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Matthew Kroenig's argument for preventive military action to combat Tehran's nuclear program -- "Time to Attack Iran" (January/February 2012) -- suffers from three problems. First, its view of Iranian leaders' risk calculations is self-contradictory. Second, it misreads nuclear history. And third, it underestimates the United States' ability to contain a nuclear Iran. When these problems are addressed, it is clear that, contrary to what Kroenig contends, attacking Iran is not "the least bad option." 

Kroenig's view of the way Iranian leaders are willing to take on risks is deeply incongruous. In his view, a nuclear bomb will push Tehran to block U.S. initiatives in the Middle East, unleash conventional and terrorist aggression on U.S. forces and allies, and possibly engage in a nuclear exchange with Israel. This would mean Iranian leaders are reckless: given the United States' conventional and nuclear superiority, any of these actions would provoke considerable retaliation from Washington. And, of course, a nuclear exchange with Israel would invite annihilation. At the same time, Kroenig suggests that Tehran would remain remarkably timid after a preventive strike from the United States. Presented with clear redlines, Iran would not retaliate against U.S. troops and allies or attempt to close the Strait of Hormuz. Kroenig's inconsistency is clear: If Iranian leaders are as reckless as he seems to believe, a preventive strike would likely escalate to a full-blown war. If they are not, then there is no reason to think that a nuclear Iran would be uncontainable. In short, a preventive attack on Iran can hardly be both limited and necessary.

Kroenig's argument misreads nuclear history at least three times. First, he writes that a targeted preventive strike would likely wipe out the nuclear program in Iran, as strikes against Iraq in 1981 and Syria in 2007 did in those countries. These comparisons are misleading. Recent research based on captured Iraqi documents demonstrates that the 1981 Israeli attack on the Osirak reactor, near Baghdad, actually spurred a covert nuclear weapons program at other sites. Indeed, Iraqi President Saddam Hussein remained determined to revive his nuclear program until he was removed from power in 2003. What prevented him from achieving that goal was the decade-long U.S.-led containment regime put in place after the 1991 Gulf War. The Iraqi case suggests that any attacks that do not depose the Iranian regime, too, would cause it to accelerate its efforts to acquire nuclear weapons. Kroenig's prescription might therefore precipitate the very outcome he is trying to avoid. 

As for Syria, Damascus' nuclear program was just budding. The country boasted only one exploratory facility, which was shattered easily by a single aerial bombing carried out by Israel in September 2007 under the cloak of night. But Iran's nuclear program is much more advanced and is already of industrial proportions. Any attack on Tehran would involve destroying numerous nuclear-program and air-defense targets, making it far more costly and less likely to succeed than the Israeli raid against Syria's Deir ez-Zor reactor. More, Iran's advanced program reflects Tehran's greater resolve to develop nuclear capabilities, so, post-attack, Tehran would be ever more likely to double down on developing a weapon. Furthermore, although Kroenig hopes that a targeted strike would destabilize the Iranian regime, there is no basis for such optimism. Being a civilian, parliamentary, oil-rich theocracy, Iran is relatively stable. Put simply, a preventive strike against Iran can hardly be both limited and effective.

Kroenig misreads history again when he considers a nuclear exchange between Iran and Israel. In his view, they "lack nearly all the safeguards that helped the United States and the Soviet Union avoid a nuclear exchange during the Cold War." Yet the United States and the Soviet Union avoided a nuclear exchange even during the hottest crisis of the Cold War, the Cuban Missile Crisis, at a moment in which Soviet retaliatory capability was still uncertain, there were no clear direct communication channels between the two leaderships, and Soviet experience managing their nuclear arsenal was no longer than five years. Moreover, the historical record shows that even young and unstable nuclear powers have avoided nuclear escalation despite acute crises. Pakistan and India avoided nuclear war in Kargil in 1999, as well as after the terrorist attacks targeting the Indian parliament in 2001 and Mumbai in 2008. When national survival is at stake, even opaque and supposedly "irrational" regimes with nuclear weapons have historically behaved in prudent ways.

Kroenig's final abuse of history comes when he posits a cascade of nuclear proliferation across the Middle East in response to an Iranian bomb. He mentions Saudi Arabia, and implies that Egypt, Iraq, and Turkey might all follow suit. Yet none of these states, which can count on U.S. support against Iran, nuclearized in response to Israel's nuclearization (against which they cannot count on U.S. backing, mind you). And more generally, the United States has a successful record of preventing clients from acquiring nuclear weapons in response to a regional enemy, such as South Korea and Japan in response to North Korean nuclear acquisition. (Washington agreed with Pakistani nuclearization in response to India.) 

Taking the long view, Kroenig's argument reveals an unwarranted skepticism about Washington's ability to contain a nuclear Iran. This skepticism is all the more surprising considering Kroenig's work on the benefits of U.S. nuclear superiority. Existing U.S. security guarantees, based on current capabilities, give allies little incentive to nuclearize. Egypt and Saudi Arabia are among the largest recipients of U.S. military support, and Turkey is a member of NATO. Reinforcing U.S. ties with friends in the region would be easier, cheaper, and less risky than attacking the Iranian nuclear program. 

Instead, the United States should heed the lessons of the North Korean nuclearization. Not so long ago, Washington had to face an aggressive regime in Pyongyang intent on developing nuclear weapons. The United States rejected a preventive strike in 1994 for fear that the outcome would be worse than its target's nuclear acquisition. This was the right decision. After North Korea acquired nuclear weapons, none of the consequences that Kroenig's argument would predict materialized. U.S. security guarantees contained Pyongyang and persuaded South Korea and Japan not to acquire nuclear weapons. Nobody believes that the world is better off with a bomb in North Korea -- but the record shows that it hasn't brought the end of the world, either.

Military action against Iran would be a profound strategic miscalculation. For all the talk of retrenchment, the U.S. military might remains the most powerful in the world, and it can successfully minimize consequences of an Iranian bomb, should one come to pass, by containing Tehran's ambitions, dissuading regional proliferation, and providing security assurances to its allies.

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Foreign Affairs
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Alexandre Debs
Nuno P. Monteiro

The third ARD annual conference examineي the challenges, key issues, and ways forward for social and economic development in the Arab world during this period of democratic transition. 

Day One - April 26, 2012

9:15-10:45am       Opening Panel – International & Domestic Frameworks for                                       Development

 

Welcoming Remarks: Larry Diamond and Lina Khatib, Stanford University

 

George Kossaifi, Dar Al-Tanmiyah:

Towards an Integrated Social Policy of the Arab Youth

10:45-11:00am Break

11:00-12:30am     Session 1: Political Economy of Reform

 

Chair: Hicham Ben Abdallah, Stanford University

Mongi Boughzala, University of Tunis El-Manar:

Economic Reforms in Egypt and Tunisia: Revolutionary Change and an Uncertain Agenda

Abdulwahab Alkebsi, Center for International Private Enterprise:

Answering Calls for Economic Dignity 

12:30-1:30pm Lunch

1:30-3:00pm         Session 2: Oil-Dependent Economies and Social and Political                                     Development

 

Chair: Larry Diamond, Stanford University

Hedi Larbi, World Bank:

Development and Democracy in Transition Oil-rich Countries in MENA

Ibrahim Saif, Carnegie Middle East Center:

Lessons from the Gulf's Twin Shocks

3:00-3:30pm Break

3:30-5:00pm         Session 3: Youth, ICTs, and Development Opportunities

 

Chair: Ayca Alemdaroglu, Stanford University

Loubna Skalli-Hanna, American University:

Youth and ICTs in MENA: Development Alternatives and Possibilities

Hatoon Ajwad Al-Fassi, King Saud University:

Social Media in Saudi Arabia, an era of youth social representation

 

Day Two - April 27, 2012

9:00-10:30am             Session 1: Civil Society Development

 

Chair: Sean Yom, Temple University

Laryssa Chomiak, Centre d’Etudes Maghrebines à Tunis (CEMAT):

Civic Resistance to Civil Society: Institutionalizing Dissent in Post-Revolutionary Tunisia

Rihab Elhaj, New Libya Foundation:

Building Libyan Civil Society 

10:30-11:00am Break

11:00-12:30pm           Session 2: Democratic Transition and the Political                                                     Development of Women

 

Chair: Katie Zoglin, Human Rights Lawyer 

Valentine Moghadam, Northeastern University:

The Gender of Democracy: Why It Matters

Amaney Jamal, Princeton University:

Reforms in Personal Status Laws and Women’s Rights in the Arab World

12:30-1:30pm Lunch

1:30-3:00pm               Session 3: Minority Rights as a Key Component of                                                       Development

 

Chair: Lina Khatib, Stanford University

Mona Makram-Ebeid, American University in Cairo:

Challenges Facing Minority Rights in Democratic Transition (title TBC)

Nadim Shehadi, Chatham House:

The Other Turkish Model: Power Sharing and Minority Rights in the Arab Transitions 

3:00-3:30pm Break

3:30-4:45pm               Session 4: Towards Integrated Development in the Arab                                           World

 

Chair: Larry Diamond, Stanford University 

Closing roundtable discussion: Scenarios for integrated development

 

4:45-5:45pm Reception

 



Bechtel Conference Center

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National oil companies (NOCs) produce most of the world’s oil and natural gas and bankroll governments across the globe. Although NOCs superficially resemble private-sector companies, they often behave in very different ways. To understand these pivotal state-owned enterprises and the long shadow they cast on world energy markets, the Program on Energy and Sustainable Development (PESD) at Stanford University commissioned Oil and Governance: State-owned Enterprises and the World Energy Supply. The 1000-page volume, edited by David Victor, David Hults, and Mark Thurber, explains the variation in the performance and strategy of NOCs, and provides fresh insights into the future of the oil industry as well as the politics of the oil-rich countries where NOCs dominate. It comprises fifteen case studies, each following a common research design, of NOCs based in the Middle East, Africa, Asia, Latin America, and Europe. The book also includes cross-cutting pieces on the industrial structure of the oil industry and the politics and administration of NOCs.

NOCs are distinguished from private companies by their need to respond to state goals beyond profit maximization. Governments seeking to retain their hold on power use NOCs to deliver benefits to influential elites (“private goods”) or to the broader population (“social goods”). Oil and Governance finds a strong correlation between such non-hydrocarbon burdens on the NOC—which include providing employment, subsidizing fuel, or handing out plum jobs to the politically connected—and deficiencies in oil and gas performance. The highest-performing NOCs, like Norway’s Statoil and Brazil’s Petrobras, face relatively circumscribed non-oil demands from their governments.

How governments administer their oil sectors also proves to be a crucial determinant of NOC performance. Democracies (e.g., Norway, Brazil) and autocracies (e.g., Saudi Arabia, Angola) alike are capable of grooming successful NOCs. What matters most for outcomes is not regime type per se but rather that governance systems provide unified signals to the NOC. (By contrast, regime type is observed to be an important driver of whether governments nationalize their oil sectors in the first place, or privatize existing NOCs.) Fragmented governance, in which multiple government actors assert their interests but no one assumes strategic responsibility, appears uniformly fatal to NOC performance. Nascent democracies like Mexico’s can be particularly vulnerable to oil sector dysfunction stemming from fragmentation. Governance systems must also be matched to a country’s institutional and political realities. Nigeria has arguably set back its progress in oil through attempts to slavishly imitate Norway’s forms of oil organization in the absence of Norway’s mature political and civil service institutions.

The close ties between the NOC and its government can have a detrimental effect on the ability of the NOC to manage the risks that are so characteristic of the oil and gas industry. Whereas private companies are forced to hone their geological knowledge and skills through global competition for capital and hydrocarbon licenses, NOCs for the most part are comfortably sheltered from competitive threats at home. They therefore fail to develop the global reach that helps private players (the international oil companies, or IOCs) manage risk by means of a diversified global portfolio and the ability to link resources to customers around the world. (Some NOCs have begun to internationalize in recent years, but it is striking that none of the NOCs studied in Oil and Governance went down this path until forced to by domestic resource scarcity, or at least of the perception of future scarcity.) The soft budget constraint faced by the NOC also discourages the cost efficiencies that help mitigate risk.

This gulf in risk management capabilities between IOCs and most NOCs suggests that the resource dominance of NOCs does not pose an existential threat to private oil companies. Private players will continue to play a key role in the frontiers of oil and gas development—frontiers like shale gas, oil sands, and the remote Arctic. NOCs will continue to control low-cost oil around the world, while a select few of the most focused and unencumbered among them start to build up their own risk management skills through partnerships with IOCs.

NOC control over resources has important implications for the world oil price. The NOCs studied in the book produce their reserves at half the rate of the major IOCs—whether due to lower performance or a deliberate attempt to preserve resources for the future. Moreover, governments tend to rely most heavily on the risk management skills of IOCs when prices are low and then swing back towards NOCs in high price periods when they can afford to focus on delivering benefits to favored constituencies. The result of this dynamic, which is observed in the case studies of Oil and Governance, can be “backward bending supply curves” that exaggerate price volatility in the world oil market.

This effect of NOCs on global oil supply and price appears to be much more important than any geopolitical fallout from NOC primacy around the world. Oil and Governance finds very little evidence that NOCs act as effective foreign policy weapons on behalf of their host states. Even where politicians may desire to employ NOCs in this way, the incentives of the NOC itself are usually strongly opposed to such an exercise of power. As one example, Europe’s Gazprom depends overwhelmingly on revenues from gas exports to Europe because gas is so heavily subsidized in Russia. When NOCs do venture abroad, as in the case of China’s CNPC, they are often motivated to do so precisely by the desire to achieve more autonomy from their political masters at home.

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Cambridge University Press
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David G. Victor
David G. Victor
David Hults
David Hults
Mark C. Thurber
Mark C. Thurber
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Globalization and Health
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Chen BK
Seligman B
Farquhar JW
Jeremy Goldhaber-Fiebert
Jeremy Goldhaber-Fiebert
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Background

Cardiovascular diseases represent an increasing share of the global disease burden. There is concern that increased consumption of palm oil could exacerbate mortality from ischemic heart disease (IHD) and stroke, particularly in developing countries where it represents a major nutritional source of saturated fat.

Methods

The study analyzed country-level data from 1980-1997 derived from the World Health Organization's Mortality Database, U.S. Department of Agriculture international estimates, and the World Bank (234 annual observations; 23 countries). Outcomes included mortality from IHD and stroke for adults aged 50 and older. Predictors included per-capita consumption of palm oil and cigarettes and per-capita Gross Domestic Product as well as time trends and an interaction between palm oil consumption and country economic development level. Analyses examined changes in country-level outcomes over time employing linear panel regressions with country-level fixed effects, population weighting, and robust standard errors clustered by country. Sensitivity analyses included further adjustment for other major dietary sources of saturated fat.

Results

In developing countries, for every additional kilogram of palm oil consumed per-capita annually, IHD mortality rates increased by 68 deaths per 100,000 (95% CI [21-115]), whereas, in similar settings, stroke mortality rates increased by 19 deaths per 100,000 (95% CI [-12-49]) but were not significant. For historically high-income countries, changes in IHD and stroke mortality rates from palm oil consumption were smaller (IHD: 17 deaths per 100,000 (95% CI [5.3-29]); stroke: 5.1 deaths per 100,000 (95% CI [-1.2-11.0])). Inclusion of other major saturated fat sources including beef, pork, chicken, coconut oil, milk cheese, and butter did not substantially change the differentially higher relationship between palm oil and IHD mortality in developing countries.

Conclusions

Increased palm oil consumption is related to higher IHD mortality rates in developing countries. Palm oil consumption represents a saturated fat source relevant for policies aimed at reducing cardiovascular disease burdens.

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Globalization and Health
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Brian K Chen
Ben Seligman
John W Farquar
Jeremy Goldhaber-Fiebert
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Abstract:  

Haber and Menaldo (2011) claim there is little evidence that oil is harmful to democracy, and that previous studies to the contrary were corrupted by omitted variable bias. Michael Ross professor of political science at UCLA will present findings from a paper co-authored with Jørgen Juel Andersen to show there is little evidence of the bias they allege, and point out that they decline to test the most credible version of the resource curse hypothesis.  The versions that they do test, moreover, are based on two implausible assumptions: that oil will effect a country’s regime type immediately, rather than over a period of several years; and that the relationship between oil wealth and political power did not change over the 200 year period covered by their data.  We argue that oil only had strong anti-democratic effects after the 1970s, when most oil-producing autocracies nationalized their industries; and show their main results are overturned when we add to their models a dummy variable for the post-1979 period, and allow the effects of oil to take place over a period of three, five, or seven years, instead of just one year.  

Speaker Bio: 

Michael L. Ross is Professor of Political Science at the University of California, Los Angeles (UCLA), and Director of the Center for Southeast Asian Studies. 

He has published widely on the political and economic problems of resource-rich countries, civil war, democratization, and gender rights; his articles have appeared in the American Political Science Review, American Journal of Political Science, Annual Review of Political Science, British Journal of Political Science, International Organization, Journal of Confiict Resolution, Journal of Peace Research, Politics and Gender, and World Politics.  In 2009, he received the Heinz Eulau Award from the American Political Science Association for the best article published in the American Political Science Review. 

His work has also appeard in Foreign Affairs, Foreign Policy, Harper's, The Los Angeles Times, and been featured in The Washington Post, Newsweek, and many other publications. 

Ross currently serves on the advisory boards of the Review Watch Institute, the Natural Resource Charter, and Clean Trade, and was previously a member of the Advisory Group for the World Bank's Extractive Industries Review.  He is also a member of the Political Instability Task Force and the APSA Task Force on Democracy Audits and Governmental Indicators.

Reuben W. Hills Conference Room

Michael Ross Professor, Political Science Speaker UCLA
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Ashley Dean
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Stanford’s Center on Food Security and the Environment (FSE) has received a $2 million grant from Cargill, a second gift from the company that raises its total contribution to FSE to $5 million over 10 years.

The announcement was made Nov. 10 at a dinner celebrating the launch of FSE as a full-scale research center. FSE has more than doubled in size in five years. Because of its growth and increasing importance of food security issues at Stanford and worldwide, it became an official center in September.

“The center’s rapid growth would not have been possible without the generous support of Cargill,” FSE Director and William Wrigley Senior Fellow Rosamond L. Naylor said. “Cargill’s initial investment provided seed-funding for the bold, new research and teaching that was happening at FSE while keeping our lights on and the staff running during our critical years of early development.”

A $3 million grant from Cargill in 2008 jump-started a visiting fellows program at FSE and helped build the infrastructure to support the center’s research.

The new grant will continue to provide program support, but will also be used to hire younger faculty and scholars to Stanford to work within the new Center.

Stanford-Cargill partnership

Stanford's partnership with Cargill extends back to 1976 when Cargill endowed Walter P. Falcon, then Director of Stanford's Food Research Institute and now FSE Deputy Director, with the Helen C. Farnsworth Professorship in International Agricultural Policy. The gift was intended to strengthen Stanford's work in agricultural policy, specifically as it relates to the international grain economy. FSI senior fellow Scott Rozelle now holds the Helen C. Farnsworth chair.

FSE and Cargill remain committed to helping feed a growing population while preserving the planet's natural resources. FSE is an applied group focused on providing real solutions to important food and agricultural issues.

“Poverty is the main issue driving food insecurity—it’s a question of access rather than food availability,” Naylor said.

FSE’s partnership with Cargill has demonstrated how Stanford-based research can be relevant to the private sector. FSE is conducting ongoing research on oil palm and land use issues in Indonesia that is helping inform and shape policy. Work on aquaculture feeds in China is another overlapping area of interest, as are ongoing assessments of biofuels in the U.S., Africa and Asia. Both have a stake in better understanding climate change impacts on agriculture and food commodity price volatility.

“It is clear to us at FSE—and increasingly to leadership of Stanford—that global food security will remain a critical issue within international policy circles,” said Naylor. “With support like the grant from Cargill, we are confident that Stanford can play a leading role in shaping the future policy discourse.”

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Young Muk Jeon, "The Financial Crisis and Life Insurance Companies"

The global financial market clearly rebounded from the shock of the 2008 financial crisis.  However, recently the market volatility has grown due to oil price hikes, the European debt crisis and the anemic U.S. economic growth rate.  A series of financial institutions filed bankruptcies or were sold during the crisis.  However, life insurance companies fared relatively well in terms of financial difficulty.  In his research, Jeon explores the impact of the financial crisis on the life insurance industry and looks at what are the main reasons for the resilience of the life insurance sector.  Furthermore, Jeon presents what kind of strategic actions are needed for life insurers to weather the current turbulent climate.

 

Jong Jin Lee, "Corporate Communications:  Changing with the Media Environment"

Recent changes have occurred in the modes of communication prevalent in South Korea, a rapidly advancing society where newer varieties of interactive media have significantly displaced traditional print and broadcast media among the youngest and most well-educated segments of the population.  These changes have also had a profound impact on the quality of corporate communications to the public.  In his presentation, Lee will address both the advent of the “netizen” and the hotter media environment for today’s companies in South Korea.  Most critically, he will also discuss the evolution of corporate public relations responses to public perceptions and media depictions of crises, illustrating his narrative with striking examples from his own company’s history.

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Young Muk Jeon Samsung Life Insurance Speaker
Jong Jin Lee Samsung Electronics Speaker
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Reducing carbon-dioxide emissions is primarily a political problem, rather than a technological one. This fact was well illustrated by the fate of the 2009 climate bill that barely passed the U.S. House of Representatives and never came up for a vote in the Senate. The House bill was already quite weak, containing many exceptions for agriculture and other industries, subsidies for nuclear power and increasingly long deadlines for action. In the Senate, both Republicans and Democrats from coal-dependent states sealed its fate. Getting past these senators is the key to achieving a major reduction in our emissions.

Technological challenges to reducing emissions exist, too. Most pressing is the need to develop the know-how to capture carbon dioxide on a large scale and store it underground. Such technology could reduce by 90 percent the emissions from coal- fired power stations. Some 500 of these facilities in the U.S. produce 36 percent of our CO2 emissions.

But these plants aren’t evenly spaced around the country. And therein may lie the key to addressing the political and technological challenges at the same time. If the federal government would invest in carbon capture and storage, it could go a long way toward persuading politicians in every state to sign on to emission reductions.

I’ll get to the specifics of the technology shortly. But first, consider how the costs of emission reduction fall hardest on certain parts of the country: A carbon tax levied on all major sources of released CO2, the approach favored by most of the environmental community, would make energy from coal-fired power plants cost more. To make a significant difference, such a tax would have to amount to $60 a ton.

Midwest Carbon Footprint

As a result, gasoline prices would rise 26 percent, and natural gas for household usage by 25 percent, nationwide. Rich and urbanized states could probably tolerate this. The West Coast, with its hydroelectric power, and the Northeast, which relies to a large extent on natural gas, could most easily absorb the associated increase in energy costs.

But the price of energy in the rural, Midwestern states would more than quadruple because of their large carbon footprint. Midwesterners get most of their electricity from coal; they drive relatively long distances to get to work, shopping and entertainment; and rural homes and buildings use more energy for heating and cooling.

One carbon-tax proposal now being considered is a “cap and dividend” plan that would send the tax revenue back to all U.S. citizens equally. But that would also favor the rich states that are less dependent on driving and coal.

It would be more helpful for the coal-dependent states if the federal government would use revenue from a carbon tax to help develop the technology for carbon capture and storage.

And that brings us to the technological challenges: No plant of any size with the capacity for CCS yet exists, but it has been demonstrated to work at small scales. Three different processes for capturing the CO2 are being tested, and scaling them up for 500-megawatt or 1,000-megawatt facilities should be possible.

For two years, the Mountaineer plant in New Haven, West Virginia, has been capturing and storing a tiny amount of its CO2 -- 2 percent of it -- but plans to build a full-scale carbon-capture plant here have been abandoned. Because Congress has dropped any idea of imposing a tax on carbon emissions, the investment doesn’t make sense.

A large plant in Edwardsport, Indiana, was being constructed with the expensive gasification process that makes it easy to add carbon-capture facilities, but it, too, has been shelved.

China may finish its large demonstration carbon-capture plant before the U.S. gets any model up to scale. Others are planned in Europe, and a small one is operating in Germany. This plant has been unable to get permission for underground storage, so it is selling some of its CO2 to soft-drink companies and venting the rest.

Subterranean Storage

Storing captured CO2 is eminently possible, too. For 15 years, the Sleipner facility in Norway has been storing 3 percent of that country’s CO2 underneath the ocean floor, with no appreciable leakage. Algeria has a similar facility, the In Salah plant, operating in the desert.

One storage strategy under consideration in the U.S. is to inject captured CO2 into huge basalt formations off both the east and west coasts. Inside the basalt, the carbon gas would gradually turn into bicarbonate of soda.

There are other ways to dispose of carbon dioxide. It has been used for enhanced oil recovery for many decades without any danger, and has been effectively stored in depleted oil reservoirs. (The gas is dangerous only in high concentration.)

It remains uncertain how much of the captured CO2 might leak during storage. Even if this were as much as 10 percent, however, it would mean that 90 percent of it would stay underground.

As CCS technology develops, it will have to be made more efficient so that it uses less energy. As it is, the capture phase is expected to require that a power plant burn 20 percent to 25 percent more coal than it otherwise would.

The technological challenges may explain why energy companies haven’t lobbied for subsidies to develop CCS. The electric-energy sector isn’t known for innovation and risk- taking. Just look at the U.S.’s outdated power grid.

But the federal government could pay for the subsidies through a tax on carbon. Such a levy would have other advantages, too: It would raise the cost of energy to reflect the damage that burning coal and oil now do to the environment, and spur the development of renewable sources.

If states with large carbon footprints can’t accept such a tax, the CCS subsidies could be paid from the general fund. The cost to build coal-fired power plants with CCS technology is estimated to be about $5 billion to $6 billion -- about the price of a single nuclear power plant. The total price for the U.S.’s 500 large plants would be $250 billion. That’s as much as the planned modernization and expansion of our missile defense system over 10 years.

But it would slash our carbon emissions by at least 20 percent. There is no other politically possible way to cut CO2 as much, and as quickly -- in a decade or two. And devastating climate change is far more likely than a missile attack.

U.S. investment in CCS technology could also induce China and Europe to follow suit. And this would allow the world time for renewable-energy technologies to mature -- to the point where we could do away with coal burning altogether.

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Bloomberg News
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Charles Perrow
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