Is Water Really the New Oil?

This is a subject we’ve discussed before but under the current financial conditions around the world the most important things are the most basic – food, clothing and shelter. And as Jacques Cousteau often pointed out, “Air and Water, the two essentials for human life, have been thrown in the garbage.”

Today’s mission is to compare (1) the values, and (2) the costs of using these two naturally found substances.

Water covers at least 70% of the earth. Oil occurs underground in decreasing availability. As a result oil is much more expensive to obtain and use.

But the finding and producing petroleum, oil and gas, involve huge financial processes that, not surprisingly, wield huge political power. And huge profits.

OPEC, the “Big Five” International Oil companies (ExxonMobil, Royal Dutch Shell, BP, Chevron and ConocoPhillips), and to a lesser degree the second-tier oil companies run pretty much out of control. There are few, if any, significant government controls that limit the actions of these giants. They are entrenched.

On the other hand, water companies are plentiful but most are public utilities rather than private corporations. And their product is carefully controlled, both as to purity and cost. Furthermore it has been shown that privately held water companies charge more for their product and are not in the business of developing water power in any respect.

So what is needed for water to replace oil? What is needed is investment in companies that will find and develop water sources for the generation of electricity. Oil can only be replaced as a burning fuel when hydro generated electricity can replace oil-generated power. And this would ultimately include the use of electric cars replacing gas fired vehicles.

So we must be very clear in separating (1) the water used for human consumption from (2) the water used to generate electricity. Water generated electricity is vastly cheaper than that generated by coal, oil or gas. As such hydropower companies can show very strong financial positions – attractive to investors.

So it follows that if and when water replaces the fossil fuels for power generation – it could be considered “the New Oil.” It would not compete with the water utilities that bring clean water to your home or business but could in fact ensure that power generation would no longer cause the air and water pollution of the Fossil Barons.