Friday, February 03, 2006

Response to "We Are Addicted to Oil" - so sad

1) The Energy Department will begin laying off researchers at the National Renewable Energy Laboratory in the next week or two because of cuts to its budget. A veteran researcher said the staff had been told that the cuts would be concentrated among researchers in wind and biomass, which includes ethanol. Those are two of the technologies that Mr. Bush cited on Tuesday night as holding the promise to replace part of the nation's oil imports.

2) In an interview Wednesday, the Saudi ambassador to Washington, Prince Turki al-Faisal, said he would have to "seek an explanation" from Bush (source: the New York Times)

3) "The thing that they're really losing sleep about at the White House is the crude supply from Iran." (source: the New York Times)

4) The Organisation of the Petroleum Exporting Countries on Wednesday warned that President George W. Bush’s proposal to reduce US dependence on Middle Eastern oil could badly jeopardise needed investment in Gulf oil production and refining capacity. (source: Financial Times)

5) An Opec delegate said: “Comments like that are unrealistic. Everyone knows the world will continue to depend on Middle East imports.” (source: Financial Times)

6) Financial Times Headline "Bush misfires in drive to end 'oil addiction'"

7) "One day after President Bush vowed to reduce America's dependence on Middle East oil by cutting imports from there 75 percent by 2025, his energy secretary and national economic adviser said Wednesday that the president didn't mean it literally." (source: Knight Ridder Newspapers)

8) "Iran proposes to set up by March 2006 an “oil/energy bourse” for trading based on the euro, rather than the US dollar. While it may seem innocuous, this represents a grave threat to the continued global hegemony of the United States... Since the 1970s, the OPEC countries have agreed to sell oil for US dollars only. This means that every country needing to import oil must first acquire enough US dollars.... The net result is global hegemony of the US dollar. However, if Iran starts its own euro-denominated oil bourse and it takes off, the US dollar — already an ailing currency due to huge deficits in the US economy — will be marginalised as the global currency." (source: Daily Times of Pakistan).

note: The US dollar is kept strong in the world partly because countries need to buy dollars to buy oil. If the world oil trade switches to the Euro the value of the dollar (and international buying US treasury notes) will plummet.

Great synopsis of what's really going on instead of more Bush lies.

I love your site! Not only is it insightful from an energy insider, it also has some great graphs and data I may have my students see or use. Thanks, Chris Weiss
Hey Niels,

Great site from an insightful energy insider. And some of the graphs and charts are fabulous. I may have my kids use or look at some of them if it's ok.

Chris Weiss
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