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Why We Have To Kiss Off Big Carbon Now
mdsolar writes When the fossil-fuel divestment movement first stirred on college campuses three years ago, you could almost hear Big Oil and Wall Street laughing. Crude prices were flirting with $100 a barrel, and domestic oil production, from Texas to North Dakota, was in the midst of a historic boom. But the quixotic campus campaign suddenly has the smell of smart money.
One of the biggest names in the history of Big Oil – the Rockefellers – announced last September that they would be purging the portfolio of the Rockefeller Brothers Fund of 'risky' oil investments. And that risk has been underscored by the sudden collapse of the oil market. After cresting at more than $107 in mid-June, the price of a barrel of West Texas Intermediate dipped below $50 a barrel in early January. The crash carries big costs: Goldman Sachs warned that nearly $1 trillion in planned oil-field investments would be unprofitable – even if oil were to stabilize at $70 per barrel.
One of the biggest names in the history of Big Oil – the Rockefellers – announced last September that they would be purging the portfolio of the Rockefeller Brothers Fund of 'risky' oil investments. And that risk has been underscored by the sudden collapse of the oil market. After cresting at more than $107 in mid-June, the price of a barrel of West Texas Intermediate dipped below $50 a barrel in early January. The crash carries big costs: Goldman Sachs warned that nearly $1 trillion in planned oil-field investments would be unprofitable – even if oil were to stabilize at $70 per barrel.
And here's the problem with free market capitalism. Now we have abandoned wellsites that nobody wants to cleanup, unemployed oil workers & related fields, and bankrupt communities that were struggling to build infrastructure during the boom now have empty roads & schools. Give it 10-15 years and we'll start the cycle all over again. This carries across to other markets, we've seen it before with the steel belt turning into the rust belt.
Yes, the free market fixes it, but not until the damage is done. You end up with an economic system where capital is rushing from one end to other at the expense of labor. It's like some new era of hunter/gathering nomads; you have people following the buffalo around.
Greed breeds myopia. Always has. Did people investing heavily in oil really think it would either keep going up, or sustain at the price peaks it was at for years? At those prices, it's all but strangling the economy. It started to actually effect just how much people drove!
And there's the problem. Oil is still king of the economy. From home energy, to the dinner table. Oil is still king. I think a good many investors forgot who just has the real power in the world. Guess the Saudis thought they should remind them.
The frustrating thing with this though, is that we still won't see the prices drop at the grocery or market, even though it's cheaper to ship goods and produce. Why pass savings onto the consumer, when you can pad the profit margin for the quarter, and stock-holders. I think a lot of people forget that, milk, bread, fruit, etc... should all be a little cheaper at the moment. It won't be.
Grow up, and learn how the world really works.
Nobody is going to come back with a half way narrative, a compromised view of global warming for you to sign up to. Nobody is going to say: "Oh I see you won't agree that 5 degrees of warming is too much - let's say 7.5 degrees is the acceptable limit, deal?" Neither is the issue just going to quietly go away if you ignore it for long enough. It's a simple, brutal fact - the warming just keeps getting more and more obvious.
Grow up, get over it, and get on with it.
Otherwise, you can wait for us to get angry enough to sue you for the damage you've caused, take your stuff, and use the funds to make the necessary changes.
How bout them apples?
CO2 increases do raise temps. Methane increases do the same. Perhaps not buy a huge amount but at least you agree they do have effect. Water vapor is largely driven by temperature. So the small increase of CO2/methane causes increase in water vapor concentrations....Which causes a large increase as you so deftly note. Now that increase causes more increase. It's called a feedback loop for a reason.
People in cars cause accidents....accidents in cars cause people
Who has more money. Al Gore or the Koch Brothers? And yet the Koch Brothers can't seem to buy even 4% of scientists? If you're claiming scientists are 'bought', then why exactly aren't they singing the tune of the highest bidders?
People in cars cause accidents....accidents in cars cause people
This is why I've been pushing to argue in favor of reducing fossil fuel use not from an environmental point of view, but from an economic one. People can bury their heads in the sand when it comes to science, but people always listen when money is involved.
Even though the US imports about a third of our petroleum, that's still equivalent to hundreds of billions of dollars per year leaving our economy. If we transition to renewable energies, that money stays around a bit longer.
Renewable energies might have a larger up-front capital cost (but not by much, and it's getting better every day), but the long term costs are overwhelmingly favorable.
With the current crash in oil prices it should be clear that our economy is in the hands of foreign interests. We are hostages to international petroleum markets. Let's develop domestic sources to free ourselves from foreign influence. Remember: There's no reason why oil couldn't have been this cheap all along, and the price only went down right when we were posed to start reducing imports in favor of domestic natural gas production. We're being played!
(Oh, and if we happen to mitigate the environmental damage we're doing in the process and avoid global catastrophe, I guess that'll be a bonus...)
=Smidge=