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Nicodemus,
#
To my last point, I was not being entirely fair to the US (where I lived for a long time and of which I am deeply fond) when I said that they did not always support strategic industries.
In some cases, they do, especially in the military-industrial space. Boeing, Lockheed-Martin, Raytheon - and there are others - are monumentally mismanaged but massively supported by the US government with pretty much no accountability (I could tell stories about the executive profligacy at Boeing that would make any sane person's hair stand on end).
Also, it is worth noting that one of Britain's greatest leaders, Margaret Thatcher is often seen as being an advocate of laissez faire economics. She was, to a degree, but it should also be remembered that she was also a huge advocate of creating and protecting "national champions" in key sectors, even if privatised or private - British Airways, British Steel and, even in investment banking, she wanted SG Warburg to be favoured and be the British heavyweight in that space.
I do not wish to engage in any political debate here (my views are pretty obvious). I just want to see PRD's success advance and I very much hope that the Irish government remove their heads from their rectum (a difficult thing for politicians to do) and address the matter of energy security - which would, necessarily, benefit PRD.
Which is what I care about.
Evening Nicodemus,
Your point is well made.
The failure in the West (especially America) to grasp that some sectors do need to be supported/subsidised by government for greater strategic goals will be shown to have been short-sighted as China keeps flexing its muscles on a global stage.
The Chinese Communist Party's aggression towards Taiwan is not really much about them throwing their bullying weight around (though there is some of that) but much more of the realpolitik factor that Taiwan is the world's biggest super-power in semiconductor production.
Without which, most electronic devices are non-functional.
In any properly run economy, one should seek to minimise single points of failure (just read Sun Tzu).
The dependence on Taiwan for semiconductor chips when it is vulnerable to a belligerent neighbour is a huge risk exposure for the West (basically a single point of failure exposure).
The global exposure (including that of the US) to China's rare earth processing capacity is a huge problem, especially if they decided to leverage that power before the West can build its own capacity.
And, as the US just proved with the cyber-hacking and closure of the Colonial pipeline (which pretty much closed down the gas (petrol) supply to the East Coast), it is very poor planning not have built in redundancy - and be almost totally dependent on a single pipeline.
Ireland is going to have to wake up. Being dependent on others, even if it is the Brits, who are generally friendly and reasonable towards them, is never a good idea because in stress times (which we are not yet in), everyone tends to only look after their own and to hell with everyone else.
The ree analogy wasn't a cheeky cross ramp for RBW by the way, they are not doing well. . Merely a ludicrous example of US politicians putting ideology i.e. lassiez faires economics - government shalt not assist loss making companies' such as MPM befor national interest.
The fact that the Irish Greens would rather continue with the status quo, i.e. dependency on the UK rather than allow fresh drilling and energy security is similarly self destructive. Since we now know how much more of a carbon footprint importation causes, disgracefully cynical to boot.
Sefton I agree with your post.
Plus the Chinese have hitherto not been too bothered about the pollution associated with extraction of Ree.
I'm not so sure that these processes would be very acceptable in the West. Maybe there are other ways, but would probably cost more.
Evening Nicodemus,
Agree with your post.
It is rather tangential but the rare earths situation to which you refer is interesting.
Rare earths are, despite the name, not actually very rare at all.
The problem is concentrating them into usable form (somewhat like CO2).
Concentrating them requires a lot of power (electricity) and fits perfectly an economies of scale model (basically, it is cheaper to ship all the rare earths from many fragmented producers around the world to China to get it refined there that it would be for the producers to do it themselves).
The Chinese make the whole system work by strategically and deliberately ensuring that the cost of electricity for the concentration of rare earths is very low (probably net loss-making but certainly way below the cost in the West).
Hence, they control the concentration bottle-neck (even to the US) for rare earths and until the West builds concentration capacity (there is actually some capacity in the UK and the US has MP Materials but both are well behind the Chinese in cost of production - step functions difference in cost of concentration).
It was never a good idea to make modern Western economies dependent on one of the key factors - rare earths - in technology-driven economies dependent upon a supply controlled by barbarians.
That was the base cause of the Dark Ages.
And now we seem to want to re-run it?
See below- Irish electricity prices rose quite considerably on 1 April, and let's not forget, their lockdown has been a lot harder than ours. There must be a lot of people struging to.make end meet over there.
Also gas prices hit by a 25% increase in carbon tax this month as well, which is shown quite clearly on the bills to concentrate the minds. Currently €75 pa for average household so now nearer €100.
It could soon be costing an awful lot more if they irk Boris. Dependency on the goodwill of a potentially belligerent supplier isn't a good place to be- check the US needing to buy processed rare earths from China in order to make EVs, wind turbines, F111s and missile guidance systems.
https://www.thesun.ie/news/6787650/energy-supplier-price-hike-energia-airtricity-pinergy-bord-gais/
Great stuff, as ever, Wacky.
Much appreciated.
More information can only ever be helpful.
Hi all,
I haven't seen this posted before, granted a tad long , however it proves that LNG imports into Ireland have been priced or considered in the event of various projects going ahead.
It was published in 2019 and was probably with respect to the two onshore LNG terminals which are now not being built ?
The document is the latest published by the CRU and is currently in effect.
Page 56-59 are the most relevant.
Interesting conclusions, especially a 50% discount would be granted in the case of a storage facility.
www.cru.ie/wp-content/uploads/2019/06/CRU19060-Harmonised-Transmission-Tariff-Methodology-for-Gas-Decision-Paper.pdf
AIMHO of course.
GLA
Wacky
As these other elements are dealt with in terms of policy and crossed off the list, it won't be too long before there will be an announcement on a policy for energy security too.
https://www.gov.ie/en/press-release/ce97e-government-publishes-framework-for-irelands-offshore-electricity-transmission-system-to-facilitate-huge-growth-in-renewable-energy/
“.... whilst ensuring our grid remains secure and reliable and meets the needs of society."