By: Chris Gerbi
Last week I learned that Obama decided to spend $5 Billion dollars on the Biotech industry for R&D and other things. I usually support any investment in a science related field, but this one doesn’t sit as well. Mostly because that industry doesn’t need it. I’m pretty sure that our Biotech industries are top in the world right now. Don’t get me wrong , I think that it is an important industry, but aren’t there other areas where investment would have a larger impact? I’m thinking about the energy industry. Currently there is only .8% investment for things like basic research and technology. That is .8% of the net profits for energy companies in this country. What kind of change is this going to produce? Almost none. I care about finding different ways to produce and deliver energy. To be competitive and viable new technologies must be invested in so that they are allowed to reach economies of scale. For most other new industries to become competitive in this manner about 20% - 30% of the profits are re-invested. This is a drastic difference. As much as we see commercials about BP and Shell becoming “energy companies” they are still oil companies. I know that we are deeply entrenched in our existing infrastructure but that doesn’t mean we are stuck. There are many reasons why it makes sense to wean ourselves from fossil fuels. One thing people forget is that we have one resource that is renewable and greatly untapped and that is our technological and innovational creativity. Let’s use this to our advantage and get a jump on producing new ways to produce and consume energy. I mean, if I wake up in a few years and find that China has passed us in this sector – which they can do under their authoritarian system – we will have let a great chance to improve at a profit slip through our fingers.
15 comments:
I completely agree with your argument. It is the tendency for our country to find one solution (well kind of) and then never look back until problems arise again once more. For example, once our country discovered fossil fuels they were entirely consumed by the idea, not taking the time or effort to use our nation's creative intelligence to develop other means of energy. Always so single-minded, our country forgets, no ignores, the fact that no resource will last forever. Fossil fuels will run out and our country will have no source of fuel. When this problem occurs we will have no other solutions, because we never took the time to slow down. Though research and money spent on fossil fuels is important, we need to stop living so much in the present and move on to the future. Preparing our country as much as we are able for the problems of the future, should be the biggest priority to solving the continuing fuel crises.
As much as one might hope that China would surpass us (thus stimulating our energy industry to change), I doubt they will. In China, coal is mega cheap and mega abundant, in fact, they are the only industrialized country that still builds coal-powered steam locomotives.
If we want change, and we do, WE must be the vanguard for change.
I agree, there are far to many subsidies given to those industries that are currently quite established. They have extensive lobbying power furthering the money they receive from our government. It is time to level the playing field and like you stated let our imaginations run wild.
This sounds like a plan. I agree with what you are saying and think that the energy crisis is a big one. I did have one question: Do you know where exactly the money is going?
Yes, I agree that investments should be directed toward cleaner, untapped energy research and technological development. Other countries seem to be 10 steps ahead of the U.S. in this field. In Europe, renewable fuels are becoming close to 30-50% of their energy usage! Lets step it up!
China passing us in energy is one thing, but taking the crown in clean energy is another. China's access to coal is much greater, but they may just keep abusing this "dirty energy". The US should really focus investing it's money as you have suggested here.
i also agree and think that we need to invest and put more resources into research for cleaner ways to generate energy.
Yup, I must also agree. I don't know what all 'Biotech' involves, but I assume it has a lot to do with improving the health and longevity of people. Why do we want more people around even longer when we struggle to find clean energy to fuel them? My guess is that Biotech is a politically popular thing to be in favor of. Everyone wants their loved ones to be able to fight disease and live forever. The emotional tugging is strong. Renewable energy just doesn't pull on the heartstrings as hard. If we really cared about our long-term well being, we would find ways to better care for the environment in which we live
Obama also put a lot of money towards R&D in renewable technologies and energy efficiency under the American Recovery and Reinvestment act of 2009. 16.8 billion to the Office of Energy Efficiency. I think the first step to a clean energy future is reducing our consumption. A change to renewables is going to be costly, and maintaining the current system will also be costly as our energy consumption rises and dirty as we continue to use fossil fuels.
As far as I know, there are far more successful and rapidly growing solar panel manufactures in China than there are in the U.S. It would seem in our interest to build of the green energy industry before other countries beat us to it. Who knows, in ten years we might be importing all of our solar energy goods from china, just like everything else...
Throwing money at an industry is just showing that by creating new technologies to try and get us out of the climate change, fossil fuel dependent cycle is somehow the way to go. Although I like that Obama is making an initiative to create 'green' energy, I think it is really upon us to make the change we want to see. I know I am sounding like Ghandi; truly though, how much is more money and more technology really going to help if we, ourselves, cannot find ways to independently break away from fossil fuels.
i agree that more funding should go towards R&D of renewables. Its a fast growing industry, and with help from the government, clean technology will become price competitive until it can eventually sustain itself. Solar Power is already economically viable in Colorado due to subsidies, tax breaks and sunlight. I also see great potential in biodiesel from algae. It is expensive right now, but advancements in technology are happening fast. With more funding, we could have multiple clean energy sources that are cost competitive with coal, oil and natural gas
I wonder how interrelated the industries are? I'm not really knowledgeable in this area but I feel like biotech and energy industries will have some sort of overlap. Biotech industries are also, as you pointed out, more developed so money spent on them might be used more effectively for projects that are in the energy sector as well?
It sounds like Obama is just feeding a resource that we should be trying to move away from. Although we should be moving toward developing new resources we should also try to improve the efficiency of the resources we already have. There will always be a need for oil in the world so we should try to make the production and use of oil efficient, along with finding new resources to take the place of oil.
This is a good argument and made me think more about this topic and want to look into more.
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