The war goes on, and so does the global energy crisis. In fact, I believe that prices of oil futures remain too low given how much spot prices will need to rise to resolve the shortages that will hit once oil supplies that were shipped before the Strait of Hormuz was closed are exhausted.
But a better future is coming, despite Donald Trump’s assault on renewable energy as he tries to drag us back into the fossil fuel past. Regardless of Trump’s chest-thumping, America is not the world. We account for only 15 percent of global energy consumption, compared with China’s 28 percent. And the rest of the world is moving rapidly to renewables, thanks to a technological revolution in solar power, wind power, and, less visibly, batteries.
So let me take an optimism break and talk about why batteries may save the world.
The decline in battery prices has been incredible. It’s like nothing anyone has ever seen before. Big, strong men with tears in their eyes come up to me and say, “Sir, have you seen the progress in batteries?”
Why does this matter?
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Furthermore, we’ve seen rapid progress in all components of the green energy transformation, even though their underlying technologies have little in common. Solar panels, wind turbines, and batteries are very different, yet all have seen revolutionary improvements. This strongly suggests that the whole renewable energy complex is experiencing a virtuous circle: ever-growing use leads to falling costs and falling costs lead to ever-growing use.
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So although we are now in the midst of a severe energy crisis that could easily go on for many months, this too shall pass. A better, cheaper, cleaner energy future is on the way, and not even Trump can stop it.