This will have a big effect in their economy. Many small oil producing businesses are going to feel the pressure. China is also trying to lower inflation at the moment. I feel that if this policy does get approved, this will cause the price of coal to rise. The loss of job and prices to go up is the last thing China wants.
Thursday, November 18, 2010
Coal Cap on China?
As we all know, China is major producer and consumer of coal. According to the Wall Street Journal, the demand for coal in China has gone up 10% and it's share of the global coal consumption has already tripled. Zhang Guobao, head of China's National Energy Administration, doesn't approve of this, therefore calling for a cap somewhere between 3.6 million tons and 3.8 million tons. China is currently consume over 4 million tons. They predict that China will run out of coal in 28 years, but they aren't sure about it since it's really difficult to compute. For a country that depends on coal fro 70% of their energy, this could be a major problem,
Further Disgrace for BP
It now appears that BP had many advance warning signs in the days and weeks leading up to the fateful explosion on the oil rig that lead to the events that have so firmly shaped the future of the energy industry. There were multiple events in time leading up to the distaster that hinted that things were not perfectly well at all. Among these oversights were the fact that BP ignored tests which said that the bottom of the well was not able to hold under current pressure.
One can only wonder what impact this further disgrace for BP will have on the energy industry. Obviously even more blatant errors by BP will lead to further government regulations, as the article notes. What will the effects be on oil and stock prices? Only time will tell, yet it seems that this can not have a positive connotation for the industry.
http://online.wsj.com/article/SB10001424052748704648604575620511160070900.html?mod=WSJ_Energy_leftHeadlines
Wednesday, November 17, 2010
Oil Companies Increase Capital Investment
The future value or expected value of crude oil is expected to remain high. The price of a barrel has been as high as $146 in July of 2008, but is expected to hold more of a conservative estimate at $70 to $80 per barrel for the next three years. Due to this expected retention or stability in price level major global oil companies are beginning to invest at increased rates to expand production. Essentially, there is a belief that the usually volatile oil market will remain relatively stabilized leading to increased investment in exploration and production.
Several big name companies that are seen in this new trend of investment are Exxon Mobil Corp., XTO Energy Inc., and recently Chevron Corp. Each of these companies have begun to build up excess liquidity in an effort to expand into growing oil production. Even BHP Corp. is expected to increase its holdings in research and development. Basically, all the major players in the oil industry have shifted their investment outlook to increased expansion and production. This move was made in an attempt to keep the relative stability of the oil industry constant for the coming years.
What does this mean for the energy industry you may be asking yourself. Simply, there has been a shift in the trend of investment. Regardless of recent economic turmoil there seems to be a new perspective on investment. The major oil companies believe that the recent stability in the financial system will give them the opportunity to secure their investment projects. Oil companies are the first major players to begin re-investing in expansion and exploratory projects. Now it is only a matter of time before other lagging parts of the energy industry begin to re-invest in expansion.
- By: Timothy D. Vallario
- Source: Wednesday, November 17, 2010 - VOL. CCLVI NO. 118, B9A - "Oil Companies to Spend More Money", By Isabel Ordonez
Several big name companies that are seen in this new trend of investment are Exxon Mobil Corp., XTO Energy Inc., and recently Chevron Corp. Each of these companies have begun to build up excess liquidity in an effort to expand into growing oil production. Even BHP Corp. is expected to increase its holdings in research and development. Basically, all the major players in the oil industry have shifted their investment outlook to increased expansion and production. This move was made in an attempt to keep the relative stability of the oil industry constant for the coming years.
What does this mean for the energy industry you may be asking yourself. Simply, there has been a shift in the trend of investment. Regardless of recent economic turmoil there seems to be a new perspective on investment. The major oil companies believe that the recent stability in the financial system will give them the opportunity to secure their investment projects. Oil companies are the first major players to begin re-investing in expansion and exploratory projects. Now it is only a matter of time before other lagging parts of the energy industry begin to re-invest in expansion.
- By: Timothy D. Vallario
- Source: Wednesday, November 17, 2010 - VOL. CCLVI NO. 118, B9A - "Oil Companies to Spend More Money", By Isabel Ordonez
Gulf Spill Linked to BP's Lack of 'Discipline'
- Rianna Das
According to an article from the Wall Street Journal, a team of technical experts have found the BP oil spill was mainly due to BP's lack of consideration of risk and their lack of operating discipline. This panel of experts was assembled by the Interior Secretary, Ken Salazar, to examine the BP oil spill more closely. This same panel also criticized the regulators and the industry as a whole. The team also found a lot of bad decisions on BP's part that lead to spill, along with a few technical problems that likely contributed as well. It also identified problems, such as BP's lack of management discipline and their lack of onboard expertise and clearly defined responsibilities. The goal of this report was to provide the government with a better understanding of what caused the BP oil spill. It will work to provide better regulation in the future and strengthen standards of offshore drilling.
I think this was an important report for the government to order. It is important to understand what specifically caused the BP oil spill. This is because if the government understands what caused the spill, they can work to prevent it in the future. As stated in the article, the goal of the report was to just this. Also, it is important so that other companies can learn from the mistakes of BP and can understand how to prevent an oil spill.
It is important that oil spills are prevented because of the incredible damage they do to the environment. Oil spills can do irreversible damage to ecosystems and the animals a part of them. The BP oil demonstrated this when the media continuously portrayed images of innocent water fowl drenched in oil.
Sources:
Thursday, November 11, 2010
The Pros and Cons to Taxes on Oil
According to a recent WSJ article, Israel is recommending raising tax on oil companies. It's really interesting because this article actually portrays both side of the story.
The U.S debates that it would limit the amount of investment in Israel. Many other governments believe that they aren't carrying out their "contracts that promised a generous tax and royalty regime", but Israel debates that they are not making money from this at all.
I think this is definitely a sticky situation. If the taxes do go up, I think this might also push some companies to invest in renewable energies. Usually they are talking about how theres a need in renewable energy, and now they are talking about how taxing might be expensive issue. In my infomational interview, the lady I had interviewed stated that the European Nation and China are more advanced in promoting energy efficency and renewable energy and that we need some sort of an incentive in the US to "catch up to them." Although this isn't really an incentive, but could this be it? Is it enough of a push?
The U.S debates that it would limit the amount of investment in Israel. Many other governments believe that they aren't carrying out their "contracts that promised a generous tax and royalty regime", but Israel debates that they are not making money from this at all.
I think this is definitely a sticky situation. If the taxes do go up, I think this might also push some companies to invest in renewable energies. Usually they are talking about how theres a need in renewable energy, and now they are talking about how taxing might be expensive issue. In my infomational interview, the lady I had interviewed stated that the European Nation and China are more advanced in promoting energy efficency and renewable energy and that we need some sort of an incentive in the US to "catch up to them." Although this isn't really an incentive, but could this be it? Is it enough of a push?
Halliburton Explores Risky Energy Ventures
So far on the blog, I have looked at mostly the attempts of eco-friendly companies to explore energy that is both better for the environment and more sustainable than traditional energy practices. While this is certainly a significant proportion of the energy exploration that is happening among companies, not all businesses are interested in new sources of energy that are environmentally friendly. Indeed, one company Halliburton, which already has a reputation as one of the less environmentally conscience companies, has recently experienced some trouble with the Department of Energy as it explores ventures which may be detrimental to the environment.
The EPA has subpoenaed Halliburton over its use of “hydraulic fracturing”. This is done by using large amounts of water to open up sources of gas to be extracted. While it may reveal previously inaccessible oil, detractors of this method claim that it may be harmful to drinking water. The EPA claims that many companies have been unhelpful providing information on this practice.
It seems as this practice is in contrast to the efforts of many companies to find more responsible methods of extracting energy from the earth. While studies have not been definitively completed to condemn the practice, the secretive nature of the companies in refusing to report to the EPA makes it seem as if there is at least something to hide about this new practice. Yet the companies can not be entirely held to blame, as the race to develop new methods for producing cheap energy have pushed many businesses into questionable practices. What is more important for the industry, pleasing the customer through cheap prices or preserving the world? Only time will tell.
http://online.wsj.com/article/BT-CO-20101109-715152.html
Wednesday, November 10, 2010
Entergy Considers Sale of Vermont Nuclear Plant
-Rianna Das
This article is about a company, Entergy, in Vermont that is considering closing their nuclear power plant. This plant is 39 years old and has been recently been facing state resistance over the plant. This resistance is due to the plant having leakages of radioactive material. Through this resistance, the plant still supplies about one third of the state of Vermont's energy. Vermont is one of the few states that relies on nuclear power as a primary energy source. There about 65o employees who work at this nuclear power plant. If this plant were to be resold, the company assures that they would work with the new buyers to keep these employees at work at the same plant.
This article shows the importance in the industry for nuclear power. Nuclear power is a renewable energy option. Its use does not harm the environment, making it sustainable. However, it does have some problems in production. As the article demonstrated, nuclear power plants often have leakage of radioactive material, which can do great damage to the environments around the plants. This means that nuclear power plants face must face a lot of regulation from government. This regulation adds to the expense of the nuclear power, which is already expensive to produce.
Again, this article illustrates that although there is a need for renewable, sustainable, energy, it is not always easy for businesses to give this to their consumers. While it is hard for businesses to invest money in relatively new industry, it is important that they keep doing this. It is important for the environment that businesses keep searching for ways to deliver new types of energy to their consumers at a price they can afford.
Sources:
ABC - American Biofuels Council
Today, I had my interview, by the luck of chance, with the President of the American Biofuels Council. The ABC is a independent national organization thats function is to educate, implement, and provide energy reform. He was in the process of having lunch when I called to speak to a public relations representative or a human resources consultant. By chance Sean O'Hanlon, Founder and Executive Director of the ABC, answered the phone and spoke to me about current trends, job opportunities, and the current market situation.
Three major takeaways that I received from this interview were the extent of energy subsidies, the economics of the biofuel industry, and the current mentality American society now faces. Oil, natural gas, and coal are subsidized fivefold more than biofuel or biomass due to politicians levying for funds. The largest expenditure any government in the entire history of man is not either defense or austerity measures, but fuel. Fuel is the largest expenditure in the United States.
Simply, the technology, even the physical capital is in place to some extent, to create biofuel in mass quantities has been proven. the problem is with cash-flow. There is not enough liquidity to either lobby to increase 'push' in the market, nor is there enough currency to proceed with operations on a mass scale.
Regarding mentality, Americans generally are only interested in the short term. Not to stigmatize or generalize the population, but it must be understood that action is almost never taken unless society reaches a 'tipping point'. The American public does not realize the potential in the long term gain from investing in green technology today. Due to this the future outlook of the energy industry seems bleak.
-Timothy D. Vallario
-Informational Interview Wed. 10 - Sean O'Hanlon Founder and Executive Director American Biofuels Council
Three major takeaways that I received from this interview were the extent of energy subsidies, the economics of the biofuel industry, and the current mentality American society now faces. Oil, natural gas, and coal are subsidized fivefold more than biofuel or biomass due to politicians levying for funds. The largest expenditure any government in the entire history of man is not either defense or austerity measures, but fuel. Fuel is the largest expenditure in the United States.
Simply, the technology, even the physical capital is in place to some extent, to create biofuel in mass quantities has been proven. the problem is with cash-flow. There is not enough liquidity to either lobby to increase 'push' in the market, nor is there enough currency to proceed with operations on a mass scale.
Regarding mentality, Americans generally are only interested in the short term. Not to stigmatize or generalize the population, but it must be understood that action is almost never taken unless society reaches a 'tipping point'. The American public does not realize the potential in the long term gain from investing in green technology today. Due to this the future outlook of the energy industry seems bleak.
-Timothy D. Vallario
-Informational Interview Wed. 10 - Sean O'Hanlon Founder and Executive Director American Biofuels Council
Wednesday, November 3, 2010
The Election and Energy
With the recent elections, the Wall Street Journal posted an article about how candidates are stating how they don't support renewable energy funding in their campaigns. Because they are doing that, it seems like its actually winning them votes.
From the Wall Street Journal:
"At least a dozen ads portray stimulus spending on wind power or renewable energy as an example of waste. Another dozen or more allege the stimulus sent jobs overseas to China. None explicitly calls for ending the tax breaks for the wind-power industry once they expire this year, but the wind association fears the criticism will make them harder to renew."
The wind energy industry companies are afraid of this year's congress. They are afraid that they are going to lose funding and tax credits. This has a big impact on the renewable energy industry. The first step to making wind energy popular is government funding and support.
Government to possibly cut back alternative energy subsidies
Recent issues in the government have lead some to question the administrations decision to provide financial backing to many alternative energy firms. They believe that the amount of money being subsidized to these companies does not come produce a benefit which is high enough to justify the cost. One measure in particular has come under fire recently. The government had planned to loan 1.3 billion dollars for a series of wind farms in the Northwest United states. However, many people are saying that this price is too high for the amount of clean energy that the farms would produce.
This leads to another question which will have serious implications for renewable energy businesses and those wishing to invest in them. Is it worth it to spend money on a process which may not be the absolute most cost effective at the moment, but has the potential to shift the entire climate of the economy as a whole. Those lucky investors that find themselves to have backed the source which ends up taking control of the market will be in a unique position. So how can investors use this knowledge? Should they try and support a government which will give money to alternative energy ventures, or should this be determined by the market? Only time will tell which ends up getting us to the next big thing in the energy industry.
http://online.wsj.com/article/SB10001424052748703506904575592843603174132.html?mod=WSJ_Energy_leftHeadlines
Californians Reject Proposal To Suspend Climate Law (an Update)
-Rianna Das
An article in the Wall Street Journal explained how proposition 23, which would suspend California's climate laws, was rejected in yesterday's election. This proposition would have suspended California's climate laws in order to create more jobs to help the state's economy. If proposition 23 had passed, it would have had a positive impact on many in the oil industry. Many oil refiners backed this proposition because it would leave the industry less regulated, making it easier for oil companies to make a larger profit since money won't have to be spent on complying with regulations.
This proposition also had enemies in the energy industry. Many green Californian businesses supported proposition 23 because it would bring them more business. For example, since the climate laws required California to cut its greenhouse gas emissions by 2020, many businesses probably want to go "green." If the proposition passed, it would have negatively impacted these businesses because the climate laws would have been suspended.
After blogging about this proposition last week or a couple weeks ago, personally, I am very glad that this proposition did not pass. Although it would have had a positive impact on the oil industry, it would have been taking a step backward in saving the environment. I think it is important for the development of the "green" energy business that this proposition did not pass. Now, this industry will be able to continue to impact the state of California and, can hopefully, illustrate to the rest of the country how to be "green" and how it positively impacts the environment.
Sources:
-Rianna Das
Change in Big Oil Investments
With the recent BP oil debacle in the Gulf of Mexico, shares in BP have taken a decrease by as much as one third. New CEO Bob Dudley, to reinvigorate investors, has decided to halt dividend returns so that a larger supply of investment capital could be acquired. This is an attempt to open up cash flow so that BP could concentrate more on expanding. The idea is through a "ambitious program of growth"BP will be able to project better earnings in the future.
Investment-bank research has shown that major Western oil companies should consider shedding their mature assets,spend more on prospecting, and cut down on dividend returns to open up cash flow. To cut dividends is a dangerous task because shareholders feel that they are not sharing in the profits that they should rightfully be given. The other side of the table see that with cutting these returns there will be more money to invest in long-term profits.
This is a major shift in Big Oil investment. Specifically, Western oil companies have shifted their profit share to increase future exploring. Some regions that have been specified for this expansion are West Africa and the Gulf of Mexico. In these regions high-growth has been witnessed in the past three to four years. This change in investment by major oil corporations show, how even in a hostile unstable economic environment, there is a need to keep moving forward with ingenuity and innovation.
-Timothy D. Vallario
-Source: Wednesday, November 3, 2010 - VOL. CCLVI NO. 106, Marketplace B1"BP's Dividend Takes Back Seat"
Investment-bank research has shown that major Western oil companies should consider shedding their mature assets,spend more on prospecting, and cut down on dividend returns to open up cash flow. To cut dividends is a dangerous task because shareholders feel that they are not sharing in the profits that they should rightfully be given. The other side of the table see that with cutting these returns there will be more money to invest in long-term profits.
This is a major shift in Big Oil investment. Specifically, Western oil companies have shifted their profit share to increase future exploring. Some regions that have been specified for this expansion are West Africa and the Gulf of Mexico. In these regions high-growth has been witnessed in the past three to four years. This change in investment by major oil corporations show, how even in a hostile unstable economic environment, there is a need to keep moving forward with ingenuity and innovation.
-Timothy D. Vallario
-Source: Wednesday, November 3, 2010 - VOL. CCLVI NO. 106, Marketplace B1"BP's Dividend Takes Back Seat"
Wednesday, October 27, 2010
A Alternative Energy Company Plans to Cut Number of Employees
According to a WSJ article, Vesta, an European wind energy producing company, is planning to cut 3,000 jobs because they aren't making a profit. They are also claiming that it's to increase competitiveness. It is one of the world's largest provider of wind energy. However, they are unwilling to show the projected profits for the incoming year.
This scares me because I feel like the hopes of advancement in the renewable energy is going down. I would think that people would invest more money into these companies due to all the ethical issues they have created. For example, another WSJ article states that Massey Energy has lost $41 million dollars because of an explosion that killed 29 miners. If both renewable and nonrenewable energy are not making a profit, then what is? Maybe this is actually an indication that our economy isn't recovering?
This scares me because I feel like the hopes of advancement in the renewable energy is going down. I would think that people would invest more money into these companies due to all the ethical issues they have created. For example, another WSJ article states that Massey Energy has lost $41 million dollars because of an explosion that killed 29 miners. If both renewable and nonrenewable energy are not making a profit, then what is? Maybe this is actually an indication that our economy isn't recovering?
Fuel Efficiency Standards To Be Raised
This pass Monday the Obama administration disclosed the nation's fuel-economy rules for trucks and buses. Implementation is expected to begin in 2014 requiring reductions as high as 20% in fuel use and carbon-dioxide emissions by 2018. This new development is expected to create a massive overhaul in the car manufacturing industry. Although, this new development effects the Automobile Industry it must be understood that the Energy Industry will simultaneously be effected, if not more so.
By the passage of these new standards it must be understood that the Energy Industry must also shift its movements according to legal constraints set by government. Companies such as, Navistar International Corp., Paccar Inc., Daimer Ag, and Volvo Group have already invested in the fuel-efficiency race. The article mainly focuses on the leading company in fuel-efficiency standards Cummins Inc.,. Annually they siphon about 4% in profits to research and development into fuel-efficiency standards, this amount totals to $500 million annually. They have taken a proactive approach to this new development in fuel-efficiency standards, and had the foresight, through planning, to realize that fuel-efficiency would become a major issue.
The government has offered incentives to increasing fuel-efficiency within specific car companies. Up to $54 million has been granted to help in research and development for fuel-efficiency standards and pollution controls. Cummins Inc.'s responded during the 1980's standards by exclaiming, "Let's stop complaining and invest in technology." By taking this approach twenty years ago it has given Cummins Inc. the competitive edge to fight in this new market for sustainability.
How does any of this relate to the Energy Industry? Due to this new change in regulations it is the an imperative of companies, involved in energy production, to pay close attention to developments so they may alter allocation of fuel resources. If a new regulation is imposed it becomes just as essential to realize the new trends in legal standards and attitudes toward energy. This development is one shinning example of how regulation can alter the business strategy of a specific industry, while also effecting all those who are also involved with that industry.
By:Timothy D. Vallario
Source: The Wall Street Journal, Wednesday, October 27, 2010 - VOL. CCLVI No.100"Fuel-Economy Rules Raise Bar for Engine Makers" By James R. Hagerty and Bob Tita, Earnings B5
By the passage of these new standards it must be understood that the Energy Industry must also shift its movements according to legal constraints set by government. Companies such as, Navistar International Corp., Paccar Inc., Daimer Ag, and Volvo Group have already invested in the fuel-efficiency race. The article mainly focuses on the leading company in fuel-efficiency standards Cummins Inc.,. Annually they siphon about 4% in profits to research and development into fuel-efficiency standards, this amount totals to $500 million annually. They have taken a proactive approach to this new development in fuel-efficiency standards, and had the foresight, through planning, to realize that fuel-efficiency would become a major issue.
The government has offered incentives to increasing fuel-efficiency within specific car companies. Up to $54 million has been granted to help in research and development for fuel-efficiency standards and pollution controls. Cummins Inc.'s responded during the 1980's standards by exclaiming, "Let's stop complaining and invest in technology." By taking this approach twenty years ago it has given Cummins Inc. the competitive edge to fight in this new market for sustainability.
How does any of this relate to the Energy Industry? Due to this new change in regulations it is the an imperative of companies, involved in energy production, to pay close attention to developments so they may alter allocation of fuel resources. If a new regulation is imposed it becomes just as essential to realize the new trends in legal standards and attitudes toward energy. This development is one shinning example of how regulation can alter the business strategy of a specific industry, while also effecting all those who are also involved with that industry.
By:Timothy D. Vallario
Source: The Wall Street Journal, Wednesday, October 27, 2010 - VOL. CCLVI No.100"Fuel-Economy Rules Raise Bar for Engine Makers" By James R. Hagerty and Bob Tita, Earnings B5
Outcome on Proposition 23...
An article from the Wall Street Journal demonstrates how proposition 23 in California will affect the energy industry. Proposition 23 will temporary suspend California's greenhouse gas law. This law says that by 2020 California will have dramatically cut its greenhouse gas emissions. The reason policymakers want to suspend this law is because of unemployment. When employers must worry about tough regulations, spending more money to employ workers is not an option. Thus, policymakers believe that by suspending this law that employers will have more money to hire workers and more citizens of California will be employed.
This is a very interesting article because it shows how unemployment is related to trying to improve the environment. Although, we are trying to use renewable energy, enforce tougher laws on big businesses to help the environment, and pushing efforts to go green, they are all having negative effects on the economy because of unemployment. It is a question of what is worse, unemployment or damaging our planet. California's law on decreasing greenhouse emissions was a very important law because, not only did it help lower the amount of harmful greenhouse gases in our environment, but it encouraged all other states to take steps toward doing this as well. However, now, there is not really an incentive for other states to work to save the environment, because they can see the negative effects it is having on the economy in California.
I believe that California needs to find some middle ground, a compromise that allows it to improve its unemployment situation, but also does not suspend its groundbreaking law to decrease greenhouse gas emissions. I believe that even though unemployment is related to this law, there are many other conditions that are causing it and the government of California needs to look at these issues as well.
This is a very interesting article because it shows how unemployment is related to trying to improve the environment. Although, we are trying to use renewable energy, enforce tougher laws on big businesses to help the environment, and pushing efforts to go green, they are all having negative effects on the economy because of unemployment. It is a question of what is worse, unemployment or damaging our planet. California's law on decreasing greenhouse emissions was a very important law because, not only did it help lower the amount of harmful greenhouse gases in our environment, but it encouraged all other states to take steps toward doing this as well. However, now, there is not really an incentive for other states to work to save the environment, because they can see the negative effects it is having on the economy in California.
I believe that California needs to find some middle ground, a compromise that allows it to improve its unemployment situation, but also does not suspend its groundbreaking law to decrease greenhouse gas emissions. I believe that even though unemployment is related to this law, there are many other conditions that are causing it and the government of California needs to look at these issues as well.
-Rianna Das
Sources:
Thursday, October 14, 2010
Alternatives in Africa
At first, I was attracted to the name of this Wall Street Journal Article, Donor of the year: Yossie Hollander, and as I began to read it, I realized it was an article about an energy.
This article talks about an Israeli technology entrepreneur that is contributing $5 Millions to fund research for alternative energy in developing countries.Yossie Hollander states that,"In five years, the world will experience a shortage of up to 10 million barrels of oil a day and it will be the weakest counties who won't get the oil." This is a scary thought, considering the dependence this country's dependence on it. Although we may think this might no affect us, it actually does, since this research is held at Cornell University and can actually be beneficial to everyone.
The new method, called pyrolysis, is "suppose to generate biofuels and biochar, a charcoal-like material used to enrich soil and land, for communities in the developing world." Energy is suppose to be created through "the thermal decomposition of organic material such as grass and corn husks, without the use of oxygen." If this experiment succeeds, it will be taught to many African countries.
Yossie Hollander is definitely taking a risk and acting as an angel investor, but he says that he's done is research. The outcomes are unsure, but he believes that this will be successful and be a gift to mankind. I think that, ideally, this does sound like a good investment....but I'm don't know if this will work. I feel like it's like going to be an expensive process, just like hydro-power.
This article talks about an Israeli technology entrepreneur that is contributing $5 Millions to fund research for alternative energy in developing countries.Yossie Hollander states that,"In five years, the world will experience a shortage of up to 10 million barrels of oil a day and it will be the weakest counties who won't get the oil." This is a scary thought, considering the dependence this country's dependence on it. Although we may think this might no affect us, it actually does, since this research is held at Cornell University and can actually be beneficial to everyone.
The new method, called pyrolysis, is "suppose to generate biofuels and biochar, a charcoal-like material used to enrich soil and land, for communities in the developing world." Energy is suppose to be created through "the thermal decomposition of organic material such as grass and corn husks, without the use of oxygen." If this experiment succeeds, it will be taught to many African countries.
Yossie Hollander is definitely taking a risk and acting as an angel investor, but he says that he's done is research. The outcomes are unsure, but he believes that this will be successful and be a gift to mankind. I think that, ideally, this does sound like a good investment....but I'm don't know if this will work. I feel like it's like going to be an expensive process, just like hydro-power.
Wednesday, October 13, 2010
Regulating Energy
The oil industry is well known as having a large special interest in Washington, with many allegations leveled against the industry. These accusations run from saying that the industry is stifling alternative sources to claiming that the oil industry was partially responsible for the war in Iraq. As an extremely important industry that is vital to daily life in American, as well as one that can be hazard to the environment, regulation is considered extremely important for oil companies. Different Governmental organizational entities have control of different issues that could arise, including the DOE(Department of Energy), FERC (Federal Energy Regulation Committee), and EPA (Environmental Protection agency).
The DOE has a division called the Office of Oil and Natural gas which “supports research and policy options to ensure clean, reliable, and affordable supplies of oil and natural gas for American consumers.” The main job of this division is to make sure that no one in the country does without the oil and gas that they need to go about their lives.
The FERC is an agency that acts to regulate the energy industry in several important ways, including the sale of oil and oil pipelines throughout different states. This is important to make sure that different areas of the country are not subjected to vastly different prices and availability of energy.
The EPA is in charge of attempting to regulate the environmental concerns that are so often included in any discussion of the industry. From the intrinsic damage done any time that a car is run to the catastrophic possibilities of a potential oil spill, the EPA must be prepared to deal with the consequences and help to remove the
http://www.ferc.gov/industries/oil.asp
http://www.epa.gov/athens/publications/reports/EPA-600-R03-072-OilComposition.pdf
http://fossil.energy.gov/programs/oilgas/index.html
The DOE has a division called the Office of Oil and Natural gas which “supports research and policy options to ensure clean, reliable, and affordable supplies of oil and natural gas for American consumers.” The main job of this division is to make sure that no one in the country does without the oil and gas that they need to go about their lives.
The FERC is an agency that acts to regulate the energy industry in several important ways, including the sale of oil and oil pipelines throughout different states. This is important to make sure that different areas of the country are not subjected to vastly different prices and availability of energy.
The EPA is in charge of attempting to regulate the environmental concerns that are so often included in any discussion of the industry. From the intrinsic damage done any time that a car is run to the catastrophic possibilities of a potential oil spill, the EPA must be prepared to deal with the consequences and help to remove the
http://www.ferc.gov/industries/oil.asp
http://www.epa.gov/athens/publications/reports/EPA-600-R03-072-OilComposition.pdf
http://fossil.energy.gov/programs/oilgas/index.html
Europe May Ease Jet Carbon Fees
-Rianna Das
An article entitled "Europe May East Jet Carbon Fees" appeared in the New York Times two days ago. This is a very interesting article because it discusses how the United States Airlines could be exempt from European carbon regulations if they reduce their greenhouse gas emissions back home. According to this new law, European airlines would be charged only fifteen percent of the cost of permits needed to cover their emissions until the end of the decade. However to comply with this law is going to cost the industry approximately at least 2.4 billion or euros or about 3.3. billion dollars (www.nytimes.com).
An article entitled "Europe May East Jet Carbon Fees" appeared in the New York Times two days ago. This is a very interesting article because it discusses how the United States Airlines could be exempt from European carbon regulations if they reduce their greenhouse gas emissions back home. According to this new law, European airlines would be charged only fifteen percent of the cost of permits needed to cover their emissions until the end of the decade. However to comply with this law is going to cost the industry approximately at least 2.4 billion or euros or about 3.3. billion dollars (www.nytimes.com).
While this new law will have a significant impact for sure on the European energy industry, it may not have a huge impact on the United States' energy industry if they do indeed become exempt from this law. However, in order for the United States to be exempt, they must decrease greenhouse gas emissions back home. This will be costly for the United States' government and it also may have several impacts on the energy industry. For example, it will increase the consumption of alternative energy, such as wind power, solar power, and hydroelectric energy. It will also result in a decrease in consumption of polluting non renewable types of energy, such as oil and coal, since these types of energy will not help to reduce greenhouse gas emissions.
Personally, I believe the United States should try to reduce greenhouse gas emissions. Not only will this benefit the country in that they will be exempt from airline carbon regulations, but also because reducing greenhouse gas emissions is important to the environment. By reducing the about of greenhouse gas emissions, the United States is winning in that it is improving the environment and also getting exempt from these new regulations.
Personally, I believe the United States should try to reduce greenhouse gas emissions. Not only will this benefit the country in that they will be exempt from airline carbon regulations, but also because reducing greenhouse gas emissions is important to the environment. By reducing the about of greenhouse gas emissions, the United States is winning in that it is improving the environment and also getting exempt from these new regulations.
Sources:
Iraq Back on the Map
With economic instability and currencies devaluing globally an individual may ask themselves is there any good future prospects in the marketplace? I answer this by saying although the ship may seem to be sinking the lights will remain on. Iraq has begun to produce oil at a rate seen during the late nineties, that being about 2.2 to 2.6 million barrels of crude. After several decades of war, which has hindered economic development, Iraq has reached a time of relative stability that has promoted an increase in oil production. With this increased production Iraq has the ability to makes its name as one of the leading heads in OPEC in the foreseeable future.
The International Energy Association (IEA) has stated Iraq is expected to be a "very important element for future [oil] supply". The fear of dwindling oil supplies and increased pricing have been softened due to Iraq's ascension back into oil production. What this means to the energy industry as a whole would be that with this increase of supply, regardless of economic turmoil, the energy industry will be able to weather rougher financial times due to the fact that oil is such a crucial section of the industry. Iraq is expected in the next two to three decades to produce about 4 to 7 million barrels of oil per year. Adding additional reserves to a market that is already somewhat unstable. This increased supply will lighten the fear of rising prices.
War and insurrection are the two main problems that should be taken into account with this new development. Although, Iraq is stably producing oil at this point there are still militant factions who will try to interrupt the production process, and the country itself is still in a fragile state. The news from Iraq is exceptional for the volatile market of oil production, but as any good businessman would promote look at all the facets of a forecast before grabbing your umbrella.
- Timothy D. Vallario
Source- Wednesday, October 13, 2010 - VOL. CCLVI NO. 88, A16 World News, "Iraq Oil Is 'Game Changer' " by, Guy Chazan
The International Energy Association (IEA) has stated Iraq is expected to be a "very important element for future [oil] supply". The fear of dwindling oil supplies and increased pricing have been softened due to Iraq's ascension back into oil production. What this means to the energy industry as a whole would be that with this increase of supply, regardless of economic turmoil, the energy industry will be able to weather rougher financial times due to the fact that oil is such a crucial section of the industry. Iraq is expected in the next two to three decades to produce about 4 to 7 million barrels of oil per year. Adding additional reserves to a market that is already somewhat unstable. This increased supply will lighten the fear of rising prices.
War and insurrection are the two main problems that should be taken into account with this new development. Although, Iraq is stably producing oil at this point there are still militant factions who will try to interrupt the production process, and the country itself is still in a fragile state. The news from Iraq is exceptional for the volatile market of oil production, but as any good businessman would promote look at all the facets of a forecast before grabbing your umbrella.
- Timothy D. Vallario
Source- Wednesday, October 13, 2010 - VOL. CCLVI NO. 88, A16 World News, "Iraq Oil Is 'Game Changer' " by, Guy Chazan
Thursday, October 7, 2010
California Pipeline Blast Puts Focus on Oversight
Many events that have taken place recently such as the much widely noted BP oil spill in the gulf have brought out questions about the safety in the energy industry.
Recently a natural gas explosion in Northern California devastated a whole neighborhood which has forced the state to take a good look at the oversight and safety of all pipelines, as this wasn't an isolated incident. There have been many pipeline leaks and utilities cited for low scored in California but minimal disciplinary action has been taken to fix it.
These plants can't control everything that happens but they can control how they handle it. Also the state needs to deal with them and raise the standard of safety because over the past decade, reportable incidents for California utilities have continued rising.
This is only one state but the trend is all throughout the industry. People should not have to worry about their neighborhoods and their own lives being destroyed because workers aren't doing their job correctly and the government isn't making sure they do. The BP oil spill in the gulf caused detriment to a whole region of the country because of the way it was handled, as well as many other factors.
Hopefully the federal government gets involved in California if the state government cannot handle it alone because things must get better and hopefully this puts the spotlight on energy safety everywhere.
-Tyler Collins
http://online.wsj.com/article/SB10001424052748704847104575532202549943736.html?mod=WSJ_Energy_leftHeadlines
Recently a natural gas explosion in Northern California devastated a whole neighborhood which has forced the state to take a good look at the oversight and safety of all pipelines, as this wasn't an isolated incident. There have been many pipeline leaks and utilities cited for low scored in California but minimal disciplinary action has been taken to fix it.
These plants can't control everything that happens but they can control how they handle it. Also the state needs to deal with them and raise the standard of safety because over the past decade, reportable incidents for California utilities have continued rising.
This is only one state but the trend is all throughout the industry. People should not have to worry about their neighborhoods and their own lives being destroyed because workers aren't doing their job correctly and the government isn't making sure they do. The BP oil spill in the gulf caused detriment to a whole region of the country because of the way it was handled, as well as many other factors.
Hopefully the federal government gets involved in California if the state government cannot handle it alone because things must get better and hopefully this puts the spotlight on energy safety everywhere.
-Tyler Collins
http://online.wsj.com/article/SB10001424052748704847104575532202549943736.html?mod=WSJ_Energy_leftHeadlines
Wednesday, October 6, 2010
Unexpected Spike in Crude Prices
Despite previous predictions, the price of crude oil rose by a significant amount this week. This was due to the decrease in inventories and the general fear of inflation caused the price of crude to shoot up higher than expected. This loss of inventories has shocked many investors who expected the inventories to remain constant. This has lead to an increase in price for crude oil, having it break though the $84 mark, something many analysts were not expecting it to do anytime in the near future. Gasoline inventories fell by 2.6 million barrels, far more than the 300,000 which was expected to happen. Oil in the U.S. is approaching a 27 year high.
What does this mean to investors? In the short term, it means that the savvy investor might be able to reap a quick reward by investing in crude oil. Yet more and more, everything I see points at the inevitable eventual decline of the oil industry. There is never enough oil to satisfy the demands of consumers, who are constantly strung along by the giant oil conglomerates. I can not help but feel that there is a an immense unfilled niche in the oil market. When this niche is filled, not only will the consumers be far better off, but the investors who set about the change will be in a position to make untold amounts of profit.
http://online.wsj.com/article/SB10001424052748703735804575535692968175852.html?mod=WSJ_Energy_leftHeadlines
What does this mean to investors? In the short term, it means that the savvy investor might be able to reap a quick reward by investing in crude oil. Yet more and more, everything I see points at the inevitable eventual decline of the oil industry. There is never enough oil to satisfy the demands of consumers, who are constantly strung along by the giant oil conglomerates. I can not help but feel that there is a an immense unfilled niche in the oil market. When this niche is filled, not only will the consumers be far better off, but the investors who set about the change will be in a position to make untold amounts of profit.
http://online.wsj.com/article/SB10001424052748703735804575535692968175852.html?mod=WSJ_Energy_leftHeadlines
California to Get Two Solar Plants
-Rianna Das
Once again, this article demonstrates the trend/need for companies to develop alternative types of energy or educate the population of sustainable energy use. Whether or not you believe peak oil is a myth, most people can agree that pollution is bad for the environment and can negatively impact human life. While these new types of alternative energy can be used as replacements for oil, they are also more environmentally friendly, as they can lower greenhouse gases. This is seen in the article because the California government is mandating that one third of energy sold is from renewable sources and using this practice as a way to lower greenhouse gas emissions. This law also shows that regulation of the industry is not always a bad thing. While regulation such as this is costing companies money to find renewable energy sources, it is also decreasing these companies impact on the environment.
Personally, I find California's law very beneficial. Not only does it seem to be effective in lower greenhouse gas emissions, it also encourages and demonstrates to other states that regulation of the industry can be effective. Although many energy companies are making plenty of profit of non renewable sources of energy, the new market for renewable types of energy allows them to expand their market and possibly even make more profit while supporting the environment.
It seems like every week I find an article dealing with renewable energy. I believe this shows how important this new trend is. There is an energy crisis, whether we chose to acknowledge it or not, and it will affect our lives. By developing renewable sources of energy and correctly marketing them to the population, business will not only succeed in increasing profit, but also lessen the negative effects of this energy crisis.
It seems like every week I find an article dealing with renewable energy. I believe this shows how important this new trend is. There is an energy crisis, whether we chose to acknowledge it or not, and it will affect our lives. By developing renewable sources of energy and correctly marketing them to the population, business will not only succeed in increasing profit, but also lessen the negative effects of this energy crisis.
Hard Assets Expand
Investors are racing to sure up possible losses against inflation brought on by devalued currencies. Several central banking firms globally have lowered interest rates in an effort to expand purchasing power, and stimulate the economy. Investors use this process to back their more risky and developed investments. when a lowered interest rate is imposed by a government banking regulatory system it weakens the nations currency. The US dollar is leading all other currencies in this decline. "The weaker dollar gives commodities priced in the currency a boost, as traders can buy them at a relatively low price".
The ramifications of this moving to a lower interest rate, globally, has caused trading in commodities to explode. Traders looking for the best return and safest investment have begun to expand their hard assets. What this means for the energy industry is a sharp rise in prices for energy commodities. The energy industry is essentially a commodity industry because most business facets of the industry are involved in utilities. Utilities have always been a safe bet as far as investment futures are concerned, and this new occurrence has led to increased growth of energy commodities such as, oil and natural gas.
With the current economic turmoil and mistrust an investors best bet would be to expand into growing hard assets. Although, physical assets have always been a conservative bet by investors and seen as not innovative the fact remains they are most likely the safest market to investors. The commodities market is the safest market to enter and our industry has a major stake in its fluctuations.
- Timothy D. Vallario
Source: Wednesday, October 6, 2010 - VOL. CCLVI NO. 82 , "Investors Stock Up on Hard Assets" by Brian Baskin. (Commodities Section, Pg. C13)
The ramifications of this moving to a lower interest rate, globally, has caused trading in commodities to explode. Traders looking for the best return and safest investment have begun to expand their hard assets. What this means for the energy industry is a sharp rise in prices for energy commodities. The energy industry is essentially a commodity industry because most business facets of the industry are involved in utilities. Utilities have always been a safe bet as far as investment futures are concerned, and this new occurrence has led to increased growth of energy commodities such as, oil and natural gas.
With the current economic turmoil and mistrust an investors best bet would be to expand into growing hard assets. Although, physical assets have always been a conservative bet by investors and seen as not innovative the fact remains they are most likely the safest market to investors. The commodities market is the safest market to enter and our industry has a major stake in its fluctuations.
- Timothy D. Vallario
Source: Wednesday, October 6, 2010 - VOL. CCLVI NO. 82 , "Investors Stock Up on Hard Assets" by Brian Baskin. (Commodities Section, Pg. C13)
"BP has learned its lesson"...or has it?
I'm really interested in the whole gulf incident, so I'm writing about this again.
A recent Wall Street Journal article, talks about BP assuming responsibility for the spills in the Gulf. However, it seems like "we've all heard this before."
Apparently, there was an incident similar to this in 2005. Bob Malone, chairmen at the time, said that BP had an extensive plan to correct all the problems; he retired before any of it was put into action. Now its Bob Dudley's chance to shine. He also has a plan to correct the problems. He is planning to create "a new safety division" which will have "authority to intervene in all aspects of BP's technical activities." Of course, this is would be there response.
This is relevant to what we are learning; in chapter three, we talked about ethics and how companies attempt to fix ethical issues. BP is taking the "managerial approach to change things." It doesn't amuse me that it has taken them this long to come out with a "public statement." They know that they are getting a lot of environmentalists angry. I think if this were to happen again, BP can face bankruptcy and angry clients.
A recent Wall Street Journal article, talks about BP assuming responsibility for the spills in the Gulf. However, it seems like "we've all heard this before."
Apparently, there was an incident similar to this in 2005. Bob Malone, chairmen at the time, said that BP had an extensive plan to correct all the problems; he retired before any of it was put into action. Now its Bob Dudley's chance to shine. He also has a plan to correct the problems. He is planning to create "a new safety division" which will have "authority to intervene in all aspects of BP's technical activities." Of course, this is would be there response.
This is relevant to what we are learning; in chapter three, we talked about ethics and how companies attempt to fix ethical issues. BP is taking the "managerial approach to change things." It doesn't amuse me that it has taken them this long to come out with a "public statement." They know that they are getting a lot of environmentalists angry. I think if this were to happen again, BP can face bankruptcy and angry clients.
Thursday, September 30, 2010
The Failing Mine Safety and Health Administration
An article in the Wall Street Journal talks about the faulty Mine and Safety Health Administration.
According the the Labor Department's inspector general, the administration has failed to toughen up regulations for mines. There hasn't been an a single mine that has been added to the list of "having patters or violation," despite the numerous mines that have clearly violated safety regulations.
This could be due to the competing interest of the company, therefore influencing the agenda of this agency. "The report noted that it took the agency 13 years to finalize pattern-of- violation regulations. The agency then failed to set reliable standards for determining when violations at a particular mine should trigger tougher enforcement," but it didn't. After this report, the Mine and Safety Administration are making a lot changes.
I find this particularly disturbing. Mining is a dangerous industry, so regulators should feel obligated to tighten up their policies; the safety of the miners should be their main concern, and if a company fails to do that, they should be penalized. In class, we were talking about ethics and to hear that the regulators are actually the ones who aren't doing what they are suppose to do. They are setting a bad example, so maybe that's why the there's so much corruption in the energy industry?
According the the Labor Department's inspector general, the administration has failed to toughen up regulations for mines. There hasn't been an a single mine that has been added to the list of "having patters or violation," despite the numerous mines that have clearly violated safety regulations.
This could be due to the competing interest of the company, therefore influencing the agenda of this agency. "The report noted that it took the agency 13 years to finalize pattern-of- violation regulations. The agency then failed to set reliable standards for determining when violations at a particular mine should trigger tougher enforcement," but it didn't. After this report, the Mine and Safety Administration are making a lot changes.
I find this particularly disturbing. Mining is a dangerous industry, so regulators should feel obligated to tighten up their policies; the safety of the miners should be their main concern, and if a company fails to do that, they should be penalized. In class, we were talking about ethics and to hear that the regulators are actually the ones who aren't doing what they are suppose to do. They are setting a bad example, so maybe that's why the there's so much corruption in the energy industry?
Wednesday, September 29, 2010
One industry, countless possible careers
This week, I decided to examine some of the different positions available to those within the industry. The best way to do this, I concluded, was to simply browse the available jobs on the internet. I found that there is a vast variety in the positions available to those wishing to enter the industry, which is unsurprising. From an entry level drilling job where which is advertised as “outdoors, noisy, at heights, dangerous” to an engineering job where one is required to “provide process engineering support for capital projects and process safety improvements”. People with all variety of skills and experience are needed to fill the vast amount of labor and knowledge needed to keep the energy market going. As I do not wish to be an engineer or a driller, I began looking in the executive jobs.
On the first website that I searched there were over 1400 executive jobs available in the United States. They range from Project Manager, who is in charge of creating budgets and managing teams of engineers, to Sales Associates, who are in charge of ensuring that the companies get the highest amount of money for their product. There seems to be pretty much every conceivable job available for those that wish to work within the industry. I am curious how the nature of careers in the energy industry are being affected by the increasing demand for renewable energy.
http://careers.infooil.com
http://careers.infooil.com/fx/jobs/listings/1.346856/optimization.process.engineer.aspx
40 Years of Energy Panic
-Rianna Das
According the an article published in the Wall Street Journal entitled "40 Years of Energy Panic," the United States imports about 60% of its oil. Last November, before the infamous BP oil spill, a Shell executive, Marvin Odum, stood before Congress and deemed this large importation of oil. He stated that "We should not be satisfied with having other nations produce their energy for our use..." However, in this article, Holman Jenkins, an author of the Wall Street Journal, argues that relying on imports for oil is not necessarily a bad situation. He says that countries that rely more heavily on oil imports than the United States, such as India, China, and much of western Europe are experiencing tremendous growth and built high standards of living (online.wsj.com). He also claims that oil is a political problem maker and demonstrates this with the recent BP oil spill. He blames the Oil Pollution act of 1990 for this disaster. This act capped oil spill liability because of fears of putting the nation's energy in danger (online.wsj.com).
Personally, I found this article very interesting. Due to globalization and its effects, such as outsourcing, many Americans believe that we are losing our jobs to workers overseas. However, Jenkins makes the point that before the recent oil shortages, the United States was in a time of economic boom and we were importing just as much oil then (online.wsj.com). I also found the part about the Oil Pollution Act of 1990 very interesting. First, because it shows that government has a lot of influence over the energy industry and shows how regulation or, in this case, lack of regulation can determine decisions made by companies in the industry. I don't really understand why this act is still in affect, especially since it almost encourages companies to take risks that might hurt the environment because they will only be held responsible to a certain point.
This article discusses two companies that are leaders in the industry, especially in the American economy, BP and Shell. While this article does not mention specific jobs in the industry, in my opinion, the energy industry impacts every other industry. Without energy, it would be impossible to transport goods, work on computers, or produce products. Therefore, if the energy industry energy is not running efficiently, then it is hard for other industries to be successful.
Sources:
Oil-Sands Production
Oil-sands Production is a method in which you extract oil from sand,mud, and clay found in pond beds. This process was interesting to me because first I have never heard of this method, and second learning that "oil-sands production is on the verge of becoming the single biggest source of oil imports to the US." The environmental hazard that results from this process is runoff, when the blasting of sediment with high-powered water and chemicals seeps into streams and rivers. They do not dispose waste water properly.
Heated argument from environmental activists and concerned citizens has caused the energy firm to rethink its stance on occupational/enviromental-hazard. AlbertaSuncor Energy has turned its first oil-sand production field back to its original environment. They have taken steps to rehabilitate the environments they produce in, but the movement has been tough. they are making a proactive and necessary change to help the environment.
After reading this article I thought about the documentary "Gasland", a process known as hydro-fracturing for natural gas has caused some of the same environmental consequences. Hydro-fracturing is the process of blasting rock, once again, with chemicals to extract natural gas reserves. The water that is produced from this is contaminated, and not properly disposed usually ending up either in the regions water supply or worse actual well-water systems for actual human consumption. During the documentary deposits of gas expel through the pumps in people's houses, in effect creating flammable gas coming through clean water pipes. Watching and reading both of these sources helped me to understand why the 'green movement' has made so much headway in the past years.
These methods are harmful and dangerous, but the fact is there is a cost for every benefit. The old cliche, "There is no such thing as a free lunch." We want affordable energy. It has to rain to see a rainbow.
- Timothy D. Vallario
Source: Wednesday, September 29, 2010 - Vol. CCLVI No. 76, B7A "Suncor Turns Oil Waste to Wetland" By Edward Welsch.
Wednesday, September 22, 2010
New Energy Corporation Inc.
One of the new and emerging energy companies in the energy industry is the New Energy Corporation. It was founded in December 2003 and based in Calgary, Alberta. The company produces in-stream power generation products. "New Energy Corporation Inc. is a leading developer and manufacturer of in-stream power generation products." The company offers small generators and large generators.
Like many new energy companies, they are looking for alternative fuels; however, there's one distinction that makes them stand out from many other renewable fuel companies. This company uses energy within the water. Although many may argue that there has been many companies who do that, but they were one of the very few that has been successful. This is a result of the drive for alternative fuels. Additionally, their success has made other companies want to excel too.
http://www.newenergycorp.ca/About/NewEnergyCorporation/tabid/58/Default.aspx
Like many new energy companies, they are looking for alternative fuels; however, there's one distinction that makes them stand out from many other renewable fuel companies. This company uses energy within the water. Although many may argue that there has been many companies who do that, but they were one of the very few that has been successful. This is a result of the drive for alternative fuels. Additionally, their success has made other companies want to excel too.
http://www.newenergycorp.ca/About/NewEnergyCorporation/tabid/58/Default.aspx
Can Citizenre Transform the Energy Industry?
As I have previously stated in this blog, the Energy Industry is in for a big change in the very near future. The current giants are too entrenched in their ways to be the leaders in the shift that is coming. It will be the new companies, the innovators, who lead the way into the future of energy. Citizenre plans to be that change. They are “Aware of the energy landscape’s imminent change, and its remarkable opportunity, Citizenrē is positioning itself to be the world’s leader in the development of renewable energy infrastructure.” They plan to develop a framework for renewable energy. They have a goal of 25% net electricity produced renewably by 2025. This seems to be a difficult, yet somewhat plausible goal.
Citizenre believes they have the plan that can get the country to this goal. This plan involves removing the traditional barrier to home-owned solar panel-the high price of entry. A setup of solar panels can cost up to $25,000, making this an extremely steep price for all but the most avid renewable energy enthusiasts. With $650 million dollars in funding, Citizenre believes that it has the solution to this problem. They “will loan you a complete rooftop solar power system, install it for free and sell you back the power it generates at a fixed rate below what your utility charges” (Graham). This sounds amazing, perhaps too good to be true. Currently Citizenre is still in the planning stages and has missed several stated deadlines for beginning operation. They have an amazing concept, but I am skeptical of whether their plans will actually plan out. Citizenre is definitely a company to follow in the future, and if it begins to look as though they will truly come through with their promises then it will undoubtedly shake the energy industry to its core.
http://www.citizenre.com
http://www.wired.com/science/discoveries/news/2007/02/72752
Citizenre believes they have the plan that can get the country to this goal. This plan involves removing the traditional barrier to home-owned solar panel-the high price of entry. A setup of solar panels can cost up to $25,000, making this an extremely steep price for all but the most avid renewable energy enthusiasts. With $650 million dollars in funding, Citizenre believes that it has the solution to this problem. They “will loan you a complete rooftop solar power system, install it for free and sell you back the power it generates at a fixed rate below what your utility charges” (Graham). This sounds amazing, perhaps too good to be true. Currently Citizenre is still in the planning stages and has missed several stated deadlines for beginning operation. They have an amazing concept, but I am skeptical of whether their plans will actually plan out. Citizenre is definitely a company to follow in the future, and if it begins to look as though they will truly come through with their promises then it will undoubtedly shake the energy industry to its core.
http://www.citizenre.com
http://www.wired.com/science/discoveries/news/2007/02/72752
Ascent Solar Technology/Alternative Energy and its Impacts
by: Rianna Das
Ascent Solar is an example of a company that is, not only abiding by the limits of carbon dioxide, but also providing other companies with products that will help them to lower their emissions of carbon dioxide. Ascent solar is an example of the trend of alternative energy. With issues, such as the worry of peak oil production, alternative energy is a must for the world. This trend has encouraged companies to develop sustainable energy, such as solar powered energy, illustrated by the company, Ascent Solar, or other types of alternative energy, such as wind powered energy or hydropower. Sustainable energy means energy that does not negatively impact our environment. With the worries of global warming, companies must search for renewable energy that can eventually completely replace coal and oil before coal and oil run out.
This development of alternative energy has also encouraged companies that produce non-renewable types of energy to go "green." In other words, these companies must reduce their impact on the environment in order for their product to compete with alternative energy products. For example, BP has invested eight billion dollars in renewable energy research and Chevron has spend over 3 billion dollars in this same type of research (frost.com). This trend has also increased government regulation on oil and coal companies. For instance, mountain removal is a very common method of coal mining, which involves removing the entire mountain above a coal mine and then mining the coal. While this method is very effective (providing about 10% of the United States' coal), it is very detrimental to the environment. The Obama administration passed legislation in April of 2010 that will sharply curtail mountain mining and its effects (washingtonpost.com). While this will greatly help the environment affected by mountaintop removal, it will have a very negative impact on the economy nears the mountains, specifically in the Appalachian Mountains in Virginia, as it will destroy many jobs and removal the main industry for many towns (washingtonpost.com).
This development of alternative energy has also encouraged companies that produce non-renewable types of energy to go "green." In other words, these companies must reduce their impact on the environment in order for their product to compete with alternative energy products. For example, BP has invested eight billion dollars in renewable energy research and Chevron has spend over 3 billion dollars in this same type of research (frost.com). This trend has also increased government regulation on oil and coal companies. For instance, mountain removal is a very common method of coal mining, which involves removing the entire mountain above a coal mine and then mining the coal. While this method is very effective (providing about 10% of the United States' coal), it is very detrimental to the environment. The Obama administration passed legislation in April of 2010 that will sharply curtail mountain mining and its effects (washingtonpost.com). While this will greatly help the environment affected by mountaintop removal, it will have a very negative impact on the economy nears the mountains, specifically in the Appalachian Mountains in Virginia, as it will destroy many jobs and removal the main industry for many towns (washingtonpost.com).
Subscribe to:
Comments (Atom)