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Sunday, April 01, 2012

Leviathan Socialism

Meaning the Fossil Fuel Industry... of which I own stock, I hasten to state. I own stock in a company whose turn it now is to have some billion dollar problems. As the schemes and ruses employed to wring more and more oil out of Mother Earth become more arcane and more complex, the inevitable accidents will become more and more expensive.

In fact, they will probably reach a point where we must treat them like Nuclear Energy and essentially let the taxpayers pay for disasters or otherwise bail them out, or we could cut them adrift and embrace some other source of energy.

However, in the meantime, in this happy, happy Indian Summer of Oil and other fossil fuels, we may as well get some background on Shell, the world's biggest oil company.
John Donovan, Shell's Nightmare

and his site:

I think it will provide us with the required background for the decidedly science-fiction type of energy future we will be facing soon.

Now to the Socialism.
Socialism of Risk is the situation where the risk and the cost of the risky outcomes are borne by society at large, such as Bail-Out of Banks and Bail-Out of Nuclear Energy (Fukushima, e.g.)

In Bloomberg we read:

Shell’s Alaska Plan Doesn’t Eliminate Spill Risks, GAO Says 
By Katarzyna Klimasinska
Mar 30, 2012 4:00 PM ET
Royal Dutch Shell Plc (RDSA)’s plan for oil drilling off Alaska’s north coast fails to deal with some risks linked to operating in the remote region, the U.S. Government Accountability Office said...
Any clean-up would be paid by the taxpayers.

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