Global Warming Examiner

Three Ways to Profit From Oil's Record Highs

Bush has just indicated that he now favors a global warming policy that will cap Green House Gas (GHG) emissions by 2025. Why now? Has he found environmental religion?

No, he needs a policy to exploit the resources like Oil Shale. Right now you can't even build a coal plant in this country because the specter of future restrictions on GHG emissions raise the risk too high for making very large, long term capital investments. The financial market is restricting investment and Bush needs to do something about this. Setting a 2025 date tells me he is more interested in increasing development than protecting the environment.

I believe that the policy that eventually evolves will be one that favors energy sources with lower GHG emissions. It will be interesting to watch the fireworks over the N word (nuclear). Fossil fuels will still be needed, but the emphasis will be on fossil fuels with the lowest GHG emissions. My betting is on natural gas as it contains the least amount of carbon, especially compared to coal. It generally can be substituted for coal to produce electricity. It also presents the fewest development problems. I would expect additional areas of the country to be opened for development and we have large reserves of gas compared to oil.

This should be quite a debate when it gets going.

Good article and comments.