Wednesday, August 06, 2008

America’s Energy Responses

As they say, it is pitch dark before the dawn. Seems like that is the case with America’s Energy Crisis.

The heartening developments are:
- both Presidential candidates are bowing to the increasing public pressure to come up with good policy responses;
- Obama puts forward a reasonable 3 point plan (electric cars, increased electricity from alternative resources and funds for research / roll over to newer technologies) along with a respectable response to bridge this transition using new oil drilling as needed;
- Pickens plan of using Wind energy and Natural gas for transportation and the traction that plan is getting.

Do we see reduced oil prices as response to these early game changing responses by America? Of course, we are past peak Summer Driving season which is developing as the ‘summer when demand destruction started’ and that is reducing the price.

But if one wants to read some bare nickel raw response of a money guy; one needs to read JJ Cramer’s article pointing out the significance of Natural Gas and Wind.
( http://www.thestreet.com/p/rmoney/jimcramerblog/10432123.html ) That is the classical American way – only when one sees the potential to make money, Americans start to change. Money talks for Americans and I like what I see here.

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