Billionaire investor T. Boone Pickens made a self interested statement today commenting that oil is not being driven by speculators to over extended highs but rather it's following fundamentals. This comment made in the same interview where Pickens announces buying a 640 acre wind farm. Wind energy is the highest subsidized energy industry in the United States. The result of his comment was an immediate rally of crude through previous all time highs helping to ensure the need and fanaticism for alternative energy. If oil were to come down; the government would be hard pressed to subsidize the green industries as they have recently during the speculative rally in oil. Ethanol garners nearly 50 cents per gallon in subsidies. What does that mean to you? Rather than taxing E85 51 cents at the pump like the government does with gas and diesel the government is forced to subsidize the struggling industry with an added 43 cents to keep it competitive with fossil based products. Thus E85 should be about $1 more expensive than regular 87 octane gas if it were not subsidized out of your tax dollars.
Green energy is a great idea but the technology is not quite here. Let’s wait until the Google Venture Capitalized company ESolar releases their solar cells that will be embedded in roofing shingles and powerful enough to power a home 100% and pump energy back into the grid among other applications. We only have a year or two to wait for them. The wind energy is taking massive amounts of tax dollars to keep going and cost competitive with other energy sources.
A better alternative for the year 2008 would be to open refuges in coastal states to drill for crude. In my opinion it’s too late to start construction of nuclear power plants unless we expect to live without a Sun.
If it’s not too much to ask on this blog please write Mr. Pickens a letter thanking him for higher fuel prices whether you use natural gas or gasoline or diesel fuel he just made your day more expensive.
Read about T. Boone Pickens here:
http://www.bloomberg.com/apps/news?pid=20601087&sid=avA.9BkHdHb8&refer=home
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