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From the plains of North Dakota to the deep waters of Brazil, dozens of major oil and gas projects have been suspended or canceled in recent weeks as companies scramble to adjust to the collapse in energy markets.

oil-on-water

It would be foolhardy to depend on today’s lower energy prices – in this stalled economy – to determine whether or not we should develop alternatives to oil – as within two years we are going to be faced with the same climbing energy prices and the same scarcity of oil.

In the short run, falling oil prices are leading to welcome relief at the pump for American families ahead of the holidays, with gasoline down from its summer record of just over $4 to an average of $1.66 a gallon, and still falling.

But the project delays are likely to reduce future energy supplies — and analysts believe they may set the stage for another surge in oil prices once the global economy recovers.

Oil markets have had their sharpest-ever spikes and their steepest drops this year, all within a few months. Now, with a global recession at hand and oil consumption falling, the market’s extreme volatility is making it harder for energy executives to plan ahead. As a result, exploration spending, which had risen to a record this year, is being slashed.

The precipitous drop in oil prices since the summer, coming on the heels of a dizzying seven-year rise, was a reminder that the oil business, like those of most commodities, is cyclical. When demand drops and prices fall, companies curb their investments, leading to lower supplies. When demand recovers, prices rise again and companies start to invest in new production, starting another cycle.

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The reason why Bush would say – we need to get off our oil addiction – is because as a man who drilled for oil unsuccessfully – he is in the best place to understand the addiction to finding and dealing in oil – he’s the biggest addict.

Al Gore sounded the warning back in 2000 for the environment – when he said we need to move away from the combustion engine – because the polutatants were causing climate change – then the media echoed the Republican charge that the car industry would fail. Then there is another cost – moving leaps and bounds in technology – we have smaller this and faster that – but when it comes to energy technology everything is frozen – just like these Saudi oil reps. stuck in a time warp.

How many calls have their been for a ‘Steve Jobs’ to take over the car industry – because we know what can be achieved. A lot of this backwardness – in energy technology – is almost certainly due to the oil lobby. But there’s even a problem with this – the oil fields used to be controlled by western nations – so although they still make lots of money – the oil industry is likely not as profitable as it once was when they controlled the wells. So now $700 billion from America alone – goes to the Middle East. A place which doesn’t see a whole range of individual freedoms as a priority – and who depend almost entirely on the west for technology. Now imagine our western oil lobby being replaced by theirs. In short we could be trading our freedoms for the oil.

What they are doing at the moment primarily is building mosques everywhere – so they can build a mosque here – but you can’t build a church there. Russia recently – has enough oil of its own – when approached by the Saudis to build a mosque in their capital – told the Saudis well let us kindly build a Russian Orthodox church in your capital. Russia found that 80% of the written material in their mosques was radical – in the US the numbers are similar and most of this radicalized information is coming directly from Saudi Arabia *what was the info. saying – pretty much don’t mix in – don’t make friends with westerns or don’t respect their costumes.

We need to get off the oil for a variety of reasons – and we should not let guys who know nothing about technology – tell us what is or is not possible.

GM Volt technology allows a car to drive for 40 miles before switching over to gas/petrol – but we already have electric cars like the Tesla that can go 240 miles without recharging – plenty enough for everyday driving – at about 2 cents/mile to run.

It seems that the auto makers are stalling ~

US Auto makers roll out fuel efficient cars

Here a pro-future energy plan – quickly constructed.

In the future we are going to drive vehicles with mechanics which don’t use oil and gas.

Our factories will be powered by an energy source which cost little or nothing – lowering the cost of production.

The amount spent on energy could be shifted to research and development – we could create more if we don’t have to factor in the energy cost.

Once the cost of energy is out of the equation — as with most things there is an energy cost to manufacture it, and another energy cost to deliver it – to the wholesaler – then another energy cost to either deliver it to the consumer or the retail outlet, each time a product has to be moved or made or cooked, then the energy cost is added on to it like a tax.

Once you take that expense out of the system – then you are instantly looking a system where there is more money.

In your own home – if we don’t have to pay for electricity or heating, or gas to power our cars – or if we can significantly reduce these costs in the short term – and say wages stay the same – then you could instantly see how you could have more money in your own household. But if we could take the cost of energy out of the whole system, or significantly reduce it, then we could see how there would be more money for everyone – as sales or demand may go up and prices go down. We become the limiting factor and not energy availability or its cost. How we want to use and recycle materials for use again, becomes the limiting factors, on what we produce.

TOLEDO, Ohio – No blaring country songs. No pink handmade signs. No rousing chants of “Drill, baby, drill.”

Gov. Sarah Palin abandoned the usual flash of her campaign rallies on Wednesday to deliver her second policy speech as the Republican vice-presidential nominee, an address focused on energy security.

Standing on a riser above a concrete floor, under the glare of fluorescent lighting, Ms. Palin addressed fewer than 200 people, mostly employees of Xunlight Corporation, a spin-off from the University of Toledo that manufactures solar energy implements.

She called for greater energy independence, blaming decades of presidents and legislators for failing to achieve it.

“It’s been 30 years’ worth of failed energy policies in Washington, 30 years where we’ve had opportunities to become less reliant on foreign sources, and 30 years of failure in that area,” Ms. Palin said. “We must steer far clear of the errors and false assumptions that have marked the energy policies of nearly 20 Congresses and seven presidents.”

Ms. Palin also laid the blame at the feet of her Democratic counterpart, Senator Joseph R. Biden Jr., who has opposed offshore drilling. Mr. Biden was overheard telling a supporter on the campaign trail that he did not support clean-coal technology in the United States.

“He says that clean coal is O.K. for China, but sorry, Ohio, Joe Biden says it’s not for you,” she said. “And that is just nonsense.”

If Senator John McCain is elected, she added, $2 billion a year would be devoted to clean-coal research and development.

Ohio Gov. Ted Strickland released a response on behalf of the Obama campaign:

    “In a bit of rare straight talk, Sarah Palin attacked her own running mate’s record today by blaming our oil addiction on ‘thirty years of failure’ in Washington,” said Governor Ted Strickland. “John McCain was there for twenty-six of those years, during which he voted against alternative sources of energy and stood with oil industry lobbyists instead. Now he wants to give those oil companies an additional $4 billion in tax breaks, even as he proposes pennies for the kind of renewable energy that can end our dependence on Mideast oil and create new jobs. After decades of John McCain’s failed leadership on energy, we can’t afford four more.”

As a vice-presidential candidate, Ms. Palin has leaned heavily on her record in Alaska challenging the power of oil companies, and as governor, she negotiated a $40 billion pipeline that would deliver natural gas from the North Slope of Alaska to the lower 48 states. But that project, which she described in her speech on Wednesday, is years away from federal approval and will not be built for at least a decade.

Source: NYT

When it comes to the environment, John McCain only has the interests of Big Oil at heart. That’s why he has over 22 Big Oil lobbyists advising him. That’s why he favored lifting the moratorium on off-shore drilling — a move that prompted Big Oil to donate over $1 million to his campaign. And thanks to the League of Conservation Voters, we’ve got the proof!