Why We Can’t Afford Cheap Gas

(AlterNet.org: Environment) - We can’t let the talk about alternative energy rise and fall with the cost of gas, or the environment and our economy will pay a mighty price.

With the cost of crude oil again nearing the $100-a-barrel mark (even after last week’s financial meltdown) and this summer’s record gas prices in the rearview mirror, automotive executives and industry analysts are already heralding the return of gas-guzzling trucks and SUVs. Car makers are rolling out new truck models, and even Republican presidential candidate John McCain, in a new Michigan TV spot, promises to “spur truck sales.” Never mind that only months earlier, these same analysts, as well as auto executives and consumers alike, insisted that the future of the automotive industry lay in more fuel-efficient models like hybrid and electric cars. Now, however, it seems that many involved are slowly slipping back into the pre-$100-per-barrel mindset that was so popular when pump prices were under $4 a gallon and drivers of SUVs and trucks roared down the roads with clean consciences.

But if history is any indication, this period of relief and a possible shift back to gas-guzzling cars must be met with cold-eyed skepticism. Sure, cheaper gas means much needed short-term financial relief. Looking past the next year or two, however, cheaper oil and a resurgence of gas-guzzling vehicles would be seriously detrimental to the United States, as similar oil crises in the past have shown that the periods immediately after a spike in oil prices — not the crises themselves — have arguably inflicted far greater damage on the country. During these relief periods, critical efforts to develop alternative energies and fuel-efficient technologies — begun under the culture of urgency that an energy crisis instills — have been squashed, allowing Americans to revert to the same old habits, tendencies and behaviors that got them into trouble in the first place.

Take, for example, the October 1973 U.S. oil embargo. After a group of African and Middle Eastern countries briefly stopped supplying the United States with oil, prices in early 1974 climbed from $3 to $11 per barrel, setting off a nationwide energy panic and resulting in massive lines at gas stations. In response, President Richard Nixon proposed lowering speed limits on federal and state highways and temporarily banning the sale of gasoline on Sundays. Nixon also announced his “Project Independence,” a set of energy-related recommendations aimed at achieving the quixotic goal of making the United States energy independent by 1980.

READ MORE HERE [ Source: AlterNet.org: Environment, Andy Kroll, Sep. 29, 2008 ]

Russia takes control of Turkmen (world?) gas

(BuzzFlash.net) - From the details coming out of Ashgabat in Turkmenistan and Moscow over the weekend, it is apparent that the great game over Caspian energy has taken a dramatic turn. In the geopolitics of energy security, nothing like this has happened before. The United States has suffered a huge defeat in the race for Caspian gas. The question now is how much longer Washington could afford to keep Iran out of the energy market. Curiously, the agreements reached in Ashgabat on Friday are unlikely to enable Gazprom to make revenue from reselling Turkmen gas. Quite possibly, Gazprom may now have to concede similar terms to Kazakhstan and Uzbekistan, the two other major gas producing countries in Central Asia. In other words, plain money-making was not the motivation for Gazprom. The Kremlin has a grand strategy. Russia and China have a heavy agenda to discuss in energy cooperation far beyond the price of Turkmen gas supplies. But suffice it to say that Gazprom's new stature as the sole buyer of Turkmen gas strengthens Russia's hands in setting the price in the world gas (and oil) market. And that has implications for China. Moscow would be keen to ensure that Russian and Chinese interests are harmonized in Central Asia. Besides, Russia is taking a renewed interest in the idea of a "gas cartel". Medvedev referred to the idea during the visit of Venezuelan President Hugo Chavez to Moscow last week. Note: Continuation in the comments section.

» original news

Biofuel production boosts food prices by 75%, report suggests

The production of biofuels has driven up food prices 75 per cent, according to an unpublished World Bank report obtained by the Guardian.

In an article published Friday, the British daily cites a confidential report authored by Don Mitchell, a senior economist at the bank. The newspaper suggests the report has not been released so as not to embarrass U.S. President George Bush, whose government had suggested biofuels accounted for a three per cent increase in food prices.

READ MORE HERE

Oil hits high near $146, then eases _ but not much

NEW YORK (AP) — Oil prices briefly soared to a new high near $146 a barrel Thursday, extending the previous day’s record-shattering rally before easing somewhat as the dollar gained ground against the euro.

Americans hitting the road for the July Fourth holiday were confronted with an unwelcome record of their own: The average retail price for regular gasoline jumped to within two-tenths of a penny of $4.10 a gallon, according to AAA, the Oil Prices Information Service and Wright Express.

READ MORE HERE [ Source: The Associated Press ]

Stocks punished as oil hits new highs

North American equity markets fell sharply as oil prices touched another record high near $144 US a barrel on Wednesday.

The S&P/TSX composite index shed 432 points to close at 14,034.11 — the market’s lowest close since April 30.

Stocks in Toronto were led down by a 7.5 per cent drop in the mining sector. The materials sector was down almost five per cent while industrials were off about four per cent, and the information technology group shaved 3.5 per cent. The financial sector fell about 2.2 per cent.

READ MORE HERE [ Source: CBC.ca ]