Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
New Energy Bill: Reducing Our Dependence on Foreign Oil > NetSparsh - Viral Content you Love & Share

New Energy Bill: Reducing Our Dependence on Foreign Oil

The U. S. economy is feeling the brunt of skyrocketing oil prices as the nation's dependence on foreign oil continues to grow. We need a responsible energy plan to reduce our reliance on foreign oil. President Bush and Senator Kerry appear to be skirting the real issues involved.

Growing transportation requirements combined with declining domestic oil production have led to burgeoning oil imports. Rising oil prices are having an adverse impact on the U.S. economy as evident from recent economic data and stock market performance. We need a responsible energy plan which will balance our transportation requirements with the necessity to reduce our dependence on foreign oil.

Rising Oil Prices.

Oil prices have been on a roll this year. As of August 10, crude oil prices have climbed over 45% since the start of 2004. A barrel of West Texas Intermediate recently recorded its all time high of $45.04 on the New York Mercantile Exchange. And this has happened despite the Organization of Petroleum Exporting Countries increasing its oil output.

Earlier in the year, the run up in oil prices was attributed to surging demand for petroleum products due to a strong global economy. Then it was the unrest in Venezuela and Nigeria.

Concerns on security of oil supplies have heightened more recently. Added to the pipeline disruptions in Iraq are kidnappings of foreign workers in the Middle East.

Yukos, the Russian oil company's tax evasion dispute has taken center stage currently. With a production rate of 1.7 million barrels a day (mmbd), Yukos is Russia's largest oil producer.

While the underlying factors behind the dramatic increase in the price of oil this year are a combination of all the above, the impact is hardly comforting.

Weakening Economy.

Higher oil prices that work like an added tax have the effect of holding down hiring, consumer spending, and corporate profits.

The July jobs report that was released by the Labor Department on August 6 was a disappointment. The U.S. economy added a mere 32,000 to the non-farm payrolls, the lowest monthly addition this year. The rate of employment growth is slowing as business confidence appears to be undermined by rising oil prices. High oil prices are also taking the bite out of consumer spending.

By some economists' estimates, every $10 rise in the price of oil knocks 0.5% off of GDP growth and adds about the same amount to inflation. The equity markets have been fixated with the trend in oil prices and have relentlessly spiraled lower since late June. On August 6, the Dow Jones Industrial Average closed at 9,815.33, its lowest level since Nov. 28 after losing more than 300 points over the last two sessions. The technology heavy Nasdaq Composite Index is down over 11% since the start of the year.

The Root Cause: Transportation Relies on Foreign Oil.

A combination of declining domestic oil production and increasing oil consumption has left the U.S. increasingly dependent on foreign oil.

The U. S. Department of Energy's Energy Information Administration states that domestic oil production in 2002 was 5.8 mmbd, about 36% lower than the 9.0 mmbd produced in 1985. The total use of petroleum products on the other hand has grown from 15.2 mmbd in 1985 to 19.3 mmbd in 2002.

The lion's share of oil consumption stems from transportation needs. In 2002, the transportation sector accounted for about 68% of total petroleum use with gasoline accounting for two-thirds of the petroleum consumed in the transportation sector.

U.S. net oil imports have grown from 4.3 mmbd in 1985 to 10.4 mmbd in 2002. Net oil imports as a percent of U. S. petroleum product use has risen from 28% in 1985 to 54% in 2002.

Based on Sandia National Laboratories and U. S. DOE/EIA forecast, an additional 7.5 mmbd of oil and petroleum products will have to be imported by 2020 to bridge the gap between growing consumption and falling domestic oil production. In 2020, U.S. oil production will supply less than 30% of U.S. oil needs.

The Energy Bill: Long-Term Plan for Energy Security.

The picture the current events paint as a preview of the future is cause for concern.

On August 6, Democratic presidential nominee John Kerry outlined a $30-billion, 10-year plan to veer the U. S. towards energy independence. The plan includes tax breaks and incentives for carmakers and buyers, coal producers and alternative fuels research. President Bush responded saying Kerry's proposals mimic much of what Bush had already proposed but is stalled in Congress.

It will not be adequate if President Bush and Senator Kerry just reignite the energy debate. To bring clarity to energy security, we need a comprehensive long-term national energy plan that will reduce our reliance on foreign oil while meeting the nation's growing transportation needs.

Both supply and demand sides of the transportation issue will have to be addressed to make a meaningful impact in reducing the dependence on foreign oil. Steps to increase the supply of domestic transportation fuels including alternatives to oil will likely be required. So too will efforts to reduce per capita transportation fuel consumption.

Based on what has been outlined to date, neither the Bush proposal nor the Kerry plan appears to fully address the critical transportation issue. The House-Senate conferees have an opportunity to deliver a responsible energy bill to the President's desk for his signature. If the dependence on foreign oil is not reduced, the course of the U. S. economy and the stock market may well be shaped more by decisions made in Moscow, Riyadh, and Vienna rather than being determined by the decisions made at home.

Notes: This report is for information purposes only. Nothing herein should be construed as an offer to buy or sell securities or to give individual investment advice. This report does not have regard to the specific investment objectives, financial situation, and particular needs of any specific person who may receive this report. The information contained in this report is obtained from various sources believed to be accurate and is provided without warranties of any kind. AlphaProfit Investments, LLC does not represent that this information, including any third party information, is accurate or complete and it should not be relied upon as such. AlphaProfit Investments, LLC is not responsible for any errors or omissions herein. Past performance is neither an indication of nor a guarantee for future results. No part of this document may be reproduced in any manner without written permission of AlphaProfit Investments, LLC.
Copyright © 2004 AlphaProfit Investments, LLC. All rights reserved.

After working for the nation's leading oil and auto companies, Sam Subramanian, PhD, MBA is currently Managing Principal of AlphaProfit Investments?, LLC, an investment research firm based in Houston, TX. Sam edits the AlphaProfit Sector Investors' Newsletter?. For the 5 year period ending June 30, 2004, AlphaProfit model portfolios increased by up to 252%, a compound annual return rate of 28.6%. To learn more about AlphaProfit and to subscribe to the FREE newsletter, visit http://www.alphaprofit.com

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

Science Magazine

French president's climate talent search nabs 18 foreign scientists
Science Magazine
French President Emmanuel Macron's effort to lure disgruntled foreign climate scientists to France—especially from the United States—has produced its first harvest. France today announced that Macron's Make Our Planet Great Again initiative has ...
Macron Awards US Climate Scientists Grants To 'Make Our Planet Great Again'NPR
Promising to 'Make Our Planet Great Again,' Macron lures 13 US climate scientists to FranceWashington Post
Macron awards US scientists grants to move to France in defiance of TrumpThe Guardian
The Week Magazine
all 199 news articles »

Los Angeles Times

Cassini may be dead, but a new era of Saturn science has just begun
Los Angeles Times
The new work is based on data collected by Cassini's Radio and Plasma Wave Science instrument (RPWS), which measures electron density in the planet's atmosphere. The study is the first of what experts say could be dozens of papers describing this ...
Saturn's rings mess with the gas giant's atmosphereScience News
Saturn's rings cast shadows, affect the planet's ionosphereEurekAlert (press release)

all 10 news articles »

MIT Technology Review

The Tax Overhaul Could Cripple the US as a Leader in Science
MIT Technology Review
The Republican plan is to tax these tuition fees as if they were normal, take-home income. Graduate students would have to pay income tax as if they made over $100,000 per year instead of $40,000. This would make it impossible to live in the expensive ...

and more »

NPR

Science's Journey From Data To Truth
NPR
Last week, I had a chance to watch the human side of science in action. I was in Hong Kong at a meeting focused on how stars die. It's an amazing act of hubris to think that we humans, bound to lives that barely last a century, have anything to say ...

and more »

9NEWS.com

Spangler Science: Tricks and experiments for the holidays
9NEWS.com
Science Guy Steve Spangler digs into his bag of tricks to show us how to make crystals, slime ornaments and even some fake snow! KUSA 5:55 PM. MST December 11, 2017. CONNECT TWEET LINKEDIN GOOGLE+ PINTEREST. Science guy Steve Spangler stopped by the ...


Vox

The GOP tax plan would blow a hole in American science
Vox
It's also a major attack on science. To understand why, let's step back a bit. The scientific enterprise in America heavily relies on grad students. They do mostly invisible work in thousands of labs and research institutions across the US, on ...

and more »

Popular Science

If we shrink national monuments, science will suffer
Popular Science
Polly says that the changes to the national monuments in southern Utah affect at least ten percent of his whole organization, about 2,200 scientists. Scientists worry that private enterprises such as mineral excavation and drilling will disturb the ...


Scientific American (blog)

How to Talk to a Science Denier without Arguing
Scientific American (blog)
It's the holiday season, which means plenty of opportunities for uncomfortable interactions with friends and family who are science deniers, from people who believe the moon landing was faked to those who believe vaccines cause autism or who think that ...


Daily Press

Virginia adopts computer science standards for K-12
Daily Press
Computer literacy means just that: making sure a student knows how to use computers and programs and can demonstrate that by creating a digital presentation. Educational technology applies computer literacy to other subjects, such as a science class ...


Baltimore Sun

Domino Sugar is heading to space as part of interactive science project
Baltimore Sun
“We support educational STEM programs at schools around the country, so we were thrilled when we were approached with this inventive program that uses our sugar products in a unique way to inspire young students to engage with and learn about science ...

and more »
Google News

How A Light Bulb Works and Other Interesting Tidbits

Light Bulb ScienceEver wonder how a light bulb works? I... Read More

Controls - The Building Blocks of Automation

As man learns to make machines that no longer rely... Read More

Acoustic Transducers for High Altitude Balloon Control

Using acoustic transducers it maybe possible to create a small... Read More

Army Mobile Command Center for UAV Launch

After visiting the Denver RC Modeler Club one day as... Read More

Randomness Versus Predetermination

Science is inherently a series of experiments within closed systems.... Read More

UAVs and The Future Enhancements of Tele-Robotics

Today we have already available UAVs, which will soon have... Read More

UAV Blimps Powered By Hydro-Electric Motors Using Hydro and Fluid Dynamic Theory

I believe it is possible to design a pilot-less hydro-electric... Read More

Creation

CREATION OF ANIMATE FROM INANIMATE: - We have touched upon... Read More

Electromagnetism, The Universe, And You

An electric current produces a magnetic field. This is the... Read More

Efficient Transportation Systems

We see in the organized world of the Japanese with... Read More

Institute of Noetic Sciences

The possibility of sentient beings on earlier solar systems said... Read More

Remote Control Bacteria; We Can Not Allow That.

Remote Control Bacteria. Why not, we have remote control everything.... Read More

Increasing Human Brain Power, Concept

Is it possible to increase the human brainpower? Not just... Read More

Hurricane and Typhoons Show Drop in Ozone Levels

A recent study, which was conducted by the Florida State... Read More

Confusing MAV Optic Flow Sensors In flight Using Mobiles

Using Shapes on Mobiles to confuse optic flow sensors in... Read More

UAV Stealth and Radar Energy Capture for Power and Propulsion

A Feasible Idea for UAV Flight, Possible Research and Development... Read More

The Intricacies of a Compound Microscope

Have you ever used a compound microscope? Your first thought... Read More

747 Onboard Laser Might Cause Mistake and Identity

Remember when the Russians shot down a Korean Airlines 747... Read More

Natural Gas Cost Increases; Want to know more?

A Thorn in the Side for American Business and Consumers... Read More

Military Convoy Artificial Tubes for Safe Travel

There appears to be a way to control the safety... Read More

Robotic MAV- Micro Air Vehicle Based on an Organic Humming Bird Model

MAV Micro Air Vehicle Based on Organic Hummingbird Model. There... Read More

The Debate About Cloning

There are two types of cloning. One involves harvesting stem... Read More

Flying a Beach Ball UFO

Recently some NASA Scientists were able to fly a MAV;... Read More

Servicing Missions to the Hubble Space Telescope

The Hubble Space Telescope received its first Service Mission in... Read More

Acoustic Transducers To Detect And Eliminate Incoming Mortar Rounds

There maybe a way to use acoustic transducers to pin-point... Read More