American BIG OIL Execs get 'what for' and some sweet talk from House Select Energy Commitee
April 1 Washington DC
Dragged or volunteered, the heads of the big 5 American Oil companies appeared before the House Select Energy Committee today to answer questions about everything from windfall profits and executive salaries to alternative fuels research. Republicans sweet talked their honored guests by sympathizing with their development and exploration cost burdens, excessive taxes and over-regulation by an environmentally sensitive governement. Democrats meanwhile, unleashed a more critical barrage of probing questions while banging the gong for everything ethanol and alternative.
It was true theater as weathered executives from Shell, Exxon, BP, Conoco Phillips, and Chevron danced around questions from various legislators, gave short advocacy speeches, threw in their own share of manure and fell into more than one beartrap. It was amusing to observe the sudden cameraderie this 'group of five' seemed to emulate when faced with their common gevernmental oversight enemy. What are usually fierce competitors, now seemed to be telepathically connected with one another as they avoided tough answers and jumped on one another's band wagons when a few positive points were scored by big oil.
Although too short and not very deep, with questioners only allowed five minutes each, the hearing revealed alot about our 'hate to be dependent' relationship with Big Oil.
1) Although Big Oil experienced record profits with what some would call opportunist price gouging and others might term extremely strategic and well executed larceny, they are still in a tough racket. Oil companies don't have too many freinds these days and although they are everyone's favorite target during these tough economic times, they are the only companies we've got. Amercian Oil (counting BP America which bought ARCO) only manage something like 15% of all the oil being pumped on the planet, and they are competing hard for America's share. Like them or not, we are going to need what they produce for some time to come yet. You're driving to work tomorrow right?
2) Are the Oil Companies really trying to make progress in alternative fuels and energy? It seems like we've gotten so used to the influence of big oil companies on our energy future that we forget they are in business to make money. Alternative energy is not really their problem, they are in the Oil and Gasoline and Natural Gas business. In fact, perhaps for PR value, perhaps becasue they want to be in the energy business fifty years from now, big oil is experimenting with all manner of alternatives. While all agree that they are dedicated to spreading the conservation message, the use of corn based Ethanol-gasoline mixes and biodiesel seemed to be the most well developed prototyping the big 5 are engaged in now. These options make sense as they make use of the same equipment and distribution systems that Exxon, Shell, Chevron and the like are already using.
3) We need to look elsewhere for additional answers and help to get alternative fuels on line. Although the big five executives appeared sympathetic and have spent real r&d dollars and even fielded as may as 30 service stations, in the case of E85, they are not moving anywhere fast enough to bring alternative fuels on line for the average consumer. When pressed on questions of new bio-diesel pumps at stations or wider spread marketing of E-85 (ethanol gas) the executives were sure that they wouldn't stand in the way of an individual franchisee who wanted to buy his own pump for these alternatives- as long as it didn't "get in the way of the brand" according to one executive. Another said that his brand wouldn't be allowing that. The party line seemed to emphasize that customers hadn't accepted the new fuels yet and that they weren't that popular. There was no comment about whether new fuels were being offered at a cheaper price.. None of the big five seemed to know anything about fuel from coal and weren't interested in talking about it.
4) There was a further peeling back of the onion as one of the Big Oil companies revealed that while complaining about new drilling leases in the Gulf of Mexico or Alaska not being opened up, that they were not in fact, actively drilling at each of the lease locations they had now. Another expressed concern about taking too much of America's food supply by using so much corn to make Ethanol- which seemed a lame attempt at trying to keep the ethanol content of their gas mixes low so people won't figure out that they could be using much higher amounts of Ethanol in their cars.
To their credit, Big Oil seemed to be leaning towards application of better technology for extracting more oil from old wells, now that the price warrants it, as well as plans to develop oil sands and oil shales, long thought to be economically infeasible. And you can forget a windfall profit tax on oil comapnies. They were pretty clear in letting the legislators know that in such a case, less money would be available for investment and it would have a dollar for dollar, negative effect on consumers.
It would seem that the oil companies 'control the juice' and the means to distribute it, and whether or not we agree with their pricing, we have few options. For progress to happen fast, grass roots development of fuels and alternative low cost refining methods might be the only solution. The Federal government seems hamstrung with too much debt to throw the billions into r&d that it might take to come up with a true breakthrough. Right now it may be best to hope for smaller increases in efficiency, rube goldberg backyard alternatives and a combination of bailing wire and chewing gum to try and control our spiralling fuel costs. Oil companies can't be faulted for being successful at their core mission- making money, and one could certainly argue strongly that they provide a valuable service. We just can't look to them to develop the answers that are ultimately, not in their own best interest.
Can we trade drilling in Alaska for guarantees of lower fuel prices? Will corn farmers become the new energy billionaires of the next decade? Will re-chargeable electric cars allow us to side-step these issues completely? Maybe all or none of these things will happen...
Bart Allen Berry
myenergyplanet.com
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Energy Tax Credit Bill HR5351 Passes House,
Now On To The Senate
MyEnergyPlanet.com February 27
By Bart Allen Berry
The latest energy bill, HR5351 features extension of production tax credits and other measures for renewable energy sources such as solar, biofuels and wind energy. Projected to cost 18 billion over ten years, the measure also targets the freezing of manufacturing tax incentives for the five largest oil companies, which Democrats argue they don't need in light of the highest profits ever reported by any corporation in history. Heated debate was fueled by a Republican effort to tie terrorism surveilance legislation to domestic energy issues which wasted discussion time on the floor.
Democrats may have put renewable energy issues at risk by linking and targeting benefits to the oil companies in this legislaton as big oil will no-doubt mobilize all of their political resources to fight vigorously.
It is the opinion of this author that this bill will provide much needed economic stimulus in the contracting and building industries especially for commercial buildings, arguably the largest energy users, and residential energy efficiency projects. Additional tax credits will tip the scales in favor of large retrofit projects, small business solar, wind and bio-fuel start ups and the generation of all those new green jobs this economy needs so badly. Extension of Energy Policy act of 2005 Commercial buildings tax deductions should also be increased and extended with the senate legislation to continue support for energy efficiencies that have been working well for lighting, HVAC and Building Envelope initiatives.
To date, Democrat sponsored energy legislation has had a hard time passing in the Senate, failing by only a few votes. With a promised Presidential veto this energy bill will have a hard time making it through to final passage. Perhaps the answer is to bundle the elimination oil company tax incentives with limited drilling approval in Anwar, with benchmark environmental protections and guarantees from domestic oil. Like it or not, oil is still at the heart of our energy use here in the USA and we will need all we can get in the short term, until renewables and clean energy alternatives come on line in a bigger way.
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Green Energy Could Be Best Hope for Avoiding Recession
The green and clean, renewable, sustainable, and alternative energy sectors have been holding up well under continuing bad news from just about every other segtment of the US economy. Green Energy stands out as a bright spot in a otherwise gloomy economic picture. There are good reasons for the strengths in the 'new energy' sectors:
Over 29 states have enacted renewable portfolio standards. Utilities respond with a steady stream of renewable energy projects, making more power from renewable sources.Standards emphasize a long term outlook and new energy projects are employing workers, engineers, designers and the uptake of many new technologies.
States are doing what they can to attract innovative new energy investment and research. Incentives for green projects, educational grants at major state schools, and other efforts are part of what states see as an emerging wave of opportunity as new technologies come on line.
New energy bills in 2005 and 2007 have wide ranging implications for many sectors of the energy efficieny landscape from comemrcial buildign energy savings, to hybrid vehicles to alternative fuels and solar research. There are additional new Federal standards that Green building standards be applied to public buildings.
The three main political candidates have all committed themselves to some version of greater energy independence and economic stimulus the new energy movement will provide. Many large corporations are positioning themselves and their product lines to either manufacture greener products or adopt greener standards that both reduce energy consumption and reduce negative environmental impacts.
The exciting developments are happening in the tehnological realm with alternative fuels, new solar panels, battery technology, fuel cells, hydro and wave energy, building insulation, transportation and greener building design. Energy efficiency is creeping into all of our lives from many directions, much of it being developed and produced domestically. Keep your eyes open for green technology fund investments.. |
Feb 25, 2007 National Governor's Association Hears James Woolsey, Former CIA Director and John Doerr of KPCB Venture Partners on Topic of Emerging Energy Technologies.
By Bolt Greensparks
Wooley stressed vulnerability of America's electricity grid to terrorism, transportation dependence on OPEC with 97% of cars utilizing fossil fuel sources. Woolsey urged breaking OPEC's monopoly on transportation energy and a manhattan project/Apollo Project type approach to reinvigorating America's economy through an emphasis on energy independence. A primary strategic direction, according to Woolsey involves the use of plug in electric hybrids that would boost transportation efficiencies by more than 150%.
"We're Borrowing One Billion Dollar A Day To Pay For Our Oil Imports"
-James Woolsey, Chairman Paladin Capital Group, Former CIA Director
John Doeer emphasized the needs of willing and motivated global capital to get clear signals on long term federal government incentives and credits for energy efficiency. Doerr highlighted several promising venture backed alternative energy projects including coal to liquid, solar thermal, engineered geothermal, and solid oxide fuel cells. Governors were encouraged to support upcoming energy legislation and the extension of all renewable and alternative energy incentives to stimulate new industries and green job growth.
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Use Your Ceiling Fan To Lower Your Heating Cost?
One of the most effective energy-savings solutions are right under your nose or, in one case, right above your head.
Follow these no-cost energy saving tips for the winter: Flip the Switch ... on Your Ceiling FanThat is
A ceiling fan is naturally energy efficient -- it circulates air while using very little electricity. Most people don't realize a ceiling fan can help warm you up in the winter as easily as it can cool you down in the summer. In fact, less than 25 percent of people are taking advantage of the easy energy savings a ceiling fan affords.
"One of the most economical ways to save energy during the winter is to run your ceiling fan in the proper direction," says Sandy DeWald, ceiling fans product manager for Hunter. "Many people cringe at the notion of lowering their thermostat when it's cold out because they do not want to sacrifice comfort for lower energy bills. That's why the ceiling fan is so important. Operated correctly, a ceiling fan that's sized appropriately for the room can save you up to 10 percent on your heating bills."
As DeWald explains, most ceiling fans have a switch that controls the direction of the blades. When the fan runs counter-clockwise, it blows air down, providing the cooling effect desired during warmer months. By running the fan clockwise, during colder months, it circulates the warm air near the ceiling. This circulating effect makes the room warmer, which decreases demands on heating systems and allows you to comfortably turn down your thermostat to save on energy costs.
Editor's Note: We tried this at the MEP offices and it definately works!
Send us your own energy efficiency ideas and if we publish them we'll send you a free MEP T-Shirt.
submissions@myenergyplanet.com
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HVAC: Taking Control of Energy Savings
Properly specified, installed and operated, HVAC control systems help managers curtail energy use
By James Piper
Building control systems function as the central nervous system for facilities. Engineering and maintenance managers can use a well-designed and installed system to perform a range of activities that improve the operating efficiency of the building, while enhancing comfort and security.
But if the system is in adequate, outmoded or improperly used, it can turn even the most efficient HVAC systems into a disaster.
One of the most cost effective measures for improving operations is updating a poorly performing control system. But having an inadequate existing control system is only one reason for upgrading. Rapid advances in the development of standards and technology have combined to create a new generation of control systems that offer capabilities that go far beyond those available just a few years ago.
Most existing control systems only automate a portion of the building’s energy-using systems. Some focus solely on the central equipment, ignoring up to 90 percent of the energy-using equipment installed in a building. While this might have been a good practice when the system was installed, advances in system design accompanied by reduced installation costs and increased energy costs now make it important to integrate as many functions as possible. For these reasons, a number of managers now are looking to upgrade their building control systems to give them the ability to better monitor and operate their facilities.
Controlling energy
One of the most important factors in being able to minimize energy use in a facility is thoroughly understanding how the facility uses energy, when it uses it, and where it goes. Without this information, managers will not have the information they need to establish control over energy use. Building control systems can easily give them that information, and more.
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Confessions Of A MotorCycle Rider - More Money For Lobster and Cervesa
By Bolt Greensparks
OK So I live in San Diego and I can ride a motorcycle all year long if I want. I started riding a motorcycle about eight months ago because I have a place in Mexico,about 2.5 hours south, and it was costing me more than 125. a trip in my 2005 Ford 150 Truck. Now it costs me about 12.50. For those of you who don't understand higher math- that means I am paying 10% of what I was used to paying for my non-renewable gasoline expense. That leaves alot more money to buy clams, lobster and cervesa. As I've watched the price of gas go up to nearly 4.00 a gallon I thank my stars that I'm riding my bike more and more. There are other advantages as well.
 I like to ride. It's great to be kind of 'half-outdoors' and to enjoy the scenery. Some days I just like to go for a ride on my steel horse. What I've discoverd is that I'm now a member of the motorcycle community and have things in common with all those other riders out there. When someone is coming the other way on a bike, more times than not you get what I call the 'cool wave'. Just an acknowledgement of one another and how much fun we're having out there. Real biker gang hardass harley riders don't wave, and scooter riders don't know how but sometimes you'll get a little helmet nod. But there's more to riding a bike than that.
I bought a used 2002 Kawasaki KLR 650. This is a touring bike with an extra large gas tank 6.1 gallons and does great on the highway or a dirt road. I cost me $2500. to buy and less than $200. to insure, $64. to register. It burns about a half quart of oil a month. Yeah baby. I've got a Kawasaki dealership in town if I need anything, but so far it's worked like a champ.
Getting through the traffic is another gigantic benefit. Here in Southern California we have gridlock almost every day. 'Lane sharing', or going between the cars lets me keep moving when all others have slowed or stopped. The only thing to watch out for is when two big SUV mirrors line up side by side and you can't fit between. Now I have two driving time estimations to get anywhere- Bike time and car time. Bike time is much faster. I never pay for parking and can always find a spot to park at the beach.
When I come north through the Mexican Border, instead of waiting three or four hours in my car on a Sunday Night I go between all the cars and cross in less than four minutes. Yeah Baby. A few times I've put the Motorcycle in the back of the pickup truck for trips when I wanted to have both vehicles. Pretty cool. I just got rid of the Ford F-150 Super Crew Cab (and got rid of the payments, insurance and gas expense) and bought a 1990 Ford Ranger for $1500. It gets 24mpg, costs less than 300. a year to insure and $125. to register. What I'm finding is that by riding the Bike more and more, I hardly need a truck anymore anyway and my gas expenses are now really low. My kids and girlfreind like to ride on the back of the bike for shorter trips as long as the weather is nice. My girlfreind and I toured the Guadalupe Valley Wine Country by Motorcycle last weekend and had a truly excellent- and low budget good time.
OK there's a few downsides to having a bike- your hair gets messed up wearing a helmet. Sometimes it's cold. You definately have to have the right kind of personality to ride a bike and be alert all the time, or you could die. Are cars any safer? You've got to make your own decision about this. Of course you can't bring everything with you on a bike, but with saddlebags, backpag and tail bag you can carry more than you think.Also, you've got to carry around a leather jacket wherever you go to, but these are minor factors in my mind- except for the safety issues.
 I would encourage everyone to get get some kind of two-wheeled transportion and they will soon discover that it will not only pay for itself in gas savings, but it's fun as well. As you use your scooter or motorcycle more and more you'll use your car less and less. There's no reason to haul around all that extra space of a whole car with you if you're just going to the store for a gallon of milk. I'm now starting to think of long touring overnight trips I can do On the Bike, which I wouldn't otherwise consider because of the price of gas. San Diego to Cabo San Lucas- San Diego to Alaska.. Yeah Baby.
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| Energy Price Fever Accelerates
By Bolt Greensparks
$125 a barrel for oil and $4. a gallon for gas by June 1st, some predict, accelerating the cost of everything from food to air travel. “Every Day there is a new irritant” propelling prices higher” , says John Kilduff, head of energy risk management at MF Global in New York. Weakness of the US Dollar, Escalating violence in oil production areas and declining international productions are all factors driving prices upward- all while demand continues exponential acceleration as well.
Although irritation is palpable as gas price increases couldn’t come at a worse time for the American Economy, there seems to be no alternative to the status quo. Energy Bills like HR 6 which should be on the floor of the Senate with ‘emergency status’ are bogged down in an arcane knot of political infighting and committee brinksmanship with the not-so-subtle influence of special interest groups. Crisis awareness seems to be high with many citing the need for a Manhattan Project-scale effort but as yet, this leadership opportunity has yet to be seized in a meaningful way.
Hope seems to hang on the election of a new President who can come in and clean house to rescue America. Whoever gets elected will need a plan, the votes and the money to attack our energy problems more vigorously than ever before. With all of the demands on any new administration talking office, one cannot but wonder how long this will take.
America is crying for change, leadership and realistic options. The current energy situation cannot be sustained- something has to give. Let’s just hope it’s not the American way of life..
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