Entries in Economics (5)
Crude Oil Price Rises Nearly $11 in One Day!
Wednesday, June 11, 2008 at 06:17PM
Crude oil prices jumped $5 per barrel today to close at $136-1/2 per barrel as previously unheard of levels of price volatility are now becoming the norm. Last Friday, crude oil prices underwent their largest single-day price spike in history, climbing nearly $11 per barrel on the day. That historic event was accompanied by the release of other troubling economic news: home foreclosures reached a new record high, unemployment rose a half percentage point in May – the largest one-month jump since 1986, and the Dow Jones Industrial Average fell nearly 400 points. The Wall Street Journal also reported today that the U.S. trade deficit was nearly $61 billion for the month of April, and continuing to grow faster than at any time in the last three years. Oil imports for the month of June will cost the U.S. about $40 billion.
Crude Oil Up $9 Since Sunday
Wednesday, May 21, 2008 at 07:34PM
Crude Oil prices in the U.S. have risen $9 dollars per barrel since Sunday, closing today at $134.45 on the New York Mercantile Exchange. This week's increase results in an additional loss of $90 million dollars per day from the U.S. economy – more than 25 times the amount the Department of Energy currently spends on energy efficiency and renewable energy.
Debut of Weekly News Video
Wednesday, May 14, 2008 at 07:55PM
Local Energy News has teamed up with Digital Visions Video again, this time to produce a weekly online video with stories about communities becoming self-reliant in energy. Each week I will highlight some of the world's best examples of community-based energy, and discuss the benefits of moving to decentralized energy.
Let me know what you think!







Creating Local Energy Markets
Listen to Commentary (Quicktime, 3.5Mb)
One of the greatest myths of our time is that renewable energy isn’t quite ready to compete with so-called “conventional” sources of energy. More research is needed, we are told, because renewables are still too expensive. So onward we march, powering our homes with coal and filling our gas tanks with imported go-juice, all the while shipping bagfuls of cash out of our communities to pay for it.
There is a lot of evidence that this myth about renewable energy is false. Many countries smaller than ours are installing renewables faster than we are, creating jobs and increasing their self-reliance while lessening their environmental footprint. So, why does the myth still play so well in the United States?
One reason is that the oil, gas, coal, and nuclear companies here are actively engaged in energy policymaking, and they repeatedly tell the myth to lawmakers at all levels of government. Using carefully crafted messages backed by well-funded research, they tell the same story again and again: We wish we could...we look forward to the day when we can...but right now, we just can’t.
The key to telling a lie is delivering it alongside the truth. And it is, in fact, true that we haven’t figured out how to turn bloated, investor-owned monopolies and their overpaid executives into agents of community sustainability. If that were the plan, renewable energy would never be ready.
There is, on the other hand, a way to roll out renewables right now that would stabilize energy prices, create good jobs, retain energy-dollars in the local community, and provide secure and sustainable energy for the long term. It isn’t being proposed by either of the major party candidates for president, who instead keep insisting that renewables aren’t enough, and that we need to develop nuclear power as well as some strange substance they are calling “clean coal”.
No, it turns out that renewables can serve all of our needs, and the transition can happen quickly if we would just provide one thing that’s missing: a market. If we set up a market whereby independent energy suppliers could trade with independent energy consumers, we’d be all done.
Now, there have already been many attempts to create local markets for energy, but nearly all of them have been shut down by incumbent energy suppliers. I know this one guy who was trying to sell high-efficiency cogeneration systems, until one day he discovered that the utility was offering cut-rate electricity to his prospective customers in exchange for an agreement that they don’t buy one of his systems. He sued the utility, but as soon as the utility realized they were going to lose the case, they settled out of court. Did the utility retreat in shame, and amend their practices? Hardly! Instead, they drafted a law making what they were doing legal, and persuaded their state legislature to enact the law. Now, whenever a customer even thinks about putting in a clean, efficient, on-site system to generate their own power, utilities can offer something called a “load-retention rate” to entice them not to do it. That’s just one of their tricks – the list is long.
If lawmakers and regulators are unwilling to keep incumbent energy suppliers from obstructing the market for local, independent renewable energy, we’ll need to create this new market ourselves. All we need to do is organize all the energy consumers who already want to buy clean, locally generated power and heat, and form alliances with the local, independent energy producers. The only hard part will be fighting against an enormous, entrenched opposition of dirty energy suppliers, but in reality, we have all the power we need to pull this off.
Because next year, as we set out to spend another two-trillion dollars meeting our energy needs, we can simply decide to give the money to independent energy companies right here in our community.
Download Audio File (.mp3, 3.5 Mb)