"Bettering Human Lives"

Liberty Energy's Report Providing Insight on Chris Wright's Views - Article #97

In this 14-minute article, The X Project will answer these questions:

• I. Why this article now?

• II. What is the Backbone of Modern Civilization?

• III. What is a Better Goal for 2050 than Zero Carbon Emissions?

• IV. Why is Climate Change a Misguided Focus?

• V. What does the Report say about Energy Security and Geopolitics?

• VI. Why is the Energy Transition a Fallacy?

• VII. What does the Report say about Trade-offs in Energy Choices?

• VIII. What is the Report’s Vision for a Better Future?

• IX. What does The X Project Guy have to say?

• X. Why should you care?

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I. Why this article now?

I am writing this article because Chris Wright was nominated as Secretary of Energy a month ago, and I want to better understand who he is and what we might expect from him in the next four years.

If you have heard anything about Chris Wright, you probably heard he is a “climate skeptic.” This is not surprising since he is the CEO of Liberty Energy. This publicly traded $4.4 billion revenue oilfield services company provides the oil and gas industry with hydraulic fracturing, integrated engineering, equipment maintenance, and power solution services.

Surprisingly, he is so outspoken on the topic, given that he is the CEO of a publicly traded company. Looking through mainstream news articles on his nomination, you will find a reference to this 12-minute video he posted on LinkedIn in 2023 that is worth listening to. But, before you do, let me interject a plea to please be open-minded and rational and consider the views presented in the video and this article, even if you strongly believe in the climate crisis and that humans caused it and are perpetuating it.

But even more surprising was Liberty Energy's courageous publication of the 180-page “Bettering Human Lives” report in January 2024. In the opening letter by the CEO, Chris Wright, he states:

“So far, a myopic focus on climate change and climate politics has dominated.

The result has been the rise of a destructive misunderstanding. It goes something like this: “Climate change is the most menacing threat to humanity, and we can reverse this ever-growing crisis by rapidly transitioning our global energy system to cheaper, cleaner, greener energy sources if only nudged by bold government policy incentives.” None of this is accurate. It is based on a combination of climate change exaggerations, a strict focus on CO2 mitigation instead of climate adaptation, and a failure to appreciate the scale and complexity of the global energy system.

Climate change is a real and global challenge that we should and can address. However, representing it as the most urgent threat to humanity today displaces concerns about more pressing threats of malnutrition, access to clean water, air pollution, endemic diseases, and human rights, among others. This report aims to put climate change in perspective relative to these other threats.”

I added the emphasis above, but this excerpt from the opening letter compelled me to read on. The following are the main takeaways from the report.

II. What is the Backbone of Modern Civilization?

The report underscores that hydrocarbons supply over 80% of global energy and are integral to thousands of products and services essential to modern life. Oil, natural gas, and coal are not merely energy sources but foundational to manufacturing, transportation, and agriculture. Their role extends to producing critical materials like plastics, fertilizers, and steel, which underpin infrastructure and food security.

Hydrocarbons have also driven transformative improvements in human life. Over the past two centuries, they have powered innovations that doubled global life expectancy and significantly reduced poverty. The report notes that only a billion people currently enjoy the high-energy lifestyles of developed nations, leaving seven billion aspiring for similar progress. This aspiration necessitates an expansion, not a contraction, of hydrocarbon usage to meet rising energy demands.

Despite their advantages, hydrocarbons face criticism for their environmental impact. The report argues that all energy sources involve trade-offs and that the perceived negatives of hydrocarbons, such as emissions and pollution, outweigh their benefits when managed effectively. Technologies like natural gas-powered equipment and emissions reduction strategies demonstrate how these trade-offs can be balanced.

The report challenges the notion of an "energy transition," arguing that renewables like wind and solar are additions rather than replacements for hydrocarbons. These alternatives currently address a fraction of energy demand and have inherent limitations, such as intermittency and high material costs. With its high-density output and low emissions, nuclear energy is positioned as a potential complement to hydrocarbons.

III. What is a Better Goal for 2050 than Zero Carbon Emissions?

Energy access is positioned as the cornerstone of human development. The report highlights that over two billion people lack access to clean cooking fuels, while five billion live without modern energy conveniences like washing machines. This energy poverty disproportionately affects women and children, exacerbating inequality and health risks.

The Liberty Energy mission advocates for "Zero Energy Poverty by 2050," a humane and achievable goal. The report emphasizes that improving energy access in developing nations requires expanding the availability of affordable and reliable hydrocarbons. Initiatives like Liberty’s Bettering Human Lives Foundation aim to provide clean cooking solutions to reduce traditional fuels' health and environmental hazards.

In developed nations, energy poverty manifests differently but remains a concern. The report cites rising energy costs due to restrictive policies as a contributor to underheated homes and avoidable winter deaths. For instance, during the winter of 2022-2023, soaring energy prices in Europe were linked to over 68,000 excess deaths.

The report concludes that improving energy access globally is a moral imperative. Policies prioritizing energy affordability and security over unrealistic emissions targets can uplift millions from poverty while fostering economic resilience and environmental sustainability.

IV. Why is Climate Change a Misguided Focus?

While acknowledging climate change as a significant challenge, the report argues that it is not humanity’s most pressing issue. Instead, it prioritizes combating malnutrition, diseases, and air pollution. The report critiques alarmist narratives and policies prioritizing carbon reduction over broader developmental goals.

Empirical data counters claim that climate change exacerbates extreme weather. Trends indicate declining deaths from weather-related events due to increased societal resilience powered by hydrocarbons. The report advocates for adaptation over mitigation, emphasizing the importance of reliable energy in protecting communities from climate impacts.

Liberty Energy criticizes current climate policies for their economic and geopolitical consequences. Policies that inhibit hydrocarbon production without viable alternatives lead to energy scarcity and higher costs, disproportionately affecting the most vulnerable populations. The report uses examples like Germany’s energy policies to illustrate these pitfalls.

The report proposes a balanced approach, combining energy realism with technological innovation. It argues that investing in scalable, low-carbon solutions like advanced nuclear reactors and geothermal energy is essential for addressing climate concerns without undermining development.

V. What does the Report say about Energy Security and Geopolitics?

Energy independence is a key theme, with the American Shale Revolution highlighted as a transformative event. The U.S. has shifted from being the world’s largest oil importer to a net exporter, enhancing economic stability and geopolitical leverage. This shift has reduced global energy prices, benefiting consumers worldwide.

China’s dominance in energy-intensive manufacturing is attributed to its reliance on domestic coal and strategic energy investments. The report critiques Western nations for outsourcing manufacturing to countries with higher emissions, undermining climate goals and economic competitiveness.

Energy security is framed as critical for national and global stability. The report warns that policies limiting hydrocarbon infrastructure in wealthy nations could destabilize markets and increase reliance on less stable suppliers. For example, Europe’s energy crisis during the Ukraine conflict underscored the dangers of over-dependence on imports.

The report concludes that a diversified energy portfolio, including hydrocarbons, renewables, and nuclear, is essential for long-term security. It advocates for policies that balance energy independence with environmental considerations to ensure global stability and prosperity.

VI. Why is the Energy Transition a Fallacy?

The concept of an "energy transition" is critiqued as a misnomer. The report argues that global energy systems have historically evolved through additions rather than replacements. For example, while renewables have grown, hydrocarbons remain indispensable for primary energy needs.

Renewable energy sources like wind and solar are limited by their intermittent nature and high land and material requirements. Despite substantial investments, their contribution to global energy demand remains minimal. Nuclear energy, while promising, faces regulatory and public perception challenges that limit its scalability.

The report calls for a realistic understanding of energy systems. It emphasizes the importance of incremental progress, integrating new technologies alongside hydrocarbons to meet rising global demand. For instance, advanced nuclear and geothermal technologies are positioned as promising complements rather than substitutes.

Energy efficiency, often touted as a solution, is critiqued through the "Jevons paradox." Historical trends indicate that efficiency gains increase energy consumption, as cheaper energy drives economic growth and demand. Thus, the report advocates for expanding energy availability rather than limiting consumption.

That concludes Section VI. I have hit a new paid subscriber threshold, so you must now be a paid subscriber to view the last four sections:

• VII. What does the Report say about Trade-offs in Energy Choices?

• VIII. What is the Report’s Vision for a Better Future?

• IX. What does The X Project Guy have to say?

• X. Why should you care?

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VII. What does the Report say about Trade-offs in Energy Choices?