Mark P. Mills, a policy wonk at the Manhattan Institute, explains that the Green Energy Revolution that is supposed to replace the use of fossil fuels in the immediate future is entirely a fantasy, a case of magical thinking that would require the abolition of limits inherent in the laws of physics.

A growing chorus of voices is exhorting the public, as well as government policymakers, to embrace the necessity—indeed, the inevitability—of society’s transition to a “new energy economy.”

Advocates claim that rapid technological changes are becoming so disruptive and
renewable energy is becoming so cheap and so fast that there is no economic risk in accelerating the move to—or even mandating—a post-hydrocarbon world that no longer needs to use much, if any, oil, natural gas, or coal.

Central to that worldview is the proposition that the energy sector is undergoing the same kind of technology disruptions that Silicon Valley tech has brought to so many other markets. Indeed, “old economy” energy companies are a poor choice for investors, according to proponents of the new energy economy, because the assets of hydrocarbon companies will soon become worthless, or “stranded.” Betting on hydrocarbon companies today is like betting on Sears instead of Amazon a decade ago.

“Mission Possible,” a 2018 report by an international Energy Transitions Commission, crystallized this growing body of opinion on both sides of the Atlantic. To “decarbonize” energy use, the report calls for the world to engage in three “complementary” actions: aggressively deploy renewables or so-called clean tech, improve energy efficiency, and limit energy demand.

This prescription should sound familiar, as it is identical to a nearly universal energy-policy consensus that coalesced following the 1973–74 Arab oil embargo that shocked the world. But while the past half-century’s energy policies were animated by fears of resource depletion, the fear now is that burning the world’s abundant
hydrocarbons releases dangerous amounts of carbon dioxide into the atmosphere.

To be sure, history shows that grand energy transitions are possible. The key question today is whether the world is on the cusp of another. The short answer is no. There are two core flaws with the thesis that the world can soon abandon hydrocarbons. The first: physics realities do not allow energy domains to undergo the kind of revolutionary change experienced on the digital frontiers. The second: no fundamentally new energy technology has been discovered or invented in nearly a century—certainly, nothing analogous to the invention of the transistor or the Internet.

Before these flaws are explained, it is best to understand the contours of today’s hydrocarbon-based energy economy and why replacing it would be a monumental, if not an impossible, undertaking.