Guest guest Posted November 2, 2005 Report Share Posted November 2, 2005 http://www.cancercoverup.com/newsletter/11-2005/ TURNING TRAGEDY INTO HOPE Part Two By Kathleen Deoul (read Part One here) http://www.cancercoverup.com/newsletter/print-version/turning-tragedy-into-hope-\ 01.asp Monthly Newsletter | www.CancerCoverup.com | November 2005 Two months have passed since Hurricane Katrina wreaked havoc with the Southeastern United States, and the clean-up process is just getting underway. To make matters worse, just a month after Katrina's devastating blow - almost to the day -- Hurricane Rita hit the nation's oil refining center near Port Arthur, TX with nearly equal force. This double-barreled catastrophe was clearly the most destructive natural disaster in U.S. history. Over 600,000 homes have been destroyed. Over one million people have been displaced, and hundreds of thousands may never be able to return to their homes. According to the latest figures nearly 500,000 have lost their jobs. Estimates of just the government's share of reconstruction costs now stands at $200 BILLION and is rising. But the immediate costs may be the least part of the hurricane's economic consequences. In the wake of the storm, New Orleans and much of the nearby Gulf Coast was soaked in a toxic sludge so dangerous that in some instances rescue workers had to wear " hazmat " suits and anyone accidentally exposed to the floodwaters was rushed to decontamination stations. Although the bulk of the water has now been eliminated, the toxins left behind may pose a threat for months or even years to come. What is most disturbing is that while this devil's brew was highly concentrated in the New Orleans floodwaters, its components are present throughout our environment in more dilute form. The contamination of New Orleans, therefore, is a warning signal - a signal that we are fouling our own nest. If we fail to heed that warning there could be a terrible price to pay. In fact, we are already suffering consequences from our haphazard environmental stewardship. THE NEGLECTED EPIDEMIC Chronic disease now afflicts 40 percent of the U.S. population and was recently proclaimed " The Neglected Epidemic " by the editors of Lancet, the prestigious British Medical Journal. Indeed, according to Lancet, chronic diseases are responsible for 30% OF ALL WORLDWIDE DEATHS!!! Moreover, the top two chronic diseases, cancer and chronic respiratory illness, which account for 20 percent of the total, are both linked to environmental causes! In a series of articles, Lancet examined the issue of chronic disease, but one statistic was truly stunning: If we could reduce chronic illness by just 2 percent, 36 million lives would be saved! Reducing environmental pollution would make a major contribution to achieving this goal. Of course, like most things, accomplishing this task is easier said than done - or is it? There is a way to dramatically reduce the amount of pollution we are subjected to every day, and what's even more amazing is the fact that in so doing, we will enhance our nation's economic and military security and save consumers money to boot! It almost sounds too good to be true, but it isn't. OIL POLLUTION AND CHRONIC ILLNESS The answer lies in addressing another of the nation's critical problems - our dependence on oil and particularly imported oil. What, you might ask does that have to do with reducing pollution-related disease? The answer is simple: much of the pollution that contributes to the rise in diseases like asthma, chronic bronchitis, cardiac illness and cancer is directly related to the use of energy and the pollution that use creates. Therefore, if we could find some way to reduce our use of polluting forms of energy we could also reduce the chronic illness that use fosters. This assertion is not a matter of speculation. Literally thousands of studies over several decades have established a clear link between pollution and many chronic diseases. In one particularly important study, the Centers for Disease Control and Prevention examined emergency room admissions for asthma and cardiac problems during the 1996 Atlanta Olympics. The city had placed restrictions on vehicle traffic during the games and as a result, automotive pollution was sharply reduced. The study found that there had been a corresponding reduction in emergency room admissions for both asthma and heart attacks - a reduction that directly corresponded to the times when vehicle traffic was reduced. But health effects are not the only price we pay. There is an economic as well as an environmental imperative to reduce our dependence on imported oil. Although few people realize it, because of our heavy dependence on imported oil, the price you pay for a gallon of gasoline at the pump actually represents just a fraction of the real cost. How could this be? The reason is what economists call " externalities. " These are costs or benefits that the society as a whole incurs from an economic or public activity that are not reflected in the nominal price paid for that activity. For example, if a city builds a sports arena, there will be increased traffic on the adjacent neighborhood that creates inconvenience for its residents, but they are not compensated for that inconvenience, nor is the cost normally included in the price of construction. On the other hand, there would likely be an " external economic benefit from building a stadium such as the creation of jobs and increase tax revenues from workers wages which also would not be reflected in the price. So what then are the external costs of imported oil? THE HIGH PRICE OF IMPORTED OIL First among the external costs is the effect of sending hundreds of billions abroad to purchase foreign oil. When you spend money at home, it goes into the economy and creates jobs, income and investment. In fact, each dollar we keep at home rather than sending it abroad to purchase foreign oil actually creates several dollars of economic activity, passing from hand to hand in successive transactions. Economists call this the " multiplier effect. " But when that money is sent overseas, it has a negative effect on domestic income. A second component is the cost of the various " oil shocks " we've experienced over the past several decades. In the post World War II era, there have only been a handful of years in which the U.S. economy experienced negative growth - a decline in Gross National Product, and all of them coincided with oil supply disruptions. A third factor is the loss of tax revenues to local, state and federal governments. When money is sent abroad, there is no domestic income to tax, and no royalties are earned by government on oil from overseas. A fourth, and perhaps most troubling factor, is what we must spend on military capability to assure the flow of oil from insecure areas such as the Persian Gulf. This is not, mind you, what is currently being spent on the war in Iraq, but rather what we must spend, even in times of peace, to protect the flow of oil. So, how much does this all add up to? The National Defense Council Foundation, a highly respected military think tank in Alexandria, Virginia, a suburb of Washington, has developed what are considered the authoritative estimates of these costs. According to their most recent estimate, the total comes to $532.6 BILLION A YEAR!!!!! Just to put that figure in perspective if it were paid at the pump, it would add $5.55 to the price of a gallon of gasoline. At current prices that would translate into paying $8.53 a gallon! Filling the gas tank of a Ford Explorer at that price would cost almost $192! Even this figure, however, may pale in comparison to what may come in the years ahead. The reason is that what we are really seeing today are only the initial effects of the growing competition for oil in the world market. Those effects can only become more pronounced if recent history is any indicator. In just the past two years, competition over scarce oil supplies has pushed the price through the roof, more than doubling from an average of $27.92 a barrel in 2003 to as much as $66 a barrel this year. Moreover, prices were skyrocketing long before hurricanes Katrina and Rita disrupted production in the Gulf of Mexico. It was just last year, you may recall, that everyone was complaining because gasoline prices were approaching $2 per gallon. Today that seems like a bargain! This winter, Americans will get yet another energy shock when they open their heating bills. Those heating with oil can expect increases of 40 percent or more, and for natural gas, the increase is expected to top 60 percent! ADDRESSING THE PROBLEM But in a way, oil imports are like the weather: Everyone talks about them, but no one seems to DO anything about them. Yet there are things that can be done, if we could only find the political will to do them. In fact, it would be possible to reduce our oil imports by up to 40 PERCENT within the next five years using proven, existing technologies! To understand how this can be accomplished, it is first necessary to dispel some of the myths that have permeated the debate on energy. THE MYTH OF ENERGY SCARCITY First is the notion that the world is running out of oil. That is simply untrue. What is true, however, is that we are running out of CHEAP oil, which is an entirely different matter. Vast amounts of oil can be obtained from sources such as tar sands and oil shale and from remote deposits like that on Alaska's Arctic Coastal Plain. It's just that they are expensive to develop and produce. Second is the notion that the United States lacks energy resources. Again, it is true that most of America's cheap, readily accessible oil has been discovered and developed, but that is not the same as saying that we have no resources. Consider the following: America is the Saudi Arabia of coal, with 25 PERCENT of the world's total coal resources. At 275 BILLION TONS of recoverable reserves U.S. coal supplies are enough to last 250 YEARS at current consumption rates. U.S. oil shale reserves hold between 500 BILLION AND 1.5 TRILLION BARRELS OF OIL, AT LEAST THREE TIMES THE TOTAL AMOUNT OF OIL IN SAUDI ARABIA!!! The U.S. also has 320,220 TRILLION CUBIC FEET of Natural gas in what are called methane hydrates. These are deposits of natural gas trapped in an ice matrix. This is equal to over 51.1 TRILLION BARRELS OF OIL!!!! But our energy resources are not limited to just unconventional sources. The U.S. has 1,190 TRILLION CUBIC FEET of conventional natural gas reserves. The U.S. has 21.8 BILLON BARRELS of " proved " oil reserves - oil that has been discovered and can be readily produced at current prices - but that is only part of the total. There are an additional 105.5 BILLION BARRELS of undiscovered oil in the United States. Further, there are an additional 377 BILLION BARRELS of oil that were left behind in oil wells that were shut down because contemporary recovery techniques had pumped as much as they could. Research is being conducted to develop ways to recover this " left-behind " oil. So why are we starving for energy in the midst of such plenty? A variety of factors have contributed to the problem. First and foremost has been the availability of cheap oil from overseas producers. Because the United States was the first nation to produce oil in substantial volumes - we were the world's leading OIL EXPORTER for the first half of the 20th Century - we were also the first to exhaust our supplies of " easy oil. " Second, the evolution of an international cartel of oil producing nations - the Organization of Oil Producing Nations, or OPEC - allowed those countries to establish an oligopoly that exercises a significant amount of control over oil prices and supplies. Third, public concern over the environment has largely prohibited domestic oil and natural gas development in many of the most promising areas. But more than anything else, the real reason for our current dilemma is complacency - complacency in the halls of Congress, complacency in the Executive agencies, and, yes, complacency on the part of the American public. While there was a public outcry for Congress to DO SOMETHING about our energy dependency on the two occasions when oil supply disruptions caused gasoline lines, as soon as supplies again became plentiful, interest in finding a long-term solution quickly evaporated. Indeed, on August 17, 1995, the headline on the lead editorial in the Wall Street Journal read " Oil's Well, Big Energy Imports are Less a Threat Than They Appear. " It would be interesting to ask its author what they thought about oil imports today! The question is what can we do? To answer this question, we must first understand what our energy needs are, because just as there is the myth of energy scarcity, there is also the myth of the energy " silver bullet. " NO SILVER BULLET One of the greatest obstacles to solving our energy import problem has been the tendency - encouraged by partisans of various energy technologies - to look for a " silver bullet, " a single technology or fuel that will solve all of our energy problems. Some argue we can do it all by simply increasing automobile mileage. Others say that some alternative fuel holds the key. Some even argue that we should restructure our economy and revert to a pastoral society emulating the 19th Century so that energy does not play such a critical role. A " REALITY CHECK " Although the simplistic notion of a " silver bullet " is obviously attractive - after all who wouldn't want to be able to wave a magic wand have our energy problems disappear - it is just as obviously fallacious. We use energy in myriad ways, and no single fuel or technology can address all of our needs. Moreover, despite the torrent of rhetoric, avalanche of legislation, and tidal wave of regulations, virtually no progress has been made in the more than three decades since the 1973 Arab Oil Embargo first alerted us to the problem. In fact, if current trends continue, we will soon be importing twice as much oil as we did in 1973. If there was a " silver bullet " the problem would not exist. For a " reality check " consider the following: * There are currently 220 million privately owned vehicles (cars and light trucks) in the United States. They have an average service life of 16.8 years. That means that even if every new car purchased from this point forward used an alternative fuel, we would still require conventional fuels such as gasoline and diesel for at least two decades. * About one-third of all oil use is for things other than transportation, including such things as home heating, and the production of products like fertilizers, plastics and medicine. Therefore, the high price of oil imports effects more than just transportation costs. * Despite all the hype, less than TWO TEN-THOUSANDTHS OF ONE PERCENT of all vehicles in the United States are specifically designed to use alternative fuels, and excluding alcohol used as an octane-booster in gasoline, alternative fuels account for less than THREE TEN-THOUSANDTHS OF ONE PERCENT of all motor fuel consumption! * Even including alcohol used as an octane-booster, alternative fuels only account for 1.4 PERCENT of total motor fuel use! Clearly there's a long way to go! But fortunately, there is a way to overcome the problem! The answer is not to rely on some single " silver bullet, " but rather to do EVERYTHING! If we take full advantage of the resources and technologies that are on hand today, we can reduce our oil imports by 40 PERCENT WITHIN FIVE YEARS!!! WE CAN REDUCE THEM BY 60 PERCENT TO 75 PERCENT IN FIFTEEN!!! WE CAN ELIMINATE THEM ENTIRELY WITHIN TWENTY TO TWENTY-FIVE YEARS!!! Here's how we can do this. STEP ONE: A 40 PERCENT REDUCTION IN FIVE YEARS The first goal should be to reduce oil imports by 40 percent in five years. To accomplish this goal here's what we can do: USE ALASKA'S " STRANDED GAS " When production began at Alaska's giant Prudhoe Bay oil field there was a problem. As is the case with virtually every oil deposit, the Prudhoe Bay oil field also contained a large volume of natural gas. This gas is brought to the surface along with the oil that is being pumped from the formation. The trouble was, however, that no pipeline to transport the gas had been built. Therefore, the only option was to store the gas on site in underground formations until a pipeline could be built. Today, there are some 104 Trillion Cubic feet of natural gas " stranded " on Alaska's North Slope due to this deficiency. But there is a way to get the gas to market in a usable form without building a gas pipeline! In the early 1920's a process was developed in Germany to make synthetic motor fuels - diesel, gasoline and jet fuel - from coal. In this process, the coal is heated and turned into a gas and then a catalytic process is used to transform the gas into a liquid fuel. In fact, by the end of World War II, virtually all of Germany's fuel was manufactured this way. But you don't have to start with coal. If you have natural gas, you can use the second part of the manufacturing system, the so-called Fischer-Tropsch process, to turn the gas directly into liquid fuel. Moreover, while converting coal to gas is a fairly dirty process, because sulfur and other impurities must be removed, going from gas to a liquid has relatively little environmental impact. In addition, because natural gas has none of the impurities that exist in coal or for that matter crude oil, the fuel produced is considered " ultra-clean, " and therefore environmentally superior. And that's not the only advantage. The Trans-Alaska Pipeline System or TAPS built to transport oil from Prudhoe Bay south to the terminal at Valdez, Alaska is capable of carrying up to 2.1 million barrels of oil or refined petroleum products per day. More important, it must have a throughput of at least 325,000 barrels per day to operate. If the throughput falls below that level, the paraffin in crude oil could solidify, rendering the pipeline useless. But production at Prudhoe Bay has declined to around 900,000 barrels per day, and is steadily falling. At present the pipeline has some 1.2 million barrels per day of surplus capacity and that surplus will continue to grow. If it falls below the critical level of 325,000 barrels per day and the pipeline becomes inoperable, production at Prudhoe will cease, causing the needless abandonment of billions of barrels of recoverable oil. Using Alaska's stranded gas to produce liquid fuels could make up the deficit extending the useful life of both the TAPS pipeline and the Prudhoe Bay oil field by decades, while supplying vital supplies of gasoline, diesel and jet fuel. Moreover, since there already is a relatively large industrial complex at Prudhoe Bay, adding a Fischer-Tropsch plant would entail minimal environmental disruption. It could be in operation within three years providing at least 1.3 MILLION BARRELS PER DAY OF " ULTRA-CLEAN " MOTOR FUELS. EXPAND PRODUCTION OFFSHORE At present there are huge reserves of natural gas and smaller, but still significant reserves of oil in offshore deposits along the Atlantic Coast and in the Gulf of Mexico. These are known resources that could be readily accessed but are foreclosed from production due to environmental restrictions. Much of the environmental concern regarding offshore production is the result of a major oil spill that occurred 36 years ago off the coast of California. Since that time, enormous strides in technology have taken place, making the prospect of a recurrence at best minimal. As with Alaska, the gas produced from these resources could also be transformed into " ultra-clean " fuels using the Fischer-Tropsch process. Up to 1.7 MILLION BARRELS PER DAY OF FUEL COULD BE IN PRODUCTION USING THESE RESOURCES WITHIN THREE TO FIVE YEARS - MOST OF IT " ULTRA-CLEAN. " EXPAND THE USE OF ETHANOL Today, as noted, about 1.1 percent of our motor fuel is provided by alcohol in the form of ethanol blended with gasoline to boost octane. About 40 percent of the gasoline used in the United States during certain seasons contains this additive as a means of reducing air pollution. Any conventional gasoline engine can use a blend containing up to 10 percent ethanol without damaging any components or voiding most manufacturer's warrantees. Further, with a simple modification of the fuel lines and the computer chip that regulates the engine's air and fuel flow, a conventional engine can use a blend containing up to 85 percent ethanol. In fact, when Henry Ford built the original Model T, it was designed to run on alcohol, and through the 1940s there were numerous filling stations in the Midwestern United States that sold alcohol as a motor fuel. If we were to require that all gasoline sold in the United States contained a minimum of 10 percent ethanol, we could reduce oil imports by 630,000 BARRELS PER DAY. This could be accomplished within ONE YEAR!!! If we took the additional step of requiring every new car sold in the United States to be equipped with the modified fuel lines and computer chip that would permit them use up to 85 percent ethanol, OIL IMPORTS COULD BE REDUCED BY AN ADDITIONAL 1.5 MILLION BARRELS PER DAY AT A MINIMUM!!! USE GEOTHERMAL HEAT PUMPS The transportation sector is not the only area in which we use oil. Oil is also used to heat millions of homes, especially in the Northeastern United States. Although heating oil use is seasonal, it is produced year-round, with stockpiles built in advance of the heating season each year. On average, we use around 500,000 barrels per day for this purpose. But we don't have to use any! When most people think about geothermal heat, they generally envision huge installations with giant pipes sunk deep into geysers. Although such facilities exist, they are not the only way of harnessing the earth's natural heat. Geothermal heat pumps take advantage of the fact that below the frost line the earth's temperature is a relatively constant 57 degrees. They operate by circulating water through pipes sunk into the earth to capture the heat in winter months, and reverse the process to provide cooling in summer. Because they only need enough energy to circulate the water and operate fans, they only use between 10 percent and 20 percent of the energy required by a conventional heating and air-conditioning system - all in the form of electricity. Where solar power is practical to provide the electricity, they can operate without the need for any outside energy whatsoever! Even though geothermal heat pumps are more expensive to install than conventional heating and air-conditioning systems, because of their low operating costs, they provide instant savings to users. For example, in a new home, financed with a conventional mortgage, a homeowner would save between $136.71 and $151.87 per month from the time the system was installed. Over the life of the home, the savings would total between $41,013 and $45,561 - and that's after accounting for the higher installation cost. Retrofitting a home with a geothermal system also realizes savings from the time it is installed. Even assuming a higher cost, because of the need to discard an existing system that was operating properly, the lifetime savings would be almost $30,000! But savings to the consumer is not the only benefit from these devices. Heating oil actually creates far more pollution than motor fuels. This is in part due to the fact that it is a lower-grade product and in part due to the fact that furnace emissions are not subjected to the same sort of emission controls that automobile emissions are. Therefore, the switch from heating oil to geothermal heat pumps, which produce no pollution, would make a major contribution to cleaning up the air in the Northeast. And that's not their only environmental benefit. Because using geothermal heat pumps would significantly reduce the amount of electricity used for cooling in the summer, their widespread use would eliminate the need for from ten to twelve large power plants! An aggressive program to encourage homeowners to switch to geothermal heat pumps could eliminate the use of oil for home heating within five years, reducing oil import requirements by an additional 500,000 BARRELS PER DAY!! ADDING UP THE TOTAL Taken together, the four simple steps would reduce America's oil imports by OVER 5.1 MILLION BARRELS PER DAY!! And that's not the only benefit. To review, the four steps outlined above result in the following additions to our domestic fuel supplies: Stranded Gas: 1.3 million barrels per day Offshore Oil and Gas: 1.7 million barrels per day Ethanol: 1.5 million barrels per day Geothermal Heat Pumps: 500,000 barrels per day. Total: 4.8 MILLION BARRELS PER DAY, OR 40 PERCENT OF OUR CURRENT FOREIGN OIL IMPORTS!!!! But that's not all! When a barrel of oil is refined, only about two-thirds of its content ends up as usable fuels. The balance goes to such things as asphalt, tar and paraffin. Therefore, when you replace a barrel of refined petroleum products such as gasoline, diesel fuel, jet fuel or heating oil, it is equivalent to the output of 1.5 barrels of refining capacity. Therefore, the replacement of 4.8 million barrels per day of refined petroleum products is equivalent to adding 7.2 million barrels per day of new refining capacity! Perhaps most important is the fact that because all of these steps result in the wider use of either " ultra-clean " fuels, or non-petroleum fuels, they would also dramatically reduce the amount of dangerous pollution generated by our energy use. Further, because all of the steps rely on domestic resources they would also spur the creation of domestic jobs and economic activity. IN FACT, TAKEN TOGETHER THEY WOULD ADD AT LEAST $182 BILLION TO OUR GROSS DOMESTIC PRODUCT AND FOSTER THE CREATION OF CLOSE TO 900,000 JOBS!!! AND IT CAN ALL HAPPEN IN JUST FIVE YEARS!!! Next month in Turning Tragedy Into Hope Part Three, we'll discuss the additional steps that can be taken to eliminate oil imports entirely! Quote Link to comment Share on other sites More sharing options...
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