How Cold Fusion can Reduce Costs and Increase Prosperity for Everybody

The biggest effect that cold fusion or low energy nuclear reaction (LENR) will have on the economy is that it could reduce costs for everybody. Now obviously LENR would not be “free energy” as some of its enthusiasts have claimed but it would be far cheaper.

Andrea Rossi has estimated that it will cost around €10,000 Euros ($12,884 US) a year to operate one of his 1 megawatt ecat LENR plants. If this figure is true that means there could be a steady energy cost. Companies could save money because they would know exactly what they will pay for energy.

Currently a big company such as a retailer does not know how much it will pay in heating costs over a certain period say the winter. So it will have to put an estimated amount aside and hope that is enough. The company will have to reduce costs in other areas such as expansion, salaries, etc. in order to have enough money available to cover energy costs. This amount has to be more than the actual energy costs in order to deal with potential increases.

If that wasn’t bad enough many companies follow a strategy called hedging. They try to lock in energy costs by purchasing fuels such as natural gas or gasoline ahead of time. So a company like Wal-Mart which is really a transportation company ends up spending a lot of money on diesel fuel for its trucks and natural gas to heat its stores rather than goods to sell to generate cash.

If Wal-Mart didn’t need to hedge or buy fuel because its energy costs were fixed it could lower prices and pass the savings onto customers. It could also spend some of that money on expansion building more stores etc.

Many companies would be in a position to control costs or at least reduce them with cold fusion. For example oil companies would have lower refining costs because they could use LENR to heat oil in their refineries. They would also have lower production costs because cold fusion could be used to heat the steam they use to force oil out of the ground in many drilling processes. They could pass the savings onto the consumer in the form of lower oil or gas prices.

For example LENR could make gasoline prices in the United States lower because it would make it cheaper to get oil from the Athabasca oil sands in Alberta. Currently companies have to burn large amounts of natural gas to heat steam to force oil out of the sands. If they could use a cheaper energy source oil companies could get more oil and the natural gas could be used for other purposes such as home heating. That could lower oil prices throughout North America because those sands in Canada contain as much oil as Saudi Arabia.

These savings could be repeated in many industries including mining, plastics, smelting, automobiles, pharmaceuticals, cement production, food processing and telecoms to name just a few. Lower prices would eventually be passed onto consumers because businesses want to compete. Lower prices help companies make more money because when you lower the price of product you increase the demand so you sell more and make more money.

If food and oil prices were to fall just 10% you could imagine the savings to the average family. If energy costs were to fall by 50% or more we would see prices fall across the board.

Obviously it will take time to adopt a new technology like LENR so the savings wouldn’t be seen immediately or felt overnight. Instead they’ll come in overtime as the technology is adopted. Something to remember is that if cold fusion is successful and starts reducing costs its adoption will speed up. Companies will move to take advantage of it because they want to remain competitive. Eventually though the savings will get passed onto first to companies themselves, then to suppliers and finally to the consumer.

Lower prices across the board will lead to improved lifestyles for Americans, Europeans and people around the world. Americans have seen how greatly their lifestyles have improved because of cheaper consumer goods in the last two decades. Imagine what will happen if the price of basic consumer goods falls all over the world. More people will be able to afford them and to participate in the global economy.

That will mean more business, more revenue, more investment and more money for everybody. That of course could lead to a high level of prosperity for the people of the world or at least more of them over the time. It could also lead to an economic boom that could dwarf every other economic boom in human history. LENR could lead to the greatest economic boom in human history and a bull market to end all bull markets.


2 Responses to How Cold Fusion can Reduce Costs and Increase Prosperity for Everybody