Does anyone remember when gas was $4 or more a gallon? J.T. remembers. Anyone who knows me knows that I am a firm believer in economics. I have unwavering faith that during those times, the demand for energy was sufficient to dictate the high costs that we saw. So, what happened in the meantime? Well, productivity and demand slumped, and the boom was over. Perhaps we saw an over correction when gas fell more than 50% in such a short time. From a human perspective, it seems that one form of suffering was merely replaced by another: lower gas costs, but rising unemployment, freezes on salary increases and so forth.
Well, this blog is dedicated to alternative modes of transportation, perhaps more out of mere curiosity than anything else. Never have I been concerned about my carbon footprint, or doing my share to help the environment. Making use of alternative methods has its own merrit, including health, relaxation and monetary savings. The idea of savings is eclipsed by the inexpensive nature of energy at the moment.
But I got to wondering what about our energy problem has changed. We seem to have forgotten about our out of control oil demand, but when the economy recovers, I think this demand will be back.
Texas is an interesting place to be with respect to energy. The state deregulated its energy market some time ago, before we moved here. Economics would dictate that in the presence of competition, prices should be reduced. However, just the opposite has occured. Prices here are higher than in areas that are municipally controlled. If anything, the deregulation has been a tremendous boon for environmentalists who would like to see the construction of efficient energy production facilities. Why would such a conservative gesture yeild such a liberal result? I suspect that it has something to do with the enhancements taking place to improve delivery and meeting future peak demands with reserve power.
The Texas power mix is awesome, with substantial parts coming from Nuclear and Natural Gas, and a below average portion of Coal. Though in the minority, Wind power is not insignifigant. With these cleaner power plants in action, as well as improvment to transmission lines and market place monitoring, we are paying more for these improvements. I suspect that areas not derregulated are not experiencing these improvements.
In the coming years, energy will continue to grow more expensive as our demand increases. I think Texas is inadvertantly well positioned to meet its energy demands. For those states who are still paying 9 cents a kilowatt-hour, get ready for rising prices in the green economy.
UPDATE: Today when I got home, there was a flyer on our door outlining the benefits of our new 'Smart Meter.' This is yet another example of the enhancements taking place. Oncor can track our usage remotely and check its status online every 15 minutes. Soon, we will be able to track our usage through their website as well.
Well, this blog is dedicated to alternative modes of transportation, perhaps more out of mere curiosity than anything else. Never have I been concerned about my carbon footprint, or doing my share to help the environment. Making use of alternative methods has its own merrit, including health, relaxation and monetary savings. The idea of savings is eclipsed by the inexpensive nature of energy at the moment.
But I got to wondering what about our energy problem has changed. We seem to have forgotten about our out of control oil demand, but when the economy recovers, I think this demand will be back.
Texas is an interesting place to be with respect to energy. The state deregulated its energy market some time ago, before we moved here. Economics would dictate that in the presence of competition, prices should be reduced. However, just the opposite has occured. Prices here are higher than in areas that are municipally controlled. If anything, the deregulation has been a tremendous boon for environmentalists who would like to see the construction of efficient energy production facilities. Why would such a conservative gesture yeild such a liberal result? I suspect that it has something to do with the enhancements taking place to improve delivery and meeting future peak demands with reserve power.
The Texas power mix is awesome, with substantial parts coming from Nuclear and Natural Gas, and a below average portion of Coal. Though in the minority, Wind power is not insignifigant. With these cleaner power plants in action, as well as improvment to transmission lines and market place monitoring, we are paying more for these improvements. I suspect that areas not derregulated are not experiencing these improvements.
In the coming years, energy will continue to grow more expensive as our demand increases. I think Texas is inadvertantly well positioned to meet its energy demands. For those states who are still paying 9 cents a kilowatt-hour, get ready for rising prices in the green economy.
UPDATE: Today when I got home, there was a flyer on our door outlining the benefits of our new 'Smart Meter.' This is yet another example of the enhancements taking place. Oncor can track our usage remotely and check its status online every 15 minutes. Soon, we will be able to track our usage through their website as well.
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