10 tips to kickstart a greener lifestyle
1. Clean green
Scrubbing the kitchen and bathroom with synthetic cleansers is counterintuitive (why would you want to breathe in harsh chemicals or leave a toxic residue on your tub or tiles?). From counter sprays to toilet scrubs, there are green cleansers for every part of the house.
2. Invest in a new candle
Opt out of out regular scented candles (synthetically-fragranced candles often contain phthalates, compounds that are thought to disrupt hormone functioning) and go for a naturally-scented soy candles instead.
3. Flush efficiently
The EPA estimates that flushing makes up 30 percent of a household’s water use (about three to six gallons per flush). Placing a brick in your toilet tank will help to conserve the amount of water used during each flush.
4. Trade your bulbs
Switch from incandescent light bulbs to compact fluorescent bulbs, which use about 75 percent less energy.
5. Furnish wisely
Think about how those chairs or sofa or throw pillows were made. Whenever possible seek out furniture and home accessories that are constructed from certified sustainable wood — look for the FSC label (Forest Stewardship Counsel), reclaimed materials, bamboo, organic cotton and so on.
6. Eat right
Support regional farmers by seeking out fresh, locally grown food and whenever possible buy organic.
7. Become a biker
Biking is an excellent form of eco-friendly transportation — good for both you and the planet. If you have to drive, keep other cars off the road by carpooling.
8. Reuse your lunch box
Pack your sandwich in a reusable container and if you must use plastic bags, wash and reuse them for tomorrow’s lunch.
9. Print properly
At work, think twice about printing, but if you absolutely must hold that document in your hand, fill your printer with recycled paper and print on both sides of the sheet.
10. Hit the power button
Turn your computer, printer, fax and copy machine off when you’re finished for the day.
Tuesday, August 9, 2011
ENERGY SAVERS 2
ENERGY SAVERS 2
Sustainability
We strive to meet the needs of the present generation without compromising the ability of future generations to meet their own needs.
Stewardship
We view ourselves as caretakers, seeking to impact our environment in a harmonious and a mutually beneficial manner.
Conservation
We began promoting the conservation and wise use of water resources in 1995 in order to alleviate the strain on a depleted resource across the West.
Resources
Energy Matters by Topic
Biomass Energy
Clean Fuels
Cogeneration
Distributed Generation
Energy Efficiency
Energy Justice
Environmental Costs
Fuel Cells - Hydrogen
Global Warming
Green Power
Hydropower
Mercury Pollution
Nuclear Energy
Solar Energy
Sprawl
Transmission Lines
Wind Energy
Legislative Resources
Resources
Energy Matters by Topic
Biomass Energy
Clean Fuels
Cogeneration
Distributed Generation
Energy Efficiency
Energy Justice
Environmental Costs
Fuel Cells - Hydrogen
Global Warming
Green Power
Hydropower
Mercury Pollution
Nuclear Energy
Solar Energy
Sprawl
Transmission Lines
Wind Energy
Legislative Resources
Utility Bill Audits & Energy Accounting
Utility Bill Audits & Energy Accounting
Among its other offerings, Independent Energy Consultants of Aurora, Ohio, provides utility bill audits and energy accounting services. To assist you in finding energy savings, we will replicate your organization in its powerful accounting system. We will set up your facilities, organizational structure, cost centers, vendors, accounts, utility rates, etc. We believe in the concept that you cannot manage what you don't understand or do not measure. We will input your utility bills, and our systems will quickly pinpoint billing or meter errors and provide you with 24x7 online access to a wealth of quality information that will allow you to make better business decisions. To view an 18-minute overview demonstration of the powerful system we use to manage all your utilities (electric, water, natural gas, propane, fuel oil, sewer, etc.) please c
Utility Bill Auditing: Approximately 50 billing audit calculations are performed to spot possible errors and verify the accuracy of utility billing. Independent Energy Consultants monitors, trends and compares current bills to historical monthly bills to spot discrepancies in parameters such as total cost, total consumption, per unit cost, per unit consumption, peak demands, load factor, length of billing periods, estimated meter readings, overlapping bill periods, etc. User defined limits will flag bill discrepancies in need of further review or correction. Independent Energy Consultants will assist with collection and/or credits for overcharges.
Based on the client's wishes we will either audit your bills after they have been paid, or promptly review them and send your Accounts Payable (A/P) staff notice when bills are correct for payment. Our "smart" energy accounting system can also be linked to your A/P system if desired.
Rate Code Analysis: Your utility company assigns you a rate schedule based on an estimate of how they think you will use electricity or natural gas. Sometimes they guess wrong and often conditions change after a rate schedule is assigned. Your rate schedule determines how much you are billed. Often a facility qualifies to be billed under one of several rate schedules. Independent Energy Consultants will calculate your bill under each acceptable rate schedule and show you which is best for your situation. If electricity savings or natural gas savings are available, we will identify any switching costs and propose a plan that is best for you. Rates and riders change and the energy consumption of most facilities changes over time. We recommend an annual analysis to determine the most appropriate rate code for your unique business.
Tariff analysis: Once a Rate Code analysis is performed to ensure you are being billed under the most advantageous rate we go an extra step to let you know what can be done to minimize your costs under that rate schedule. This analysis looks for excessive demand charges, ratchet demands, power factor penalties, time-of-use pricing, etc.. Once these factors are known, automated or procedural changes can be implemented to avoid operating under high-cost conditions.
Cost Avoidance Verification: Cost avoidance is the name given to the money that was not spent because an Energy Cost Measure (ECM) was performed or installed. It is calculated by comparing a baseline energy consumption before the ECM, to the energy consumption after an ECM, and adjusting for independent variables that influence your usage. The energy not consumed is then multiplied by the current rate to determine the avoided cost. The independent variables that influence a utility bill can vary by season, region, occupancy, hours of operation, product produced, etc.
For clients that contract with 3rd party vendors to implement the ECM, Independent Energy Consultants can provide independent verification that the vendor-installed ECM is operating as specified. Performance Contracting and/or energy loans and grants require this verification. For more information please refer to our on this topic.
Benchmarking: Like many business processes in a competitive environment, it is helpful to compare your energy cost and consumption vs. similar facilities. Let us show you how your facilities stack up to others. Often this first step will let you know if any additional efforts are needed. If your building is a good performer and you would like to demonstrate your environmental stewardship, we can help you obtain the Energy Star Label.
Energy Budgeting and Forecasting: Easily create budgets and track actual expenditures at any level of your organization. Whether it’s your entire Midwest region or an individual facility meter, you will quickly know where things are going well and where your attention is needed. If something changes in your organization or you want to make sure you hold onto that year-to-date budget underrun, you can make mid-year adjustments with just a few clicks. It's time to take control of your utilities by accurately forecasting costs and incorporating them into your planning process.
Among its other offerings, Independent Energy Consultants of Aurora, Ohio, provides utility bill audits and energy accounting services. To assist you in finding energy savings, we will replicate your organization in its powerful accounting system. We will set up your facilities, organizational structure, cost centers, vendors, accounts, utility rates, etc. We believe in the concept that you cannot manage what you don't understand or do not measure. We will input your utility bills, and our systems will quickly pinpoint billing or meter errors and provide you with 24x7 online access to a wealth of quality information that will allow you to make better business decisions. To view an 18-minute overview demonstration of the powerful system we use to manage all your utilities (electric, water, natural gas, propane, fuel oil, sewer, etc.) please c
Utility Bill Auditing: Approximately 50 billing audit calculations are performed to spot possible errors and verify the accuracy of utility billing. Independent Energy Consultants monitors, trends and compares current bills to historical monthly bills to spot discrepancies in parameters such as total cost, total consumption, per unit cost, per unit consumption, peak demands, load factor, length of billing periods, estimated meter readings, overlapping bill periods, etc. User defined limits will flag bill discrepancies in need of further review or correction. Independent Energy Consultants will assist with collection and/or credits for overcharges.
Based on the client's wishes we will either audit your bills after they have been paid, or promptly review them and send your Accounts Payable (A/P) staff notice when bills are correct for payment. Our "smart" energy accounting system can also be linked to your A/P system if desired.
Rate Code Analysis: Your utility company assigns you a rate schedule based on an estimate of how they think you will use electricity or natural gas. Sometimes they guess wrong and often conditions change after a rate schedule is assigned. Your rate schedule determines how much you are billed. Often a facility qualifies to be billed under one of several rate schedules. Independent Energy Consultants will calculate your bill under each acceptable rate schedule and show you which is best for your situation. If electricity savings or natural gas savings are available, we will identify any switching costs and propose a plan that is best for you. Rates and riders change and the energy consumption of most facilities changes over time. We recommend an annual analysis to determine the most appropriate rate code for your unique business.
Tariff analysis: Once a Rate Code analysis is performed to ensure you are being billed under the most advantageous rate we go an extra step to let you know what can be done to minimize your costs under that rate schedule. This analysis looks for excessive demand charges, ratchet demands, power factor penalties, time-of-use pricing, etc.. Once these factors are known, automated or procedural changes can be implemented to avoid operating under high-cost conditions.
Cost Avoidance Verification: Cost avoidance is the name given to the money that was not spent because an Energy Cost Measure (ECM) was performed or installed. It is calculated by comparing a baseline energy consumption before the ECM, to the energy consumption after an ECM, and adjusting for independent variables that influence your usage. The energy not consumed is then multiplied by the current rate to determine the avoided cost. The independent variables that influence a utility bill can vary by season, region, occupancy, hours of operation, product produced, etc.
For clients that contract with 3rd party vendors to implement the ECM, Independent Energy Consultants can provide independent verification that the vendor-installed ECM is operating as specified. Performance Contracting and/or energy loans and grants require this verification. For more information please refer to our on this topic.
Benchmarking: Like many business processes in a competitive environment, it is helpful to compare your energy cost and consumption vs. similar facilities. Let us show you how your facilities stack up to others. Often this first step will let you know if any additional efforts are needed. If your building is a good performer and you would like to demonstrate your environmental stewardship, we can help you obtain the Energy Star Label.
Energy Budgeting and Forecasting: Easily create budgets and track actual expenditures at any level of your organization. Whether it’s your entire Midwest region or an individual facility meter, you will quickly know where things are going well and where your attention is needed. If something changes in your organization or you want to make sure you hold onto that year-to-date budget underrun, you can make mid-year adjustments with just a few clicks. It's time to take control of your utilities by accurately forecasting costs and incorporating them into your planning process.
Energy Saving Tips
Energy Saving Tips
Energy savers wants you to be comfortable in your home. But we also want you to be efficient and pay the least amount for the energy required to keep you warm on cold winter days. Simple conservation measures and weatherization practices can amount to significant savings. Here are some simple tips for keeping the heat inside your home while helping to save money on your gas bill.
20 Tips to Save Energy During Winter
1. Dial it down - Turn your thermostat setting down to 65º F during the day, especially when you're not home. You may be able to set it even lower at night, but do not shut the furnace off if the temperature is expected to drop below 45 degrees that night. Under any conditions, keep thermostat adjustments to a minimum and do them gradually to give yourself time to adjust.
2. Check your furnace filter - A clean filter helps your furnace do its job more efficiently and effectively. So change the filter each time you pay your gas bill. (Never remove the filter without replacing it.)
3. Turn down your water heater thermostat - At 120º F your water heater will be more energy efficient than at higher temperatures and still produce enough hot water for daily needs.
4. Wrap your water heater - Wrap an insulating blanket around your water heater to keep the heat from escaping. You can also save on your water heating bill by insulating at least the first six feet of the hot water pipe and the first three feet of the cold water pipe that extends from your hot water tank.
5. Close the flue - Make sure the flue/damper on your fireplace is closed when not in use. Keeping your flue open is like keeping a window open and allowing warm air to shoot right up the chimney.
6. Caulk and weather strip - One of the quickest dollar-saving tasks you can do is to caulk, seal and weather strip where drafts are detected such as seams, cracks and openings to the outside. The materials you need to caulk and weather strip are inexpensive and available at your local hardware store.
7. Check insulation - Make sure you have insulation in your attic, ceilings, exterior and basement walls, floors and crawl spaces. Adding insulation where it doesn't exist will create a more uniform temperature all yearlong.
8. Be sure appliances are operating efficiently - Check to see that your natural gas appliances are in tip-top shape. Appliances that aren't working properly can run inefficiently and cost you money. To find a licensed technician in your area, visit the ACCA of Central Indiana Web Site.
9. Replace old furnaces - If your furnace is more than 10 years old, it's likely only about 60-70 percent efficient, meaning you lose about 45 cents of every heating dollar you spend. Most new furnaces are more than 80 percent efficient. To find a licensed technician in your area, visit the ACCA of Central Indiana Web Site.
10. Keep heat registers clear - Avoid blocking heat registers and air returns with furniture, draperies or rugs.
11. Let the sun help heat your home in cold weather - Keep your window shades up on sunny days. One part of your home may get direct sunlight in the morning, another in the afternoon. Also, close your draperies or blinds at night to help insulate the window.
12. Dress appropriately for cold weather - Keeping comfortable has a lot to do with how well you insulate or ventilate your own body. Try wearing layers of clothes.
13. Keep the air moist - Moist air feels warmer. Use a humidifier to keep the air in the 40 percent humidity range (substantially more moisture can lead to mold and mildew problems).
14. Use less hot water in the bathroom, kitchen and laundry - When you shower, keep it short. Showers can use less hot water than baths, but only if they're short. Don't let the hot water tap run unnecessarily while you wash or shave. For clothes and automatic dishwashing, try to wash only full loads.
15. Don't heat or partially heat unused rooms - Shut registers and close unused rooms. Registers in upstairs rooms can often be partially closed since hot air rises.
16. Don't use exhaust fans - Use kitchen, bath and other ventilating fans sparingly in cold weather. In just one hour, these fans can blow out a house full of warm air.
17. Reverse ceiling fans - By changing the direction of your ceiling fan to counter-clockwise in the winter, the fan will push rising warm air back into the living space.
18. Replace single-pane windows - If your home has single-pane windows, as almost half of U.S. homes do, consider replacing them. New double-pane windows with high-performance glass can reduce heat loss. Storm windows can reduce your heat loss through windows by 25% to 50%.
19. Repair leaky hot water faucets immediately - A hot water faucet leaking one drop per second wastes 160 gallons per month - or 16 hot baths!
20. Close closets and cabinets - Closets and cabinets on outside walls can leak a great deal of cold air, so make sure the doors fit snuggly and keep them closed.
Energy savers wants you to be comfortable in your home. But we also want you to be efficient and pay the least amount for the energy required to keep you warm on cold winter days. Simple conservation measures and weatherization practices can amount to significant savings. Here are some simple tips for keeping the heat inside your home while helping to save money on your gas bill.
20 Tips to Save Energy During Winter
1. Dial it down - Turn your thermostat setting down to 65º F during the day, especially when you're not home. You may be able to set it even lower at night, but do not shut the furnace off if the temperature is expected to drop below 45 degrees that night. Under any conditions, keep thermostat adjustments to a minimum and do them gradually to give yourself time to adjust.
2. Check your furnace filter - A clean filter helps your furnace do its job more efficiently and effectively. So change the filter each time you pay your gas bill. (Never remove the filter without replacing it.)
3. Turn down your water heater thermostat - At 120º F your water heater will be more energy efficient than at higher temperatures and still produce enough hot water for daily needs.
4. Wrap your water heater - Wrap an insulating blanket around your water heater to keep the heat from escaping. You can also save on your water heating bill by insulating at least the first six feet of the hot water pipe and the first three feet of the cold water pipe that extends from your hot water tank.
5. Close the flue - Make sure the flue/damper on your fireplace is closed when not in use. Keeping your flue open is like keeping a window open and allowing warm air to shoot right up the chimney.
6. Caulk and weather strip - One of the quickest dollar-saving tasks you can do is to caulk, seal and weather strip where drafts are detected such as seams, cracks and openings to the outside. The materials you need to caulk and weather strip are inexpensive and available at your local hardware store.
7. Check insulation - Make sure you have insulation in your attic, ceilings, exterior and basement walls, floors and crawl spaces. Adding insulation where it doesn't exist will create a more uniform temperature all yearlong.
8. Be sure appliances are operating efficiently - Check to see that your natural gas appliances are in tip-top shape. Appliances that aren't working properly can run inefficiently and cost you money. To find a licensed technician in your area, visit the ACCA of Central Indiana Web Site.
9. Replace old furnaces - If your furnace is more than 10 years old, it's likely only about 60-70 percent efficient, meaning you lose about 45 cents of every heating dollar you spend. Most new furnaces are more than 80 percent efficient. To find a licensed technician in your area, visit the ACCA of Central Indiana Web Site.
10. Keep heat registers clear - Avoid blocking heat registers and air returns with furniture, draperies or rugs.
11. Let the sun help heat your home in cold weather - Keep your window shades up on sunny days. One part of your home may get direct sunlight in the morning, another in the afternoon. Also, close your draperies or blinds at night to help insulate the window.
12. Dress appropriately for cold weather - Keeping comfortable has a lot to do with how well you insulate or ventilate your own body. Try wearing layers of clothes.
13. Keep the air moist - Moist air feels warmer. Use a humidifier to keep the air in the 40 percent humidity range (substantially more moisture can lead to mold and mildew problems).
14. Use less hot water in the bathroom, kitchen and laundry - When you shower, keep it short. Showers can use less hot water than baths, but only if they're short. Don't let the hot water tap run unnecessarily while you wash or shave. For clothes and automatic dishwashing, try to wash only full loads.
15. Don't heat or partially heat unused rooms - Shut registers and close unused rooms. Registers in upstairs rooms can often be partially closed since hot air rises.
16. Don't use exhaust fans - Use kitchen, bath and other ventilating fans sparingly in cold weather. In just one hour, these fans can blow out a house full of warm air.
17. Reverse ceiling fans - By changing the direction of your ceiling fan to counter-clockwise in the winter, the fan will push rising warm air back into the living space.
18. Replace single-pane windows - If your home has single-pane windows, as almost half of U.S. homes do, consider replacing them. New double-pane windows with high-performance glass can reduce heat loss. Storm windows can reduce your heat loss through windows by 25% to 50%.
19. Repair leaky hot water faucets immediately - A hot water faucet leaking one drop per second wastes 160 gallons per month - or 16 hot baths!
20. Close closets and cabinets - Closets and cabinets on outside walls can leak a great deal of cold air, so make sure the doors fit snuggly and keep them closed.
OUR NATURAL RESOURCES CONSERVATION
OUR NATURAL RESOURCES CONSERVATION
By YJ Draiman
Our concern for future generations (R3) (Renewable natural resources)
Rainwater harvesting and the utilization of grey-water is a must these days.
As the world population is increasing and modernizing. The utilization of our natural resources such as water is becoming scarcer and more in demand.
In order to conserve, we must utilize rainwater, and grey-water. This will also reduce water and sewer cost.
There are many techniques today which are not expensive and can be accomplished with little effort. All you need is to be concerned about the future and take action to minimize your impact on the depletion of natural resources.
We should also make it our utmost concern to make our home and or business energy efficient, and implement water conservation methods.
Builders should be required by building code to design and build structures that are energy efficient and conserve on water – utilize grey-water and other natural resources. Reduce waste and utilize recycled materials.
All citizens of the world should implement actionable conservation methods and living responsibly by contributing to the solution of sustainability.
WATER CRISES – POSSIBLE SOLUTION
Scientist are talking about the melting North Pole and the rising level of ocean water – That may cause flooding in some low laying area and eliminate some properties and beach front areas.
We should consider a major undertaking of global desalinization of ocean water and utilize this water to supplement our other natural water sources.
YJ Draiman, Energy Consultant
Northridge, CA. 91324 – 10/1/2007.
PS.
SAVE ON ENERGY COSTS AND THE ENVIRONMENT
A growing number of people are striving to make their homes more energy-efficient, and it’s no wonder: Conserving energy saves homeowners money on gas and electric bills and contributes to a healthy environment. It can also make a home more comfortable.
RADIANT BARRIER - Radiant barrier is installed in buildings to minimize heat gain or loss, reducing the amount of energy needed for cooling and heating.
Recent technological improvements in building elements and construction techniques, and heating, ventilation, and cooling systems, allow most modern energy saving ideas to be seamlessly integrated into any type of house design without sacrificing comfort, health, or aesthetics.
Runaway Energy Costs – causing inflation and panic
Runaway Energy Costs – causing inflation and panic
Spurred by soaring energy costs, food prices and other goods and services have risen nearly 20 percent or more in the past 20 months — more than double the usual increase.
Commodity prices for corn, wheat, soybeans and other staples have been skyrocketing over the past year to more than double their prices from 2006.
Economists have also pointed toward the growing demand for grains for ethanol and other biofuels, tying the price of corn to the price of oil and increasing the pressure and demand for land use.“It is important to note the contribution of runaway energy prices to the retail cost of food goods and services. “Transportation, processing and packaging all cost significantly more now than in prior years.”
The snowball effect of soaring energy prices is causing increased prices for all goods and services, from food, medical, construction and other material.
Speculation is often criticized as the cause of surging grain prices. But the current abnormal price increases could not have occurred without firm demand. Indeed, farmers are cultivating cash plants while buyers are seeking cheaper alternatives, forming a chain of price surges.
World food production must rise by 50 percent by 2030 to meet increasing demand.
Biofuels to blame?
The increasing diversion of food and animal feed to produce biofuel, and sharply higher fuel costs have also helped to shoot prices upward, experts say.
The senate and the House should call for expanded funding for weatherization and tax credits for other energy-saving programs, $100 billion for expansion of mass transit systems, $100 billion for renewable energy development and renewable energy projects and $50 billion in bonds for roads, bridges and other transportation projects. The increasing diversion of food and animal feed to produce biofuel, and sharply higher fuel costs have also helped to shoot prices upward, experts say.
Traders are also at fault
A boom in speculation and trading by investment banks and hedge funds has put our energy markets on steroids. Contract volume in the futures markets has risen by a third in just the last year. Oil closed at a record high of $125.96 a barrel (USO: , , ) on the New York
This isn't complicated finance. The way traders push up prices is surprisingly simple. They buy in European futures markets, which don't have the limits that U.S. U.S.
None of it would matter except that these markets are supposed to be driven by supply and demand. China
Hedge Funds and Banks driving oil prices
In the most recent sustained run-up in energy prices, large financial institutions, hedge funds, pension funds, and other investors have been pouring billions of dollars into the energy commodities markets to try to take advantage of price changes or hedge against them. Most of this additional investment has not come from producers or consumers of these commodities, but from speculators seeking to take advantage of these price changes. The CFTC defines a speculator as a person who “does not produce or use the commodity, but risks his or her own capital trading futures in that commodity in hopes of making a profit on price changes.”
The large purchases of crude oil futures contracts by speculators have, in effect, created an additional demand for oil, driving up the price of oil for future delivery in the same manner that additional demand for contracts for the delivery of a physical barrel today drives up the price for oil on the spot market. As far as the market is concerned, the demand for a barrel of oil that results from the purchase of a futures contract by a speculator is just as real as the demand for a barrel that results from the purchase of a futures contract by a refiner or other user of petroleum.
In the most recent sustained run-up in energy prices, large financial institutions, hedge funds, pension funds, and other investors have been pouring billions of dollars into the energy commodities markets to try to take advantage of price changes or hedge against them. Most of this additional investment has not come from producers or consumers of these commodities, but from speculators seeking to take advantage of these price changes. The CFTC defines a speculator as a person who “does not produce or use the commodity, but risks his or her own capital trading futures in that commodity in hopes of making a profit on price changes.”
The large purchases of crude oil futures contracts by speculators have, in effect, created an additional demand for oil, driving up the price of oil for future delivery in the same manner that additional demand for contracts for the delivery of a physical barrel today drives up the price for oil on the spot market. As far as the market is concerned, the demand for a barrel of oil that results from the purchase of a futures contract by a speculator is just as real as the demand for a barrel that results from the purchase of a futures contract by a refiner or other user of petroleum.
Perhaps 60% of oil prices today pure speculation
Goldman Sachs and Morgan Stanley today are the two leading energy trading firms in theUnited States
In June 2006, oil traded in futures markets at some $60 a barrel and the Senate investigation estimated that some $25 of that was due to pure financial speculation. One analyst estimated in August 2005 that US oil inventory levels suggested WTI crude prices should be around $25 a barrel, and not $60.
That would mean today that at least $50 to $60 or more of today’s $115 a barrel price is due to pure hedge fund and financial institution speculation. However, given the unchanged equilibrium in global oil supply and demand over recent months amid the explosive rise in oil futures prices traded on Nymex and ICE exchanges inNew York and London New York and London
By purchasing large numbers of futures contracts, and thereby pushing up futures prices to even higher levels than current prices, speculators have provided a financial incentive for oil companies to buy even more oil and place it in storage. A refiner will purchase extra oil today, even if it costs $135 per barrel, if the futures price is even higher.
As a result, over the past two years crude oil inventories have been steadily growing,
resulting in US crude oil inventories that are now higher than at any time in the previous eight years. The large influx of speculative investment into oil futures has led to a situation where we have both high supplies of crude oil and high crude oil prices.
Compelling evidence also suggests that the oft-cited geopolitical, economic, and natural factors do not explain the recent rise in energy prices can be seen in the actual data on crude oil supply and demand. Although demand has significantly increased over the past few years, so have supplies.
Goldman Sachs and Morgan Stanley today are the two leading energy trading firms in the
In June 2006, oil traded in futures markets at some $60 a barrel and the Senate investigation estimated that some $25 of that was due to pure financial speculation. One analyst estimated in August 2005 that US oil inventory levels suggested WTI crude prices should be around $25 a barrel, and not $60.
That would mean today that at least $50 to $60 or more of today’s $115 a barrel price is due to pure hedge fund and financial institution speculation. However, given the unchanged equilibrium in global oil supply and demand over recent months amid the explosive rise in oil futures prices traded on Nymex and ICE exchanges in
By purchasing large numbers of futures contracts, and thereby pushing up futures prices to even higher levels than current prices, speculators have provided a financial incentive for oil companies to buy even more oil and place it in storage. A refiner will purchase extra oil today, even if it costs $135 per barrel, if the futures price is even higher.
As a result, over the past two years crude oil inventories have been steadily growing,
resulting in US crude oil inventories that are now higher than at any time in the previous eight years. The large influx of speculative investment into oil futures has led to a situation where we have both high supplies of crude oil and high crude oil prices.
Compelling evidence also suggests that the oft-cited geopolitical, economic, and natural factors do not explain the recent rise in energy prices can be seen in the actual data on crude oil supply and demand. Although demand has significantly increased over the past few years, so have supplies.
Over the past couple of years global crude oil production has increased along with the increases in demand; in fact, during this period global supplies have exceeded demand, according to the US Department of Energy. The US Department of Energy’s Energy Information Administration (EIA) recently forecast that in the next few years global surplus production capacity will continue to grow to between 3 and 5 million barrels per day by 2010, thereby “substantially thickening the surplus capacity cushion.”
Compiled by: YJ Draiman
Rising Energy Costs - impact on economy
Rising Energy Costs - impact on economy
Energy is the backbone of our civilization and the clear enabler of globalization of business and our great agricultural and manufacturing productivity. Cheap energy has allowed us to be comfortable and prolific, increasing the world population rapidly during the past century, and making my enjoyment of the apple on my desk, which came from several thousand miles away, possible. This is just one of the myriad benefits of globalization that would never have occurred without cheap energy, and I admit to enjoying it. Unfortunately, the era of cheap energy must come to an end, but how might that come about?
Many indications of the future are visible and reported on today. While globalization has shifted huge numbers of jobs to “low cost countries” and enabled mass movement of products and raw materials over long distances, at costs low enough to make the moves profitable, fossil fuels will inevitably become increasingly scarce and prices will be driven higher, taking the profit back out of the global movements of goods. This will redistribute jobs to both new markets and the older and more developed areas where globalization previously took them away. Thus, the rust belt of the United States, for example, will likely see some (but not all) of its lost manufacturing jobs returning over time. Steel for sale in U.S. markets is reported to already have become more profitable to make in the U.S. than China).
Sustainability combined with increasing scarcity of fossil fuels will localize the products we use. Unfortunately, the steady (and sometimes rapid) run-up of energy prices will result in the eventual moth-balling of many ocean freighters, but their steel will help feed the once again less-centralized mills of the world, and the oil they consume will find ready customers. I expect before long I will no longer be eating New Zealand apples one week and South African oranges the next, but will instead be eating high quality U.S. fruit, and my local orchard may see a profitability it hasn’t known for decades.
The developed countries will be driven to serious efforts to develop alternative energy sources. As fossil fuels run out, the developed countries (including China and probably India) will marshal their resources to make a big push for fusion power, among other sources, and might actually achieve it within the next 20-50 years. This will maintain most of the economic differences between the developed and undeveloped countries, which will scramble for fossil fuel and less costly alternatives for decades more. Energy shortages will plague the developed countries in the interim, and cause significant economic fluctuations, but politicians will scramble to fund alternative energy research when it becomes especially evident that falling standards of living in North America will endanger their jobs, and that may accelerate the realization of alternative energy sources.
In the near term, globalization will slow and adjust downward, and the move towards a “level playing field”, economically speaking, will be slowed with it. In the long term, globalization will slow until much larger and sustainable alternative energy sources are in place, and may not return to its current level again for decades, and possibly more than a century.
ENERGY Escalating costs
It is an issue for citizens of the world. We are facing an energy crisis, which is being felt by every single business, household, school, church and organization in our society, because they all consume energy.
As well as that, we are in the grip of a credit crunch, so households are being hit in every direction. The cost of gas has risen by 35% and the average bill is now close to $1500, which means an extra $400 or $600 being squeezed out of people’s already tight budgets. The cost of electricity has risen by 24% and we are told that, before the winter, it will increase again by a further 20%. Diesel and petrol are at record high prices at the pumps, and the price of home heating oil is scary — it is now 75% to 90% more expensive than it was a year ago. On top of all that, people are facing a credit crisis, rising rate BILLS, and the potential for additional water charges.
It is against that backdrop that I warmly welcome the motion. The governments at all levels, businesses and citizens of the world must take every possible action to address the energy crisis, because all people are dealing with the same problems. I meet people in my business every day — in my office and on the streets — who can no longer afford to fill their oil tanks. Some people, particularly the elderly, are concerned, because usually they have a cushion — for example, a half a tank of oil left over — but that will not happen next year. Instead, many people let their tanks go empty in May and will try to leave them empty for as long as possible so that they do not have to fork out $1500 or $2000 to fill them. If we have a bad winter, the consequences will be horrific: people will die because they will not be able to afford to heat their homes. Fuel poverty, which is a nice cliché, will rise, and we will be faced with misery on all fronts.
Although the current problems are happening when oil is $140 and $150 a barrel, we must be prepared for the price of oil to hit $250 a barrel. It is unacceptable that major oil companies are making massive profits at a time when people are being forced into misery and have to make a choice between buying food and heating their homes. The oil market must be regulated.
Energy is the backbone of our civilization and the clear enabler of globalization of business and our great agricultural and manufacturing productivity. Cheap energy has allowed us to be comfortable and prolific, increasing the world population rapidly during the past century, and making my enjoyment of the apple on my desk, which came from several thousand miles away, possible. This is just one of the myriad benefits of globalization that would never have occurred without cheap energy, and I admit to enjoying it. Unfortunately, the era of cheap energy must come to an end, but how might that come about?
Many indications of the future are visible and reported on today. While globalization has shifted huge numbers of jobs to “low cost countries” and enabled mass movement of products and raw materials over long distances, at costs low enough to make the moves profitable, fossil fuels will inevitably become increasingly scarce and prices will be driven higher, taking the profit back out of the global movements of goods. This will redistribute jobs to both new markets and the older and more developed areas where globalization previously took them away. Thus, the rust belt of the United States, for example, will likely see some (but not all) of its lost manufacturing jobs returning over time. Steel for sale in U.S. markets is reported to already have become more profitable to make in the U.S. than China).
Sustainability combined with increasing scarcity of fossil fuels will localize the products we use. Unfortunately, the steady (and sometimes rapid) run-up of energy prices will result in the eventual moth-balling of many ocean freighters, but their steel will help feed the once again less-centralized mills of the world, and the oil they consume will find ready customers. I expect before long I will no longer be eating New Zealand apples one week and South African oranges the next, but will instead be eating high quality U.S. fruit, and my local orchard may see a profitability it hasn’t known for decades.
The developed countries will be driven to serious efforts to develop alternative energy sources. As fossil fuels run out, the developed countries (including China and probably India) will marshal their resources to make a big push for fusion power, among other sources, and might actually achieve it within the next 20-50 years. This will maintain most of the economic differences between the developed and undeveloped countries, which will scramble for fossil fuel and less costly alternatives for decades more. Energy shortages will plague the developed countries in the interim, and cause significant economic fluctuations, but politicians will scramble to fund alternative energy research when it becomes especially evident that falling standards of living in North America will endanger their jobs, and that may accelerate the realization of alternative energy sources.
In the near term, globalization will slow and adjust downward, and the move towards a “level playing field”, economically speaking, will be slowed with it. In the long term, globalization will slow until much larger and sustainable alternative energy sources are in place, and may not return to its current level again for decades, and possibly more than a century.
ENERGY Escalating costs
It is an issue for citizens of the world. We are facing an energy crisis, which is being felt by every single business, household, school, church and organization in our society, because they all consume energy.
As well as that, we are in the grip of a credit crunch, so households are being hit in every direction. The cost of gas has risen by 35% and the average bill is now close to $1500, which means an extra $400 or $600 being squeezed out of people’s already tight budgets. The cost of electricity has risen by 24% and we are told that, before the winter, it will increase again by a further 20%. Diesel and petrol are at record high prices at the pumps, and the price of home heating oil is scary — it is now 75% to 90% more expensive than it was a year ago. On top of all that, people are facing a credit crisis, rising rate BILLS, and the potential for additional water charges.
It is against that backdrop that I warmly welcome the motion. The governments at all levels, businesses and citizens of the world must take every possible action to address the energy crisis, because all people are dealing with the same problems. I meet people in my business every day — in my office and on the streets — who can no longer afford to fill their oil tanks. Some people, particularly the elderly, are concerned, because usually they have a cushion — for example, a half a tank of oil left over — but that will not happen next year. Instead, many people let their tanks go empty in May and will try to leave them empty for as long as possible so that they do not have to fork out $1500 or $2000 to fill them. If we have a bad winter, the consequences will be horrific: people will die because they will not be able to afford to heat their homes. Fuel poverty, which is a nice cliché, will rise, and we will be faced with misery on all fronts.
Although the current problems are happening when oil is $140 and $150 a barrel, we must be prepared for the price of oil to hit $250 a barrel. It is unacceptable that major oil companies are making massive profits at a time when people are being forced into misery and have to make a choice between buying food and heating their homes. The oil market must be regulated.
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