Energy Costs Will Continue to Skyrocket in the Name of Alternative Energy Even If We Conserve

Our nation seems to be on a mad tear to bring in a new age of alternative energy, and to get away from coal, and the fossil fuels we put into our transportation. What many fail to realize is that we have over 250-years of coal supplies, so it might not be so wise to up a switch, especially when we have bigger fish to fry during this extended recessionary period.

Today, everyone is told to conserve energy, but in doing so prices will increase due to the fixed costs needed to generate the energy. Unfortunately, alternative energy is not the answer to lower energy costs. In fact, such initiatives will only increase the costs of energy, and hurt our economic base.

You see, low cost energy has been a superior advantage to manufacturing in the past within the United States, and low cost reliable energy has been nothing short of a god send. Alternative Energy regulatory and tax changes, along with carbon credit trading schemes will remove all those prior advantages US companies had forever. Making us less competitive globally and thus, decreasing jobs.

That’s right decreasing jobs. In other words the 3.4 million jobs that alternative energy that were promised by the Obama Administration, will most likely result in a net loss of 5 million jobs even if those jobs are created as stated or calculated.

With regards to our transportation, getting off oil, diesel, and gasoline is the real problem, as we are paying way too much to foreign nations to use it. This is a huge drain on our economy creating unfortunate international policy and unbelievable trade deficits.

Conserving energy makes sense, but just like saving water that is sold by the unit of volume, the more we save the less money coming into the water company, and with fixed costs they have nothing else they can do but raise prices. Energy works a lot like that too, so we need to think through these energy initiatives without emotion.