We agree that in the long-term energy costs are not going down but instead will continue to head higher. Costs may not be a straight line up as slow downs in the world economy may temporarily slow down the pace.
Full post by Carter here
- Did you know that Chevron ($CHV) spends $33 billion a year just to keep the doors open and the lights on. Amazing operating budget. For that 33 billion spend, they control 2% of the world wide oil market.
- Another data point they offered was that in the next ten years, the world will need 40% more energy to operate. Demand is going up. The reason? In America, when we go through our daily lives, we implicitly trust that lights will go on, air conditioning and heating will work. We know if we plug something in, the electricity will power it. We use cell networks. We don’t walk and bike everywhere, and generally get to place to place using some form of powered transportation.
- Currently, 2% of the entire supply curve for energy in the world is green. There is plenty of research and development on green energy, but there is no exponential “Moore’s Law” that holds true when it comes to energy. The world will use 3% green energy ten years from now.
- Natural gas is a good alternative, but we need to figure out how to develop an ecosystem so that it becomes easy for companies to switch. Natural gas has more energy density than diesel fuel.
- We don’t need CAFE standards to stimulate car companies to create better cars. Economic incentives create them. There is no secret car that gets 90 MPG that car companies are withholding from the market. If they had it, you could buy it on a lot.
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