Earlier today, A friend indicated that when she awoke this morning, she looked out the window at a nearby gas station, and noted that the gas price for regular was $3.58. By the time she proceeded to work a couple of hours later, it was $3.89. By the time she returned home, it had risen to $4.09. I missed all of that. I did not notice the prices when I went to a luncheon meeting, but I sure noticed them when I pulled into a station on my way home: $4.19.
I actually thought that I had just awakened from a dream, since I just purchased gas yesterday, and did not see anything close to $4.19. In light of this dramatic increase, we thought it appropriate to revisit a couple of articles previously posted on energy issues:
The first deals with the various competing factors which come into play in the energy equation, and helps one understand the complexity of the issue. http://theviewfromoutsidemytinywindow.blogspot.com/2008/06/post-no-21-solution-to-all-of-our.html.
The second deals with our past addiction to foreign oil, and the T. Boone Pickens plan for energy independence. http://theviewfromoutsidemytinywindow.blogspot.com/2008/07/post-no-29-problems-associated-with.html.
The third is an article about alternative energy, specifically about the "Saudi Arabia" of solar energy. You might be surprised. http://theviewfromoutsidemytinywindow.blogspot.com/2008/08/post-36b-guess-which-country-is-saudi.html.
Let's hear from you about what you think is really going on with respect to this energy issue.
Showing posts with label oil. Show all posts
Showing posts with label oil. Show all posts
Friday, September 12, 2008
Wednesday, September 10, 2008
Post No. 41b: Television Worth Viewing
Charlie Rose on PBS: A conversation with Thomas Friedman
http://www.charlierose.com/shows/2008/09/09/1/a-conversation-with-thomas-l-friedman
No matter what you may think of Thomas Friedman’s politics or positions, he raises some very significant points about innovation, global competition, and the future position of the United States, about which we should all be thinking. Friedman discusses his new book, Hot, Flat, and Crowded: Why We Need a Green Revolution - and How It Can Renew America )http://books.google.com/books?id=FMCxKQAACAAJ&dq=%22hot,+flat+and+crowded%22&ei=0VDHSOm9JpLkywS_q9DkAw.)
We can not simply continue to sit around, argue amongst ourselves, and think that terrorists are around every corner, while the world passes us by. This is a big picture discussion. We need to come up with solutions, and Friedman at least suggests some for our consideration.
Check your local listings. On the East Coast, it aired at 11:30 am on Tuesday, September 9, 2008.
http://www.charlierose.com/shows/2008/09/09/1/a-conversation-with-thomas-l-friedman
No matter what you may think of Thomas Friedman’s politics or positions, he raises some very significant points about innovation, global competition, and the future position of the United States, about which we should all be thinking. Friedman discusses his new book, Hot, Flat, and Crowded: Why We Need a Green Revolution - and How It Can Renew America )http://books.google.com/books?id=FMCxKQAACAAJ&dq=%22hot,+flat+and+crowded%22&ei=0VDHSOm9JpLkywS_q9DkAw.)
We can not simply continue to sit around, argue amongst ourselves, and think that terrorists are around every corner, while the world passes us by. This is a big picture discussion. We need to come up with solutions, and Friedman at least suggests some for our consideration.
Check your local listings. On the East Coast, it aired at 11:30 am on Tuesday, September 9, 2008.
Wednesday, August 6, 2008
Post No. 33: Are You Curious About What's Been Going on with the Iraqi Oil?
Article of Interest of Interest from the August 6, 2008 Edition of the New York Times
August 6, 2008
As Iraq Surplus Rises, Little Goes Into Rebuilding
By JAMES GLANZ and CAMPBELL ROBERTSON
Soaring oil prices will leave the Iraqi government with a cumulative budget surplus of as much as $79 billion by year’s end, according to an American federal oversight agency. But Iraq has spent only a minute fraction of that on reconstruction costs, which are now largely borne by the United States.
The unspent windfall, which covers surpluses from oil sales since 2005, appears likely to reinforce growing debate about the approximately $48 billion in American taxpayer money devoted to rebuilding Iraq since the American-led invasion.
In one comparison, the United States has spent $23.2 billion in the critical areas of security, oil, electricity and water since the 2003 invasion, the report said. But from 2005 through April 2008, Iraq has spent just $3.9 billion on similar services.
Over all, the report from the Government Accountability Office estimates, Iraqi oil revenue from 2005 through the end of this year will amount to at least $156 billion. And in an odd financial twist, a large amount of the surplus money is sitting in an American bank in New York — nearly $10 billion at the end of 2007, with more expected this year, when the accountability office estimates a skyrocketing surplus.
The report was requested by two senior senators, Carl Levin, Democrat of Michigan, and John W. Warner, Republican of Virginia, and on Tuesday they were quick to express strong dissatisfaction over the contrast between American spending on reconstruction and the weak record of spending by Iraq itself.
“The Iraqi government now has tens of billions of dollars at its disposal to fund large-scale reconstruction projects,” Mr. Levin, who is chairman of the Senate Armed Services Committee, said in a joint statement with Mr. Warner. “It is inexcusable for U.S. taxpayers to continue to foot the bill for projects the Iraqis are fully capable of funding themselves. We should not be paying for Iraqi projects, while Iraqi oil revenues continue to pile up in the bank.”
From the beginning of the conflict, American officials assured taxpayers and the world that Iraq would use oil money to pay for reconstruction. But that has not happened. Several senior Iraqi officials were either traveling on Tuesday or declined to comment, saying they were not familiar with the report.
Sinan al-Shabibi, governor of the Central Bank of Iraq, which the report said was holding $5.7 billion of the surplus at the end of 2007, said that while he could not speak for the government, problems with spending money often had to do with continuing security problems and a shortage of expertise in Iraqi ministries.
“Yes, there are problems, but that does not mean those problems are going to continue,” Mr. Shabibi said. “In all developing countries you put objectives, and sometimes you don’t reach them.”
“But,” he said, referring to the government, “they are determined to spend this money on development. They see it as a priority.”
Senators Levin and Warner pointed out that in 2007, for example, Iraq actually spent only 28 percent of its $12 billion reconstruction budget, according to the accountability office. But even that number could overstate the success rate in most of Iraq, because $2 billion of the spending took place in the relatively peaceful confines of the northern Kurdish region.
And in another troubling sign, the report said that from 2005 to 2007, Iraq devoted only 1 percent of the operating expenses in its budget to maintaining reconstruction projects that had been built with either American or Iraqi money. That finding raised fresh questions over whether the huge investment in some of those projects would have any long-term impact.
Like so many statistical measures from Iraq, the ones in the new report are likely to be used to support opposite positions on how much the United States should continue spending and how long it should stay in the country, said Ryan Alexander, president of Taxpayers for Common Sense in Washington.
The figures could be used to argue that because the Iraqi ministries still do not have the capacity to spend their own money, further assistance from the United States is called for, Ms. Alexander said. Or the huge oil revenues could be seen as proof that Iraq has the resources to solve its own problems if it would only use the money.
But one finding that is sure to raise questions all around is the enormous pileup of cash in the Federal Reserve Bank of New York, as well as several Iraqi banks, Ms. Alexander said. The money in New York is a legacy of a system set up to handle Iraqi oil revenues when the country had no capacity to do so on its own.
The purpose of the money was to rebuild Iraq, not draw interest in a bank, Ms. Alexander said. “I don’t know what function that serves right now. In my mind it raises another set of questions which is, ‘Who’s minding the store?’ ” she said.
“There may have been people who said this is going to be harder than you think, this is going to take a long time, but nobody said what we should do is collect a lot of money and let it sit there,” Ms. Alexander said.
The deposit at the Federal Reserve Bank is so large that the United States has been obliged to make $435.6 million in interest payments to Iraq through the end of last year, according to the new report.
The overall estimates of Iraqi surpluses will come down somewhat if the Iraqi Parliament passes stalled legislation that includes a $22 billion supplemental budget for 2008. As of Tuesday, that bill had not been passed, since it is mired in wider negotiations over provincial elections.
Some of the Iraqi spending figures cited in the report were also a matter of dispute in the past, with the Iraqi government and American officials in Baghdad claiming that Iraq had consistently spent more money than the accountability office had given it credit for.
But the office said evidence for higher spending was based mainly on so-called special reports prepared by the Iraqi Finance Ministry — reports that use vague budgetary terms and unclear source material and contain columns and rows that do not add up properly.
Joseph A. Christoff, director of the international affairs and trade team at the accountability office, said it was fair to say that a shortage of qualified officials in Iraq had diminished the capacity of central ministries to write contracts and carry out rebuilding.
But he said it was also true that with so much American assistance available, the Iraqi government may not have felt much urgency to increase that capacity and spend its own money.
“I think some people would contend that because we have continued to make a sizable investment, there hasn’t been a proper incentive until now for the Iraqi government to make its own investment,” Mr. Christoff said.
Reached late on Tuesday in Baghdad, the Iraqi planning minister, Ali Baban, defended his country’s commitment to spending Iraqi money on reconstruction, saying that the government was pushing as hard as it could to complete projects.
“I admit that there is some delay in spending the money on the projects in the provinces and in the ministries,” Mr. Baban said. “We have problems in this issue because there are lots of obstacles we face, because of the situation that we’re going through. We’re trying to deal with that, we’re trying to improve things, but you know the situation in Iraq.”
James Glanz reported from New York, and Campbell Robertson from Baghdad.
August 6, 2008
As Iraq Surplus Rises, Little Goes Into Rebuilding
By JAMES GLANZ and CAMPBELL ROBERTSON
Soaring oil prices will leave the Iraqi government with a cumulative budget surplus of as much as $79 billion by year’s end, according to an American federal oversight agency. But Iraq has spent only a minute fraction of that on reconstruction costs, which are now largely borne by the United States.
The unspent windfall, which covers surpluses from oil sales since 2005, appears likely to reinforce growing debate about the approximately $48 billion in American taxpayer money devoted to rebuilding Iraq since the American-led invasion.
In one comparison, the United States has spent $23.2 billion in the critical areas of security, oil, electricity and water since the 2003 invasion, the report said. But from 2005 through April 2008, Iraq has spent just $3.9 billion on similar services.
Over all, the report from the Government Accountability Office estimates, Iraqi oil revenue from 2005 through the end of this year will amount to at least $156 billion. And in an odd financial twist, a large amount of the surplus money is sitting in an American bank in New York — nearly $10 billion at the end of 2007, with more expected this year, when the accountability office estimates a skyrocketing surplus.
The report was requested by two senior senators, Carl Levin, Democrat of Michigan, and John W. Warner, Republican of Virginia, and on Tuesday they were quick to express strong dissatisfaction over the contrast between American spending on reconstruction and the weak record of spending by Iraq itself.
“The Iraqi government now has tens of billions of dollars at its disposal to fund large-scale reconstruction projects,” Mr. Levin, who is chairman of the Senate Armed Services Committee, said in a joint statement with Mr. Warner. “It is inexcusable for U.S. taxpayers to continue to foot the bill for projects the Iraqis are fully capable of funding themselves. We should not be paying for Iraqi projects, while Iraqi oil revenues continue to pile up in the bank.”
From the beginning of the conflict, American officials assured taxpayers and the world that Iraq would use oil money to pay for reconstruction. But that has not happened. Several senior Iraqi officials were either traveling on Tuesday or declined to comment, saying they were not familiar with the report.
Sinan al-Shabibi, governor of the Central Bank of Iraq, which the report said was holding $5.7 billion of the surplus at the end of 2007, said that while he could not speak for the government, problems with spending money often had to do with continuing security problems and a shortage of expertise in Iraqi ministries.
“Yes, there are problems, but that does not mean those problems are going to continue,” Mr. Shabibi said. “In all developing countries you put objectives, and sometimes you don’t reach them.”
“But,” he said, referring to the government, “they are determined to spend this money on development. They see it as a priority.”
Senators Levin and Warner pointed out that in 2007, for example, Iraq actually spent only 28 percent of its $12 billion reconstruction budget, according to the accountability office. But even that number could overstate the success rate in most of Iraq, because $2 billion of the spending took place in the relatively peaceful confines of the northern Kurdish region.
And in another troubling sign, the report said that from 2005 to 2007, Iraq devoted only 1 percent of the operating expenses in its budget to maintaining reconstruction projects that had been built with either American or Iraqi money. That finding raised fresh questions over whether the huge investment in some of those projects would have any long-term impact.
Like so many statistical measures from Iraq, the ones in the new report are likely to be used to support opposite positions on how much the United States should continue spending and how long it should stay in the country, said Ryan Alexander, president of Taxpayers for Common Sense in Washington.
The figures could be used to argue that because the Iraqi ministries still do not have the capacity to spend their own money, further assistance from the United States is called for, Ms. Alexander said. Or the huge oil revenues could be seen as proof that Iraq has the resources to solve its own problems if it would only use the money.
But one finding that is sure to raise questions all around is the enormous pileup of cash in the Federal Reserve Bank of New York, as well as several Iraqi banks, Ms. Alexander said. The money in New York is a legacy of a system set up to handle Iraqi oil revenues when the country had no capacity to do so on its own.
The purpose of the money was to rebuild Iraq, not draw interest in a bank, Ms. Alexander said. “I don’t know what function that serves right now. In my mind it raises another set of questions which is, ‘Who’s minding the store?’ ” she said.
“There may have been people who said this is going to be harder than you think, this is going to take a long time, but nobody said what we should do is collect a lot of money and let it sit there,” Ms. Alexander said.
The deposit at the Federal Reserve Bank is so large that the United States has been obliged to make $435.6 million in interest payments to Iraq through the end of last year, according to the new report.
The overall estimates of Iraqi surpluses will come down somewhat if the Iraqi Parliament passes stalled legislation that includes a $22 billion supplemental budget for 2008. As of Tuesday, that bill had not been passed, since it is mired in wider negotiations over provincial elections.
Some of the Iraqi spending figures cited in the report were also a matter of dispute in the past, with the Iraqi government and American officials in Baghdad claiming that Iraq had consistently spent more money than the accountability office had given it credit for.
But the office said evidence for higher spending was based mainly on so-called special reports prepared by the Iraqi Finance Ministry — reports that use vague budgetary terms and unclear source material and contain columns and rows that do not add up properly.
Joseph A. Christoff, director of the international affairs and trade team at the accountability office, said it was fair to say that a shortage of qualified officials in Iraq had diminished the capacity of central ministries to write contracts and carry out rebuilding.
But he said it was also true that with so much American assistance available, the Iraqi government may not have felt much urgency to increase that capacity and spend its own money.
“I think some people would contend that because we have continued to make a sizable investment, there hasn’t been a proper incentive until now for the Iraqi government to make its own investment,” Mr. Christoff said.
Reached late on Tuesday in Baghdad, the Iraqi planning minister, Ali Baban, defended his country’s commitment to spending Iraqi money on reconstruction, saying that the government was pushing as hard as it could to complete projects.
“I admit that there is some delay in spending the money on the projects in the provinces and in the ministries,” Mr. Baban said. “We have problems in this issue because there are lots of obstacles we face, because of the situation that we’re going through. We’re trying to deal with that, we’re trying to improve things, but you know the situation in Iraq.”
James Glanz reported from New York, and Campbell Robertson from Baghdad.
Tuesday, July 29, 2008
Post No. 29: The Problems Associated with Having Your Cake and Eating It Too
© 2008, The Institute for Applied Common Sense
America is an interesting country. We should often be perplexed about the various positions in which we find ourselves. This concept called “freedom,” which we must keep in mind is a relatively new concept, has its complications. Consider the following.
Why should a populace which willingly and voluntarily eats poor quality fast, fatty, salty, and cholesterol laden food, smokes, drinks alcohol, refrains from exercise, and engages in other questionable behavior, have an expectation that it is entitled to affordable health care coverage when poor health flows from such behavior? How can the citizens, of a country that permits them to pursue virtually any educational or vocational pursuit of their choice, complain when they are unable to find a job of their liking or one that permits them to adequately support their family? How can citizens of a country purchase inexpensive products made by American companies in third world countries, and then turn around and complain about the exporting of American jobs and technology?
Who is really at fault in connection with our housing mortgage crisis, the lenders for making bad loans to customers with an inability to pay, or the homeowners, for entering into transactions which were beyond their financial means? Just this past Sunday, a psychiatrist connected with UCLA’s Student Health Services, discussed on C-Span2 Book TV, the frustrations experienced by career professional women who thought that science had advanced to the point of suspending the biological clock, only to later discover that there are complications associated with having children late in life. (http://www.booktv.org/program.aspx?ProgramId=8574&SectionName=&PlayMedia=No.)
Last week, in Post No. 28 of this blog, we touched on predictions by some that a water crisis is in the making, and suggested that America start planning ahead of time, contrary to the manner in which it approached energy. However, we did not pose the fundamental question: How did a country, with all of our great academic and corporate institutions, manage to find itself dependent on others for energy? We submit that what we have in this country is a responsibility crisis. We always want our cake and to eat it too. Both parties, and both sides of the aisle, are responsible, and yet you will never hear them acknowledge it. Taking responsibility for one’s condition is a common sense first step toward addressing one’s problems.
Two sound bites uttered this past weekend made us stop and think about our current condition. One was made by Barack Obama, during his interview on NBC’s Meet the Press on Sunday morning. He spoke of the inability of our politicians to make hard decisions. (Are they so focused on getting re-elected that they lack the ability to do so?) The other was uttered by T. Boone Pickens, to the effect that, “People will follow if we have leadership [emphasis added].” Pickens testified before a Senate committee on homeland security issues related to energy dependence. (http://inside.c-spanarchives.org:8080/cspan/cspan.csp?command=dprogram&record=566076979.)
In our opinion, probably the most difficult situation in which this nation has ever found itself, and which defies common sense, is our dependence on foreign oil. Pickens, a geologist by training, has committed 58 million dollars to telling America his plan for making America energy independent. You may have seen or heard his commercials on the media outlets over the past two weeks. He believes that the American public does not fully understand this confusing area. He further believes that we want to know what is going on, in some comprehensible manner, and he wants to elevate the discussion before the presidential election.
Pickens was previously the founder and owner of Mesa Petroleum. He is now the head of B.P. Capital Management. In his opinion (and the purpose of this blog is not to support his position), the increase in the price of a barrel of oil is not due to corporate price gouging or the involvement of speculators, but rather the factor that recent production levels have remained relatively constant, while the demand has increased dramatically. (We suspect that most of you economic experts have some empirical evidence to challenge his position.) Be that as it may, he argues that the oil leaders in the Middle East are absolutely dumbfounded by U. S. energy policy. They can not understand why the U.S. has done virtually nothing to improve its situation, and yet blames the oil producing nations for the current price increases. Did we have any clues, any clues at all, in our recent history, that we should try to become energy independent?
Pickens’ company operates the largest wind farm in America. It provides the power equivalent to two and one-half nuclear plants, and it has created 15,000 jobs. The farm is located in a wind corridor in the mid-west section of the United States. Interestingly, according to Pickens, Germany is the largest user of wind generated power, and it has poor wind conditions. Overall, he claims that the United States has excellent conditions, not to mention the coastal areas which can be utilized. (Many of you may be aware that there has been an ongoing battle near Cape Cod / Martha’s Vineyard in connection with a proposed off-shore wind farm. Some have suggested that wealthy residents in the area have placed their interests above those of the public. Actually, the issue is far more complicated than that. However, it should have been resolved by now. Time’s a wasting. [http://www.en.wikipedia.org/wiki/Cape_Wind].)
Pickens made a number of interesting points before the Committee. He indicated that 38% of our oil is imported from the Middle East and Africa, from countries which are unstable. He noted that we can replace that 38% with natural gas already here in the United States. Natural gas costs 40% of crude oil. Will our supply last indefinitely? No, according to Pickens, but it will give us time to develop some alternatives. In fact, according to Pickens, if we had started using natural gas 20 years ago, our resources would be substantially depleted by now; however, we would not be dependent on others for that segment of our energy needs.
Pickens made some other interesting points. He noted that there is no one silver bullet that will solve all of our energy issues, but rather we need to use all available technologies and resources to become independent. Pickens believes that wind and solar power are the cheapest sources at this time, but that we need to consider off-shore drilling, and drilling near the Artic Circle. He also mentioned the need for government mandates to encourage industry participation in this independence effort. Pickens himself drives a Honda GX natural gas vehicle (http://automobiles.honda.com/shop/?modelname=civic+gx&ef_id=1097:3:s_f566d7a6f1f03f560e37a47917ba4e55_444155100_honda%20natural%20gas%20vehicle:gu-rNtB6B3YAAG6U7sUAAAAR:20080729045957). No American automobile manufacturer makes such a vehicle, at least not in the United States. General Motors makes them, but according to Pickens, only in South America.
Keep in mind that Pickens’ testimony was before a committee dealing with homeland security. He considers our dependence on foreign oil to be dangerous. Every time one of the senators posed a partisan question, or made a suggestion that he supported one side of the aisle or the other, he responded that his concern is about what is in the best interests of America, and American jobs. When asked specifically about whether he was in agreement with Al Gore regarding alternative sources of energy, he simply said that Al Gore’s issue is global warming. Pickens regards that as a secondary issue which can be addressed later. He considers our energy dependence on unstable countries to be the primary issue, which needs to be addressed now. According to Pickens, “There is only one enemy, foreign oil, and that’s my fight.”
All of this is quite complicated stuff to this simpleton, and I suspect that most of you feel that you already know what we need to do. However, are we going to continue to argue about all of the competing considerations, and drag out all of the litigation and bureaucratic haggling, while our energy situation further deteriorates? Even if you disagree with all of Pickens’ suggestions, and think that they are self-serving, hopefully you agree with his statement that, “People will follow if we have leadership [emphasis added].” Some one or some body needs to exercise responsible leadership. America can not afford to keep traveling down this path. We can’t have our cake and eat it too, indefinitely.
© 2008, The Institute for Applied Common Sense
America is an interesting country. We should often be perplexed about the various positions in which we find ourselves. This concept called “freedom,” which we must keep in mind is a relatively new concept, has its complications. Consider the following.
Why should a populace which willingly and voluntarily eats poor quality fast, fatty, salty, and cholesterol laden food, smokes, drinks alcohol, refrains from exercise, and engages in other questionable behavior, have an expectation that it is entitled to affordable health care coverage when poor health flows from such behavior? How can the citizens, of a country that permits them to pursue virtually any educational or vocational pursuit of their choice, complain when they are unable to find a job of their liking or one that permits them to adequately support their family? How can citizens of a country purchase inexpensive products made by American companies in third world countries, and then turn around and complain about the exporting of American jobs and technology?
Who is really at fault in connection with our housing mortgage crisis, the lenders for making bad loans to customers with an inability to pay, or the homeowners, for entering into transactions which were beyond their financial means? Just this past Sunday, a psychiatrist connected with UCLA’s Student Health Services, discussed on C-Span2 Book TV, the frustrations experienced by career professional women who thought that science had advanced to the point of suspending the biological clock, only to later discover that there are complications associated with having children late in life. (http://www.booktv.org/program.aspx?ProgramId=8574&SectionName=&PlayMedia=No.)
Last week, in Post No. 28 of this blog, we touched on predictions by some that a water crisis is in the making, and suggested that America start planning ahead of time, contrary to the manner in which it approached energy. However, we did not pose the fundamental question: How did a country, with all of our great academic and corporate institutions, manage to find itself dependent on others for energy? We submit that what we have in this country is a responsibility crisis. We always want our cake and to eat it too. Both parties, and both sides of the aisle, are responsible, and yet you will never hear them acknowledge it. Taking responsibility for one’s condition is a common sense first step toward addressing one’s problems.
Two sound bites uttered this past weekend made us stop and think about our current condition. One was made by Barack Obama, during his interview on NBC’s Meet the Press on Sunday morning. He spoke of the inability of our politicians to make hard decisions. (Are they so focused on getting re-elected that they lack the ability to do so?) The other was uttered by T. Boone Pickens, to the effect that, “People will follow if we have leadership [emphasis added].” Pickens testified before a Senate committee on homeland security issues related to energy dependence. (http://inside.c-spanarchives.org:8080/cspan/cspan.csp?command=dprogram&record=566076979.)
In our opinion, probably the most difficult situation in which this nation has ever found itself, and which defies common sense, is our dependence on foreign oil. Pickens, a geologist by training, has committed 58 million dollars to telling America his plan for making America energy independent. You may have seen or heard his commercials on the media outlets over the past two weeks. He believes that the American public does not fully understand this confusing area. He further believes that we want to know what is going on, in some comprehensible manner, and he wants to elevate the discussion before the presidential election.
Pickens was previously the founder and owner of Mesa Petroleum. He is now the head of B.P. Capital Management. In his opinion (and the purpose of this blog is not to support his position), the increase in the price of a barrel of oil is not due to corporate price gouging or the involvement of speculators, but rather the factor that recent production levels have remained relatively constant, while the demand has increased dramatically. (We suspect that most of you economic experts have some empirical evidence to challenge his position.) Be that as it may, he argues that the oil leaders in the Middle East are absolutely dumbfounded by U. S. energy policy. They can not understand why the U.S. has done virtually nothing to improve its situation, and yet blames the oil producing nations for the current price increases. Did we have any clues, any clues at all, in our recent history, that we should try to become energy independent?
Pickens’ company operates the largest wind farm in America. It provides the power equivalent to two and one-half nuclear plants, and it has created 15,000 jobs. The farm is located in a wind corridor in the mid-west section of the United States. Interestingly, according to Pickens, Germany is the largest user of wind generated power, and it has poor wind conditions. Overall, he claims that the United States has excellent conditions, not to mention the coastal areas which can be utilized. (Many of you may be aware that there has been an ongoing battle near Cape Cod / Martha’s Vineyard in connection with a proposed off-shore wind farm. Some have suggested that wealthy residents in the area have placed their interests above those of the public. Actually, the issue is far more complicated than that. However, it should have been resolved by now. Time’s a wasting. [http://www.en.wikipedia.org/wiki/Cape_Wind].)
Pickens made a number of interesting points before the Committee. He indicated that 38% of our oil is imported from the Middle East and Africa, from countries which are unstable. He noted that we can replace that 38% with natural gas already here in the United States. Natural gas costs 40% of crude oil. Will our supply last indefinitely? No, according to Pickens, but it will give us time to develop some alternatives. In fact, according to Pickens, if we had started using natural gas 20 years ago, our resources would be substantially depleted by now; however, we would not be dependent on others for that segment of our energy needs.
Pickens made some other interesting points. He noted that there is no one silver bullet that will solve all of our energy issues, but rather we need to use all available technologies and resources to become independent. Pickens believes that wind and solar power are the cheapest sources at this time, but that we need to consider off-shore drilling, and drilling near the Artic Circle. He also mentioned the need for government mandates to encourage industry participation in this independence effort. Pickens himself drives a Honda GX natural gas vehicle (http://automobiles.honda.com/shop/?modelname=civic+gx&ef_id=1097:3:s_f566d7a6f1f03f560e37a47917ba4e55_444155100_honda%20natural%20gas%20vehicle:gu-rNtB6B3YAAG6U7sUAAAAR:20080729045957). No American automobile manufacturer makes such a vehicle, at least not in the United States. General Motors makes them, but according to Pickens, only in South America.
Keep in mind that Pickens’ testimony was before a committee dealing with homeland security. He considers our dependence on foreign oil to be dangerous. Every time one of the senators posed a partisan question, or made a suggestion that he supported one side of the aisle or the other, he responded that his concern is about what is in the best interests of America, and American jobs. When asked specifically about whether he was in agreement with Al Gore regarding alternative sources of energy, he simply said that Al Gore’s issue is global warming. Pickens regards that as a secondary issue which can be addressed later. He considers our energy dependence on unstable countries to be the primary issue, which needs to be addressed now. According to Pickens, “There is only one enemy, foreign oil, and that’s my fight.”
All of this is quite complicated stuff to this simpleton, and I suspect that most of you feel that you already know what we need to do. However, are we going to continue to argue about all of the competing considerations, and drag out all of the litigation and bureaucratic haggling, while our energy situation further deteriorates? Even if you disagree with all of Pickens’ suggestions, and think that they are self-serving, hopefully you agree with his statement that, “People will follow if we have leadership [emphasis added].” Some one or some body needs to exercise responsible leadership. America can not afford to keep traveling down this path. We can’t have our cake and eat it too, indefinitely.
© 2008, The Institute for Applied Common Sense
Thursday, July 24, 2008
Post No. 28: After We Resolve the Oil Issue, Will Water Be the Next Crisis to “Affect” America?
© 2008, The Institute for Applied Common Sense
Remember the year in which you read this article. One of the goals of this blog is to stimulate and provoke thought. However, another goal is to encourage our readers to view issues from different perspectives, particularly perspectives which take in consideration issues larger than our personal and local issues. In other words, we encourage “big picture” and long-term analysis. We believe that it is only through this type of analysis that we will be able to “dig deeper” and determine the underlying reasons for current societal problems, and avoid inefficiently employing our time addressing the superficial symptoms.
In the Monday, July 21, 2008 electronic edition of the New York Times, there appears an article written by Andrew Martin entitled “Mideast Facing Choice between Crops and Water.” (http://www.nytimes.com/2008/07/21/business/worldbusiness/21arabfood.html?th&emc=th.) The following excerpt is taken from that article:
“CAIRO – Global food shortages have placed the Middle East and North Africa in a quandary, as they are forced to choose between growing more crops to feed an expanding population or preserving their already scant supply of water. For decades nations in this region have drained aquifers, sucked the salt from seawater and diverted the mighty Nile to make deserts bloom. But those projects were so costly and used so much water that it remained far more practical to import food than to produce it. Today, some countries import 90 percent or more of their staples. Now, the worldwide food crisis is making many countries in this politically volatile region rethink that math.”
When one views history from a perspective of thousands of years, one recognizes the importance of agriculture (or food production) on the wealth and expansion of a society. If the efforts of everyone in a society are primarily involved in hunting and gathering for food purposes, the day is consumed with the pursuit of food, and very little else is accomplished. It is only when technological advances permit the generation, by a few, of food, for the many, that those not engaged in agriculture can devote their time and energy in the pursuit of other goals. It is a factor that we have witnessed repeatedly throughout history.
Another major factor is the availability of water, not only for drinking and irrigation purposes, but also for water transport and navigation purposes. One of the things that has plagued the development of Africa throughout history, with a few notable exceptions, has been the scarcity of water and the lack of navigable bodies of water. While most of us here in the United States are concerned about gasoline and heating fuel, we should also stop to consider the drinking and agricultural water problem, since we are now in a global economy.
This writer first became aware of this issue in 2003, when viewing an article in Smithsonian Magazine, which, by the way, is this writer’s favorite magazine “of all time.” (http://www.smithsonianmag.com/.) How many of you were aware of this developing water issue, prior to reading about it here? Is it more significant than the development of nuclear arms or terrorism? Is oil a more significant issue? Have you seen anything in the media in recent years alerting us to this issue? Is there a possibility that the media outlets in the United States have not focused much attention on this issue because of a perception that it is not particularly relevant to U. S. citizens? It is apparently enough of an issue that former U.S.S.R. President Mikhail Gorbachev has been devoting virtually all of his time in recent years to this issue.
Mr. Gorbachev is a member of the Board of Directors of Green Cross International (http://gci.ch/index.php?option=com_content&task=view&id=9&Itemid=9). In 2003, he was the President of the organization. In a March 20, 2003 article in BBC News, (http://news.bbc.co.uk/2/hi/science/nature/2867583.stm), author Ben Sutherland wrote, in pertinent part, the following:
“Former USSR president Mikhail Gorbachev has told the Third World Water Forum in Kyoto that a failure to reverse the global water crisis could lead to “real conflicts” in the future. Mr. Gorbachev, who is now president of the International Green Cross, said that there were likely to be severe problems as the demands on water increased together with the planet’s population. It is estimated that by 2025, two thirds of the world’s people will be living in areas of acute water stress. ‘If current trends continue, we could be faced with a very grave situation,’ Mr. Gorbachev warned. It is feared conflicts could arise where rivers and river basins cross state borders. If a country near a river’s source begins using more water, this lowers the amount that reaches countries further downstream. For example, there is currently concern about what effect a proposed scheme in India to divert the Ganges to currently dry areas might have on the water supply downstream in Bangladesh.”
In Henry Hobhouse’s Forces of Change – An Unorthodox View of History (http://books.google.com/books?id=7Bd61vvaI7MC&printsec=frontcover&dq=%22forces+of+change%22&ei=ZZY9SPyPE6SMygTPiLXzAg&sig=CVGKHVm_gASmSdzXCT_N8csMPLE), he submits that modern history has been shaped, not so much by human conduct, but rather natural forces consisting of disease, population growth, and food supply. Hobhouse argues that they form a triangle which balances itself. As one changes or alters the dimension on one side of the triangle, there must be commensurate change in one or both of the other two sides. To address these natural forces also requires a different type of thinking, more collaborative in nature.
Once again, we ask you to remember the year in which you read this article. The food supply issue is big; this water issue is perhaps bigger. Let’s hope that we approach the impending water issue better than the manner in which we have dealt with the oil issue. Remember – we are now part of a global community, whether we consider it to be a good thing or a bad thing. Can you envision a scenario where water is more precious than oil?
By the way, the last time that we checked, those countries with the most cutting edge desalinization technology were in the Middle East.
© 2008, The Institute for Applied Common Sense
Remember the year in which you read this article. One of the goals of this blog is to stimulate and provoke thought. However, another goal is to encourage our readers to view issues from different perspectives, particularly perspectives which take in consideration issues larger than our personal and local issues. In other words, we encourage “big picture” and long-term analysis. We believe that it is only through this type of analysis that we will be able to “dig deeper” and determine the underlying reasons for current societal problems, and avoid inefficiently employing our time addressing the superficial symptoms.
In the Monday, July 21, 2008 electronic edition of the New York Times, there appears an article written by Andrew Martin entitled “Mideast Facing Choice between Crops and Water.” (http://www.nytimes.com/2008/07/21/business/worldbusiness/21arabfood.html?th&emc=th.) The following excerpt is taken from that article:
“CAIRO – Global food shortages have placed the Middle East and North Africa in a quandary, as they are forced to choose between growing more crops to feed an expanding population or preserving their already scant supply of water. For decades nations in this region have drained aquifers, sucked the salt from seawater and diverted the mighty Nile to make deserts bloom. But those projects were so costly and used so much water that it remained far more practical to import food than to produce it. Today, some countries import 90 percent or more of their staples. Now, the worldwide food crisis is making many countries in this politically volatile region rethink that math.”
When one views history from a perspective of thousands of years, one recognizes the importance of agriculture (or food production) on the wealth and expansion of a society. If the efforts of everyone in a society are primarily involved in hunting and gathering for food purposes, the day is consumed with the pursuit of food, and very little else is accomplished. It is only when technological advances permit the generation, by a few, of food, for the many, that those not engaged in agriculture can devote their time and energy in the pursuit of other goals. It is a factor that we have witnessed repeatedly throughout history.
Another major factor is the availability of water, not only for drinking and irrigation purposes, but also for water transport and navigation purposes. One of the things that has plagued the development of Africa throughout history, with a few notable exceptions, has been the scarcity of water and the lack of navigable bodies of water. While most of us here in the United States are concerned about gasoline and heating fuel, we should also stop to consider the drinking and agricultural water problem, since we are now in a global economy.
This writer first became aware of this issue in 2003, when viewing an article in Smithsonian Magazine, which, by the way, is this writer’s favorite magazine “of all time.” (http://www.smithsonianmag.com/.) How many of you were aware of this developing water issue, prior to reading about it here? Is it more significant than the development of nuclear arms or terrorism? Is oil a more significant issue? Have you seen anything in the media in recent years alerting us to this issue? Is there a possibility that the media outlets in the United States have not focused much attention on this issue because of a perception that it is not particularly relevant to U. S. citizens? It is apparently enough of an issue that former U.S.S.R. President Mikhail Gorbachev has been devoting virtually all of his time in recent years to this issue.
Mr. Gorbachev is a member of the Board of Directors of Green Cross International (http://gci.ch/index.php?option=com_content&task=view&id=9&Itemid=9). In 2003, he was the President of the organization. In a March 20, 2003 article in BBC News, (http://news.bbc.co.uk/2/hi/science/nature/2867583.stm), author Ben Sutherland wrote, in pertinent part, the following:
“Former USSR president Mikhail Gorbachev has told the Third World Water Forum in Kyoto that a failure to reverse the global water crisis could lead to “real conflicts” in the future. Mr. Gorbachev, who is now president of the International Green Cross, said that there were likely to be severe problems as the demands on water increased together with the planet’s population. It is estimated that by 2025, two thirds of the world’s people will be living in areas of acute water stress. ‘If current trends continue, we could be faced with a very grave situation,’ Mr. Gorbachev warned. It is feared conflicts could arise where rivers and river basins cross state borders. If a country near a river’s source begins using more water, this lowers the amount that reaches countries further downstream. For example, there is currently concern about what effect a proposed scheme in India to divert the Ganges to currently dry areas might have on the water supply downstream in Bangladesh.”
In Henry Hobhouse’s Forces of Change – An Unorthodox View of History (http://books.google.com/books?id=7Bd61vvaI7MC&printsec=frontcover&dq=%22forces+of+change%22&ei=ZZY9SPyPE6SMygTPiLXzAg&sig=CVGKHVm_gASmSdzXCT_N8csMPLE), he submits that modern history has been shaped, not so much by human conduct, but rather natural forces consisting of disease, population growth, and food supply. Hobhouse argues that they form a triangle which balances itself. As one changes or alters the dimension on one side of the triangle, there must be commensurate change in one or both of the other two sides. To address these natural forces also requires a different type of thinking, more collaborative in nature.
Once again, we ask you to remember the year in which you read this article. The food supply issue is big; this water issue is perhaps bigger. Let’s hope that we approach the impending water issue better than the manner in which we have dealt with the oil issue. Remember – we are now part of a global community, whether we consider it to be a good thing or a bad thing. Can you envision a scenario where water is more precious than oil?
By the way, the last time that we checked, those countries with the most cutting edge desalinization technology were in the Middle East.
© 2008, The Institute for Applied Common Sense
Saturday, June 28, 2008
Post No. 21: The Solution to All of Our Fuel and Energy Issues
© 2008, The Institute for Applied Common Sense
If you haven’t picked up on it by now, we strongly believe that most of us are far too quick to judge and take rigid positions on issues, without really “digging deep” to truly understand the numerous and complex factors underlying most issues. Most people have a tendency to entertain those positions consistent with their own, and vigorously oppose those positions with which they disagree. Why regular folks have to take such hard positions, on so many subjects, has often puzzled us. This rigidity limits our creativity as a people, and further limits our ability to craft new solutions to problems.
People who manage, and people who run things, have to take positions and proceed to get things done. They can not sit around indefinitely gathering information, since time and resources are limited. However, the rest of us might better spend our time gathering information leading to us being better informed, and not just entertain information that supports our point of view. As a result, we might develop a more informed electorate capable of sifting through the spin, sound bites, disinformation, and cryptic commentary disseminated by our leaders, be they corporate, religious, educational, parental, media and entertainment related, or political.
If you haven’t picked up on it by now, the primary purpose of this blog is to stimulate thought, not to take a position. If we remove but one shackle from your mind, then we’ve accomplished our goal. More knowledge reduces that probability that one will be manipulated by those disseminating their particular message. More information makes the body politic more responsible in the selection of its leaders. We don’t care which position you ultimately take; we just want to encourage you to consider information from all sources, and not just two or three of them, but perhaps fifteen or twenty of them (at a minimum). We’re more concerned about the thought process of examining and weighing all of the competing considerations, since we firmly believe that society can then craft better solutions to problems, and perform its responsibility.
We are amongst the unsophisticated of our society, and thus believe that there are no simplistic solutions to our energy situation. However, we strongly believe that America must “do something.” We also suspect that the average American citizen does not have a decent appreciation of all of the various conflicting factors, particularly those scientific, engineering, and historical in nature, which might be considered in developing practical solutions. Earlier today, on C-Span2 Book TV, a presentation was made by Robert Zubrin (http://en.wikipedia.org/wiki/Robert_Zubrin), author of Energy Victory - Winning the War on Terror by Breaking Free of Oil (http://books.google.com/books?id=KysvGQAACAAJ&dq=%22energy+victory%22&ei=f0xmSLzEC4KejgGgk8T9BQ). For those of you, who like us, are confused about all of this energy discussion, you might try to catch his presentation the next time that it is aired (http://www.booktv.org/schedule.aspx), or consider the purchase of his book.
He discusses numerous factors, including, but not limited to, the following: (a) percentages of oil production by country at different points in time during the last century; (b) ethanol; (c) methanol; (d) various other alcohols; (e) costs associated with producing different types of fuels; (f) cost differentials associated with producing oil by the current major oil producers; (g) environmental issues associated with various fuels; (h) effects on crops; (i) effects on food supply; (j) various materials out of which fuels can be made and their relative costs; (k) the status of diesel; (l) the technological and engineering issues associated with automobile manufacturer re-tooling; (m) the energy, power, or miles per gallon produced per unit cost for different types of fuels; (m) the technological and economic status of hybrid vehicles; (n) flex-fuel vehicles; (o) the geo-political ramifications of oil being in the hands of authoritarian regimes; and perhaps most interesting, (p) his position that the Allies won WWII because they had access to, or controlled, oil, and destroyed the German synthetic oil production facilities. (He also tells the story of how the Japanese produced thousands of Zeros during the last year of the war, but did not have the fuel for them to intercept the bombers that dropped the atomic bombs.)
For our purposes, his presentation was about the most comprehensive discussion about this whole issue which one could have in a very short period of time. Additionally, he presented the information in a manner in which the average citizen could understand it. Although there is no in-depth discussion of every single factor (although Zubrin packs in a lot of information by speaking very rapidly and with great passion), he definitely makes one appreciate the big picture. No matter the side of the aisle on which you sit on any of these issues, we would suggest at least taking the time to examine his itemization of the issues. It is a thought-provoking analysis.
Oh, by the way, Zubrin founded a group devoted to the manned exploration and development of Mars.
© 2008, The Institute for Applied Common Sense
If you haven’t picked up on it by now, we strongly believe that most of us are far too quick to judge and take rigid positions on issues, without really “digging deep” to truly understand the numerous and complex factors underlying most issues. Most people have a tendency to entertain those positions consistent with their own, and vigorously oppose those positions with which they disagree. Why regular folks have to take such hard positions, on so many subjects, has often puzzled us. This rigidity limits our creativity as a people, and further limits our ability to craft new solutions to problems.
People who manage, and people who run things, have to take positions and proceed to get things done. They can not sit around indefinitely gathering information, since time and resources are limited. However, the rest of us might better spend our time gathering information leading to us being better informed, and not just entertain information that supports our point of view. As a result, we might develop a more informed electorate capable of sifting through the spin, sound bites, disinformation, and cryptic commentary disseminated by our leaders, be they corporate, religious, educational, parental, media and entertainment related, or political.
If you haven’t picked up on it by now, the primary purpose of this blog is to stimulate thought, not to take a position. If we remove but one shackle from your mind, then we’ve accomplished our goal. More knowledge reduces that probability that one will be manipulated by those disseminating their particular message. More information makes the body politic more responsible in the selection of its leaders. We don’t care which position you ultimately take; we just want to encourage you to consider information from all sources, and not just two or three of them, but perhaps fifteen or twenty of them (at a minimum). We’re more concerned about the thought process of examining and weighing all of the competing considerations, since we firmly believe that society can then craft better solutions to problems, and perform its responsibility.
We are amongst the unsophisticated of our society, and thus believe that there are no simplistic solutions to our energy situation. However, we strongly believe that America must “do something.” We also suspect that the average American citizen does not have a decent appreciation of all of the various conflicting factors, particularly those scientific, engineering, and historical in nature, which might be considered in developing practical solutions. Earlier today, on C-Span2 Book TV, a presentation was made by Robert Zubrin (http://en.wikipedia.org/wiki/Robert_Zubrin), author of Energy Victory - Winning the War on Terror by Breaking Free of Oil (http://books.google.com/books?id=KysvGQAACAAJ&dq=%22energy+victory%22&ei=f0xmSLzEC4KejgGgk8T9BQ). For those of you, who like us, are confused about all of this energy discussion, you might try to catch his presentation the next time that it is aired (http://www.booktv.org/schedule.aspx), or consider the purchase of his book.
He discusses numerous factors, including, but not limited to, the following: (a) percentages of oil production by country at different points in time during the last century; (b) ethanol; (c) methanol; (d) various other alcohols; (e) costs associated with producing different types of fuels; (f) cost differentials associated with producing oil by the current major oil producers; (g) environmental issues associated with various fuels; (h) effects on crops; (i) effects on food supply; (j) various materials out of which fuels can be made and their relative costs; (k) the status of diesel; (l) the technological and engineering issues associated with automobile manufacturer re-tooling; (m) the energy, power, or miles per gallon produced per unit cost for different types of fuels; (m) the technological and economic status of hybrid vehicles; (n) flex-fuel vehicles; (o) the geo-political ramifications of oil being in the hands of authoritarian regimes; and perhaps most interesting, (p) his position that the Allies won WWII because they had access to, or controlled, oil, and destroyed the German synthetic oil production facilities. (He also tells the story of how the Japanese produced thousands of Zeros during the last year of the war, but did not have the fuel for them to intercept the bombers that dropped the atomic bombs.)
For our purposes, his presentation was about the most comprehensive discussion about this whole issue which one could have in a very short period of time. Additionally, he presented the information in a manner in which the average citizen could understand it. Although there is no in-depth discussion of every single factor (although Zubrin packs in a lot of information by speaking very rapidly and with great passion), he definitely makes one appreciate the big picture. No matter the side of the aisle on which you sit on any of these issues, we would suggest at least taking the time to examine his itemization of the issues. It is a thought-provoking analysis.
Oh, by the way, Zubrin founded a group devoted to the manned exploration and development of Mars.
© 2008, The Institute for Applied Common Sense
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