… and how well the world can do without them.

This is from Global Research, January 19, 2014, by Andrew McKillop:

Think of Al Gore and his associates like David Blood as the Bernie Madoff of the environmental movement. They created a market which has been disintegrating from day one, including a total collapse of the Chicago Climate Exchange, but not before the principle players cashed in their shares and abandoned that ship.

It’s an epic story of modern day high priests and sooth sayers, political hubris and pseudo-scientific largess on a scale never before seen in history.

But their story is far from over. Get ready for the epic climbdown.

For Al Gore and his investor fund partner David Blood, their current thrust is more like dancing in the dark than out of the box thinking, due to “warmists” and “peakists” now having to fight on several fronts at the same time. Writing in the Wall Street Journal and similar outlets several times in 2013, they soldiered forward with the claim that “fossil carbon assets” are headed for a bust, and “green energy” can only soar. Along with Britain’s Lord Stern, the former World Bank chief economist and author of the Stern Report on “fighting” global warming, they say all fossil fuels are so dangerous for the world’s climate they must be completely phased out by 2050 or before.

Investing in these fossil carbon assets is therefore, they say, a guaranteed disaster.

Gore and Blood however know well through operating their climate-energy hedge fund, Generation Investment Management, that the “carbon finance” business, especially emissions credits and related financial assets, has already suffered a bust. The world’s only mandatory credits trading scheme – in Europe – is struggling to keep itself afloat. Reasons why Europe’s ETS [Emissions Trading System] is now on political life support, and may be scrapped, include massive over-issue of credits by European governments and the European central authorities, outright fraud and re-issue of already used credits, uncertainty concerning the future value of credits, and other factors such as the intrinsic worthlessness of “hot air credits”.

In a winter during which Niagara Falls partly froze over, for only the second or third time in more than 100 years, the whine that global warming is alive, well, and menacing, becomes difficult to gurgle with a straight face, but it has been so profitable to proponents like Gore that we can understand why they are loath to invent a new Doom Thing. Their twin fight against climate-damaging and rapidly depleting oil, gas and coal reserves also has major real world logic problems.

Massive over-issue of ETS tradable paper was operated not only to make warmists happy, but also to please the carbon market maker banks and climate hedge funds, who rapidly broke any link between this asset creation binge and its real world base or “underlying asset” – of actual European CO2 emissions – which have heavily declined in most EU countries since 2008, except by supreme irony in Green Germany, presently constrained to rapidly increase its coal-fired power production. …

The morph of the ETS system from potentially or possibly useful, to dysfunctional and totally perverse, took no more than about 6 or 7 years from its start in 2005. Today’s credit prices are so low they are no incentive to not emit CO2 …

Global warming, about 7 years ago, was certainly the next big thing. At the time, the No Limits warmist stance was that CO2 emissions – unless we completely stop them – will cause planetary disaster by sometime in the 2045-2099 period, so tailpipe or smokestack emissions must be taxed to extinction. …

Lord Stern claims the “surplus and unusable” financial assets of fossil energy stocks and resources held by major corporations total about two-thirds of all present corporate fossil energy stocks and their declared fossil energy resources, representing several trillion dollars  of worthless “stranded value”. The argument by Gore, Blood and Stern goes on to claim investors have made a fundamental error by failing to understand there is not a calculable risk of global fossil fuel reserves becoming worthless – but an absolute certainty. Investors have made a fundamental investing error by only treating it as a risk and they will pay the consequences as the industries they invested in collapse, possibly in less than 10 years time. …  

Gore and Blood say that investors are foolishly delaying the inevitable move away from, and total abandonment of all fossil fuels. … Lord Stern’s theory of “stranded assets” … was “pure warmist” – global temperatures will radically grow.

Science has already backed off from that kind of assertion. [Even the latest IPCC report]  says 10-year warming is presently at 0.09 degC, meaning that warming of 2 degC will need well over 200 years.

For Stern, Gore and Blood the timeframe is vastly shorter, and they regularly cite the IEA’s carbon-conscious-calculator, which in fact directly draws on the Stern Report of 2006, and claims that two-thirds of all global fossil fuel reserves “will never be used”. Because they must never be used …

Why should they perform an “epic climbdown” (which we’d be delighted to see them do, but expect them to avoid somehow or other)? Because they could not be more wrong about fossil fuels, according to this October 2013 report in Scientific American:

Fossil fuels continued to dominate the global energy sector in 2012 …

Coal, natural gas and oil accounted for 87 percent of the world’s primary energy consumption last year …

Coal is expected to surpass oil as the most consumed primary energy source in the world … China alone accounted for more than half the world’s total coal consumption, mostly for electric power generation.

But natural gas is also seeing significant gains, both in the United States and in countries like Japan, which are shifting their energy portfolios away from nuclear power. …

For the first time in 2012, global gas production exceeded 3 billion metric tons, marking the third consecutive year of both rising production and consumption, according to the report. With the exception of 2009, when the Great Recession resulted in lower energy demand for all fuels, natural gas use has been steadily rising since 1970, according to the report.

Oil, too, has seen a surge in production in the United States … even though globally, oil use accounted for a slightly smaller share of total energy consumption, from 33.4 to 33.1 percent. In 2012, the United States produced oil at record levels and is expected to overtake Russia this year as the world’s largest producer of oil and natural gas combined, according to the report.

Consequently, the [United States] is importing decreasing amounts of these two fossil fuels, while using rising levels of its natural gas for power generation …

Although oil may be losing some share of the world’s total primary energy consumption, it is still expected to be the dominant fuel for transportation globally and will continue to grow in absolute numbers going forward. The United States, for example, increased oil production by 13.9 percent last year, its highest recorded increase ever …

And even though natural gas, biofuels and electric vehicles are growing in popularity in many isolated parts around the world, the world’s growing appetite for transportation fuels will likely keep oil as a dominant primary energy resource for the foreseeable future.