This week T. Boone Pickens announced a new program that will report our monthly foreign oil purchases.  This is a great way to focus our attention on this vital problem by using real numbers to track progress in reducing imports.  We can set goals and then meet our objectives.
 
How significant is our oil dependence?  The numbers are staggering:

• Spending nearly $20 billion on 380 million barrels in December 2008
• We spent approximately $475 billion on imported oil in all of 2008
• Every minute we send $432,000 overseas to feed our addiction

The transfer of wealth is wrecking our economy while foreign countries realize the benefits.  This is taking money away from our domestic programs at a critical time.  Wouldn’t you rather see this money spent on roads, schools and government projects here in the United States?

Last July, Pickens unveiled a plan to increase the use of wind power and natural gas to cut U.S. dependency on foreign oil.  This would create millions of jobs building out our wind capacity and upgrading our national electric grid.  All of this would have a very positive effect on our economy.

Developing oil alternatives is just one half of the puzzle with the other half being conservation.  Gradually changing our sources of energy would be nicely complimented by all of us just consuming less.  Attacking this problem from both sides will result in dramatic reductions of imports.  I look forward to getting these monthly updates as a yardstick to measure our progress.  Will you be watching?

I saw this story on Monday that oil futures may rebound from their current low price.  The predicted increase is based on OPEC cutting production and the economy picking up in the second half of 2009.

So oil prices may increase next year?  Well some analysts are predicting that demand will continue to drop which will keep prices low.  Others think demand will rise and oil prices could quickly spike if new investments are not made.  The point is, even the experts do not know, so we should not get comfortable with low prices.  We know that at some point the price of oil will surge again and this will result in high gas prices.

The question is what can we do in the interim?  We have to take the high prices of the summer as a serious warning.  Further reductions in supply or a sudden increase in demand could sharply drive up prices.  We must aggressively seek gasoline alternatives while actively improving our conservation efforts.

Wouldn’t it be great to send a message to the rest of the world that U.S. citizens can curb their appetite for fossil fuels?  We all need work together during a difficult economy to ensure that changes in our daily commuting habits have a long lasting impact.  Passenger Energy is everyone’s chance to make a contribution starting 2009.  Do you agree?

photo credit: underminingme

Earlier this week at the Governors’ Global Climate Summit, President elect Obama talked about Global Warming and the need for clean energy.  He said we would invest $15 billion each year for the next 10 years to support alternative energy.

Time magazine states that this won’t be enough and looks at the international costs.

The International Energy Agency’s (IEA) annual World Energy Outlook, released Nov. 12, projects that global energy demand will increase by 45% between 2006 and 2030 — and that $26 trillion in power-supply investments will be necessary simply to meet those needs.

Obama’s plan for $150 billion is a step in the right direction, but more action is needed.  If you read the Time article, you know we must invest in wind and solar power, but why not Passenger Energy too?  Maybe we would not have to invest so much, if we could simply conserve more.

Gasoline prices across the country are dropping at record rates.  The price has fallen over fifty cents in just the last two weeks.  There are many factors contributing to this record drop including:

1. Difficult economic conditions
2. Drop in crude oil price
3. Reduced demand

There is not much we can do about the first two, but reducing demand is under our control.  Many drivers have already scaled back their driving habits due to the high prices in the summer and now the failing economy.

Unfortunately, we know these price drops will not continue much longer.  OPEC has already said they will cut production and refineries will reduce their output.  The price drop will slow down and then eventually stabilize.  How soon before they then begin their inevitable rise?

We need to aggressively reduce demand to maintain lower prices through Passenger Energy.

Another factor to consider is a concept called peak oil.  This is the point in time when the maximum rate of global petroleum is reached.  After the peak, the rate of production steadily decreases until the resource has been exhausted.  An energy crisis can occur if global consumption is not reduced before the peak.

Geophysicist M. King Hubbert predicted the decline of oil production in his book Hubbert’s Peak: The Impending World Oil Shortage.  While long-term solutions exist in the form of conservation and alternative energy sources, they probably will not be enacted in time to evade a short-term catastrophe.  We need to change our consumption habits now, not tomorrow.

photo credit: www.peakoilaware.org

In 2008, the price of oil smashed through the $100/barrel mark and has kept on going.  OPEC controls the output which limits the supply and market speculation has also contributed to higher prices.  Gas prices have risen above the $4/gallon price all across the country and analysts worry that $5 is just around the corner.  These prices are deeply felt when it cost over $60 to fill-up at the pump.

From the mid 1980’s until 2003, the price of crude oil remained under $25 per barrel.  Then in 2005, the war in Iraq and Hurricane Katrina helped push the price to over $60.  Since then prices have steadily increased to a high of $147 per barrel in July of 2008.

The price has recently dropped due to the global financial crisis, but this seems to be a temporary reprieve.  If we act together, we can continue to lower demand and keep prices low.

photo credit: nestor galina

Thursday night, Republican Sarah Palin said at the vice presidential debate in St. Louis that:

Energy independence is the key to the future of the nation

How do we do that?  Pay4Rides is a concept that would drastically reduce energy consumption and help break our oil addiction.  We need to reduce trade with oil-rich countries to gain independence from foreign oil.

U.S. consumes over 20 million barrels of petroleum a day.  40% of this is consumed by automobiles which is 9 million barrels a day. U.S. consumes over 7 billion barrels a year.  Improving fuel economy is seen as a superior solution to trying to tap reserved locations like Wildlife Refuges.

So while more drilling will help increase our domestic production, it does not address the root problem of consumption.  Pay4Rides would tap into unused passenger energy and result in a dramatic reduction of demand.

photo credit: Mike Licht, NotionsCapital.com

I am sick of high gas prices and want to tell the Middle East we do not need their oil.

Not only do rising gas prices cost me every time I go to the pump, but they are impacting transportation costs of all goods and services.  The only way to reduce the cost is to reduce the demand. 

Pay4Rides is a concept that will dramatically cut our oil addiction and give us time to develop alternative solutions.  We have little or no control over supply so we all need to work together to reduce demand which would result in lower prices.  This is our chance to show the rest of the world how the American people can unite to solve this problem.

photo credit: slopjop