Monday, April 25, 2005

NYMEX Sweet Light ^ 55.39

Couple of Things Today, crucially;

President's Oil Discussions with Saudi Arabia

U.S. House Passes Energy Bill

Refinery Jitters

The suggestion being that the actions being taken by the President and the House of Representatives are more about Oil security, not Energy security. What's the Difference?

Oil Security, is limited to the short term, provided peak oil theory is correct - as it was in the 1970's, when Hubbert predicted accurately the decline of US Production. There is a limit as to how far the price of oil can drop, because demand is rising faster than supply, even with the action being taken on the Hill, and by the White House.

Energy Security? It's about retaining energy supply, where oil isn't the only source of energy used. If (and this is the key IF) alternative sources of energy can be found to replace Gasoline and Heating Oil, then Crude Oil will not be needed to fuel energy demands.

So, what's the big deal if the House Bill passes? It's another year that the U.S. government is delaying investment in alternatives, Energy Security that will last beyond the potential reserves in the Alaskan Reserves, and the potential reserves that may be found through Deep Sea Drilling in the Mexican Gulf.

In Keegan News:
I'm looking at a few of the committees in the U.S. Congress which I might be able to work for if I score that intern gig. In particular, the Subcommittee on Energy and Air Quality, which provided the bulk of the work for the bill that's in the news. If this one gets nailed by another Senate Filibuster, I could end up working on a revised one next year. we'll wait and see though, won't we? posted by Keegan at 5:50 pm

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