The Department of Energy Fails Us

CNBC yesterday was recommending a new American bureaucracy: an "Energy Fed" - presumably for developing an energy policy to deal with the oil crisis. I contend we already HAVE a bureaucracy for that: the Department of Energy, which is a complete and unmitigated failure.

I contacted the DOE a couple years ago to discuss peak oil. I warned them of the consequences to the US economy and the threat it posed to our national security. I discussed production curves, depletion rates, the scarcity of cheap affordable oil, and all the rest. I mentioned the huge trade deficit and the effect it was going to have on the US dollar and the US equity markets. All I received back was a polite "thank you" and reference to a bunch of reports by themselves, the EIA and others about how the spike in oil (it as around $50/barrel at the time) was temporary and that new supply would be coming online and would bring the prices back down. Yet their long term demand estimates were upwards of 150 million barrels a day! They didn't specify exactly where all this supply was going to come from.

For a "Department of Energy" to be caught blind-sided by the realities of peak oil supply/demand fundamentals borders on criminal neglect. Secretary Bodman should be fired and the entire DOE dismantled. Perhaps we should bring em to court on treason charges.

Here is an energy policy.

Comments

[ship shape ...:]

How do You expect the DoE to be smart, when Congress and the White house neglected this problem over decades. They are the ones who should be charged with treason.

2008 May 23 05:40 AM

[CLH:]

The market can and will solve the problem w/o the gov.. Goverments only make things worse.

2008 May 23 07:23 AM

[huangjin:]

The energy department should be abolished, along with education and commerce. The money from the energy department alone could fund every single alternative energy project, with a massive investment into nuclear fusion reactors, and still leave money left over.

2008 May 23 08:17 AM

[bluesmoke:]

Michael, you've done the research and have an excellent handle on this. This is an issue of national security. I sincerely hope your agenda gets some traction, for the sooner people & politicians embrace this, the better!

2008 May 23 09:45 AM

[retired cli...:]

I consulted to the DOE for the last ten years of my career and offer the following observations. The DOE as currently constituted is incapable of devising a viable energy policy. They work within a corral built and managed by Congress and Executive branches that are doing the lobbyists bidding, which they consider as the voice of the people. With lobbyist's interests ranging far and wide across the interests related to the energy business, the corral is small.
Congress grilling the oil executives recently is a good example of the problem. Congress set the standards for mileage that allowed the SUV market to flourish as it did, that drove demand and that contributed to price increases. Congress oversees the securitiy markets and to the extent that speculators caused the price to rise, Congress allowed it. Congress did put out a bill in 1995 allowing drilling in places such as ANWR, the Executive branch vetoed it and Congress could not override. President Clinton said that it would take 10 years to get that [2-3 mbd]on line so it would not help [during his admin. anyway]. That bill would have given the world today a 2-3 mbd surplus supply instead of a shortfall. Congress makes laws that EPA enforces and with other mandates in place refineries cannot be built. The Congress does nothing to move ahead with nuclear power. Presidents have demonstrated their ineptness without exception since 1973.
Congress is the least introspective group of casuists on the planet. They need to stop trying to deflect blame away from themselves and solve the problem. With the Congress in one party's hands and the Executive in the other, the solution will need to have Congress' name on it. If same party in both they might share credit for saving the country from those greedy oil executives.
These examples demonstrate how DOE has its hands tied, but they are serving at the pleasure of the President and always have been. Their planning horizons rarely extend beyond the next election and are focused on avoiding embarassment for the administration. The organization has so many problems in their culture and management that they incapable of managing their current mandates effectively if at all.
Yesterday SEcretary Bodman said he is out of the loop on energy policy.
The DOE is not the organization to craft a comprehensive policy for the country.
Negotiating a policy with lobbyists breathing down their necks will render any new policy to look like the horse designed by committee [i.e. the camel]

2008 May 23 10:33 AM

[Bylo-:]

retired climber, I agree 100% and i have to say that it's refreshing to hear it out loud. Now if we can only elect a group of individuals who will act for the nation instead of themselves, we may survive this mess. Otherwise, madness this way lies.

bylo-

2008 May 23 11:50 AM

[nakedjaybird:]

You are all correct; it's all about LEADERSHIP, rightly or wrongly.

Some of our 50 states, some businessmen, businesses, and even individuals have a better grip on the energy issue than Washington DC.

More significantly, LEADERSHIP is why France is 80+% nuclear; LEADERSHIP is why Brazil is mainly biofuel automobiles (and that VW built an engine factory there specifically and only for biofuel powered cars); LEADERSHIP why the Dutch have windmills and tidal powered generation; LEADERSHIP is why Germany is 40%(?) solar; and LEADERSHIP is why China and ROW (the rest of the world) is going to show the US that our energy policy sucks; we do have one: it just sucks [not to mention the inept elected and appointed politicians, and, therefore, all the successful and influencial lobbiests; and therein all the greedy everybody elses]; however, and lest we forget, getting back to LEADERSHIP, let's mention why Cuba is where it is, and Venezuala is going where it's going........ and closer to home for what it's worth with REC and FSLR selling all their solar product to ROW for good reasons; T. Boone investing in wind; CA leading the pack with boxtop solar; So. Cal. putting up a 1/4 of a nuc plant in a basically maintenance-free, no-waste and free-energy solar facility..... great....and a big march-on to those that really know and have the vision and the guts to LEAD.

In no way do I intend to be a historical revisionist; just trying to make a point - like the rest of you.

2008 May 23 12:38 PM

[nakedjaybird:]

Postscript:

Here's an (one) energy policy suggestion: let's put in place that 100 mi x 100 mi solar photovoltaic facility in the AZ-NV desert to generate as much electricity as we currrently do from all other sources in the US..........

AND THEN, let's electrify all the existing railways and install additional new electrified rails alongside/in-between all the existing ones, plus string new electrified rails in/alongside/above all the interstate highways.....and all the congested corridors in and around and between major cities....

AND THEN, take all the diesel train engines off the rails and diesel trucks off the interstates, and ship goods, transport people and hybrid cars (aboard rail ferries) on local and express electrified steel-wheeled-rails (the barges will have to be biofuel; same with planes - where we need them).

[Yup, we'll have to retrain all the pilots and truck drivers et.al. as train drivers, rail installers, power installers, etc.]

Naw, electrified rails sounds too much like Europe!!!!!!!!!!!! And, early american cities with trollies, etc. Maybe Switzerland? Never work!!! Can't be done!!!! Not in my back yard.......!!!!!! LEADERSHIP????????????... Build the field, they will come.

What about when the sun doesn't shine. Well, turn on the wind power. Or use the flywheels that solar spun up, or the giant capacitors solar charged, etc., etc., etc.

LEADERSHIP GOT US TO THE MOON. WE ARE A VERY RESOURCEFUL PEOPLE.

2008 May 23 01:21 PM

[rbblum:]

. . . contacted the DOE a couple years ago to discuss . . .

I would be guessing that you have come to realize you were communicating with a bureaucratic entity created by the political class having powers of oversight; therefore, regarding their 'mission' and action plan, all US citizens are equal (as in irrelevant).

2008 May 23 02:26 PM

[fran:]

the gov'tal beauracracy without presidential or congressional leadership is not a proactive/preventive entity. the DOE is part of the executive branch. therefore, if they are to be effective the president must lead. there has not been an ENERGY-active executive in years. most presidents since Reagan have proposed ending DOE existence.

until the electorate votes out most legislative encumbants[who fail basic knowledge capacity of energy/spend their careers working for reelection], change will be elusive if not impossible. the proper person with leadership must aso be elected executive.

success on the ENERGY and many other BIG problems for this nation remain in the hands of the VOTERS.

will they execute THEIR responsibility???

2008 May 23 04:22 PM

[nakedjaybird:]

Forgive me Fran and rbblum, I assumed everyone knew how we got the LEADERSHIP we deserve!!!

2008 May 23 09:46 PM