There Will Be Fuel

By Cliff Krauss THREE summers ago, the world’s supertankers were racing across the oceans as fast as they could to deliver oil to markets growing increasingly thirsty for energy. Americans were grumbling about paying as much as $4 a gallon for gasoline, as the price of crude oil leapt to $147 a barrel. Natural gas prices were vaulting too, sending home electricity bills soaring.

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A book making the rounds at the time, “Twilight in the Desert,” by Matthew R. Simmons, seemed to sum up the conventional wisdom: the age of cheap, plentiful oil and gas was over. “Sooner or later, the worldwide use of oil must peak,” the book concluded, “because oil, like the other two fossil fuels, coal and natural gas, is nonrenewable.” But no sooner did the demand-and-supply equation shift out of kilter than it swung back into something more palatable and familiar. Just as it seemed that the world was running on fumes, giant oil fields were discovered off the coasts of Brazil and Africa, and Canadian oil sands projects expanded so fast, they now provide North America with more oil than Saudi Arabia. In addition, the United States has increased domestic oil production for the first time in a generation. More...

Wake up, Washington. Energy independence is close at hand

Examiner Editorial Washington's political class often seems impervious to changing facts. Case in point is the nation's current and probable future access to essential energy resources, especially fossil fuels like oil, natural gas and coal. This trio of carbon-based fuels accounts for the vast majority of the nation's electrical and other forms of power, and will continue to do so through at least 2030, according to the U.S. Department of Energy. The United States is the world's largest consumer of energy, but is also the world's most productive economy, so demand here for energy resources is going to continue to grow for the foreseeable future. According to the conventional wisdom, supplies will soon peak and then the nation will experience severe declines in the supply of oil and natural gas. Thus, the U.S. should invest billions in the development of renewable energy resources and use the power of government to create artificial consumer demand for them by imposing mandates for their use. Energy costs "will necessarily skyrocket," to use President Obama's memorable words, but that's the price the nation must pay in order to achieve energy independence and protect the environment. When the price of a barrel of oil hit $147 per barrel in July 2008 and Americans were paying as much as $4 per gallon for gas, that scenario seemed reasonable. But it turns out that in the years since, the energy market has experienced profound changes that negate the conventional view. As the New York Times recently reported, "Just as it seemed that the world was running on fumes, giant oil fields were discovered off the coasts of Brazil and Africa, and Canadian oil sands projects expanded so fast, they now provide North America with more oil than Saudi Arabia. In addition, the United States has increased domestic oil production for the first time in a generation." More...

Spain's Solar Power Sector Falls into the Abyss

By Ivan Castano Madrid, Spain – The Spanish government has launched a new regulatory framework that will result in subsidized tariffs for ground-mounted solar energy projects drop 45% this year, killing future investment in the trade, which industry leaders expect will be frozen in the next few years. "We expect new ground-mounted projects will be paralyzed because there won't be any new investments," says Tomas Diaz, communications director of a trade lobby Asociación de la Industria Fotovoltaica (ASIF). "Last year, many projects were cancelled. Banks did not provide financing because of the regulatory uncertainty and electricity companies' growing campaign against the sector," he said, adding that utilities are working to bolster subsidies for their own renewable projects, most of which involve wind power. Indeed, the Spanish solar industry has seen investment plunge in the past two years with only 100 MW of generating capacity having been installed in 2009 and 2010 - compared to 2,700 MW in 2008. More...

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