The Sheet Idiocy of Investing in Fossil Fuel
As China embraces the global automotive marketplace, amping up their manufacturing sector to the point where for every vehicle US automakers sell overseas, China sells four! Their BYD brand provides a wide array of affordable cars and trucks. China is going full bore on making sure that all over China, and for nations that want the underlying charging infrastructure, those charging stations are increasingly ubiquitous. Oh, did I mention: BYD is now the leading manufacturer and exporter of EV vehicles on Earth! Meanwhile, the economically impaired Trump administration, mired in an obsessive desire to return the United States to the halcyon days of the 1950s, politically, culturally and economically, is killing American jobs at an alarming rate. US carmakers are back to retooling for gasoline and diesel powered vehicles thanks to Trump.
As reported by Forbes (July 22nd), “General Motors posted a $3 billion second-quarter profit—down $1.1 billion primarily because of tariffs imposed by the Trump administration, the company said in its earnings call on Tuesday [7/22], a day after Stellantis (Jeep, Fiat, Chrysler) blamed steep losses on tariffs.” Simply put, not only are these tariffs job killers, but Trump undoing of the highly successful Biden-era infrastructure legislation – heavily focused on alternative energy and creating masses of new jobs eclipsing those lost in traditional energy many times over – coupled with a misstep in “drill baby, drill” plus efforts are reopening coal mines that can never be profitable, is a total failure.
The demand for fossil fuels is plunging the world over, and the United States is hardly the market-maker/oil price dictator of those global commodities. As the United States officially is fighting against alternative energy, forcing US consumers back to these moribund energy sectors, the price of fossil fuels is rising again. Investors everywhere, including the United States, are loath to invest in expanding or updating refinery capacity, putting an upward pression on prices at the pump. Vladimir Putin should be grateful, since these fuels are the backbone of the Russian economy, and despite sanctions, revenue from this sector is financing the war in Ukraine.
The fact remains, and is accelerating, that alternative energy is now a whole lot cheaper, and obviously vastly less polluting (in terms of hard pollution as well as in contributions to greenhouse gas emissions). It’s a factual reality that hard numbers prove. According to the July Newsletter from the International Renewable Energy Agency (which released the above charts): “Total installed costs for renewable power decreased by more than 10% for all technologies between 2023 and 2024, except for offshore wind, where they remained relatively stable, and bioenergy, where they increased by 16%. Nevertheless, the combination of capacity factors, market share, and financing costs led to a slight increase in the levelised cost of electricity (LCOE) for some technologies: solar PV by 0.6%, onshore wind by 3%, offshore wind by 4%, and bioenergy by 13%. Meanwhile, costs declined for CSP (-46%), geothermal (-16%), and hydropower (-2%).
“Renewables continue to prove themselves as the most cost-competitive source of new electricity generation. On an LCOE basis, 91% of newly commissioned utility-scale renewable capacity delivered power at a lower cost than the cheapest new fossil fuel-based alternative. In 2024, renewables helped avoid USD 467 billion in fossil fuel costs, reinforcing their role in enhancing energy security, economic resilience, and long-term affordability.
“As renewable capacity is expected to increase in the coming years to meet climate goals, enabling technologies such as battery storage, digitalisation, and hybrid systems are becoming increasingly vital for integrating variable renewable energy, enhancing asset performance, and improving grid responsiveness. Although challenges persist - including access to finance, permitting delays, supply chain bottlenecks, and geopolitical risks - greater alignment of policies, regulation, and investment is essential to accelerate the energy transition.
“In a special address on 22 July 2025, the UN Secretary-General António Guterres outlined a compelling and evidence-backed case for why a just transition away from fossil fuels to renewable energy is inevitable – and the vast benefits it will bring for people and economies.” But then, Trump’s Big Oil oligarchs truly do not care if American consumers pay more at the pump. They welcome that anomaly. Big Oil and Big Coal hate that they lost $467 billion to alternative energy last year.
As AI is putting massive pressure on electrical power generation, those fossil fuel cronies of the Trump administration are smacking their lips the potential of increased demand for their toxic products. Ignore the fires in California, floods in Texas, NM, New Jersey, etc… those once in 500-year-events that now happen twice a month on average. After all, the core belief of the science-averse Trump administration remains that climate change is a “hoax.” Unfortunately for MAGA Republicans, Mother Nature clings stubbornly to her immutable laws of physics.
I’m Peter Dekom, and as of this writing much of the United States is suffering from a killer heat wave, that Big Oil, Big Coal gift that just keeps on giving.