Category Archives: Energy

Can pirates lead a pricing revolution?

Who else? The number of multi-media “pirates” seem to be growing in number so fast that within the next five years a vast majority of media consumers will have joined their “revolution”. Is this really what it means to be a pirate? Yes, although I doubt the title matters, actually, other than to describe the phenomenon of the public resisting price-fixing and over-charging by giant media companies.

The big problem was that everyone, except the media companies themselves, seemed to know that manufacturing and distributing music and video was far below the graft-full $15 to $50 that the moguls want to charge. But for some reason the guys making all the money weren’t about to let the market function rationally (similar to petroleum companies?) since they knew that they had crafted “exclusive distribution rights” to the source material — a giant stick called digital rights and copyright law that they could beat consumers over the head with. Imagine a king saying to the peasants “what do you mean I don’t deserve to own all this land by virtue of birth?” Well, the essential problem is that the labels, even with their giant lobby groups and lawyers, are essentially working against human nature. Remember when American politicians used to say that the USSR could never survive because it was an artificial construct that could never overcome human nature? Yeah, well, when everyone in the world thinks your model is ready to be torn apart, I guess the king had better start thinking about letting the castle walls down before the crowds become unruly — find a way to form their own system of self-rule.

From that perspective I give you news that Warner Brothers has decided to sell DVDs for $1.50:

Warner Home Video has begun trial sales in China of a movie DVD priced at just Rmb12 ($1.50), a move likely to anger consumers in developed markets such as Europe and the US, who typically pay $20-$30 for a recently released film on DVD.[…] “This is a first step to see if the consumer can accept this product at this price,” Ms Hu said, adding that it was too early to judge the results of the experiment.

The article blames “loose enforcement of intellectual property laws” in China, but that’s just another way of saying that the life of pirates has become more popular than a life of the indentured servant. My guess is that the surveys say 10 out of 10 people do not want to have to pay an excessive use-tax without representation for everything they do and enjoy, whether that money goes to a king or a company.

Farming, Water, and Security

Compare and contrast:

1) Israelis bring high-tech food to Angola

An Israeli company is using the latest water-saving technology to grow fruit and vegetables in Angola, which imports much of its food after 27 years of civil war. […] The farm was set up at the end of the war in 2002 and has been harvesting tomatoes, peppers, cucumber, mangoes, melons and grapes for three years. In fact, the farm produces 35 tonnes of vegetables every week of the year, selling most of this food to supermarkets and restaurants in Luanda.

2) Farms ‘big threat’ to fresh water

Farming poses the biggest threat to fresh water supplies, according to a major United Nations report. Agriculture is consuming more water as the world population increases and as people turn to a Western diet, one of the scientists on the report said. Farms use two-thirds of fresh water taken from aquifers and other sources. The UN concludes that ending subsidies on pesticides and fertilisers, and realistic pricing on water, would reduce demand and pollution.

So, artificially low prices on water are creating demand that far outstrips supply, leading the earth towards a security disaster. Only when water becomes a highly valuable commodity does innovation occur, leading to more appropriate controls designed to for long-term availability and scalability.

If we oppose drilling, why do we do it?

Let’s say the public is polled, and they say they oppose something; perhaps something like drilling for oil in the Arctic Wildlife Refuge:

Question: Should oil drilling be allowed in America’s Arctic National Wildlife Refuge?

— 53 percent — Do Not Allow Oil Drilling

— 38 percent — Allow Oil Drilling

The poll found a remarkable gap in intensity of feeling about drilling: 44 percent of respondents strongly oppose drilling, while just 25 percent strongly support it. Only about 10 percent were undecided on this issue.

What then could be driving some representatives in government to press ahead with plans to drill for oil in the Arctic Wildlife Refuge? Hard to say what motives are, but that is exactly what a website is trying to figure out. Granted they have a rather heavy-handed approach, and their data is not exactly transparent, but it does show some pretty nice capabilities for collecting and presenting data.

I guess the real question is can this site demonstrate a that contributions have led to pro-drilling votes. It is odd to me that they do not have that figured out, yet they suggest you tell everyone to stop taking money. And even if they did show a trend of payments and pro-drilling votes they would still have to account for the usual correllation/causation issues…