Cornell University Questions the Economic Benefits of the Keystone XL Pipeline

Claims about the economic benefits of the Keystone XL pipeline have been contradicted by an economic analysis from economists at Cornell University’s Global Labor Institute. The new Cornell fact sheet analyzing the latest economic data about Keystone XL, concludes that the project is far too risky to undertake in a fragile economic climate.

Oil Spills Add to Concerns about the Keystone XL Pipeline

In addition to its massive footprint, resistance to the Keystone XL pipeline is due to concerns about the environmental destruction that would result from a spill. TreeHugger has called Canadian Tar Sands oil exploitation one of the most destructive projects on earth. If fully developed, the Alberta tar sands would be the second largest source of global warming gases in the world.

Another Offshore Oil Leak this Time from Shell

There has been another offshore oil spill, this time it is in the Gannet field of the North Sea. The Gannet field is co-owned with Exxon and operated by Shell. A leak in the platform flow line operated by a British subsidiary of Royal Dutch Shell has already dumped 110 tons of oil into the water, and there is an oil slick about 20 miles long and 2.5 miles wide. So far there is no indication that the leak has been fully stopped.

Obama's Call for an End to Oil Subsidies and Big Oil's Suggestion

To make cuts in American government spending the President has once again proposed ending oil subsidies. On Wednesday June 29, President Barack Obama, indicated that it reasonable to expect oil and gas companies that “have done so well” in the current economy to give up some breaks to help close federal deficits. “I don’t think that’s real radical,” he said.

In response to calls to end oil subsidies, Jack Gerard, president of the American Petroleum Institute, told Washington Wire, rather than cutting subsidies or raising taxes on the oil and gas industry, America should increase their exploitation of domestic petroleum resources.

The industry has been pushing for more production in places such as the Gulf of Mexico and Alaska. Big Oil is seemingly oblivious to the environmental costs. These risks are particularly great as they apply to offshore oil.

Last summer we witnessed a massive oil spill in the Gulf of Mexico and Alaska has seen its share of devastating oil spills. The 1989, Exxon Valdez spill in Alaska impacted over 1100 miles of non-continuous coastline in Alaska. Despite miles of booms, scores of skimming ships and armies of beach washers, only 14 percent of the oil was ever cleaned up.

In the 2010 Gulf of Mexico spill, more than 700 million liters of crude oil leaked into the water. Some have suggested that efforts to address the spill have exacerbated the problem. Dispersants used to reduce the size of the oil slick also impacting upon marine ecosystems. A break in a BP-owned pipeline on the North Coast of Alaska spewed 200,000 gallons of oil in March 2006.

The fact that fossil fuels are the leading cause of climate change make taking advice from Big Oil sort of like asking a thief about security. Its would be a great idea if they did not want to steal from you.

© 2011, Richard Matthews. All rights reserved.

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High Oil Prices Stimulate Renewable Energy

Higher oil prices stimulate renewable energy. Renewable energy enables the world economies to grow sustainably, where our current reliance on fossil fuels is entirely unsustainable.

To stimulate renewable energy we must see what is known as supply shock. A supply shock is an event that suddenly changes the price of a commodity or service. In the case of oil this will be caused by a sudden decrease in the supply relative to demand. This sudden change affects the equilibrium price.

When oil approaches $200 per barrel we should get the shock and a stimulus effect on renewable energy. This will occur when the oil supply out paces demand by something like 10 percent.

Instability in the Middle East may very well be the catalyst that causes oil prices to go sharply higher, which in turn will create the shock that will stimulate renewable energy.

There are a great many unknowns, but renewable energy will be driven by how market demand reacts to higher oil prices.

© 2011, Richard Matthews. All rights reserved.

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Businesses Will Lead the Transition from Oil to Renewable Energy

In this video, Jonathan Koomey discusses the important role that business will play transitioning away from oil to renewable energy sources. While he sees a role for governments, he sees business and civil society as being crucial to this transition. He discusses the options available and concudes that there is a lot we can do. There will have to be big investments in new energy and new technologies. He concludes by saying, "if we are going to make this happen the transition will have to be led by business."

Koomey is co-author of "Winning the Oil Endgame" and author of many energy efficiency related books and articles. He led a group at Lawrence Berkeley National Laboratory (LBNL) that developed energy efficiency recommendations for EPA & DOE.

His cutting-edge research for the International Project for Sustainable Energy Paths, Rocky Mountain Institute, and LBNL helped establish the feasibility and desirability of using renewable energy to reduce carbon emissions, decrease dependence on oil, and boost jobs in the US & Europe.

© 2011, Richard Matthews. All rights reserved.

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