Comment by genman
2 years ago
Fossil fuel usage in US and EU has stagnated but is increasing in China. I would say that the house is pretty tidy and waiting for major renovation - but the fact is - what ever pace of usage reduction does not counterbalance exponential usage increase.
EU has stagnated.
PRC fossil usage is tapering.
US became the largest oil and lng exporter in the world.
10 million barrels of oil per day, 10 billion cubic feet of LNG per day.
Enabling exponential usage.
If PRC fossil imports is counted against her usage, then US fossil exports should be counted against hers to balance the account (and other major fossil producers). And that front, US is both the greatest fossil fuels user - 30% more than PRC in aggregate, and 6x more per capita, while also enabling other to use fossil fuels post shale boom. More than ANY other fossil exporter.
You are missing the forest behind the trees, I'm afraid of. The reason behind the increase of US fossil fuel production is geopolitical to suppress Russian profits and its ability to finance its genocidal war. Russia can't lower much of its production cost. Major part of the Russian state budget is based on profits from the fossil fuel sales - no profits, no war.
If US didn't increase its production then Russia could sell at higher price and many countries would be forced to buy it as there would be no alternative. This would allow it to continue the war longer and possibly attack more countries.
Unfortunately the formula of the problem is complex with many variables. There are no easy solutions.
The best strategy we have right now is to convince China to reduce its fossil fuel usage so everyone else could scale down.
All this is saying is countries will produce/consume fossil fuels according to self interest. US shale/oil export boomed years before RU/UKR war, same with planned LNG expansion. That kind of infra didn't get planned and built in the last 2 years. It just so happens the war validated US prior geostrategic goal of being fossil fuels exporter. Eitherway, why would PRC be convinced to reducing use when it's at 1/6 per capital of US. West has to ramp down per capital usage to PRC levels for that proposal to make sense.
e:
And the only effect of PRC consuming more energy for manufacturing is other countries can manufacture less. Why do we need to reshore / diversify / build redundant factories/supply chains. Clearly that's in jest, but the logic works both ways, why would PRC not harness energy to improve her geopolitic posture when US is using it to enhance hers. Long term demand also works on efficiency paradox, the more supply there is, the cheaper something becomes and the more it tends to be used. US ramping up more supply/reduces, or rather increase cost of green transition. Large reason why oil demand is set to plateau long term is PRC is using oil to make renewables with cheap RU and Iranian oil. The point is, as long as US benefits from being fossil exporter by playing up her geologic advantages, PRC is going to reap benefit from converting fossil to goods by playing up her manufacturing advantages.
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