Pipelines are bad economics: invest in renewable energy instead –Harvard

Let’s stop wasting money on the slide-rule technology of Keystone XL
or Sabal Trail: they’re both bad investments, either short-term or long-term.

Andrew Winston wrote for Harvard Business Review 30 January 2015,

Why the Keystone Pipeline Is the Wrong U.S. Energy Debate
,



In the short run, with oil at $50 per barrel, Keystone will connect
refineries to oil that may be unprofitable to extract. In the long
run, as the world turns away from fossil fuels aggressively, the
pipeline will be moot — a relic of the past.

Either way it’s a poor investment.

What, then?



So the real question is, what kind of infrastructure do we want to
build? Do we approach every project as a one-off way to create some
temporary jobs, or do we have a strategy in place that improves our
long-term competitiveness? Imagine if we were thinking today of
building our education infrastructure by investing in blackboards
and slide rules. Instead, many school districts, including my son’s,
are wisely handing out Chromebooks and iPads to every child.

Similarly, why would we invest in yesterday’s energy technologies
when we have smarter options? Our investment choices should make our
country more resilient, healthy, and prosperous. By that logic, the
pipeline is a bad investment choice. That’s just simple arithmetic
and economics. Given the challenging future facing unconventional,
expensive fossil fuels, the Keystone XL is literally a pipeline to
nowhere.

The Sabal Trail fracked methane pipeline, like the Keystone XL tar sands oil
pipeline, is a bad investment, both short-term and long-term.
No more money-pit fossil fuel pipelines (or nukes).
Let’s get on with

what actually is profitable: renewable energy to fix climate change
.

-jsq