User 283977

Book Review: Robert Hefner's 'The Grand Energy Transition'

I did indeed purchase the book based on your recommendation Fitz. I was looking for a primer on large scale energy systems, trends and such and when I saw your initial recommendation a few weeks ago I bought a copy.

The book contains a good deal of references at the end of each chapter, so its not just a journalistic "opinion" piece, it represents a good beginning framework for understanding the large scale utilization of energy over time from a systems perspective. Hefner's section on the amount of natural gas available in the US is a must read, and the author should send a copy directly to Obama.

The book mentions the ITER - the International Thermonuclear Experimental Reactor project sponsored by Russia, Japan, the United States, the European Union, China, and South Korea that is expected to cost up to $13 billion to develop. Its located in Cadarache in southern France. It seems that 13 billion is chicken feed given the money being thrown at these large financial institutions today. Imagine what could be done with a 50 - 100 billion dollar R&D Manhattan style project directed towards removing this countries dependence on foreign energy resources with the development of clean, green energy. Now that is a worthy goal, and with resources at that level, the probability of success in a shorter time frame is more likely. It would also provide a big shot in the arm to making this country a world leader in energy systems and the long train of related technology and developed products.

I have a background in Physics, and Hydrogen fusion power is absolutely possible. The primary barriers are economic, technological and understanding that large scale power generation does not necessarily have to be continuous when linked with large scale methods for storing power. Yes, fusion power has been under examination for some time now, but the resources provided for research in this area have been tiny. I think we can all agree that that you can't extrapolate rates of progress from a minimally funded research area to the rate of progress in a well funded research area.

I think allowing existent economic forces to drive country level energy policies is intellectually bankrupt because making an energy transition requires long lead times, planning and R&D investments. The first step is recognising that such a change is absolutely necessary for our countries survival as a world power. This book provides a good starting point to that realization. The key to making a change of this magnitude happen is through education by out of the box visionary thinkers who have the ability to see further into the future then most of us.

I think FitzSimions and Petersen's articles are highly informative, and represent must reads in their subject areas. I also highly value the back and forth between these authors and their readers which surfaces more information in these subject areas.

Book Review: Robert Hefner's 'The Grand Energy Transition'

Alex, the book describes Hydrogen as the ultimate goal. You could use solar and wind to generate the hydrogen with the obvious questions concerning scale/ cost. The book does not say we are ready for hydrogen right now, just that Hydrogen is likely the ultimate goal.


There is something else about Hydrogen that the book discusses 137-140, Hydrogen based nuclear fusion reactors, which are being researched in many countries today... Apparently these types of nuclear reactors produce no nuclear waste!

The Fitz is right, the book is a great read.

Chesapeake: When Gas Prices Will Recover

I think trusting McClendon is a mistake… In their recent call transcript, McClendon took umbrage with Joe Allman - J.P. Morgan Securities who apparently had, in the past, referred to CHK management as a bunch of "drunken sailors". You know what, on thinking about it, that is close to the perception I have about CHK management… I think McClendon is more like a buccaneer than a CEO. I don't care that he lost all of his own CHK shares by playing the market, but I do care that he acts like a buccaneer as CEO of a company I owned stock in. For example here is how he explained the disaster of that recent stock offering made late in the day before Thanksgiving…

"Another set of questions has arisen surrounding the universal shelf
and other stock pilings we made the day before Thanksgiving. In retrospect these filings were a mistake and we greatly underestimated how the market would react. I apologize for that and ask your forgiveness for it"

The timing of that move provides a sneaky impression. Second, the associated filing said the offering was necessary to increase liquidity. Yet later in the same call transcript, McClendon says they have plenty of liquidity without the universal shelf offering.

McClendon: "Late last week I noticed we had $1.5 billion of cash on hand and we are still managing to have between $2 billion and $2.5 billion of cash by year end"

It sounds like he was surprised that they had plenty of liquidity on hand. However, given the way he tosses numbers around, he is clearly quite familiar with the companies cash position.

So what was that universal shelf offering about? Lets see, he lost all his CHK stock playing the market, now he comes out with a major stock offering when CHK stock is priced low… perhaps gambling that the stock holders are not going to get upset and sell…

Well this is one former CHK stock owner that got upset and sold. I don't think McClendon and his board understand the concept of Company / Share Holders Trust. McClendon appears to be more like an old style oil well drilling wild cat kind of guy. A real entrepreneur used to running his company his way. He sounds like a fun guy, but now he is CEO of a PUBLIC company, and he is playing with other peoples money. Of course, the real problem here is CHKs board of directors that are not exerting sufficient control over a mercurial CEO.