Jamie Dimon Says “We are getting energy completely wrong” and He’s Right

Transition to Where, When?

“We are getting energy completely wrong and it’s made the environment worse.”

Eventually, we will transition because we have to. But not as fast as expected, and certainly not without pain. 

Meanwhile, policy missteps by the US, EU, and California made the transition worse. 

California’s 2020 Wildfires Negated Years of Emission Cuts

The Scientific American reports California’s 2020 Wildfires Negated Years of Emission Cuts

Carbon pollution from California’s 2020 wildfires erased 16 years of the state’s greenhouse gas emission cuts, according to a new UCLA study.

The fires were the state’s most destructive on record, burning 4.2 million acres, killing dozens of people and destroying thousands of homes. The study—published in Environmental Pollution—adds another statistic: the fires released roughly 127 million megatons of greenhouse gas emissions, or about twice California’s total emission cuts from 2003 to 2019.

“What happened in 2020 was basically like a new sector; a new sector of emissions just came out of nowhere,” said study co-author Amir Jina, a University of Chicago professor. The wildfire emissions were “almost as big as their main emission sector, which is transport.”

If those trees grow back over several decades, they could absorb the carbon released from the fires, he said. But that’s not guaranteed, he said, and in the meantime, those emissions will contribute to climate change.

California would have done far more for the environment by spending money to remove dead trees instead of all the gas taxes, environmental mandates, and other economic nonsense it did do. 

And that does not even factor in the loss of property and lives. 

Finally, it’s all irrelevant unless China and the developing nations turn away from coal. 

I don’t agree with Jamie Dimon about much. But yeah, Dimon is right about this.

This post originated at MishTalk.Com.

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48 Comments
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Pontius
Pontius
3 years ago
With recent statements, don’t be surprised if Diamond has eyes on Dem nomination for 2024. Things will get so bad a campaign based on competency over ideology might prevail.
KidHorn
KidHorn
3 years ago
California has a climate where they go 6 months without rain. Everything dead becomes highly flammable. Doesn’t matter if it’s 80F or 82F. Has no effect on the fire hazard. And there are studies that show there’s no correlation between wildfire activity and average temperatures leading up to the wild fires.
And before you say with your limited understanding of physics that higher temperatures make things drier, understand If a pot of water has all the water boiled out of it, raising the temperature will not make it drier. There’s a thing in science called a steady state condition.
GruesomeHarvest
GruesomeHarvest
3 years ago
If global warming was such an existential threat, why are we running huge budget deficits which implies over consumption in the present? Why is the West importing millions of people from the third world which dramatically increases their carbon footprint? Why are we starting all these stupid neocon wars which dramatically degrade the environment and generate huge amounts of pollution and CO2? …
PapaDave
PapaDave
3 years ago
Because it is natural for humans to want more; and to consume more; of everything.
Lisa_Hooker
Lisa_Hooker
3 years ago
The West is not importing millions of people.
Millions of people are leaving where they are to go to the West.
The West doesn’t have the spine to do anything about it.
Rbm
Rbm
3 years ago
Part of the wests wildfire problem is 80 or 90 years of suppression. The recent mosquito fire has not burned in that time where historically is supposed to burn about every 20 or 30. I know that terrain i doubt you could log it and a lot of it is scrub and not trees.Anyway seems these natural processes of fire will grow more intense as the climate gets warmer. Also methane is being released from the tundra also. Events like this will compound the global warming problem. Ps there are also cycles in the sun/ earths distance from the sun/ tilt etc. .
PapaDave
PapaDave
3 years ago
Reply to  Rbm
Realist used to provide detailed descriptions of those 100k year cycles. He said they were all already in cooling phases for about the last 10k years (if I remember properly). So the planet was cooling naturally for around 10k years up till about 200 years ago when we started pumping out GHGs.
Now, all those long cycles and the shorter solar sun spot cycles simply don’t matter anymore. We have managed to overwhelm them with our enormous GHG emissions.
I can’t do anything about it. But I can profit from the situation.
Lisa_Hooker
Lisa_Hooker
3 years ago
Reply to  PapaDave
The US constitution explicitly provide separation of church and state so you are OK with your enormous GHG emissions assumptions.
PapaDave
PapaDave
3 years ago
Reply to  Lisa_Hooker
Don’t care. Politics. Religion. Both horrible excuses for people to believe useless garbage.
Lisa_Hooker
Lisa_Hooker
3 years ago
Reply to  PapaDave
Very true
vanderlyn
vanderlyn
3 years ago
the forests in northern canada, russia and central africa and amazon forests burn way more trees every year, naturally than CA did. i lived up in norcal fire country in worst season in decades, but it was nothing compared to rest of planet each season. i don’t think most folks get what forest fires really are. as natural as a waterfall for planet.
Lisa_Hooker
Lisa_Hooker
3 years ago
Reply to  vanderlyn
You just don’t understand.
The forests must be preserved as they are to keep Thumper and Bambi safe.
mrchinup
mrchinup
3 years ago
Nah, the mentally ill liberal democrats got it wrong and he supports them. He’s one of them.
vanderlyn
vanderlyn
3 years ago
jamie dimon ? he’s a great con man. i wouldn’t dare watch a video of him. hearing him on bloomstein radio is bad enough for my soul and brain…………
PapaDave
PapaDave
3 years ago
The IEA forecasts that the temporary rise in coal consumption will fade in a few years. Natgas consumption could peak as early as 2030, and oil demand could peak around 2035.
I suspect those forecasts are optimistic, but it doesn’t really matter if they are off by a few years.
Either way, oil and gas demand will rise, but very few companies or countries want to spend the money needed to expand production. Which means constrained supply.
And upward pressure on prices for the rest of this decade. Seems like oil and gas companies that have 10-20 years of reserves locked up already, can just sit back and sell what they already have in reserves for high prices for years to come. At $100 oil they should be able to reward their shareholders with 30% free cash flow annually.
Lisa_Hooker
Lisa_Hooker
3 years ago
Reply to  PapaDave
Invest in oil refineries, wherever they are on this planet.
No one of any significance is going to build any more of them.
Billy
Billy
3 years ago
I remember we were all going to lose oxygen because of the deforesting of the Amazon.
Then most people in Africa were going to die due to Aids.
Then all computers were going to stop during Y2K.
It must have been a good idea that everyone got vaccinated just in time for Covid because everyone almost died like all of the children in the schools in Sweden.
Lisa_Hooker
Lisa_Hooker
3 years ago
Reply to  Billy
Giant meteor.
GodfreeRoberts
GodfreeRoberts
3 years ago
it’s all irrelevant unless China and the developing nations turn away from coal.
China’s turn from coal is scheduled for 2025 and we can expect the PRC to beat that deadline, as they have beaten every other climate deadline, including its international agreements.
China now installs more renewable energy each year than the rest of the world combined, and leads in all renewable technologies.
Don’t worry about China.
MPO45
MPO45
3 years ago
Reply to  GodfreeRoberts
worleyeoe
worleyeoe
3 years ago
Reply to  GodfreeRoberts
Yeah! Everyone loves to make out China to be the excuse not to turn towards green energy.
It’s just like the environmentalist pointing the finger at 3 Mile Island for turning us away from nuclear power.
The US could have deployed molten salt thorium-based nuclear power plants 30 years ago.
Had one done that, there would be far fewer coal & natural gas plants in the US and SMRs would have already been deployed as well.
China is leading big time as well in nuclear. Their 1st molten salt thorium-based reactor will be deployed around 2028-2030.
Terrapower is only expected to do a demo natrium plant in Wyoming by 2028.
So let’s keep blaming China. That will solve all of our energy problems. So productive!
StukiMoi
StukiMoi
3 years ago
Reply to  worleyeoe
“Their 1st molten salt thorium-based reactor will be deployed around 2028-2030.”
Everyone’s everything fairydust will be deployed…… Emphasis, ALWAYS, “will be.”
JRM
JRM
3 years ago
Reply to  GodfreeRoberts
Yep just stick your head in the sand and ignore the fact that China is building 350 more “COAL PLANTS” to meet their energy requirements!!!!
PapaDave
PapaDave
3 years ago
Reply to  JRM
China, and the rest of the world, is going to keep using coal, oil, gas etc to meet their energy needs until they can build enough renewables to satisfy their growing energy needs.
In China’s case, their population growth has stopped and is actually about to decline. Their strong economic growth rates have dropped from double digits to low single digits. So the growth in energy demand should slow as well. And they are building out renewables faster than anyone else in the world. Coal use should peak in a few years time and then start to decline as renewables ramp up faster. But its going to take a few decades for them to eliminate coal.
We still use quite a bit of coal in the US as well, but we will slowly phase it out over the next decade.
That is why I am not invested in coal. Whereas Oil and gas use will keep rising for a least another decade.
Doug78
Doug78
3 years ago
Personally I believe that one day each person will have their own Black Hole as a power source. Can’t get more concentrated than that for energy. I wonder if JPM is investing in Black Hole production? It’s completely safe as long as you don’t drop it.
StukiMoi
StukiMoi
3 years ago
Reply to  Doug78
I believe you have the direction of powerflow in and around black holes rather backwards……..
Black holes do emit “power” at the boundary. At least in theory. But unless there happens to be a critical size beyond which they can no longer grow; they suck in an awful lot more than they emit. That’s why they are “black.”
Perhaps the most interesting thing about black holes, from the POV of an “investment” blog, is how completely randomised, and independent of any prior history, any future emissions are. Just like prices of things set by a large number of optimising actors in a market. IOW; a large market, serves as an effective black hole for all pertinent prior information: Everyone who has any such information, has every incentive to act on it, hence reveal it. Nothing escapes. Such that any future movement in prices, are effectively completely randomized. Millisecond by millisecond, the event horizon moves forward. With no more possibility of carrying any “strategy” across it, than trying to predict black hole boundary emissions by “analysing” whatever the heck it was that at an earlier point got sucked into the black hole.
Of course, like black holes, large centralised markets mostly also only grow. Hence, over time suck in more than they emit. Hence require more and more net inputs, aka get more and more expensive, to maintain (in absolute terms), just to keep them going. While an effective way to discover relative prices and coordinate trades, they are hardly cost free.
Doug78
Doug78
3 years ago
Reply to  StukiMoi
It’s not the black hole itself that produces the power. You use its gravitational field to produce the power and its very efficient. No other source can beat a black hole’s gravitational field. Besides, it’s a good way to get rid of garbage too.
Quagmire46
Quagmire46
3 years ago
Reply to  Doug78
What does one do when one runs out of matter to feed the black hole?
Doug78
Doug78
3 years ago
Reply to  Quagmire46
You invade another country to take over its matter which you now can feed into your black hole of course.
Lisa_Hooker
Lisa_Hooker
3 years ago
Reply to  Quagmire46
Obviously you feed it “doesn’t matter.”
Lisa_Hooker
Lisa_Hooker
3 years ago
Reply to  StukiMoi
The “Black” market sucks in more and more borrowed money until it reaches a critical state when it collapses, and then explodes spewing bankruptcy fragments throughout the Universe.
strataland
strataland
3 years ago

According to the UCLA study, greenhouse gas emissions generated
by California wildfires in a single year (2020) were more than double the
amount of carbon dioxide reductions over a 16-year period. Curious why they did
not attempt to estimate the greenhouse gas emissions from California wildfires
for the same 16-year period. This should be headline news and compel serious and
immediate discussions about how we allocate resources to protect our planet.

PapaDave
PapaDave
3 years ago
Reply to  strataland
“This should be headline news and compel serious and immediate discussions about how we allocate resources to protect our planet.”
Actually, scientists have been giving us all plenty of information about these types of problems for many decades now. And they have been asking for “immediate” attention to these problems for many decades now.
Yet here we are. Incapable of doing anything of significance to solve these problems, in spite of all the warnings.
Heck, we still have idiots who don’t even realize there is a problem. They still think global warming is a hoax.
As always, there is nothing I can do about the problem, or the idiots. However I can profit by investing in the oil companies that stand to benefit from our current shortage of supply.
worleyeoe
worleyeoe
3 years ago
Reply to  PapaDave
And, there’s a real possibility that we’re in the 1st half of a decades lone Marauder Minimum, leaving us with greatly diminished sunspots over the next 40-50 years. Which of course, would be a gift of solar cooling of the earth’s atmosphere. We’ll know more in about two years as we head towards solar maximum in late 2025, solar cycle 25. If so, sounds like a well-timed opportunity to ramp up solar, wind, SMRs & eventually get commercial fusion plants online in about 15-20 years.
PapaDave
PapaDave
3 years ago
Reply to  worleyeoe
While anything is possible, I can’t see a Maunder Minimum making much of a difference, even if it did happen. The last few solar cycles have been getting weaker. Solar irradiance has been dropping. Yet temperatures have been rising. Because we keep adding more GHGs to the atmosphere.
I am afraid that man‘s impact far outweighs solar cycles now.
What “could” cool the planet is about 50 massive volcanic eruptions in the next decade. Ten big ones a year would probably add enough particulates to the atmosphere to block the sun enough to counteract global warming. But the odds of that are minuscule.
Regardless. I have to invest based on what is most likely to happen. Not on wishes and hopes.
Lisa_Hooker
Lisa_Hooker
3 years ago
Reply to  PapaDave
I don’t know anyone that thinks global warming is a hoax.
AGW on the other hand remains unproven.
HippyDippy
HippyDippy
3 years ago
I can’t believe all this climate change nonsense is still treated as if it were real. New York was for sure to be underwater by 2012. Yet, despite the rising seas, the Florida Keys are still 3 ft above sea level. No excuse for believing it after Wikileaks exposed them in 2012. Stupid slaves just absolutely refuse to think for themselves. Which is why they’re slaves.
vanderlyn
vanderlyn
3 years ago
Reply to  HippyDippy
i’ve secured the gondola medallion monopoly for manhattan when she is underwater. we’ll be like my homeland of venezia and prosper still……………
HippyDippy
HippyDippy
3 years ago
Reply to  vanderlyn
Have to admit, as a Floridian, New York does sound more appealing to me as a tourist destination if it were underwater than in its present state. Who knows? I might just take a ride in one of your gondolas just to take in the sights!
Captain Ahab
Captain Ahab
3 years ago
Let’s face it. Biden is unfit for office. Not only is he an embarassment in the international arena, he is placing the US in danger. One has to wonder if it part of an overall strategy–or is he just plain incompetent with releases from the SPR for POLITICAL GAIN, going cap in hand to the Saudis, forcing Putin’s hand to cut off oil and gas, outright lying about leases, blaming everyone but himself for price increases…
StukiMoi
StukiMoi
3 years ago
Reply to  Captain Ahab
“Biden is unfit for office.”
Not any more, nor less, so than anyone else.
But yes. He is unfit for office.
Lisa_Hooker
Lisa_Hooker
3 years ago
Reply to  Captain Ahab
I keep remembering that King Frog was much much safer than King Stork.
Some folks are simply never happy.
PapaDave
PapaDave
3 years ago
Indeed. Global warming and climate change are going to get a lot worse; particularly if we pass any of the known tipping points. Some say we are already past some of those tipping points. I don’t know if we have. But as always, even if we have passed some tipping points, there is nothing I can do about it.
The world has been attempting to slow the rate of global warming and climate change by transitioning to renewable energy from fossil fuels for two decades now. The problem is that the increasing demand for energy has exceeded the buildout of renewables. Which means that demand for fossil fuels is still growing, not receding.
Meanwhile, the fossil fuel industry has deliberately reduced their capex spending on expanding production and reserves for almost a decade now, in the belief that demand for their products was going to decline.
Which is why we find ourselves in the present situation where there is not enough fossil fuels to meet demand, and prices are rising. And fossil fuel companies, particularly oil and gas, are profiting in a big way.
This was all foretold almost 3 years ago by some enlightened commenters on this very site. For those of us who were paying attention, the rewards have been substantial.
Thanks again for the blog Mish.
Lisa_Hooker
Lisa_Hooker
3 years ago
Reply to  PapaDave
There was a time when you could have done something about it Papa.
But no, you were only concerned with profit.
Now it’s too late for you.
But I guess that you are well off, and that’s what really counts isn’t it?
It gives you the time to leave splendiferous comments we value highly.
Webej
Webej
3 years ago
Worthless comment by Dimon
  • Russia did not cut any gas or oil. Period. Without factual basis.
  • Should have expected something like NordStream or some tanker ???
  • We are the swing producer and America should be a leader
All these facts are untrue, and will therefore not lead to any valid conclusions.
The main problem with energy policy is that people think they are above mundane primitive physical/natural constraints, and that we are wealthy enough to do without fossil fuels, etc.
Energy Poverty = Poverty. They are the same thing.
Any nation that thinks strategic minerals, commodities, and energy can be left over to the vagaries of happenstance is deluded: You need plans for the future, and not just a single plan either.
xbizo
xbizo
3 years ago
Reply to  Webej
Not to the extent that the rest of the globe is increasing its use of energy as its middle class grows. Africa and India are going to grow energy use exponentially. Where the U.S. can fill the gap, the environment will benefit.
The entire portfolio needs to be managed, not only the U.S. in isolation. Oil instead of coal. U.S. oil instead of Venezuelan oil. But if you want to make dent in CO2, the middle term answer is nuclear. We should be pouring money into it.
vanderlyn
vanderlyn
3 years ago
Reply to  Webej
i was shocked mish was scammed by jamie dimon, a life long huckster, as obvious as the easter bunny.

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