Oil Dooms Day!
Oh no! We are Doomed! That's right, doomed! And no I am not talking about the outcome of the election (tough I could be) but doomed when it comes to energy and the world around us. In fact we may be so doomed that I may start walking around with a sandwich board that says we are doomed and that the end is near! Now if you think I am starting a panic, maybe I should, because it is not just me saying we are doomed, but the director of the International Energy Agency, Claude Mandil, himself. At a press conference after the release of The International Energy Agency's 2006 World Energy Outlook, Mr. Mandil warned that our energy future is not only unsustainable but is doomed to failure! Mr. Mandil also said, "On current trends we are on a course for an expensive and dirty energy system that will go from crisis to crisis which can cause more supply disruptions, meteorological disasters or both. That may mean skyrocketing prices and more frequent blackouts. This energy future is not only unsustainable, but it is doomed to failure." That's right, like he said, we're doomed to failure. Not only will we use too much energy but also because oil, coal and natural gas will remain the dominant fuel, we will totally damage the environment in the process.
How bad is it? Can we actually sleep tonight (and I need my sleep after having nightmares all night about Nancy Pelosi being speaker of the house! Yikes!)? Well let's take a look at what the IEA report had to say and find out if we are really doomed.
The International Energy Agency warned in its report that oil demand from the developing world will rise by 70%. According to their report, demand will go up from the 2005 level of 84 million barrels of oil a day to 99 million barrels of oil per day by 2015 and 116 million barrels of oil a day by 2030. This, as the IEA warns, is an unsustainable path. They also warn that the natural gas, coal and other fossil fuels will rise. In fact, the IEA says that to even come close to meeting these demand expectations it will take a cumulative investment of $20 trillion dollars over the next 25 years.
Now, at the same time, demand rising developing countries are slated to increase their share of carbon dioxide emissions from 39 percent in 2004 to 50% by 2030.
How can we avoid this doomsday scenario?
Just nuke them? No, but the countries that are developing should start using nuclear power. The IEA is urging governments to build more nuclear plants to slow climate change and increase energy. In fact, according to the Financial Times, this is the first time in its 32-year history that the IEA advocated nuclear power as an important solution to this problem. I guess that means they support Iran's nuclear program. The IEA says that embracing nuclear power and alternative energies is the only way to save the planet! And if not, then we are doomed! And if we are doomed anyway, we might as well get long oil for the next 25 years or so and profit on what the IEA says will be skyrocketing prices till doomsday!
While we face all this doom, the Wall Street Journal reports that investment in the oil industry is stalling. According to the Journal quoting the IEA, the world has barely increased its investment in oil and natural gas production during the past five years. Yes, we are doomed.
Now let us consider the impact of the Democratic control of the Senate and the House on energy. Talk about doom and gloom. If you take the time to consider the doomsday scenario laid out by the IEA and then the impact of a Democratic Congress, the outlook of course is for sharply higher prices. Why? Well mainly because the Democrats will more than likely inhibit Oil Company's ability to produce more oil. Forget about drilling in ANWAR and anywhere else for that matter. The Democrats may pursue windfall profit taxes that will inhibit much needed investment in energy. Oh sure, they will encourage alternative energy sources, but that will do little to help keep prices low for oil. Democratic policies of higher taxes and treating oil companies like they are evil will only serve to make us more dependent on foreign oil and do nothing but raise prices for the consumers. So. if you were hoping for lower energy prices. no doubt those hopes are most likely doomed.
Oh no! We are Doomed! That's right, doomed! And no I am not talking about the outcome of the election (tough I could be) but doomed when it comes to energy and the world around us. In fact we may be so doomed that I may start walking around with a sandwich board that says we are doomed and that the end is near! Now if you think I am starting a panic, maybe I should, because it is not just me saying we are doomed, but the director of the International Energy Agency, Claude Mandil, himself. At a press conference after the release of The International Energy Agency's 2006 World Energy Outlook, Mr. Mandil warned that our energy future is not only unsustainable but is doomed to failure! Mr. Mandil also said, "On current trends we are on a course for an expensive and dirty energy system that will go from crisis to crisis which can cause more supply disruptions, meteorological disasters or both. That may mean skyrocketing prices and more frequent blackouts. This energy future is not only unsustainable, but it is doomed to failure." That's right, like he said, we're doomed to failure. Not only will we use too much energy but also because oil, coal and natural gas will remain the dominant fuel, we will totally damage the environment in the process.
How bad is it? Can we actually sleep tonight (and I need my sleep after having nightmares all night about Nancy Pelosi being speaker of the house! Yikes!)? Well let's take a look at what the IEA report had to say and find out if we are really doomed.
The International Energy Agency warned in its report that oil demand from the developing world will rise by 70%. According to their report, demand will go up from the 2005 level of 84 million barrels of oil a day to 99 million barrels of oil per day by 2015 and 116 million barrels of oil a day by 2030. This, as the IEA warns, is an unsustainable path. They also warn that the natural gas, coal and other fossil fuels will rise. In fact, the IEA says that to even come close to meeting these demand expectations it will take a cumulative investment of $20 trillion dollars over the next 25 years.
Now, at the same time, demand rising developing countries are slated to increase their share of carbon dioxide emissions from 39 percent in 2004 to 50% by 2030.
How can we avoid this doomsday scenario?
Just nuke them? No, but the countries that are developing should start using nuclear power. The IEA is urging governments to build more nuclear plants to slow climate change and increase energy. In fact, according to the Financial Times, this is the first time in its 32-year history that the IEA advocated nuclear power as an important solution to this problem. I guess that means they support Iran's nuclear program. The IEA says that embracing nuclear power and alternative energies is the only way to save the planet! And if not, then we are doomed! And if we are doomed anyway, we might as well get long oil for the next 25 years or so and profit on what the IEA says will be skyrocketing prices till doomsday!
While we face all this doom, the Wall Street Journal reports that investment in the oil industry is stalling. According to the Journal quoting the IEA, the world has barely increased its investment in oil and natural gas production during the past five years. Yes, we are doomed.
Now let us consider the impact of the Democratic control of the Senate and the House on energy. Talk about doom and gloom. If you take the time to consider the doomsday scenario laid out by the IEA and then the impact of a Democratic Congress, the outlook of course is for sharply higher prices. Why? Well mainly because the Democrats will more than likely inhibit Oil Company's ability to produce more oil. Forget about drilling in ANWAR and anywhere else for that matter. The Democrats may pursue windfall profit taxes that will inhibit much needed investment in energy. Oh sure, they will encourage alternative energy sources, but that will do little to help keep prices low for oil. Democratic policies of higher taxes and treating oil companies like they are evil will only serve to make us more dependent on foreign oil and do nothing but raise prices for the consumers. So. if you were hoping for lower energy prices. no doubt those hopes are most likely doomed.
