Saturday, May 9, 2015

Moniz May Not Strike Out

Our Secretary of Entropy Dr. Ernie Moniz has two strikes and is at bat.  He increased US CO2 emissions in 2013 and also increased them in 2014.  2015 could be a strike or a ball.  Natural Gas consumption is up strongly on a significant price decline in the Henry Hub (HH) price of gas.

Crude oil consumption is up on the also significant reduction in cost of the West Texas Intermediary (WTI) crude as well as Brent crude.

The item that may save Ernie from striking out is coal use.  Data from the first 18 weeks of 2015 show coal use in the USA could be down by 5% for the year 2015 versus 2014.  If this level of reduced coal consumption happens, CO2 emissions in the USA could be flat or ever so slightly down.  Also a cooler summer and a warmer early winter in the last months of the year may save Ernie.  All in all I do like Ernie’s smile but he is about as useless as all of his predecessors at the Department of Entropy. 

The shale revolution has killed coal.  I do hope it helps Ernie get a ball in 2015.  Perhaps Ernie can be on dancing with the stars and when he is kicked off in an early round (he does not look like much of a dancer) he will get the Mirror Strike trophy.