Environment

What Future for the Global Auto Industry? Discussion Post

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In December, I announced an upcoming discussion of the future of the auto industry and, in particular, of the role and impact of electric cars.   In that post, I included a number of links to worthwhile reading on the subject.   Let’s do the discussion this week, in comments to this post.   I have a few thoughts to get things going:

–It is true, as Vitaliy Katsenslson points out in his essay, that electric cars are much simpler than conventional cars…but I would qualify this statement as mechanically simpler than conventional   cars.   They are significantly more complex electrically and especially in terms of the electrochemistry of the battery…a hidden kind of complexity, but important nonetheless. From what I have read, there seems to be considerable uncertainty about the expected lifespan of new lithium-ion battery models..which lifespan, of course, has a major impact on the overall economics of electric cars.

EVs are expected to have lower maintenance costs and requirements than conventional vehicles, based on their relative mechanical simplicity.   This is probably true, in general, although a lot of the problems with cars these days seem to be with systems other than the engine and drivetrain..airbag sensors, seat actuator motors, various sensors, etc.

–Range limitations and “range anxiety” have been significant inhibitors to EV sales.   Vitaliy K makes the excellent point that it is much easier to set up an electric-vehicle charging station than a conventional gas station, with its underground tanks and consequent regulatory complexities, and he believes we will see tremendous growth in the number of such charging stations and consequent reductions in EV range anxiety.

It takes about 45 minutes to an hour to fully charge an EV (using Tesla as a model and assuming a high-power charger such as Tesla’s “Supercharger’), which implies that people are going to need something else to do while their vehicles are charging, away from home or the office.   Restaurants and shopping centers become obvious venues for charging; however, this leads to another issue, that the driver may wind up being away from the car for a couple of hours or more, tying up the charger for that whole interval: this issue would need to be reflected in the pricing of the charging facility.

Also, while it is true that setting up EV charging is simpler than opening a gas station, it is not necessarily trivial if one is setting up multiple high-capacity chargers.   A Tesla supercharger draws 150KW, so putting 30 of them in a parking lot would result in an incremental peak demand of up to 4.5 megawatts.   I doubt if the electrical systems feeding many restaurants, or even shopping centers, could accommodate 4.5MW of additional demand without some work by the utility supplying the power.

–Efficiency:   It is true that the conversion of stored energy into motion is much more efficient in an EV than an internal-combustion-engine vehicle; this is mainly a matter of the engine thermodynamics.   BUT, if the charging electricity comes from a natural gas plant of a coal plant, you are looking at best at a 60% fuel-to-electricity conversion efficiency, and there will also be losses in power transmission and distribution.   If the electricity comes from solar or wind, then..depending on the time of day and weather conditions of the charging..you may be faced with a double battery storage situation, where energy is stored in a utility or home battery until needed for charging, and then stored again in the vehicle’s battery.   That double-storage situation carries both efficiency losses and, more significantly, additional capital costs.

EVs do have the ability to capture much of the energy that would otherwise be lost in braking, and this is especially valuable in start-stop driving situations, as with local delivery operations, and probably extends the lifetime of the mechanical brakes.

–Performance…EVs have excellent acceleration capability (when adequately powered) due to the torque characteristics of electric motors.   They may be able to achieve very good handling if battery installation provides for a very low center of gravity.

–Climate…not speaking here about ‘climate change’, but about climate in its ordinary meaning.   In a conventional car, heating is basically free, using rejected heat from the engine (ignoring the energy used to power the fan, but that’s a small part of the picture), whereas in an electric car, heat must be generated using electricity from the battery, which of course has a negative impact on range.   Also, the battery itself will have lesser performance in cold weather.   (And the regenerative braking feature is also limited in very cold weather.)

–Relative Costs…a high % of EVs today are either sold with subsidies by national/local governments, are built and sold in response to government edicts, or are bought in significant part for status purposes by individuals and organizations. Can EVs compete on cost head-to-head with IC vehicles on a nonsubsidized, free-choice basis?   This would seem to be largely a matter of how successfully battery costs are further driven down and how long battery lifespans turn out to be in actual service.

It should be noted that electric vehicle sales in China have cooled rapidly…down 44%…since the government reduced most subsidies at the end of June.   What would be the ‘true’ demand in the US without consumer incentives and mix requirement on the manufacturers?

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The Multi-Front Attack on Free Speech

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Free speech…free expression generally…is under attack in America and throughout the Western world to a degree not seen in a long time. I think there are some  specific phenomena and (partially-overlapping) categories of people which are largely driving this attack–I’ve written about this subject previously, here, but the situation has gotten even more serious since that post, and some of the important factors were underemphasized.   Here are the current fronts, as I see it, in the war (not too strong a word, I’m afraid) on free speech.

The Thugs. As I pointed out in my post  The United States of Weimar?, illegal actions against political opponents, ranging from theft of newspapers to direct assault and battery, have in recent decades become increasingly common on university campuses, and now are well on track to being normalized as aspects of American politics. Incidents of political thuggery are reported almost daily: just the other day, pro-Trump women at an upscale DC hotel were verbally attacked and apparently physically assaulted by members of a  wedding party  that was heavy on Democrat attendees; including, reportedly, some top officials from the DNC. A pro-free-speech film was reportedly  interrupted by two men wearing masks. Interruption of movies they didn’t like was a tactic used by the Nazis prior to their obtaining official censorship powers. The film “All Quiet on the Western Front” was  plagued by Nazi disruptions  when released in Germany in 1930. And attempts to shut down dissident speakers on college campuses,  such as this, have become so common as to now be almost the default expectation.

The Assassins.  These individuals go beyond the level of violence practiced by the Thugs, and make credible death threats they attempt to carry out against those whose actions or believe they view as unacceptable. The majority of threats and attacks falling in this category have certainly been the doing of radical Muslims; however, some of the more extreme ‘environmentalist’ and ‘animal rights’ groups have also demonstrated Assassin tendencies. At present, however, it is those Assassins who are radical Muslims who have been most successful in inhibiting free expression.  Four years in hiding for an American cartoonist. But see also  Ecofascism: The Climate Debate Turns Violent,  how long until this justification and practice of violence reaches the level of justifying and carrying out actual murders?

The Enclosure of the Speech Commons. Whereas the Internet and especially the blogosphere offered the prospect of political expression and discussion unfiltered by the traditional media, the primary social-media providers have taken various levels of controlling attitudes toward free speech; Twitter, in my opinion, is especially bad. Partly this is ideological; partly, it probably reflects their ideas about protecting their brands. Yes, there are plenty of ways to communicate online outside of the social media platforms, but their growth has been so rapid that a large proportion of the potential audience is not easily reached outside their domains. Note also that conversations that one would have been private friends talking at home, or over the telephone are now semi-public and sometimes made fully public. Plus, they become part of an individual’s Permanent Record, to use the phrase with which school officials once threatened students.

The Online Mobs. The concerns of the social media providers about providing online “safe spaces” does not seem to have in the least inhibited the formation of online mobs which can quickly make life unpleasant for their targeted individuals, and even destroy the careers of those individuals. Decades ago, Marshall McLuhan referred to the technology-enabled Global Village; unfortunately, it turns out that this virtual village, especially as mediated through the social media platforms, has some of the most toxic characteristics of the real, traditional village. See my post  Freedom, the Village, and the Internet.

And the mobs do not limit themselves to attacks on the target individual: they frequently attack other individuals who fail to participate in the shunning of that target person.  As an example:

A few weeks ago, shortly after  I left my magazine gig, I had breakfast with a well-known Toronto man of letters. He told me his week had been rough, in part because it had been discovered that he was still connected on social media with a colleague who’d fallen into disfavour with Stupid Twitter-Land. “You know that we all can see that you are still friends with him,” read one of the emails my friend had received. “So. What are you going to do about that?”

“So I folded,” he told me with a sad, defeated air. “I know I’m supposed to stick to my principles. That’s what we tell ourselves. Free association and all that. It’s part of the romance of our profession. But I can’t afford to actually do that. These people control who gets jobs. I’m broke. So now I just go numb and say whatever they need me to say.”

Increasingly, it’s not just a matter of limiting what a person  can  say, it’s also a matter of edicting what they  must  say.

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So, Really Want to Talk About Foreign Intervention? (updated)

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Much ink and many photons have been spent discussing Russia’s attempts to influence (or at least disrupt) the American 2016 Presidential campaign.  Meanwhile…

Daryl Morey, general manager of the Houston Rockets, sent out a tweet which said “Fight for Freedom, Stand with Hong Kong.”  Tencent, the NBA’s  exclusive digital partner in China, reacted by suspending business relations with the Rockets, and is offering fans who purchased a year-long pass to watch Rockets games the chance to switch it to a different team. A number of other Chinese companies have pulled sponsorship deals with the Rockets as well.  Morey issued an apology which said in part ” was merely voicing one thought, based on one interpretation, of one complicated event. I have had a lot of opportunity since that tweet to hear and consider other perspectives.”

And from last year:  here’s an appalling story  about how anger from the Chinese government led Marriott Corporation to fire an employee who had ‘liked’ a tweet which congratulated the company for listing Tibet as a country, along with Hong Kong and Taiwan….of course, the Chinese regime considers Tibet to be a part of China, not a separate country.

China forced Marriott to suspend all online booking for a week at its nearly 300 Chinese hotels. A Chinese leader also demanded the company publicly apologize and “seriously deal with the people responsible,” the Journal reported.

And boy, did Marriott ever apologize. Craig Smith, president of the hotel chain’s Asian division, told the China Daily that Marriott had committed two significant mistakes — presumably the survey listing Tibet and the liked tweet — that “appeared to undermine Marriott’s long-held respect for China’s sovereignty and territorial integrity.”

He announced an “eight-point rectification plan” that included education for hotel employees across the globe and stricter supervision.

And the Marriott executive said this to China’s most-read English-language newspaper: “This is a huge mistake, probably one of the biggest in my career.”

(More here…according to this article, the Chinese suppression of Marriott bookings was in response to the initial listing of Tibet as a country rather than to the tweet approving of this listing)

The Chinese economy is, shall we say, a little more dynamic than that of Russia, so the government of China has much more ability to strong-arm American corporations (in general) than does the Putin regime.

Turning now from the hotel industry to the movie industry, Richard Gere says that Chinese pressure due to his stand on Tibetan independence has led to his being dropped from big Hollywood movies.  Also:

Gere’s activities have not just made Hollywood apparently reluctant to cast him in big films, he says they once resulted in him being banished from an independently financed, non-studio film which was not even intended for a Chinese release.

“There was something I was going to do with a Chinese director, and two weeks before we were going to shoot, he called saying, ‘Sorry, I can’t do it,’” Gere recalled. “We had a secret phone call on a protected line. If I had worked with this director, he, his family would never have been allowed to leave the country ever again, and he would never work.”

See also How China’s Censors Influence Hollywood.  Because the Chinese market is so large…(Fast and Furious 7 pulled in $388 million in China, more than it made in the US)…the influence of the Chinese regime on US film production and distribution has become immense.

In recent years, foreign filmmakers have also gone out of their way not to provoke the Communist Party. For instance, the 2012 remake of the Cold War action movie,  Red Dawn,  originally featured Chinese soldiers invading an American town. After filming was complete, though, the moviemakers went back and turned the attacking army into North Koreans, which seemed a safer target, at least until last year’s hack of Sony Pictures.

and

Ying Zhu, a professor of media culture at the College of Staten Island at the City University of New York, worries China’s growing market power is giving the Communist Party too much leverage over Hollywood.

“The Chinese censors can act as world film police on how China can be depicted, how China’s government can be depicted, in Hollywood films,” she says. “Therefore, films critical of the Chinese government will be absolutely taboo.”

In the late 1990s, when China’s box office was still small, Hollywood did make movies that angered the Communist Party, such as  Seven Years In Tibet,  about the life of the Dalai Lama, and  Red Corner,  a Richard Gere thriller that criticized China’s legal system. Given the importance of the China market now, Zhu says those movies wouldn’t get financing today.

Plus,  Chinese companies have snapped up Hollywood studios, theaters and production companies.

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Age and Guile

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Age and guile, so the saying goes, beats out youth and speed by a long chalk. (As does possession of generous insurance policies.) Age and experience also build up an overflowing reservoir of cynicism about a lot of things; protestations of enduring love, promises by politicians campaigning for election, and belief in Santa Claus and the Tooth Fairy, among a long, long list of other things.

So it is with heartfelt convictions when it comes to media and academic protestations of “OMG, The Earth Is Gonna End and We Are All Gonna Die!” Sorry, if you’ve been around long enough (as I have been, long enough to collect Social Security while it still exists) you have been to this rodeo before. And to a good many performances, usually championed by the national media with their hair on fire; Existential doom how many are there, shall I count the ways? The biggie when I was myself in grade school and for a goodly few decades thereafter was Immanent Nuclear War and Annihilation. Nuclear Winter afflicting any of us fortunate enough to survive that! Then there was the catastrophe of Global Cooling the New Ice Age descending on us all! (insert extraneous exclamation points here.) We were all gonna freeze!

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Summer Rerun–Of Energy and Slavery

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(edited, with updates)

Democratic candidates are demonizing the energy industryBernie Sanders even called for the criminal prosecution of fossil fuel executivesbelieving or at least implying that America uses fossil fuels only because it is to the benefit of these companies, never considering the vital service that these fuels provide to millions of Americans and indeed to the entire world…which reminds me of an earlier article and discussion.

Christopher Hayes, writing at The Nation in 2014, asserted a connection between human slaveryin particular, human slavery as practiced in the US prior to 1865and the use of fossil fuels. Specifically, he argues that the reluctance of energy companies and their investors to lose the financial value of their fossil-fuel assets is directly analogous to the reluctance of pre-Civil-War southern slaveholders to lose the financial value of their human “property.”He also asserts that environmentalists attacking the use of fossil fuels are in a moral and tactical position similar to that of the pre-war Abolitionists.

His article reminded me of a few things.

1) Sometime around 1900, a young PR man who had recently been hired by GE in Schenectady realized that he had a problem. He had gotten his job through glowing promises about all the great press coverage he would get for the company. But his boss had called him in and announced that he had “a terrific front-page story” about a 60,000-kilowatt turbine generator that the company had just sold to Commonwealth Edison. The PR man accurately realized that this story would get maybe a paragraph on the financial pages. Looking for ideas, he went to see GE’s legendary research genius, Charles Steinmetz, explaining that headlines need drama, and “there’s nothing dramatic about a generator.”

Steinmetz picked up a pencil, did a little calculating, and quickly determined that this one rotating machine could do as much physical work as 5.4 million men. The slave population in the US on the eve of the Civil War had been 4.7 million. To the young PR man, Steinmetz said: “I suggest you send out a story that says we are building a single machine that, through the miracle of electricity, will each day do more work than the combined slave population of the nation at the time of the Civil War.”

2) Frederick Douglass, himself a former slave, visited a shipyard in New Bedford shortly after obtaining his freedom. Here are his comments on observing a cargo being unloaded:

In a southern port, twenty or thirty hands would have been employed to do what five or six did here, with the aid of a single ox attached to the end of a fall. Main strength, unassisted by skill, is slavery’s method of labor. An old ox, worth eighty dollars, was doing, in New Bedford, what would have required fifteen thousand dollars worth of human bones and muscles to have performed in a southern port.

3) Speaking of GE, Owen Young was a farm boy who grew up to become chairman of that company. To his biographer Ida Tarbell, he provided a vivid word-picture of what life had been like for a farm wife back in the slightly earlier times. Here, he remembers Mondaywash day:

He drew from his memory a vivid picture of its miseries: the milk coming into the house from the barn; the skimming to be done; the pans and buckets to be washed; the churn waiting attention; the wash boiler on the stove while the wash tub and its back-breaking device, the washboard, stood by; the kitchen full of steam; hungry men at the door anxious to get at the day’s work and one pale, tired, and discouraged woman in the midst of this confusion.

The reality is that non-human mechanical energy has been and continues to be a liberating force for humanity. A society which makes little use of nonhuman energy can maintain a small and wealthy aristocracy, but broad-based prosperity requires extensive use of nonhuman energy sourcesand with today’s technological realities, a large portion of this energy needs to come from fossil fuels.

Hayes does not seem to understand, or want to recognize, that the benefits of an energy source accrue not only to the companies and individuals who develop and own that energy source, but also to the people of the society at large. (The benefits of the coal and oil (and later natural gas) burned to power the turbines made by Owen Young’s company did not go only to the resource owners and to GE and the utility companies, but also to the farm housewives about whom he spoke.) At one point in the Hayes article he seems to reach the edge of this understanding — “Before fossil fuels, the only way out of this drudgery was by getting other human beings to do the bulk of the work that the solar regime required of its participants” — but does not really follow up on it. The thrust of his article is that the elimination of fossil fuels would require energy companies to give up something like $10 trillion in wealth. He does not focus on what the American people as a whole would have to give up.

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