Making wise investments is fraught with peril. No one can see the future with certainty. But, as the gamblers say, you’ve got to play to win. Playing is expensive in our energy based society as the following table shows. Here, rich men front the money and the average person hops on hoping they’re on the gravy train to a better life.
| Construction Costs |
| 3 Gorges Dam |
$25B |
| Mackenzie Delta project |
$16.2B |
| James Bay Power |
$13.7B |
| Sakhalin Two |
$20B |
| Alberta Oil sands – annually |
$10B |
| Exploration – British Petroleum for 2005 |
$30B |
| Darlington Nuclear Station |
$14.5B |
| All in dated dollars |
Yet, money is an artificial construct. We see it as paper, a promissory note. Hence in reality all the energy development, and subsequent operating costs, have to be compensated by some base. The base is natural resources. We must utilize the natural resources of the land to compensate for the expense of these energy sources. The question then is whether natural resources can accommodate ever more expensive works. The following table provides estimates for the future as predicted by the oil industry(1). Can natural resources; farming, forestry and fisheries support this rich man’s burden?
| Predicted Energy Investment 2005-2030 |
| |
Total |
Annual |
| Oil |
$4.3T |
$164B |
| Natural Gas |
$3.9T |
$150B |
| Infrastructure (including above) |
$20T |
$769B |
(1) Oil Cost Prediction
| Sakhalin |
Tarsands |
 |
 |
| James Bay |
Coal Mine |
 |
 |