Not Logged In Log In   Sign Up   Points Leaders
Follow Us    11:30 PM

GasBuddy News Article

34
votes
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.


Read the Full Article

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
REPLIES (newest first) Post a Reply
honda0105
Champion Author Tallahassee

Posts:24,034
Points:2,385,890
Joined:Nov 2008
Message Posted: Dec 13, 2012 12:20:58 AM

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

Posts:14,170
Points:2,666,185
Joined:Feb 2005
Message Posted: Dec 10, 2012 8:06:15 PM

Check
PDQBlues
Champion Author San Diego

Posts:10,293
Points:2,220,200
Joined:Jan 2009
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.
mitt4prez
Champion Author Tacoma

Posts:4,984
Points:2,005,165
Joined:Nov 2007
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?
nsdp
Champion Author San Antonio

Posts:1,119
Points:77,430
Joined:Jun 2012
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.
Canucktree
Champion Author Alberta

Posts:7,566
Points:1,720,885
Joined:Dec 2008
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!
dr047
Champion Author Cleveland

Posts:5,548
Points:1,227,865
Joined:Aug 2010
Message Posted: Dec 9, 2012 9:31:55 AM


Slave Labor
merlinCO
Champion Author Colorado

Posts:4,874
Points:1,110,160
Joined:Mar 2012
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.
Discovery02
Champion Author Colorado Springs

Posts:8,605
Points:1,054,595
Joined:May 2012
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.
Wierbe
Champion Author Cincinnati

Posts:6,878
Points:1,879,395
Joined:Apr 2006
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.
Straitliner
Champion Author Illinois

Posts:4,820
Points:1,007,130
Joined:Sep 2012
Message Posted: Dec 9, 2012 8:45:23 AM

Pi$$ on China.
RockCity
Champion Author Denver

Posts:11,383
Points:2,195,835
Joined:Mar 2009
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.
stratlinetime
Champion Author Kalamazoo

Posts:5,521
Points:1,339,245
Joined:Feb 2011
Message Posted: Dec 9, 2012 8:23:49 AM

Cheap labor rates
RichardoB
Champion Author Fayetteville

Posts:10,307
Points:2,549,820
Joined:Jun 2007
Message Posted: Dec 9, 2012 8:23:17 AM

Cheap labor.
Sneakers55
Champion Author Houston

Posts:63,955
Points:2,799,165
Joined:Nov 2005
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...
tbgasmizer
Champion Author Ontario

Posts:6,053
Points:1,231,220
Joined:Oct 2009
Message Posted: Dec 9, 2012 8:20:26 AM

What?
Skipper52
Champion Author Massachusetts

Posts:10,414
Points:2,319,825
Joined:Oct 2008
Message Posted: Dec 9, 2012 8:20:11 AM

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

Posts:7,867
Points:1,793,155
Joined:Oct 2009
Message Posted: Dec 9, 2012 8:20:08 AM

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

Posts:9,081
Points:2,741,425
Joined:Feb 2006
Message Posted: Dec 9, 2012 8:19:27 AM

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

Posts:48
Points:995,935
Joined:Mar 2011
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!
nstrdnvstr
Champion Author Twin Cities

Posts:41,658
Points:4,754,725
Joined:May 2001
Message Posted: Dec 9, 2012 8:18:02 AM

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

Posts:3,137
Points:888,805
Joined:Jul 2004
Message Posted: Dec 9, 2012 8:17:28 AM

ok
1stClicker
Champion Author Texas

Posts:8,534
Points:3,015,790
Joined:Oct 2005
Message Posted: Dec 9, 2012 8:17:02 AM

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

Posts:5,420
Points:1,231,210
Joined:Apr 2011
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 !
papou
Champion Author Tampa

Posts:13,978
Points:2,653,550
Joined:Jul 2005
Message Posted: Dec 9, 2012 8:15:26 AM

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

Posts:4,027
Points:1,332,465
Joined:Jan 2011
Message Posted: Dec 9, 2012 8:14:53 AM

cheap energy like coal
SpruceGuse2
Champion Author Michigan

Posts:12,872
Points:3,204,315
Joined:Mar 2006
Message Posted: Dec 9, 2012 8:12:45 AM

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

Posts:5,684
Points:1,264,200
Joined:May 2011
Message Posted: Dec 9, 2012 8:11:39 AM

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

Posts:33,566
Points:1,543,345
Joined:Jan 2011
Message Posted: Dec 9, 2012 8:10:54 AM

Really
biza4u
Champion Author New Haven

Posts:11,731
Points:2,398,290
Joined:Jan 2007
Message Posted: Dec 9, 2012 8:09:30 AM

Ok
mar2100
Veteran Author Cleveland

Posts:348
Points:16,925
Joined:Sep 2012
Message Posted: Dec 9, 2012 8:09:25 AM

surprise
joko0
Champion Author New Jersey

Posts:2,492
Points:1,025,940
Joined:Oct 2008
Message Posted: Dec 9, 2012 8:09:13 AM

China has less expensive human resources.
FocusGuy
Champion Author Seattle

Posts:10,221
Points:2,170,375
Joined:Apr 2009
Message Posted: Dec 9, 2012 8:07:28 AM

they will take over at some point
Hunter114
Champion Author Chicago

Posts:16,962
Points:2,217,760
Joined:Apr 2009
Message Posted: Dec 9, 2012 8:05:58 AM

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

Posts:6,840
Points:2,905,215
Joined:Dec 2005
Message Posted: Dec 9, 2012 8:05:48 AM

Lesson missed.
cigarman409
Champion Author Massachusetts

Posts:7,279
Points:2,565,670
Joined:Jul 2007
Message Posted: Dec 9, 2012 8:05:47 AM

ok
Z06KY
Champion Author Louisville

Posts:8,404
Points:1,675,450
Joined:Nov 2010
Message Posted: Dec 9, 2012 8:04:39 AM

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

Posts:5,539
Points:1,198,030
Joined:Jan 2012
Message Posted: Dec 9, 2012 8:04:08 AM

of course
Cachase1
Champion Author Oklahoma City

Posts:14,698
Points:3,156,110
Joined:Aug 2003
Message Posted: Dec 9, 2012 8:03:28 AM

It seems to be working.
fightbigoil71
Champion Author Milwaukee

Posts:10,721
Points:2,296,265
Joined:Nov 2008
Message Posted: Dec 9, 2012 8:01:44 AM

okay
look-gas
All-Star Author Cleveland

Posts:622
Points:3,129,410
Joined:Jan 2004
Message Posted: Dec 9, 2012 8:01:27 AM

yes
Badmoon
Champion Author Massachusetts

Posts:11,549
Points:2,427,495
Joined:Oct 2008
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.
bigsranch
Champion Author Houston

Posts:3,751
Points:1,165,860
Joined:Apr 2007
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!
Rich_pa
Champion Author Cincinnati

Posts:2,764
Points:940,935
Joined:Oct 2012
Message Posted: Dec 9, 2012 7:58:39 AM

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

Posts:11,068
Points:2,239,500
Joined:Sep 2008
Message Posted: Dec 9, 2012 7:58:25 AM

vamike is correct.
NotTom
Champion Author New Hampshire

Posts:7,681
Points:2,001,810
Joined:Aug 2005
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...
Pointtx
Champion Author Austin

Posts:6,293
Points:1,461,275
Joined:Mar 2011
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.
naw62
Champion Author Maine

Posts:12,422
Points:2,905,390
Joined:Sep 2006
Message Posted: Dec 9, 2012 7:57:54 AM

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

Posts:4,714
Points:1,503,445
Joined:Mar 2011
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?
1Boog
Champion Author Lincoln

Posts:8,723
Points:1,866,500
Joined:May 2004
Message Posted: Dec 9, 2012 7:56:54 AM

China has the capital to spend when the US just borrows it!!
slowpoke63
Champion Author Louisiana

Posts:5,407
Points:1,513,145
Joined:Jul 2009
Message Posted: Dec 9, 2012 7:56:50 AM

Interesting.
Post a reply Back to Topics