DrumBeat: November 30, 2006

[Update by Leanan on 11/30/06 at 1:02 PM EDT]

Costly fuel cools Americans' love for cars

HOUSTON - High gasoline prices not only slowed fuel demand growth and cut sales of gas-guzzling vehicles in 2005, they also prompted Americans to drive less for the first time in 25 years, a consulting group said in a report Thursday.

The drop in driving was small -- the average American drove 13,657 miles per year in 2005, down from 13,711 miles in 2004 -- but it is more evidence that the market works and prices help control consumption, Boston-based Cambridge Energy Research Associates said.

"Price matters," CERA Chairman Daniel Yergin said.

You can't conduct an orchestra with an invisible hand: The problem with carbon taxes

Historically, large-scale infrastructure changes take place only via hands-on government involvement -- involvement that not only subsidizes technology but helps shape its deployment. This can consist of public works, or grants of land and rights of way that help shape where infrastructure is placed. You can find examples in List 1 at the bottom of this post, ranging from canals and railroads to the internet.


Tom Whipple - The Peak Oil Crisis: The View from Capitol Hill

While up on Capitol Hill discussing the prospects for the peak oil message in the new Congress, I was brought up short by a question from a hill staffer. "Can’t you guys sharpen the time frame when oil production is going to peak?"

“Telling us that all sorts of bad things are going happen sometime in the next five or ten years really is not that useful. Here, in the Congress we constantly hear about so many crises about to befall us— Iraq, budget and trade deficits, global warming, avian flu, Medicare, social security, housing bubble, terrorism, and immigration, to name a few — that trying to put peak oil threat in its proper perspective is difficult.”


Energy expert urges conservation

The days of dancing in oil around exploding derricks is over, and it’s past due time to think about conserving crude consumption, said Scott Waterman. Waterman, who works as the State Energy Programs Manager for Alaska Housing Finance Corporation, is looking to find ways to build more energy-efficient homes as he speaks around the state, taking on a number of education programs.


Canadian Energy's "Exit Stage Right" Plan

With prices approaching $1,500 per barrel, what would ever make investors like Charles Morgan want to sell their stake in the oil industry?

Well, Morgan had noticed that the price of recovering the oil was increasing every year, and foresaw even further rises in the cost of his operations.

The world knew that oil wouldn't last forever, and people like Morgan thought that at the current rate of production the source would soon run dry. Fortunately for him, he recognized this trend and was able to get out of the industry at peak prices, generating a healthy profit for himself.


Peak Oil to Peak Gas Is a Short Ride


Could an 'African Kuwait' Be in the Making?

The discovery of oil in the small West African island nation of Sao Tome and Principe could help turn one of the poorest countries in the world into a sort of "African Kuwait."


South Africa Poised to Embark On Nuclear Route for Power


Opportunity knocks for biofuels industry

Oil prices have eased in recent weeks on the international markets, but the same cannot be said for agricultural commodities.

World stocks of cereals are at their lowest level for more than 20 years, and supply and demand is expected to tighten over the next 12 months.


India worried by gas shortage

India is desperately looking for long-term gas supply contracts with gas-rich nations in Central Asia, Africa and the Middle East to meet the acute fuel shortage that has hit its power plants, which operate at half their capacity.


Brazil May Not Meet Domestic Ethanol Demand

Brazil, the world's biggest ethanol producer, may struggle to make enough of the fuel in the crop season ending March to meet domestic use because higher prices elsewhere are encouraging exports, C. Czarnikow Sugar Ltd. said.


Russian FM warns West against discussing energy security without Moscow

MOSCOW: Russia's foreign minister on Wednesday warned the West against discussing ways to reduce energy dependence on Russia, saying that would not help energy security.


Iraq's oil industry in grip of despair

The present state of Iraq's collapsing oil sector, its economic lifeline, is bleak and its future looks far worse, despairing officials say.

Another damaging oil attack this week, the prospect of British troops handing over the oil city of Basra and virtual civil war have all but crushed hope for Iraqi officials battling to keep exports flowing to world markets.

"One thing is sure. The worst is yet to come," an Iraqi oil industry source said by telephone from Baghdad.


Think tank says Alberta should reap more oil royalties


Biofuel Markets Hinge on Biomass Progress

The fast-expanding biofuels market could falter without significant progress in making fuel from biomass like plant stalks and wood chips, according to a report issued Wednesday.


WRC's 2006 Hurricane Prediction Verifies Again This Year


Stocking Stuffer for a Green Christmas: The $40 Carbon Credit Gift Pack

Naughty little boys and girls get a lump of coal in their Christmas stockings; green little boys and girls get...carbon credits to take coal gases out of the atmosphere and fight global warming.


California tries to terminate greenhouse gases

Arnold's risky power play: The Golden State's small businesses worry that a new energy mandate will dim their prospects.


The next little thing: New innovations coming from small businesses. Two of the items are energy-related: ways to tap the power of the tides.


Global energy demand set to rise: McKinsey

HOUSTON: World energy demand will rise by 2.2% a year through 2020, outpacing the 1.6% growth of the past 10 years, according to a McKinsey & Co report.

..."Under all scenarios, you see future energy growth being stronger in the next 15 years than in the past despite some pretty significant attempts to increase efficiency,’’ said Diana Farrell, director of the McKinsey Global Institute, which spent a year studying energy demand worldwide among sectors including residential and industrial.


GM working on electric version of SUV: Automaker also plans biofueled Hummer within three years, CEO says


Auto industry should speed fuel economy fixes

While plug-in hybrids and hydrogen fuel cells are likely one day to help cut U.S. gasoline consumption, major fuel savings can be achieved now if automakers put existing technologies to work under one hood.


It's Electric!: The Tesla Roadster — a hotshot sports car that runs on batteries


Angola to ask for OPEC membership


US Supreme Court appears divided over global warming


Human waste used to create green fuel