3615Invest in Renewables or Oil?
- Jan 30, 2006Let me tell you what Jeroen Van der Veer, chief executive of Royal Dutch Shell, published in London's Financial Times newspaper, Wednesday 25 January 2005, and what it means to YOU."On top of concerns about high oil prices now comes the fear that we have reached peak oil and that global oil output will start to decline. Have we? ...No one should underestimate the energy challenge....My view is that easy oil has probably passed its peak. ...The challenge is to develop technology that can fuel growth without environmental degradation. That means ...accessing resources in challenging frontier environments such as the Arctic or in deep offshore waters... increase significantly the amount of conventional oil we recover from existing reservoirs... heavy oils and where oil is contained in sand and shales, contaminated and tight gas, and coal bed methane...The world will need these resources. But they are more carbon-intensive and increase the urgency of finding ways of tackling carbon emissions. ...One prerequisite to success is ensuring sufficient investment to access more difficult resources and undertake long-term technology development. The International Energy Agency estimates that meeting global energy needs will require investing more than $17,000bn by 2030. Given the urgent investment needs, exacting windfall taxes is counterproductive, particularly in an industry with a history of volatile prices. "Well, let me translate:Cheap oil has peaked. What is left is stuff that is hard to get out of the ground, devastates the environment where it is taken from, and puts even more pollution into our water and air. The oil companies are going to fight to stay alive. They need $17 trillion invested in the next 25 years to keep going; that would equal $60,000 from every American person (or $170,000 per household). They are going to demand special tax relief and demand special investment incentives. They are going to "ask" lawmakers to make laws that prevent "renewable energy" from becoming a threat to their market share. This is money YOU will pay to get your gasoline and diesel (it is actually a small fraction of the money you will pay, since you also have to pay the operating cost in addition to the investment cost of producing the oil). And, at the end of 2030, after having worked to make and give away all that money, you will have nothing except massive superfund sites, global warming, and a destroyed human habitat.Let me offer an alternative. If the $17 trillion were invested in Renewable Energy, by 2030, everyone would have a healthy environment, and energy that would continue on for generations to come. Imagine what you could do if you gave every american household $170,000 to spend on a solar/wind/geothermal/bio energy system. Your choice is this - you can sit back and let the "Energy" companies enslave you and devestate your childrens' future, or you can fight for your energy independence.
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