State of the Union - 20/10
Excerpts from last night SOTU re: new fuel economy standards, and an initiative to reduce America’s gasoline consumption by 20 percent over the next ten years:
Extending hope and opportunity depends on a stable supply of energy that keeps America’s economy running and America’s environment clean. For too long our Nation has been dependent on foreign oil. And this dependence leaves us more vulnerable to hostile regimes, and to terrorists - who could cause huge disruptions of oil shipments … raise the price of oil … and do great harm to our economy.
It is in our vital interest to diversify America’s energy supply - and the way forward is through technology. We must continue changing the way America generates electric power - by even greater use of clean coal technology … solar and wind energy … and clean, safe nuclear power. We need to press on with battery research for plug-in and hybrid vehicles, and expand the use of clean diesel vehicles and biodiesel fuel. We must continue investing in new methods of producing ethanol - using everything from wood chips, to grasses, to agricultural wastes.
We have made a lot of progress, thanks to good policies in Washington and the strong response of the market. Now even more dramatic advances are within reach. Tonight, I ask Congress to join me in pursuing a great goal. Let us build on the work we have done and reduce gasoline usage in the United States by 20 percent in the next ten years - thereby cutting our total imports by the equivalent of three-quarters of all the oil we now import from the Middle East.
To reach this goal, we must increase the supply of alternative fuels, by setting a mandatory Fuels Standard to require 35 billion gallons of renewable and alternative fuels in 2017 - this is nearly five times the current target. At the same time, we need to reform and modernize fuel economy standards for cars the way we did for light trucks - and conserve up to eight and a half billion more gallons of gasoline by 2017.
Achieving these ambitious goals will dramatically reduce our dependence on foreign oil, but will not eliminate it. So as we continue to diversify our fuel supply, we must also step up domestic oil production in environmentally sensitive ways. And to further protect America against severe disruptions to our oil supply, I ask Congress to double the current capacity of the Strategic Petroleum Reserve.
America is on the verge of technological breakthroughs that will enable us to live our lives less dependent on oil. These technologies will help us become better stewards of the environment - and they will help us to confront the serious challenge of global climate change.
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Saudis Expand Production Capacity - Apply Leverage
Emphasis mine:
Jan. 17 (Bloomberg) — Crude oil fell to a 19-month low as Saudi Arabia, OPEC’s biggest producer, said it will increase production capacity.
Saudi Arabia has 3 million daily barrels of spare capacity and will push ahead with projects to expand output, Oil Minister Ali al-Naimi said today. Prices plunged yesterday after al-Naimi said he saw no need for an emergency OPEC meeting to consider further cuts in output. Prices have plunged 17 percent this year on speculation OPEC members won’t comply with production cuts…
…”The Saudis probably want lower prices for a combination of reasons,” said Nauman Barakat, senior vice president of global energy futures at Macquarie Futures USA Inc. in New York. “This could benefit them both politically and economically. This may be a signal for Iran to stop meddling in Iraq and at the same time stanch the move to alternative fuels such as ethanol.”
Saudi Arabia, a major powerbroker in the Arab world and the world’s top oil exporter, is concerned about Iranian influence in the region and rising sectarian violence in neighboring Iraq…
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Perspective on ANWR
Drilling in ANWR is a subject you’ve probably heard alot about. Here is some perspective about the area in question.
Take a quick look at this map. Click on the image to see the original .pdf file, in much greater detail. If you look closely, there is a small red square inside a larger green area that represents the ANWR Coastal Plain. The little red dot is the proposed development area.
By 2010 the US is projected to produce only approx 5 million barrels per day, combined with what we are importing, that leaves us 5 million barrels per day short. Look at the red dot in this picture. http://www.anwr.org/docs/CloseupofareaIII.pdf. That dot is the size of the proposed oil field that could potentially, only drilling will tell, supply the US with what is realistically estimated to produce 18 billion barrels of oil. Do the math, and you will find that means this little red dot could make up our shortage for 3600 days, or approx 10 years. Environmental advances are such that oil production and wildlife can co-exist, the people of Alaska want it, the people of the US want it, and the jobs and economic benefit to our citizenry is undeniable. (Read Source)
ANWR will not solve all of our problems alone.
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Oil drops near $50/bbl, 20-month low
Crude-oil price is continuing to slide - down by 35 percent since July ‘06 when it peaked at over $78/bbl. Warm weather in the North East US is being credited with a decrease in demand which is creating a greater supply and topped-off storage.
The Saudi’s say they are unconcerned:
Prices have hit fresh 20-month lows for two consecutive sessions after Saudia Arabia said OPEC output cuts were working well and an emergency meeting of the producer group was unnecessary.
“There is no need to worry because the market is in a very healthy condition,” the kingdom’s oil minister Ali al-Naimi told reporters on Wednesday.
The IMF thinks the new low prices will last thru ‘07:
The International Monetary Fund has revised down its 2007 estimate for global oil prices to $52.00 a barrel from a September forecast of $75.50, the fund’s Managing Director Rodrigo Rato told Reuters on Tuesday.
Analysts polled by Reuters expect U.S. weekly oil statistics to show a build of 200,000 barrels in crude stocks last week, which would be the first rise in eight weeks, with imports rebounding from a steep drop the previous week.
Distillate stocks were projected to have risen 1.5 million barrels, with gasoline seen rising 2.3 million barrels.
I would like to think that increased energy-awareness and coordinated conservation could have a similar long-term effect on oil prices. Simple supply and demand rules apply even to vast oil markets - if we use less, there will be a greater supply, and suppliers will have to sell at increasingly competitive rates to get the business that remains.
Read the source article
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Green-Boating: Electric Outboards by Torqeedo
A recent post to a mail-list I follow turned up a German-based company named Torqeedo that has created some really spectacular all-electric outboard motors for recreational boating.
…With the thrust force of a 6 HP combustion engine, the Torqeedo Cruise is the emission-free alternative for sailing and motor boats up to three-ton displacement. Equipped with the latest torque technology, torque characteristics designed especially for boat motors, and an optimised propeller, the Torqeedo Cruiser is not only the most efficient but also the most powerful 24-volt motor available on the market… (read it all)
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GM’s new electric car project - the Volt
GM had a successful electric car push a few years ago, but abandoned it after what appeared to be successful public trials, causing some to theorize that the car was “killed” for other-than-technical reasons. (See “Who Killed the Electric Car?” for more background.)
Today, GM announced that they are re-entering the electric car market with a novel electric design which uses the latest battery technology coupled with a small on-board recharging engine which is powered by gasoline.
This system of battery-drive with combustion engine re-charging is very similar to proven naval propulsion designs used most notibly in diesel-electric submarines from World War II thru present day. In similar systems, electric battery banks power electric motors while underwater with diesel engines recharging as needed while on the surface or at snorkle depth.
…The push to develop environmentally friendly cars is also an attempt by GM to distance itself from its close association with gas-guzzling sport utility vehicles, a reputation executives say has hampered its sales in some markets.
The Volt’s combustion engine is designed only as a supplement to keep its batteries charged, an innovation GM executives hope will help the automaker jump ahead of Toyota Motor Corp. (7203.T), which now dominates the hybrid market…
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