High Tech leads Energy Revolution

by Laura Ehrenberg-Chesler on June 7, 2012

in Energy,Foreign Markets,Technology

A recent piece by Ed Yardeni makes a great case for a parallel between the High Tech Revolution of the 1990’s and the Energy Revolution lead by High Tech today.  Mr. Yardeni believes this phenomenon could solve a lot of the economic problems that we are experiencing today.

The question today is whether we are seeing the beginning of an Energy Revolution that can overcome bearish problems like the European debt crisis. In my opinion, this is a very plausible scenario. Evidence is mounting that a technology revolution in the energy industry is rapidly increasing the supply of available energy commodities, especially natural gas and oil embedded in shale. The consequences of more abundant and cheaper energy are likely to be just as beneficial to global economic growth, if not more so, than the consequences of the High-Tech Revolution. That’s because energy costs impact the standard of living of everyone on our planet.

The High-Tech Revolution and the Energy Revolution have much in common. Just as the US has been at the forefront of information technologies since the early 1990s, it is now leading the Energy Revolution. Both revolutions have been driven by entrepreneurs and engineers, primarily in the US, seeking innovations that can increase the standards of living of lots of consumers. They have been driven by the profit motive, rather than by the government’s subsidies or industrial policies. Actually, in many ways, they’ve succeeded despite the meddling of the government. The Techies lowered the cost of information processing dramatically. They’ve provided knowledge workers with the tools to innovate in lots of other industries such as the energy industry, which is relying on powerful information technologies to develop new domestic sources of energy at lower prices.

We think this theory has real validity.

Leave a Comment

Previous post:

Next post: