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Leveraging energy: why China succeeds where the US fails

CS Monitor -- If an employer wants to maximize profits, it will want to leverage its use of high-priced energy sources. From an employer’s point of view, there are basically three kinds of energy, from most to least expensive:1. Human energy
2. Petroleum energy
3. Everything else

If an employer wants to keep its costs low, it needs to minimize its use of expensive energy sources. The primary way it does this is by leveraging expensive energy sources with cheaper energy sources that help keep overall energy costs in line with what competitors (including overseas competitors) are paying. Thus, employers will want to use as little human and petroleum energy as possible, instead using cheap energy to substitute.


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Submitted Dec 09, 2012 By: skb69sa
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: Leveraging energy: why China succeeds where the US fails Back to Topics
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honda0105
Champion Author Tallahassee

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Message Posted: Dec 13, 2012 12:20:58 AM

not suprised that China is better, esp. at controlling human energy (aka labor).
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goldrose1
Champion Author Cleveland

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Message Posted: Dec 10, 2012 8:06:15 PM

Check
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PDQBlues
Champion Author San Diego

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Message Posted: Dec 9, 2012 10:19:30 PM


Very good points, nsdp. The biggest problem with US corporations and their executives is that they look only at short-term gains. If they took a longer-term approach, much of the problems would be readily solved. Although I think any autocratic system such as China is doomed for failure, they have at least the foresight to take a long-term approach to their economic and capitalistic system.
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mitt4prez
Champion Author Tacoma

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Message Posted: Dec 9, 2012 3:53:25 PM

"From an employer’s point of view, there are basically three kinds of energy, from most to least expensive:1. Human energy
2. Petroleum energy
3. Everything else
"

What sort of drugs is this author on? Peteroluem energy is more expensive than "Green" energy? Then why the hell are so many subsidies needed for "Green" energy?
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nsdp
Champion Author San Antonio

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Message Posted: Dec 9, 2012 11:37:20 AM

Your people should look up the Chinese 11th 5 year plan. The Chinese are building lots of new coal plants. But the design they use requires 3 tons of coal to generate the same amount of electricity as a US plant that uses 4 tons. China has an energy foot print per person 1/3 that of the US. They also tear down 3% of the most inefficient coal plants every year. Plants they are tearing down now are more efficient than 50%of the US coal fleet.

With China's rapid modernization they will soon be able to whip the US on energy costs in industry if we don't modernize.

So a modern efficient energy supply system is going to beat what we have unless the US corporate leadership is willing to get out and modernize. That means new efficient plants and not retrofits of old inefficient plants. Labor plus transportation has pretty well evened out labor costs.
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Canucktree
Champion Author Alberta

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Message Posted: Dec 9, 2012 11:11:36 AM

I agree with dr047. Wait until they all realize the rest of the world does not live at their factory!
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dr047
Champion Author Cleveland

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Message Posted: Dec 9, 2012 9:31:55 AM


Slave Labor
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merlinCO
Champion Author Colorado

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Message Posted: Dec 9, 2012 9:25:09 AM

The Chinese don't have a Union that will put the deadbeat worthless non worker back to work after being caught on tape smoking and drinking. They fire em and dishonor the family.
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Discovery02
Champion Author Colorado Springs

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Message Posted: Dec 9, 2012 9:09:07 AM

It shows how things have deteriorated that humans are just considered by businesses as simply cogs in the machine to be used and abused and then discarded all at the lowest cost possible.
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Wierbe
Champion Author Cincinnati

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Message Posted: Dec 9, 2012 8:54:54 AM

What a rotten way to consider humans - a form of energy. I do not like the tone and tenor of this article, even if it is true. The human race is MUCH more than an energy source, as most socialist governments eventually discover.
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Straitliner
Champion Author Illinois

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Message Posted: Dec 9, 2012 8:45:23 AM

Pi$$ on China.
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RockCity
Champion Author Denver

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Message Posted: Dec 9, 2012 8:31:32 AM

>Obummer loves China but he has NO business sense.

Seems orummy loves china too. That's why he sends them our jobs. Good business sense I suppose, perhaps.
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stratlinetime
Champion Author Kalamazoo

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Message Posted: Dec 9, 2012 8:23:49 AM

Cheap labor rates
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RichardoB
Champion Author Fayetteville

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Message Posted: Dec 9, 2012 8:23:17 AM

Cheap labor.
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Sneakers55
Champion Author Houston

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Message Posted: Dec 9, 2012 8:22:31 AM

On Dec 9, 2012 6:58:23 AM, NotTom wrote:

>China does not have the EPA and their rules on energy.

China is a non-signatory to the Kyoto Protocol, so is the USA.

>They will use what the EPA forbids us from using...

Not for long...
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tbgasmizer
Champion Author Ontario

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Message Posted: Dec 9, 2012 8:20:26 AM

What?
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Skipper52
Champion Author Massachusetts

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Message Posted: Dec 9, 2012 8:20:11 AM

And so America will be destroyed not with a bang but whimper.
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mnbeancounter
Champion Author Minnesota

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Message Posted: Dec 9, 2012 8:20:08 AM

When will the next major depression begin?
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dan30thz28
Champion Author New Jersey

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Message Posted: Dec 9, 2012 8:19:27 AM

And they pay their workers next to nothing.
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sciguyrulz
Rookie Author Houston

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Message Posted: Dec 9, 2012 8:19:06 AM

Rednix (an many others) have it right; china has lowered the cost of human energy allowing them to compete on a different level... And creating a model we have no interest in copying!
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nstrdnvstr
Champion Author Twin Cities

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Message Posted: Dec 9, 2012 8:18:02 AM

Decades ago, the same things were being said about Japan... look where they are now.
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The3rd
Champion Author Jacksonville

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Message Posted: Dec 9, 2012 8:17:28 AM

ok
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1stClicker
Champion Author Texas

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Message Posted: Dec 9, 2012 8:17:02 AM

Obummer loves China but he has NO business sense.
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METEOR49
Champion Author Ontario

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Message Posted: Dec 9, 2012 8:15:36 AM

free trade will be our downfall, all the chinese junk that comes into north america with no tariffs destroys jobs here !
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papou
Champion Author Tampa

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Message Posted: Dec 9, 2012 8:15:26 AM

The Chinese goal is to take over the world economically morally and politically
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jiml1965
Champion Author Harrisburg

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Message Posted: Dec 9, 2012 8:14:53 AM

cheap energy like coal
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SpruceGuse2
Champion Author Michigan

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Message Posted: Dec 9, 2012 8:12:45 AM

We didn't fsil, we just quit trying to soon.....................
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Cableman66
Champion Author North Carolina

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Message Posted: Dec 9, 2012 8:11:39 AM

When the bill collector arrives they will speak Chinese.
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wally52
Champion Author Little Rock

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Message Posted: Dec 9, 2012 8:10:54 AM

Really
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biza4u
Champion Author New Haven

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Message Posted: Dec 9, 2012 8:09:30 AM

Ok
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mar2100
Veteran Author Cleveland

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Message Posted: Dec 9, 2012 8:09:25 AM

surprise
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joko0
Champion Author New Jersey

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Message Posted: Dec 9, 2012 8:09:13 AM

China has less expensive human resources.
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FocusGuy
Champion Author Seattle

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Message Posted: Dec 9, 2012 8:07:28 AM

they will take over at some point
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Hunter114
Champion Author Chicago

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Message Posted: Dec 9, 2012 8:05:58 AM

Vamike is right: The ChiComs are no role model.
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AcuraTSX
Champion Author Ohio

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Message Posted: Dec 9, 2012 8:05:48 AM

Lesson missed.
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cigarman409
Champion Author Massachusetts

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Message Posted: Dec 9, 2012 8:05:47 AM

ok
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Z06KY
Champion Author Louisville

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Message Posted: Dec 9, 2012 8:04:39 AM

Use more clean coal in the US.
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icer06
Champion Author Huntsville

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Message Posted: Dec 9, 2012 8:04:08 AM

of course
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Cachase1
Champion Author Oklahoma City

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Message Posted: Dec 9, 2012 8:03:28 AM

It seems to be working.
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fightbigoil71
Champion Author Milwaukee

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Message Posted: Dec 9, 2012 8:01:44 AM

okay
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look-gas
Veteran Author Cleveland

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Message Posted: Dec 9, 2012 8:01:27 AM

yes
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Badmoon
Champion Author Massachusetts

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Message Posted: Dec 9, 2012 8:00:26 AM

Interesting. Maybe there are too many people in the world to support with the methods and resources currently available.
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bigsranch
Champion Author Houston

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Message Posted: Dec 9, 2012 8:00:08 AM

China and the US are engaged in a currency war. If we crash ours first, then we pay back that Chinese debt with worthless dollars. Sorry, China!
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Rich_pa
Champion Author Cincinnati

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Message Posted: Dec 9, 2012 7:58:39 AM

Then why do they use so much oil that makes are prices go up?
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TXGasPriceSpy
Champion Author Fort Worth

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Message Posted: Dec 9, 2012 7:58:25 AM

vamike is correct.
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NotTom
Champion Author New Hampshire

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Message Posted: Dec 9, 2012 7:58:23 AM

China does not have the EPA and their rules on energy. They will use what the EPA forbids us from using...
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Pointtx
Champion Author Austin

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Message Posted: Dec 9, 2012 7:57:58 AM

I would not view the first paragraph as factually accurate in all countries, certainly not China. For US business planning, yes. But if you know of any public US company that is using an expensive option where a cheaper option is available, you know of a company ripe for a shareholder lawsuit due to the wonderful SEC regs we have.
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naw62
Champion Author Maine

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Message Posted: Dec 9, 2012 7:57:54 AM

China doesn't pay there people anything and overcharge for gas
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oldred11
Champion Author Indianapolis

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Message Posted: Dec 9, 2012 7:57:21 AM

"If we look at China’s energy leveraging, we see that it uses very little oil and much coal. . ."

If that is the case why is China buying so much oil and why did the price of oil spike when China became a capitalistic, oil burning society?
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1Boog
Champion Author Lincoln

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Message Posted: Dec 9, 2012 7:56:54 AM

China has the capital to spend when the US just borrows it!!
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