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Low oil prices take wind out of renewable fuels
SFGate.com ^ | 10/27/08 | David R. Baker

Posted on 10/27/2008 6:44:33 PM PDT by NormsRevenge

Not everyone likes seeing oil prices plunge.

This decade's historic high prices for oil and natural gas have stoked the rise of renewable power and alternative fuels. As fossil fuel prices smashed record after record, options like ethanol, hybrid electric cars, solar power and wind looked better and better.

Now oil costs less than half what it did this summer. Ditto natural gas. If prices keep dropping and stay down, future fuels like cellulosic ethanol and biodiesel will have a harder time competing. So will solar and wind power projects, which compete against power plants that burn natural gas. Public interest in alternative energy may dwindle as well.

"The excitement has subsided in the last few months," said Brian Youngberg, senior energy analyst with the Edward Jones investment company. "When oil comes down, there's still interest, but it's not as passionate. That's a potential risk."

To many in the alternative energy world, it feels like a rerun of a movie they've already seen, one with an ugly ending.

American interest in renewable power and alternative fuels swelled during the oil shocks of the 1970s, which exposed the country's deep dependence on imported petroleum. But after the price of oil hit a record high in 1981, it crashed and took the country's interest in alternatives with it.

Alternative-energy entrepreneurs hope this time will be different. No matter how far oil drops, the fear of global warming won't go away, they say. That should keep both the public and the government interested in tapping energy sources that don't add to climate change.

(Excerpt) Read more at sfgate.com ...


TOPICS: Business/Economy; Culture/Society; Politics/Elections; US: California
KEYWORDS: energy; gasprices; oilprices; renewablefuels

1 posted on 10/27/2008 6:44:33 PM PDT by NormsRevenge
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To: NormsRevenge

Hate to even say it, but the bottom will be $36


2 posted on 10/27/2008 6:45:51 PM PDT by xcamel (Conservatives start smart, and get rich, liberals start rich, and get stupid.)
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breaks muh pee-pick’n lil heart.


3 posted on 10/27/2008 6:45:51 PM PDT by NormsRevenge (Semper Fi ... "You know, when you can't ask a question of your leaders anymore, that gets scary,")
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To: NormsRevenge

surprise, surprise!

been here, and done that!


4 posted on 10/27/2008 6:46:07 PM PDT by ken21 (people die and you never hear from them again.)
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To: NormsRevenge
Wonder how much Pelosi and her investor friends lost in this Pickens fiasco?

Pickens comes across as a self-serving, Wall Street broker scamming the public on national TV.

Reminds me a little bit of Ross Perot.

JMHO.

Any of those windmills off of the East or West Coast or were they just coming through the Red States?

5 posted on 10/27/2008 6:48:21 PM PDT by not2worry (WHAT GOES AROUND COMES AROUND)
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To: NormsRevenge
Alternative-energy entrepreneurs hope this time will be different. No matter how far oil drops, the fear of global warming won't go away, they say. That should keep both the public and the government interested in tapping energy sources that don't add to climate change.

I wouldn't bet money on Gore's hoax. The emperor has no clothes. We've gone 8+ months with no sunspots. That has been a precursor to an ice age in the past. The record low temperatures last winter might have been related.

6 posted on 10/27/2008 6:48:57 PM PDT by Myrddin
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To: NormsRevenge

Unfortunately it takes the urgency out of drilling here as well. (at least it looks that way)


7 posted on 10/27/2008 6:49:32 PM PDT by cripplecreek (Paying taxes for bank bailouts is apparently the patriotic thing to do. [/sarc])
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To: NormsRevenge
If we had any leaders worthy of the name they would be on tv every day reminding us that this price drop is a gift of a merciful god. It opens a window of time during which urgency and hysteria can be replaced by rational long range proactive planning and implementation.

That's if we had leaders. From Obama and McCain; from Bush, Pelosi and Reid; from anybody else but maybe Boone Pickens: total silence.

8 posted on 10/27/2008 6:50:05 PM PDT by hinckley buzzard
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To: Myrddin

“I wouldn’t bet money on Gore’s hoax. The emperor has no clothes. We’ve gone 8+ months with no sunspots. That has been a precursor to an ice age in the past. The record low temperatures last winter might have been related.”

I seriously wonder what they are going to say when the temps drop across the board? Are they going to say that they went to far and created this global cooling? Or are they, most likely, going to say that it’s “climate change” as they do now instead of “global warming”?


9 posted on 10/27/2008 6:54:00 PM PDT by MissouriConservative (I'm MissouriConservative and I approved this message.)
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To: NormsRevenge
Not everyone likes seeing oil prices plunge.

What a twisted mental wreck Nancy Pelosi must be while contemplating this revelation with a political mindset.

Sad, so sad...

10 posted on 10/27/2008 6:57:14 PM PDT by EGPWS (Trust in God, question everyone else)
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To: not2worry
Pickens comes across as a self-serving, Wall Street broker scamming the public on national TV.

For what it's worth, he does give a boatload of money to Oklahoma State athletics.

11 posted on 10/27/2008 7:05:08 PM PDT by FatherofFive (Islam is an EVIL like no other, and must be ERADICATED)
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To: NormsRevenge

Drill here, drill now!


12 posted on 10/27/2008 7:18:06 PM PDT by BerryDingle (I know how to deal with communists, I still wear their scars on my back from Hollywood-Ronald Reagan)
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To: xcamel

“Hate to even say it, but the bottom will be $36”

Why do you think that? It seems to me that OPEC countries would cut production again long before that happens and send prices higher. They need oil at $50 or higher a barrel just to pay their bills. I’m not counting on prices staying low for very long. These cartels with all the oil won’t allow it. I’d like to think we’ll be awash with cheap oil for a few years, but my gut is telling me this is just temporary. OPEC will cut production more, demand will come back up and prices will soar again.


13 posted on 10/27/2008 7:20:42 PM PDT by TKDietz
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To: NormsRevenge

Ummm... if “alternative energy” was actually efficient and cost-effective, there would be no snag.


14 posted on 10/27/2008 7:23:08 PM PDT by TheBattman (A vote for the "lesser evil" is still a vote for evil!)
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To: NormsRevenge

I bet Bush’s poll numbers go up now. I don’t know why McCain doesn’t just make a campaign commercial with Obama saying it doesn’t bother him that gas is at $4 a gallon only how fast it rose. To many people cheap gas is sacred.


15 posted on 10/27/2008 7:24:18 PM PDT by willk
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To: FatherofFive
For what it's worth, he does give a boatload of money to Oklahoma State athletics.
—————————————————————————>

I saw that on 60 Minutes, but again I think his long term vested interest is putting his windmills in Oklahoma.

The Huskers are a State Wide Passion and his boatload of money could do a lot to eliminate the “NOT IN MY BACKYARD”
syndrome.

Wonder if Pickens would give a check back to each citizen of every State he places his windmills in with his alternative energy plan? Similar to what Alaskans get from their oil revenues?

Have not wasted my time to go the to the Picken’s Plan website. But I'd speculate that's not in his proforma package.

16 posted on 10/27/2008 7:31:11 PM PDT by not2worry (WHAT GOES AROUND COMES AROUND)
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To: MissouriConservative

“It is only temporary; temps will start rising again in 10 years, when the El Nino Phenomenom returns...”.

Just ask Doctor Hanson, et al.


17 posted on 10/27/2008 8:21:26 PM PDT by ApplegateRanch (The Great Obamanation of Desolation, attempting to sit in the Oval Office, where he ought not..)
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To: NormsRevenge; xcamel
Hate to even say it, but the bottom will be $36

I don't know if we'd really want that, because that would probably be caused by more or less zero-growth in China, India etc. and a severe recession in the US.

It would also mean either the end of the American auto industry literally speaking or the end of the American auto industry as we know it (i.e. nationalization).

If the world economy rebounds, it will soon need more oil than that which can be extracted from the ground at $36/barrel cost.
18 posted on 10/27/2008 9:26:25 PM PDT by wolf78
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