The 1-2-3s of Energy: Everything You Need to Know
This section on energy is a big project, and it will grow over time. I have a lot of data to sift through and organize, and eventually, there will be several detailed sections.
I created this space to give you clear, accurate information about all major energy sources. There’s a flood of misinformation, confusion, and propaganda out there. Without deep research, it’s hard to tell fact from fiction.
Why does energy attract so much misinformation?
First, understand this: energy is the biggest and most important market in the world.
Everything runs on energy.
More money moves through the energy sector than probably the next five largest industries combined (in my estimate). Just consider oil production alone — about 85 million barrels a day. At $100 per barrel, that’s over $3 trillion per year. Even at $50 per barrel, it’s still enormous.
That’s just oil. We haven’t even factored in coal, natural gas, electricity generation, transportation, shipping, pipelines, and more.
The Scale of Energy
To give you perspective:
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Coal is nearly as large as oil. As of 2013, coal supplied ~41% of global electricity and 29% of total world energy — second only to oil (31%).
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The global coal industry alone is worth roughly $1 trillion.
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Oil tankers transport ~14 trillion barrels annually.
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Pipelines and railroads move even more — including coal and oil.
We haven’t touched on natural gas, hydroelectric dams, or renewables yet.
In the U.S. alone, there are over 100,000 dams — not all produce power, but many do.
In the U.S. alone, there are over 100,000 dams — not all produce power, but many do.
Simply put: the energy sector is colossal.
If you viewed the Earth from space, energy would be the oceans — everything else we do would be just one of the rivers.
If you viewed the Earth from space, energy would be the oceans — everything else we do would be just one of the rivers.
How Energy Powers Civilization
Energy powers:
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All transportation
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Our food systems and water delivery
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Cities, factories, heating, cooling, and tech devices
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It even shapes weather, influences culture, and drives geopolitics.
Wars have been fought over energy since the discovery of fire — mostly in the Middle East.
Why Energy Sparks Conflict
Now you can see why there’s so much fighting, politics, and competition around energy — and why misinformation runs rampant.
Why the conflicting narratives?
Industries worth hundreds of billions to trillions of dollars have strong incentives to promote their version of the story.
For example:
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The coal industry faces criticism over pollution — so it counters by attacking renewables and natural gas.
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Do oil and gas companies want to see cars running on electricity or hydrogen fuel cells? Not likely.
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Do wind turbine companies promote oil or coal? Of course not.
These industries:
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Spend huge sums on advertising, lobbying, and public relations
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Fund environmental groups to oppose rival energy sectors
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Maintain deep political connections and lobbying organizations
This constant back-and-forth creates twisted data, biased analysis, and conflicting narratives.
Why You Should Trust My Analysis
I have a background in electrical engineering and analytics:
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Studied electronics in high school and college
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Started my career at IBM, working in electronics, systems, and business analysis
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Invested and researched energy and resource stocks for over 30 years
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Visited numerous oil, gas, and electrical generation facilities
My analytical mindset taught me to examine all data from every angle — and verify it.
In this section, I’ll lay out what I’ve learned about energy markets in a clear, organized way.
I’ll break down:
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Advantages and disadvantages of each energy source
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Why some sources are better suited for specific uses, locations, and conditions
The Main Types of Energy
We’ll start by listing each energy source, along with key facts and characteristics:
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Solar / Sun
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Fossil Fuels (oil, coal, natural gas)
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Nuclear
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Renewables (that produce electricity or mechanical energy)
Common Energy Sources & Their BTU Values
We use BTU (British Thermal Unit) to measure energy.
1 BTU ≈ the heat from burning one wooden match.
1 BTU ≈ the heat from burning one wooden match.
|
Energy Source
|
BTUs Produced
|
|---|---|
|
1 ton of coal
|
28,000,000
|
|
1 barrel crude oil (42 gal)
|
5,800,000
|
|
1 gallon diesel
|
139,000
|
|
1 gallon heating oil
|
139,000
|
|
1 gallon gasoline
|
124,000
|
|
1 pound of wood (air-dried)
|
8,000
|
|
1 kilowatt-hour electricity
|
3,412
|
|
1 cubic foot propane
|
2,550
|
|
1 cubic foot natural gas
|
1,028
|
Note: This is just a comparison of energy content — not efficiency or practicality. For example, it’s much harder to transport a ton of coal than a gallon of gasoline.
The Power of the Sun
Most people think of solar panels when they hear "solar power," but the Sun’s influence goes far beyond that.
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The Sun heats our entire planet and drives weather patterns.
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Solar energy causes wind, which powers wind turbines.
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It fuels the water cycle, moving water from oceans to land, which creates rivers that drive hydroelectric dams.
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The Sun is essential for the air we breathe and the food we grow.
You could even argue that fossil fuels (coal, oil, gas) are ancient, stored solar power — formed millions of years ago when solar-driven plant life was buried and transformed underground.
Fossil Fuels
Fossil fuels are ancient, concentrated stores of solar energy, created from decayed plants and animals compressed over millions of years under heat and pressure.
The three main types are:
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Coal
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Oil
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Natural Gas
Each has unique properties and ideal uses.
Coal
Coal is the most abundant fossil fuel and has been a key driver of the Industrial Revolution.
Advantages
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Extremely abundant and widely distributed (especially in the U.S., China, India, Russia)
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High energy density (lots of BTUs per ton)
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Inexpensive to mine and transport (especially for nearby power plants)
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Ideal for baseload electricity generation (steady, 24/7 power)
Disadvantages
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High pollution (sulfur dioxide, nitrogen oxides, mercury, particulates)
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Largest CO₂ emitter per unit of energy among fossil fuels
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Mining is environmentally disruptive (strip mining, mountaintop removal)
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Ash disposal and air quality concerns
Oil
Oil is the most versatile fossil fuel and the backbone of the modern global economy.
Advantages
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High energy density and easy to transport (liquid form)
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Fuels nearly all transportation (cars, trucks, ships, planes)
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Used as a feedstock in plastics, chemicals, fertilizers, pharmaceuticals
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Global infrastructure (pipelines, refineries, tankers)
Disadvantages
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Still emits CO₂ (though less than coal per BTU)
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Oil spills pose major environmental risks
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Geopolitically sensitive — concentrated in the Middle East, Russia, Venezuela
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Extraction methods like fracking and deepwater drilling have environmental risks
Natural Gas
Natural gas is the cleanest-burning fossil fuel.
Advantages
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Lower CO₂ emissions (about 50% less than coal per unit of electricity)
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Abundant due to shale gas and fracking boom
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Ideal for electricity generation, industrial heat, and home heating
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Pipelines allow efficient transport
Disadvantages
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Methane leaks (a potent greenhouse gas)
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Requires extensive pipeline infrastructure
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Fracking and extraction can contaminate groundwater
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Prices can be volatile (due to weather, geopolitics)
Nuclear Energy
Nuclear energy uses uranium (or other radioactive materials) to produce heat via fission, which generates steam to drive turbines — just like a fossil fuel plant.
Advantages
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Massive energy density — a small amount of uranium produces huge amounts of energy
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Zero CO₂ emissions during operation
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Provides baseload power (constant, reliable electricity)
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Long fuel life and minimal resource extraction (compared to fossil fuels)
Disadvantages
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Nuclear waste remains radioactive for thousands of years and requires secure storage
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High upfront costs (building reactors takes years and billions of dollars)
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Public fear due to accidents (Chernobyl, Fukushima, Three Mile Island)
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Nuclear proliferation risk (materials could be used for weapons)
Key Fact
A single uranium fuel pellet (size of a fingertip) contains as much energy as:
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1 ton of coal,
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3 barrels of oil, or
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17,000 cubic feet of natural gas
Renewables
Renewable energy sources harness naturally replenishing resources like sunlight, wind, water, and heat from the Earth.
The main types are:
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Hydropower
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Wind
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Solar
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Geothermal
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Biomass
Hydropower
Generates electricity by harnessing the movement of water (usually dams).
Advantages
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Low emissions (once built)
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Reliable and controllable power output
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Can store energy (in reservoirs) to match demand
Disadvantages
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Disrupts ecosystems (fish migration, flooding habitats)
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Requires large rivers and specific geography
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Upfront environmental impact from dam construction
Wind Energy
Uses wind turbines to generate electricity.
Advantages
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Zero emissions after installation
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Free "fuel" (wind is unlimited and renewable)
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Costs have dropped dramatically
Disadvantages
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Intermittent (depends on wind speed)
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Requires large land areas (can impact views and wildlife)
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Transmission infrastructure needed to move electricity from windy regions
Solar Energy (Photovoltaic & Thermal)
Converts sunlight directly into electricity (solar panels) or uses sunlight to heat fluids to drive turbines (solar thermal).
Advantages
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Zero emissions during operation
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Scalable (from rooftop panels to large solar farms)
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Costs declining rapidly
Disadvantages
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Intermittent (no power at night, less on cloudy days)
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Land-intensive at utility scale
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Energy storage (batteries) needed for 24/7 reliability
Geothermal
Uses heat from deep underground to produce steam and generate electricity.
Advantages
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Reliable baseload power
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Very low emissions
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Small land footprint
Disadvantages
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Location-specific (needs geologically active areas)
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High upfront drilling costs
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Risk of induced earthquakes in some regions
Biomass
Burns organic material (wood, crop waste, algae) or converts it into liquid fuels (ethanol, biodiesel).
Advantages
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Uses waste materials that would otherwise decompose
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Can provide heat, electricity, or transportation fuel
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Carbon-neutral (in theory) if biomass regrows
Disadvantages
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Still produces air pollution when burned
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Large-scale production competes with food crops
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Land use and deforestation concerns
Keep talking Energy over at the Investor Lounge
June 19, 2024
