John Dickmann
johndickmann at cox.net
Fri Nov 20 09:24:01 EST 2009
OK, I'll take a stab at making some observations that might add value. Let's look from the perspective a friend of mine uses when considering energy technologies: energy density. It also happens to be a dimension of performance that the Secretary mentioned in his speech as a motivating force for the current change effort, by drawing the history of the shift from wind to coal to oil. Wind is less dense (and less controllable) as an energy source than coal and coal less dense than oil. Only three data points, but what is more dense energy-wise than oil (and other renewable fuels)? Maybe we ought to look for a set of solutions in that direction. Carrying denser sources of energy can address an issue that Secretary Mabus addressed, that is, the cost of getting fuel to the vehicles and platforms that need it. More density in energy means fewer refueling stops. That means fewer logistics resources needed to transport fuel. So what does the FBCF (fully burdened cost of fuel) look like for various energy sources? >From a strategic perspective, we traded "free" wind for coaling stations that required a higher level of strategic investment both financially, diplomatically and militarily. We also (in the early days) traded the simple technology of sail for a more complex and less reliable (initially) technology of coal powered steam. And as the Secretary noted, when we shifted from coal to oil, we traded dependency on coaling stations for more independent operations--perhaps more strategic flexibility. And, as the Secretary noted, much of this strategic flexibility has disappeared. Maybe we should look at this dimension as well: how much strategic flexibility does the energy source we use for our ships and aircraft provide? We might also consider that, in the current flurry of activity over alternative energy sources (which bears some resemblance to the last energy bubble, which occurred in 1979-1980), reality eventually comes home to roost. Money follows performance, even in the DoD. Operational performance in the field is what really matters at the end of the day, and at the level of "industrial use", many alternative energy sources simply cannot pass muster in demanding operational contexts. There are also factual issues in the Secretary's speech, the least contentious of them is this: "Over time, the price [of oil] keeps going up." This statement obscures a very complex picture in which oil prices vary dramatically over time, going both UP and DOWN. A glance at a chart of historical crude oil prices shows that volatility might be a bigger concern than raw price, and that volatility really started to creep into the system starting about 1973 (http://www.inflationdata.com/inflation/images/charts/Oil/Inflation_Adj_Oil_ Prices_Chart.htm). I have not audited or verified the data source at the link, so there may be errors, but the overall picture is consistent with data presented in a nice report on venture capital and the energy sector by the PNNL (http://www.pnl.gov/main/publications/external/technical_reports/PNNL-17953. pdf). This report also provides an indirect look at the one indicator of an "energy bubble". I think the Secretary has embarked on an important initiative. John John Q. Dickmann, Ph.D. President PlatAris Analytics, LLC 401 225 3511 johndickmann at cox.net -----Original Message----- From: nwc_onlinediscussion-bounces at osiris.usnwc.edu [mailto:nwc_onlinediscussion-bounces at osiris.usnwc.edu] On Behalf Of Garofano, John F., CIV, NAVWARCOL Sent: Thursday, November 19, 2009 4:58 PM To: nwc_onlinediscussion at osiris.usnwc.edu Subject: [NWC_OnlineDiscussion] SECNAV Navy Energy Forum Attached is the October 14 Navy Energy Forum or "Green Policy Speech" by Secretary of the Navy Ray Mabus. Secretary Mabus lays out a number of significant energy policy goals for the Navy and Marine Corps, including a Green Strike Group composed of nuclear and biofuel vessels, cutting petroleum use by 50% by 2015, and producing half our total energy consumption for ships, aircraft, tanks, vehicles and shore installations from alternative energy sources by 2020. How do we accomplish this in the current fiscal environment? Dr. John F Garofano Dean of Academic Affairs U.S. Naval War College
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