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Tuesday, 24 January 2012

European economic self-sabotage

The collective European economy is desperate for revival.  Energy is the lifeblood of human and economic survival:-  restrict energy;  and restrict the economy.  It seems strategically unsound that Europe:  reduces oil, coal,
and gas consumption by new emissions taxes and controls;  and imposes sanctions on their oil supplies from Iran, which will result in higher oil prices for Europe, exacerbated by euro devaluation.  Germany perceives itself to have the luxury of also rejecting nuclear energy.  Without coal, oil, gas and nuclear energy sources, there remains wind and solar energies, which can not produce more than 20% of any shared power supply for technical, reliability, engineering and grid stability reasons.

In contrast, the facts of investment and market demand speak for themselves.  Hundreds of billions of dollars are being spent expanding Australian coal export harbour facilities, massively, in Queensland, and with serious environmental damage.  Therefore the investment community already knows that increased Chinese and other demand will more than annul any European reduction in coal usage.

And energy for European survival will cost much more for Europe.  Greek economic recovery is now even more unlikely, their favourable Iranian oil purchase arrangements now having been terminated.

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