Saturday, August 30, 2008

Signing on to the Pickens Plan

I am a proponent of alternative, renewable energy and find a lot to like in the Picken’s Plan.

Having said that I think that it may be a tough row to hoe. We, as American citizens have watched for decades while we became more and more dependent on foreign oil to where it is now approaching 75% of our consumption.

Our leaders in congress or in the White House seem to care little about the country or its citizens, focusing all their energy on getting elected or reelected rather than dealing with issues affecting our future. Where are the incentives to promote alternatives? They pretty much died when Carter left office with little since then. The lip service we currently receive from government is mostly just that- Lip service. Our leadership is of the “make ‘em happy right now- To heck with future generations.” attitude.

Without people like Pickens giving some thoughtful direction and Congress doing something about it this energy crisis will be ignored and forgotten when prices drop a little.

The convenience store where I buy most of my gasoline is run by a family of Pakistani. I asked Kahlil one day about gasoline prices in Pakistan. He replied that gasoline was only used in rural areas. In urban sections everyone uses compressed or liquid natural gas instead of gasoline.He said that it is very expensive to use gasoline in autos and trucks and is avoided whenever possible. LNG is fairly available and causes little pollution.
Do you think they may have something there? Why didn't we think of that?

I find it pretty interesting that an oil baron is talking alternative energy- He's got my attention! Pickens also pointed out that Iran, as a country was doing everything they could to convert all ground transportation to LNG so that they could continue to sell us oil to produce gasoline at $4.00 per gallon rather than burn it in their own vehicles!

Look up pickensplan on the internet search engine of choice- You won't be disappointed.

Saturday, June 14, 2008

More Energy! More Tinkering! More Dawdling

Oil at $136 a barrel ? Say what?

Even though oil is through the roof with no end in sight, why is it that many of the oil majors, have seen stock prices decline for the year so far? Even the drillers have marginaly higher stock values year to date. The exploration companies are quietly reaping the rewards. Exploration companies like Southwest Energy and Noble are making it in gas and oil exploration. China has just whet its ravenous appetite for energy. It's importing all the coal it can get- Makes for happy Aussies, and Petro China is maxed out in exploration/production so China is looking wherever it can for the black gold. Commodities like foodstuffs, fertilizers and metals are also in much demand from emerging markets like Brazil and Peru as well as China.

Chinese solar energy companies are promising growth of 30 to 75% a year for the next five years at least. These folks have been hard at work researching and improving their solar capabilities while we bemoan the fact that our gas prices are almost 2/3 what Europeans pay! There are a few small solar energy companies in the US and companies like Dupont are starting to supply some solar related material, but I don't see our leadership rallying around the flag for alternatives to our energy problems- No new policies- Unless you count begging the oil sheiks to increase production. This isn't the answer, folks. We are an oil based economy that's running out of oil- Except to import it. Our inflation will be a function of how much more money the government can print in order to pay the bill. Maybe we'll have another round of tax rebates- Yeah! That's the ticket! Our kids can pay the bill.

Presidential election year notwithstanding the market here may gyrate up as history promises it will in election years but the economy will have much pain for some time. There is just too much garbage debt to absorb. The clowns in the financial sector that brought this mess about should be in jail but I'll bet they probably got increases in their bonuses!

There is a strong move afoot led by Iran and Venezuela to cut loose from the US Dollar as the oil currency of choice. The US is pleading with the Saudis to keep the dollar as the official payment choice. Even the Saudis will run out of US stuff they can buy pretty soon. They have all the military toys they can spend US dollars on and are busy buying land and businesses in the Western hemisphere. The Fairmont Hotel empire was a recent Saudi purchase and condos in Colorado are hot. Right now the oil boys are our good buddies but when push comes to shove as it did in 1973-74 we could have better luck looking for oil in McDonalds restaurants rather than the Middle East.

Possibly with enough pain we as a nation and as (sometimes) world leaders would start a significant movement in the direction of alternative energy. Maybe $5 bucks for gas will be the tilting point. We had a move towards renewable energy under Carter but the Reagan administration let it die on the vine. After that the sense of immediate urgency dissipated.

Well, the sense of urgency is back. Fuel cells, solar energy, wind farms and geothermal projects may make even more sense now and may be approaching more feasible comparative cost levels. As a debtor nation that had the party with the inheritance, we must start the ball rolling, not just find a temporary relief that will put us back into complacency once more. Maybe the leadership will be there next year- I, for one hope so.

Saturday, October 20, 2007

Some Thoughts About Gas Prices

I was reading this morning that the price of a barrel of crude oil is about $90 and by the looks of things will hit a hundred dollars pretty soon. This probably doesn't bode well for the price of gasoline.

Some of us remember the gas lines going around the block in 1973 after the price of gas got jacked up significantly by the oil cartel. I also read that at $100 a barrel the price will equal, in the equivalent of 1973 dollars the price of oil back then. That happening was considered responsible for the recession that lasted more or less into 1976. Jobs were scarce, interest rates were high and people were only interested in economic gas consumers. Remember the Pinto? I had one of those. Fading into memory were the production lines of mega gobblers with big block Ford, Chevy and Chrysler engines. Auto companies did what they could to build cars with better mileage. Lighter steel bodies and chassis, more aluminum, plastic everywhere replacing heavier components. Mercedes diesels that got 30 miles per gallon were drawing a lot of attention as were motorcycles.

That sobering episode in history started a flurry of movements to develop alternative energy sources, from windmills, solar collectors both water and photo-voltaic, energy cells and diesel car engines that could run on used French fry oil. The government developed incentive programs to encourage fuel efficiency and sponsored creative uses of existing energy. Unfortunately when things had calmed down in the '80s most of the federal tax incentives and energy research grant money programs were allowed to expire. Hybrid cars are still eligible for tax credit and incentives to some extent but the jury is still out on whether or not hybrids produce significant long term savings considering the extra cost of manufacturing. After all, those batteries need to be built too.

Perhaps what we really need is $5 a gallon gas. Maybe that would create the incentive we need to put a full court press on lessening the dependence on OPEC oil and reducing our horrendous trade deficit. Most of Europe has already faced such prices and have made sincere efforts to reduce energy consumption.

The fact that the Chinese hold approximately 90% of our treasury debt is not at all comforting. The economic growth in China is at a rate of 12-14% annually creating a skyrocketing demand for energy further tightening the supply available to us.

Where is the rhetoric we once heard championing hydrogen fuel cells, solar collectors, wind farms and safe nuclear power? It's time we heard them once again.

Friday, July 6, 2007

I Kneed to Say This


Oh boy! Sorry for the pun. Bless me folks since it's been over three months since my last entry at the end of March. At that point I was about 2-1/2 months post-surgery for dealing with Igor (my pet knee.) It's more than 6 months now and Igor is getting comfortable. I still have significant limitations on lifting and especially going down stairs- Handrails welcome! Kneeling is out- Maybe permanently.

"What's with the bird?" you say.

I talk to the bird often. The bird is very savy and understands a lot more than most people do. She is pretty good at stock market advice and for another thing, on traveling by air. I should have listened to the bird back in May.

By now I've had some experience with air travel and it's a kick! The folks at TSA on security checkpoints must have some of the most boring jobs on the planet. Confiscating liquids that aren't in the required 1 quart Zip-Lock bag or are over 4 ounces must be the normal highlight. But wait! what if a passenger goes through and still hits the DING! DING! DING! on the portal after removing shoes, all pocket contents, belt, rings, watch, religious neckware, glasses, hearing aids, and dental work? Must be a terrorist that somehow swallowed a weapon or worse! With rapid breathing the sole TSA person becomes a crew of three at least. Standing on the shoe outlines at the search and frisk area they do- Search and frisk that is. They are about to grab and secure me when I point to Igor. This poor guy with the scanner is on his first body scan and gets me- of all people. I tell him that I've had surgery on the knee and that's what is setting off the bells and whistles on his scanner. Meanwhile the announcement over the public address system is calling me by name requesting me to board. I point this out to deaf ears.

"What's with the knee?" says the guy with the scanner.

"Six ounces of titanium in there." says me.

The guy looks at his partners and asks if titanium is explosive. They respond that it could be, but probably not if it's in the knee. The guy asks if there's anything else in there. Now I know that at this point a little white lie would not have been a bad plan- I could have said "Nothing," Being honest I told the truth and said
"Also about 6 ounces of plastic."

Bad mistake in being honest at this level.
The guy was obviously a former law enforcement officer as he jumped back from me and reached for a sidearm that thankfully wasn't there.

"This guy has a knee made of C4 and titanium!" he shouts to his comrades.

The others calm him down giving him a 30 second treatise in knee replacement surgery. The announcement repeats its search for me. The guy knows that I'm really a bad dude and he's going to prove it. I'm waiting for the strip search when one of the others asks me to raise my pant leg where the 12" scar is plainly visible. They scan that, setting off the beeps and bells once again.

"This guy's OK-" says the one that asked me to raise my pant leg and gives me back my boarding pass.

The next announcement gives me two minutes to hobble the quarter mile to the gate. I don't make it but the gate keeper relents and lets me board giving me a dirty look.

Someone else mumbles something about inconveiniencing other passengers.

I love to travel.

The bird understands sarcasm as well.

Saturday, March 24, 2007

Do ya know what I hate?

Ever since I first heard Andy Rooney voice those famous words maybe 45 years ago I found many applications for their use. Actually, I don't really hate a lot. I can think of only a few people that meet that level, like Osama Bin Laden who happens to be right at the top of the list and some truly evil people that I have been exposed to, but in total no more than four have made my personal 'hate list.' I really feel that hate is counter-productive and proven to be life shortening.

At this moment I find myself getting older by the minute (no future in doing otherwise- he says) and accept that the future years of my life will be much less than the sum of those past; Less hate more bright outlook.

I sit at the keyboard on a cold, wet March day in the hills near Albany, NY. I am more aware of the cold and wet than before, since my January 9th total knee replacement surgery wants to give me a little nudge now and again to let me know it's still there to keep me company. I've named it Igor. The nasty thing will pick any time at all day or night to say "Hi, John- Remember me?"

I've found that 4:00am is probably the worst time. Once Igor has woken me up I rarely get back to sleep. A couple more Tylenol sometimes work.

I HATE THAT!


I really don't regret having the surgery performed- Not yet, that is. Everyone tells me that I have to give it time to mend. I don't care. I want it to stop bothering me now! I mean, I do my exercises and don't abuse the thing- Why this constant ache?

Every cloud has a silver lining, they say- OK, I no longer need an alarm clock. I get the guy at airport security all excited. My handicapped auto tag allows me to park anywhere in the mall. I have no trouble looking so miserable that I can get sympathy from a rock!

Ok, I know intuitively that this too shall pass- I don't care- I still hate it!