Energy Glut is changing the World
The world is facing something that most of us would have thought impossible just a few years ago – an energy glut. That will have big implications for cutting edge power sources such as Low Energy Nuclear Reaction or LENR as well as the established energy conglomerates.
One impact you’re probably already seeing is at your local gas station. Various sources are reporting that regular unleaded gasoline is now selling for under $2 a gallon around or around 66¢ a liter in some parts of the American Midwest. This is driving up US retail sales, the wholesale club Costco, now America’s second largest retailer; reported that its sales increased by 7% in November.
This is sure to fuel economic growth in the United States and countries that sell to the USA such as China. It’s also sure to hurt countries that depend on oil imports such as Russia where the Ruble is collapsing and Venezuela. One side effect of falling oil prices is that Venezuela can no longer afford to support the Castro brothers’ revolutionary fantasy in Cuba. The Venezuelans were propping up Cuba with their oil money but now they are broke.
Now in desperate need of American tourists and their cash, the Castros have decided to normalize relations with the USA. In other words low oil prices changed the political situation in a country with no oil production namely Cuba. I imagine that we’re going to see even more radical shifts in international relations as countries like Russia and Iran scramble to avoid economic ruin.
Yet the energy glut isn’t confined to oil, in the past I’ve written about Elon Musk and his plans to build a massive Giga Factory that will churn out millions of tons of lithium ionelectric batteries. Enough to hold a gigawatt of electricity a year, that’s liable to lead to a glut of batteries similar to the oil glut. There are also such next generation power sources as fuel cells which Toyota is pushing right now.
If slightly cheaper oil does this one has to wonder what will happen if a super-cheap source of vast amounts of power such as LENR appears. The upheaval it produces will be even greater and our world won’t be the same again.
It looks as if all those who have been betting on an energy shortage have lost. The energy glut is the future whether we know how to deal with it or not.