I cannot believe that we Oregonians are actually considering
the idea of partnering with Wyoming and Montana in order to export coal toChina and anybody else who might want it.
Without a doubt, coal was an integral component of the
revolution that transformed the world over the last two hundred-plus
years. Coal’s heat melted iron in
furnaces, generated the steam for the “iron horse” locomotive engines, and
accounts for nearly 45 percent of the electricity generated in the US.
However, the days of coal as a resource that fuels the
economic engine are behind us. To quite
a large extent, we need to start thinking about coal the way we think about
wood as a source of fuel. Three centuries
ago, wood was by far the dominant source of energy—but, that does not mean that
we harvest trees in order to export them as firewood, do
we?
Our energy sources are quickly shifting towards better and cheaper alternatives. Even now, it turns out that joule for joule,
natural gas is rapidly becoming a better bargain than coal, similar to how coal
itself displaced wood in our economic history.
While natural gas extraction and use is not without controversies, its
price has been rapidly falling over the last few years, and is expected to
decrease in the immediate future as well.
The price for natural gas, which accounts for about a quarter of the
energy consumption in the US, has halved over the past year. So inexpensive it has become that even
coal-fired power generation plants are now being converted to make use of this
better source.
I
do understand the practical aspects of using coal in the developing countries. I grew up in an industrial township in Indiawhere low-quality coal was mined, which continues even now, in order to
generate electricity. Every visit to
India is a stark reminder of the tremendous energy shortage there. Countries like China and India, which are
experiencing rapid economic growth rates, will need a great deal of energy to
sustain this pace and they simply cannot dig enough coal fast enough from under
their own soils. Hence, they import coal,
typically from Australia and Indonesia.
One can, therefore, easily see why a Wyoming might want to export
coal—domestic demand is dropping fast, and there is an external demand for the
same commodity.
That there is a global market for coal shouldn’t surprise us,
when, after all, even now, there is quite an active market for firewood in
villages in India or Tanzania. But, that does not automatically mean we should hitch
our economic wagons to these coal trains.
This is not expected to generate a great deal of long-term sustained
jobs and incomes, nor will the few dollars have significant local economic multiplier
effects. To cap it all, coal is not a
growth industry, but one whose obsolescence is underway.
And then there are serious ethical problems. We regulate coal—right from the mining
stage—because we understand its potential to severely affect human and other
life forms, and the natural environment itself.
The burning of coal is regulated because of its various byproducts, including
carbon dioxide. When we are so worried
about the use of coal, shouldn’t we pause to carefully consider whether we
would want to export it to countries where regulatory and oversight structures
are considerably below our standards?
Finally, I find it disturbing, to put it mildly, that
affluent countries like the US and Canada, to merely name a few, are vociferous
about the fragile global environment, and yet are eager to sell to poorer
countries the very resources that are confirmed harmful agents. Whether it is coal or asbestos, which Canada gladly exports while banning domestic consumption, these
super-rich countries are only too happy to export to the much poorer cousins
materials whose continued use is not in the best interests of anybody on
this planet.
I would rather that we developed and exported technical knowledge so that the developing countries can afford to bypass the mistakes the richer countries made in their industrial revolutions. But, by exporting coal, we do these countries no favor at all.
I would rather that we developed and exported technical knowledge so that the developing countries can afford to bypass the mistakes the richer countries made in their industrial revolutions. But, by exporting coal, we do these countries no favor at all.
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