The Ugly, the Bad, the Good: A Conversation with My Son About the Environment

The other day, my son made an off-the-cuff comment about not making it to age 50, in 2050. His comment struck a chord with me, as it reflects the hopelessness that many young people might feel about the future.

The year 2050 is a significant deadline for action. If we don’t take steps to reduce our emissions and protect our environment by 2050, it will be too late. We need to make bold changes now to avoid the worst consequences of climate change.

In this blog post, I will explore the history of oil, the link between health and the environment, the impact of overpopulation, the petrodollar, and my prediction on who can change this trend and profit in the future.

I hope that by understanding the challenges we face, we can come together to find solutions and build a more sustainable future for our children and grandchildren.

History of oil

Humans have relied on oil for centuries, dating back to ancient civilisations. The earliest known use of oil dates back to ancient China, where it was used for lamps and medicines. In the Middle East, oil was used for centuries to fuel lamps and heat homes.

In the 19th century, oil began to be used as a fuel for steam engines and internal combustion engines. The first oil well was drilled in Pennsylvania in 1859, and this marked the beginning of the modern oil industry. The 20th century saw a rapid increase in the use of oil, as it became the dominant source of energy for transportation, industry, and electricity generation.

Today, oil is still the world’s most important source of energy, and it is linked to over 90% of our daily lives, such as plastics and transport. However, there is growing concern about the environmental impact of its use. Oil production and refining produce greenhouse gases that contribute to climate change. Oil spills can also cause environmental damage.

Over Population + Oil= Impact on the Planet

The world’s population is growing rapidly, and this is putting a strain on our natural resources, including oil. As the population grows, we need more oil to meet our energy needs. This is leading to increased oil extraction and refining, which is having a negative impact on the environment.

Oil is used for a variety of purposes, including transportation, electricity generation, and industrial production. As the world’s economy grows, so does our demand for oil. This is leading to increased oil consumption, which is also having a negative impact on the environment.

The extraction, refining, and transportation of oil all have a negative impact on the environment. Oil spills can contaminate water and soil, and oil drilling can disrupt ecosystems. Oil production also releases greenhouse gases into the atmosphere, which contribute to climate change.

The Effects of Pollution on Our Health

Pollution is a major threat to our health. It can cause a variety of health problems, including respiratory infections, heart disease, stroke, cancer, diarrhea, cholera, typhoid fever, learning disabilities, delayed development, and behavior problems.

There are three main types of pollution: air pollution, water pollution, and lead poisoning.

Air pollution is caused by the release of harmful pollutants into the air, such as particulate matter, nitrogen dioxide, and sulfur dioxide. These pollutants can come from a variety of sources, including cars, power plants, and industrial emissions. When these pollutants are inhaled, they can cause a number of health problems, including respiratory infections, heart disease, stroke, and cancer.

Water pollution is caused by the release of harmful substances into water bodies, such as sewage, industrial waste, and agricultural runoff. These substances can contaminate drinking water and make it unsafe to consume. They can also cause a number of health problems, such as diarrhea, cholera, and typhoid fever.

Lead poisoning is caused by exposure to lead, which can come from a variety of sources, such as lead-based paint, contaminated soil, and lead-contaminated dust. Lead can damage the nervous system, causing a number of health problems, such as learning disabilities, delayed development, and behavior problems.

The Oil and Petrodollar Relationship: Environmental Impacts

The intricate connection between oil and the petrodollar has profound implications for the environment. The entire lifecycle of oil – extraction, refining, and transportation – contributes to the emission of greenhouse gases, directly fueling climate change. Moreover, oil spills pose a significant threat, contaminating both water bodies and soil, while also wreaking havoc on wildlife populations.

Beyond the immediate ecological consequences, the petrodollar system exacerbates environmental issues. The insatiable demand for oil from oil-exporting nations generates a financial incentive for these countries to prioritize resource exploitation, often at the expense of the environment. Disturbingly, this can translate to deforestation to make room for oil drilling or the pollution of precious water sources through oil spills.

The relationship between oil and the petrodollar system is multifaceted and extends its ramifications far and wide across the environment. Understanding the environmental repercussions of this intricate relationship is crucial for devising effective solutions that not only preserve but also safeguard our planet for future generations.

The Leading Contributor of CO2 Emissions

According to the International Energy Agency (IEA), the transportation sector holds the distinction of being responsible for a substantial 29% of global carbon dioxide (CO2) emissions. In fact, it claims the title of the largest emitter of CO2 after the energy sector.

Within the transportation sector, emissions arise from various sources. Private cars stand as the primary culprits, contributing a significant 14% of the world’s total CO2 emissions from transportation. Following closely are commercial vehicles, such as trucks and buses, accounting for an 11% share of global transport-related CO2 emissions.

The escalating phenomenon of air travel also plays its part, marking an 8% contribution to the global CO2 emissions from transport. Similarly, shipping, although a comparatively smaller player, is responsible for 2% of the total global CO2 emissions from transportation activities. Lastly, rail transport, known for its relatively eco-friendly attributes, makes a modest impact, contributing just 1% of the worldwide CO2 emissions from transport.

The Green Hydrogen Solution and Collaborative Efforts

In a world grappling with mounting environmental concerns, the pursuit of innovative solutions has evolved from mere aspiration to an imperative necessity. At the forefront of this global movement stands Andrew “Twiggy” Forrest, a distinguished Australian entrepreneur and philanthropist. He has emerged as a pivotal force propelling an extraordinary solution: green hydrogen. With an unwavering commitment to sustainability and combatting climate change, Forrest’s spearheading of this revolution has the potential to reshape our energy landscape.

Green Hydrogen: Unveiling the Promise

Hydrogen, the universe’s most abundant element, has long held the promise of serving as a clean and versatile energy carrier. Particularly noteworthy is green hydrogen, forged through a process called electrolysis. Utilising renewable energy sources like wind and solar power, this method splits water molecules into hydrogen and oxygen. The outcome is a pristine fuel emitting nothing but water vapor. This solution arrives as a potential lifeline amid the ongoing carbon emissions crisis.

Recognising this immense potential, Andrew Forrest envisions green hydrogen as a catalyst for a multi-faceted transformation. Beyond its environmental implications, Forrest’s vision encompasses economic expansion and job creation. Leveraging Australia’s expansive renewable resources – its expansive deserts and coastal winds – he aspires for the nation to rise as a global beacon in green hydrogen production.

Bridging Vision and Reality

Manifesting Andrew Forrest’s visionary ideas is the establishment of Fortescue Future Industries (FFI), a pioneering “green metals” enterprise. Positioned to lead global renewable energy projects, FFI places significant emphasis on green hydrogen production. With ambitious projects on a grand scale, the company aims to create monumental renewable energy facilities and green hydrogen hubs, not only within Australia but far beyond its borders.

The Potential of Green Hydrogen and Collaborative Momentum

The potential of green hydrogen extends far beyond replacing fossil fuels in industrial processes. It holds promise for sectors such as transportation and energy storage. Backed by Twiggy Forrest’s determination and significant investment in research and development, green hydrogen could play a pivotal role in achieving a net-zero carbon emissions future.

Collaborative Pursuits by Toyota and BMW

Toyota and BMW have announced their expanded collaboration in the development of green hydrogen. This partnership entails the joint creation of fuel cell electric vehicles (FCEVs) utilising green hydrogen as fuel. Green hydrogen is sourced from renewable energy like solar and wind power, constituting a clean and emissions-free fuel. The potential of green hydrogen as a transformative element in transportation and energy is recognized by these automotive giants, who are dedicated to making it an accessible and affordable fuel.

This collaboration represents a noteworthy stride forward in the advancement of green hydrogen technology, underscoring the burgeoning momentum behind its potential as a sustainable and clean fuel.

Facing Challenges with Innovation

Today’s world contends with a host of challenges, including climate change, overpopulation, and pollution, which collectively exert a negative impact on both human health and our planet’s wellbeing. Amidst these trials, solutions like green hydrogen present promising avenues. Green hydrogen’s clean, emissions-free properties position it as a potential energy source for vehicles, homes, and businesses, capable of revolutionizing industries, curtailing greenhouse gas emissions, and crafting a more sustainable energy future.

Twiggy Forrest: A Leading Visionary

Prominent Australian entrepreneur and philanthropist Twiggy Forrest stands at the helm of the green hydrogen movement. He envisions Australia as a global leader in green hydrogen production and backs his vision with substantial investments in research and development.

Toyota and BMW: Embracing Green Hydrogen

Toyota, BMW and Volkswagen, among other players, are channeling investments into green hydrogen. Their collaboration in fuel cell electric vehicles (FCEVs) underlines their dedication to harnessing green hydrogen’s potential.

A Beacon of Hope

The rising momentum behind green hydrogen signifies a growing awareness of the necessity for clean and sustainable energy solutions. Its potential to address challenges confronting our planet makes it a beacon of hope.

Paving the Way Forward

Continued investment in green hydrogen technology, along with the creation of supportive policies, can chart a more sustainable future for our planet. The collective efforts of individuals, industries, and governments are instrumental in creating meaningful change.

A Vision that Transcends

In the grand tapestry of possibilities, the green hydrogen revolution led by Twiggy Forrest holds the power to usher in a cleaner, greener tomorrow. As collaboration blooms and innovation surges, we find ourselves poised on the precipice of transformative change. If all pieces fall into place, Twiggy, alongside Toyota and BMW, could catalyze not only positive planetary impact but also profound profitability. It’s a prediction that echoes the sentiment that visionary efforts, when harnessed with dedication, have the potential to reshape the very fabric of our world.

Market Summary:

Despite Federal Reserve Chair Powell’s hawkish statements at the Jackson Hole symposium, the markets remained resilient and continued to rise. Powell’s stance was clear: he was prepared to increase interest rates further if both inflation and growth persisted at high levels. Noteworthy points from his address include:

• He is carefully monitoring signs that the economy may not be cooling as anticipated.
• He believes that inflation remains excessively high and requires more time to decrease.
• He desires more compelling evidence of improvement in non-housing services inflation.
• He suggests that above-trend growth and a robust job market could justify additional rate hikes.
• He intends to maintain a strict policy stance until he is confident in the sustainability of decreasing inflation.

Despite Powell’s communication, traders seemed to overlook the potential consequences, placing their bets on bond yields remaining relatively stable. Moreover, optimism was in the air, with hopes that the Federal Reserve’s cycle of rate hikes might be nearing its end. An analyst humorously condensed the Fed’s stance as: “We’ll raise rates if circumstances warrant, but not otherwise.” This lack of clarity was perceived as unconstructive.

Simultaneously, the week’s data yielded a sense of disappointment, as outlined by ZeroHedge. The Citi Economic Surprise Index encountered a notable decline, retail stocks faced losses, and Nvidia’s stock encountered a sudden fall despite an initial surge driven by earnings news.

Conversely, bond yields showcased a mix of fluctuations, briefly surpassing 5% for the 2-year yield. The dollar embarked on a volatile trajectory over the week but ultimately concluded with a modest upswing. Remarkably, gold showcased steadfastness by maintaining its position above $1,900, demonstrating resilience amidst the market’s post-Powell oscillations.

Bitcoin and Ethereum

Bitcoin (BTC) faced a drop below the $26,000 mark on Friday as investors absorbed Jerome Powell’s resolute stance on curbing inflation, which includes the potential for additional interest rate hikes.

Post Powell’s remarks during the annual Jackson Hole Symposium organized by the Kansas City Fed, both stock and bond prices initially faced declines, only to rebound modestly later in the morning. Amidst this volatile backdrop, the U.S. two-year Treasury yield witnessed a surge, briefly reaching a nearly 17-year high at 5.10%, before retreating slightly. Notably, investors now assess a 54.5% likelihood of higher fed fund rates by mid-November, according to the CME FedWatch Tool.

Bitcoin (BTC) is presently standing its ground at $26,015, marking a slight 0.4% decrease compared to its value at this time last week. The recent surge in Bitcoin mining machinery activity became evident as the network achieved an unprecedented peak in mining difficulty on Wednesday, accompanied by a corresponding surge in hash rate, reflecting heightened computational power.

Ethereum (ETH), positioned as the second-largest cryptocurrency based on market capitalization, mirrored Bitcoin’s trajectory. Currently valued at $1,647, it reflects a 1.6% decline from the previous week.

S&P500: 4,405

NASDAQ: 13,590.65

BTC: 26,015*

ETH: 1,647*

Sneaker highlight: Jordan 9 Retro (2016)

Bought price: US$74 StockX price: US$490

Documentaries to watch, Books to read or Audiobooks to listen to:

• An Inconvenient Truth
• Conspiracy: The Sustainability Secret
• The 11th Hour
• Food, Inc.
• Seaspiracy
• Sovereign Individual by James Dale Davidson and Lord William Rees-Mogg

Obviously, not financial advice. See you next time!

*At the time of writing