent utilities analyst Lakis Athanasiou. “As soon as consumer groups get an understanding of the impact of this on domestic bills, there will be uproar.” --ICIS News, 6 March 2013

The UK has embarked on perhaps the most aggressive political experiment attempted in peacetime – gradually outlawing the use of fossil fuels, which we have relied on since the Industrial Revolution, as our principal source of energy. When there is a glut of natural gas in the US and coal prices are plunging in Europe, this country faces a green energy crunch as it attempts to decarbonise its economy. Without an international agreement, it is pointless for the UK to spend hundreds of billions of pounds on green energy, reduce its growth and cut living standards. --Rupert Darwall, The Daily Telegraph, 6 March 2013

The solar bubble has burst. Suntech, the world’s highest-selling producer of solar panels, has just fired its founder and chairman as it scrambles to pay a $541 million bill. China’s only options are to continue propping up uncompetitive companies (Suntech owed $1.6 billion last March) or to cut its losses and endure the political blowback, as the Obama administration did with Solyndra. --Walter Russell Mead, Via Meadia, 6 March 2013

It’s been a bad couple of weeks for the fruit-juice vegan energy set. Where to begin? How about Japan, which went through the entirely predictable cycle with regard to its nuclear power in the aftermath of the Fukushima disaster of two years ago. You can follow the cycle in the hilarious New York Times headlines: Japan Sets Policy to Phase Out Nuclear Power Plants by 2040 (Sept. 12, 2012). Then, five days later: Japan, Under Pressure, Backs Off Plan to Phase Out Nuclear Power by 2040 (September 19, 2012). Turns out someone had a calculator, looked at the cost, and started saying, “never mind.” And so just five days ago: Japan to Begin Restarting Idled Nuclear Plants, Leader Says. --Steven Hayward, Powerline, 3 March 2013