True Costs

The last twelve months have been a critical and hopefully enlightening period in the energy world. It has been a period when the true costs of our current energy policies became abundantly clear. Let's take a quick look back at three events that occurred in the last 12 months which should impact our thinking about energy policy:

The Gulf Oil Spill

On April 20th in 2010 the BP oil platform called Deepwater Horizon which was drilling a well at about 5000 feet under the water erupted in a huge explosion which killed 11 men and seriously injured 17 others. Within a couple of days the well platform had melted and collapsed into the ocean. However, a piece of equipment called a blowout preventer which was supposed to cut off the oil flow in the event of a catastrophe such as this failed to work and oil began to spew from the wellhead. The preventer had never been tested at these depths.

For weeks, then months, the world was transfixed by videos showing oil pouring from the wellhead into the ocean. The amount of oil leaking from the well became a topic of much contraversy with BP, for obvious reasons, radically underestimating the true amount of the spill. At a minimum, according to the Department of Energy, the well was probably leaking around 2,600,000 gallons of oil per day and this went on from April until July 15th when the well was finally capped. The spill devastated the gulf fishing industry and covered more than 320 miles of coastline with oil slicks and tar balls. The cost of this spill is impossible to determine. To BP alone the combination of payouts, law suits and stock leases is estimated to be over $50 billion dollars. The impact on gulf fishing and tourism is estimated to be at least $4 to 10 billion dollars. Its hard to put a price tag on the ecological impact of the spill but millions of plants and animals were killed and hundreds of miles of coastline massively impacted.

San Bruno Pipeline Explosion

The 2010 San Bruno pipeline explosion occurred at 6:11 p.m. PDT on September 9, 2010, in San Bruno, California, a suburb of San Francisco. The accident occurred when a 30inch diameter steel natural gas pipeline owned by Pacific Gas & Electric exploded in flames in the Crestmoor residential neighborhood 2 mi (3.2 km) west of San Francisco International Airport near Skyline Boulevard and San Bruno Avenue. The death toll was eight people. It took more than 200 fire fighters to bring the fire under control. The ensuing fire destroyed more than 38 homes and seriously damaged many others. The fire damage was estimated at in excess of $38 million dollars. PG&E will probably be in court for years to come with law suits.

The Fukishima Nuclear Accident
On March 11, 2011 a devastating earthquake struck northern Japan followed by an even more devastating tsunami. The combination of the two caused massive failures at several of Japan's nuclear plants, particularly the coastal Fukushima nuclear plant. As of this writing four of the plant's nuclear reactors have experienced significant damage. At this time reactor number #3 is leaking significant amounts of highly radioactive water into the ocean and into the atmosphere. The radioactivity has already impacted food supplies in the region and has the potential to spread to huge populations in Tokyo. The Japanese nuclear program is one of the most well established in the world. The plants were built with a knowledge that earthquakes are frequent in the area and Japanese nuclear experts said the plants were built with multiple backup systems and could withstand anything nature could throw at it. The nuclear experts were wrong!

Considering True Costs

At Energy Bible we are constantly working to find accurate data which will allow consumers to make intelligent decisions about energy policy. It is often a frustrating process. Nearly all the data comes from some type of energy lobby and is designed to show that their form of energy, whether it be oil, gas, nuclear energy, solar energy, wind energy, etc. is the cheapest. Probably the most accurate data comes from the U.S. Energy Information Administration which has some good charts comparing different types of fuel for home heating, but the data is still pretty limited in scope.

The challenge is that understanding the real costs of energy alternatives is not simply a matter of looking at fuel pricing charts and traditional cost comparisons. Even the best government or industry data on energy costs doesn't begin to scratch the surface of the true costs of our addiction to non-renewable forms of energy. One of the images that has stuck in my mind from the recent nuclear disaster in Japan is from an interview NBC news did of a woman pouring through the rubble of what used to be her home town in Japan. The interviewer asked her what she was most afraid of, and despite the fact she was sitting in the midst of immense devastation, her fear wasn't another earthquake, it wasn't another tsunami, it was the fear of the unseen radiation coming from the Fukushima nuclear plant.

How do we put a price on that kind of fear? How do we put a price on the millions of plants and animals destroyed in the BP oil spill? How do we put a price on the fear of millions of homeowners in California who live near a PG&E gas line? I really have no idea but it seems to me we have to try. We have to find some way to take these things into account when we make practical decisions on energy policy both locally and nationally. We have to look at the true costs of continuing our current dependence on non-renewable energy!