Slavery and the Value of a Barrel of Oil
Posted by Sonja Ebron
Edwin Drake drilled the first major U.S. oil well in 1859 outside Titusville, Pennsylvania. U.S. oil production that year was 2000 barrels but rose to over 4 million barrels per year within a decade, driven by the growth in internal combustion engines. That decade also saw the U.S. Civil War and the emancipation of slaves. Coincidence? Hardly.
Energy is the ability to do work. Oil represents a form of energy so dense and liquid that there is no adequate replacement. According to Rep. Roscoe Bartlett (R-MD), longterm member of the House Subcommittee on Energy and the Environment, one barrel of oil does the work of 12 grown men doing physical labor for a year. [Four men by my calculations, but that's a distinction without a difference.] What is the market value of that work? $100,000 if they’re prisoners, $250,000 if they’re free. That’s the value of a barrel of oil.
And we’re squealing at $150 per barrel? In less than 150 years, humans have grown a global economy based on a very limited supply of extremely cheap energy. We’ve used up half the available supply, and we’ll use up the rest in far fewer than 150 years. I’m a pessimist today, so I don’t think those of us in the most developed countries have time to unwind and ramp down without a very difficult adjustment. Our fluorescent lighting and electric cars and rooftop gardens will help, but they are not enough.
There are neither substitutes nor good ideas for substitutes that will get us anywhere near the economic benefits of oil, not even a return to slavery. At least I hope that’s off the table…
Nuclear Power for Environmental Justice? Uh… No!
Posted by Sonja Ebron
The Howard University School of Law hosted the second annual State of Environmental Justice in America Conference in May. Topics on the program included efforts at state and federal agencies, tribal perspectives, potential traps of Community Benefits Agreements (CBAs), technical advances in monitoring hazards, case studies of remediation, and other thought-provoking subjects. The discussion on nuclear options caught my eye.
Organized by my good friends at the African American Environmentalists Association, the workshop highlighted the lack of minority ownership of firms working in the nuclear industry and a number of ways for Blacks to get in. Many industry analysts expect a renaissance in nuclear power because of the focus on climate change and the fact that nukes have no emissions. But I found it strange that this discussion would take place at a conference on environmental justice. Where’s the tie-in? Would a more diverse industry really change the calculations that decide the siting of power plants?
People Make blackEnergy Go Round
Posted by Sonja Ebron
I like to take all the credit for blackEnergy’s success, but the truth is there is a fantastic staff doing the company’s work. Dave Benfield, our VP for sales and marketing, is retired from the same position at one of Georgia’s natural gas suppliers. Besides mentoring me (read: keeping my head on straight most days), he uses a thick Rolodex to introduce me to lots of helpful contacts. He’s also made it much easier than we thought to transition from exclusive relationships with utility suppliers to a tenable independent status. Gwen Sheppard, an old and dear college friend, is a retired military officer and software genius. As director of operations, she keeps the trains running on time and just gets the job done right every day. Crystal Grant (pictured below discussing energy conservation with an Atlanta resident) is a recent graduate of Spelman’s innovative environmental science program. As our special projects coordinator, she has a hand in everything from government contracting to consumer education initiatives.
Crystal also supervises our summer intern, Sarah Jones, a political science and environmental science major at Spelman. Perhaps because they’re young and inexperienced, Crystal and Sarah add the energy and out-of-the-box thinking the rest of us old-timers sometimes lack. Along with our vendors and suppliers, I think we make a great team. So while I can’t take credit for their work, at least I can take credit for hiring them.
Regentrification and the Suburban Doughnut
Posted by Sonja Ebron
With the price of oil going through the roof, it’s been interesting to catalog the links to transportation, consumer goods and food. With the credit crunch in full swing, we see there are also links to housing patterns. From blackEnergy’s archives, April 2005:
I had an interesting conversation this morning with a brotha in St. Louis. He’s concerned about the regentrification of our inner cities and sees it happening all over the country. Upper middle-class White people are buying up depressed properties neighborhood by neighborhood, investing tons of money in them, and moving in. Property values rise and Black folks can’t hang on.
High Gas Prices Do NOT Make Effective Energy Policy
Posted by Sonja Ebron
Economists define market “demand” as the desire for goods or services by those who can pay for them. Demand for goods and services does not include the needs of those who can’t afford them. Gasoline at $4 a gallon has resulted in less driving, what economists call “demand destruction.” The polite explanation is that high oil prices send the economy into recession, and an economy in recession needs less oil. In private, though, most analysts assume people are foregoing summer road trips and other types of discretionary driving.
But some of that destroyed demand is from people who must drive to work or to the day care center or to the grocery store to make their lives work. The biggest reason people drive instead of using mass transit, which has always been far less costly than driving, is that it generally takes less time to get from Point A to Point B in your car, and you’re on your own schedule. (You leave when you need to, and you break traffic laws when necessary.) If you work three jobs, or are self-employed and meet customers at their locations, or are a single parent with just too much to do each day, you simply cannot use mass transit. So when your demand is destroyed, you take a big hit.
