We're headed toward an exciting, all-renewable energy future. Wind and solar
will power the world of tomorrow. And tomorrow isn't far off.
It's time to wake up. You're having a dream. Here's the reality. Oil, natural
gas, and coal provide 84% of all the world's energy. That's down just two
percentage points from 20 years ago. And oil still powers nearly 97% of all
global transportation.
Contrary to headlines claiming that we're rapidly transitioning away from
fossil fuels, it's just not happening. Two decades and $5 trillion of
governments investing in green energy, and we've barely moved the needle.
This was supposed to be easy. Why is it so hard? In a word, rocks. To get the
same amount of energy from solar and wind that we now get from fossil fuels,
we're going to have to massively increase mining by more than 1,000%.
This isn't speculation. This is physics. Copper, iron ore, silicon, nickel,
chromium, zinc, cobalt, lithium, graphite, and rare earth metals like
neodymium.
We need them all.
And then those metals and materials have to be turned into motors, turbine
blades, solar panels, batteries, and hundreds of other industrial components.
That also takes lots of energy, which requires even more mining.
As a World Bank study put it, these green technologies are in fact
significantly more material intensive than our current energy mix. That may be
the understatement of the century. Raw materials account for 50 to 70% of the
costs to manufacture both solar panels and batteries.
Until now, it hasn't really mattered that much because wind and solar still
account for only a few percentage points of the global energy supply.
They're an applause line for environmentalists, not a major energy player, and
it's unlikely they will be in the foreseeable future.
But for the sake of argument, let's say we sharply ramp up mining. Where would
these new mines be located? Well, for one, China. That country is today the
single largest source of most of our critical energy materials.
The United States is not only a minor player, but is dependent on imports for
100% of 17 critical minerals. Do we want to give China more political and
economic leverage? Europe has made itself dependent on Russia for 40% of its
natural gas.
How well has that worked out?
Ironically, we have all the minerals we need right here in North America, but
good luck trying to get them out of the ground. Proposals to build mines in the
United States and increasingly almost everywhere else meet fierce opposition,
if not outright bans.