$100 per Barrel Oil Presents New Opportunities

EIN News says, "Rising Oil Prices Pose the Latest Threat To U.S. Economy Energy prices have surged in recent days, as a result of the political violence in Libya that has disrupted oil production there. Prices are also climbing because of fears the unrest may continue to spread to other oil-producing countries. If the recent rise in oil prices sticks, it will most likely slow a growth rate that is already too sluggish to produce many jobs in this country. Some economists are predicting that oil prices, just above $97 a barrel on Thursday, could be sustained well above $100 a barrel, a benchmark. (nytimes.com)".

This situation should be regarded as a positive development.

I have been saying for the last couple of years that the Obama administration's policy of promoting alternate energy sources of solar and wind is for the birds. I have repeatedly said, "Drill, Drill, Drill". I also occasionally repeated the suggestion that we should have Secretary Chu's resignation. Apparently my suggestions were not timely enough, but with oil now at $100 a barrel, the public is hurting more at the gasoline pump and may create enough furor for Obama and his cronies to give up their stupid energy program.

For every withholding of a drilling permit by the Department of Interior, let's see how the public reacts. If we continue to advertise the energy fallacies of the Obama administration, perhaps we can alter the next election, in spite of the large number of voters who will continue to vote for him and his public handouts.

President Obama Likely Ecstatic with Higher Oil Prices

EIN News says, "Oil Price Surge Risking Global Recovery, Says IEA Chief The surge in oil prices caused by the turmoil in Libya could derail the global economic recovery, the International Energy Agency's chief economist warned. (guardian.co.uk)".

The surge in oil prices should make President Obama and Secretary Salazar ecstatic with joy. They have been pushing for higher gasoline prices at the pump in order to foster implementation of solar and wind energy. Of course, this is disadvantageous to the American public, but it is one of their ideologies and they will pursue it to the end.

The speculation that the higher oil prices might also risk global economic recovery should also make President Obama happy. One of his other ideologies is to redistribute world wealth. Of course, this again would be to the disadvantage of the American public, but it is another of his ideologies, which he may pursue to the end. The only possibility of a change in that ideology is his desire to be elected for a second term in office.

More Investments in Oil and Gas Versus Solar and Wind

EIN News says, "BP Signs Up to $20 Billion Oil and Gas Deal in India The British oil group is taking a 30% stake in 23 oil and gas production sharing contracts operated by Reliance, India's biggest listed company and forming a joint venture to develop the infrastructure to extend the country's gas network. BP is paying $7.2 billion for its production sharing interests and up to $1.8 billion in performance payments based on future commercial discoveries. (telegraph.co.uk)".

The translation is that BP is putting up $7.2 billion for sharing future oil and gas production in India, which BP hopes to discover.

Note that BP is not investing $7.2 billion in wind and solar energy. They apparently have much more confidence in oil and gas, which has not even been discovered yet, as opposed to solar and wind, which is supposedly there for the taking.

Shell, BP, Chevron and other oil and gas producers are putting their money on oil and gas. This is diametrically opposed to the US government's program to de-accent oil and gas and concentrate on renewable energy, including solar and wind. Who Would you like to bet on as being probably correct in their financial analysis?

Chevron Prefers Gas Investment over Solar and Wind

EIN News says, "Chevron Completes $4.3 Billion Purchase of Atlas Energy Chevron Corp. said it has completed the $4.3 billion acquisition of Atlas Energy following the approval by Atlas stockholders earlier this week. (cnbc.com)".

Atlas Energy explores for and produces natural gas. Natural gas is a fossil fuel.

Notice that Chevron is making of a significant investment in fossil fuels, not solar or wind energy.

Chevron apparently has a belief that business prospects are better in fossil fuels than in alternative energy forms, even though solar and wind continue to be touted by the federal government.

Arab Preference for Oil Refinery Investments

EIN News says, "Abu Dhabi to Buy Rest of Cepsa for $5.4 Billion Abu Dhabi's state-owned petroleum holding company agreed to buy Total SA's stake in oil refiner Cia. Espanola de Petroleos SA as part of a 3.97 billion-euro ($5.37 billion) offer for the shares in the Spanish company it doesn't already own. (sfgate.com)".

Notice that the sheik of Abu Dhabi and his advisers have decided to invest in a petroleum refiner. Apparently they have less confidence in wind energy, since they are not investing in wind turbi

Competition between Ecuador and the US for Chevron Drilling Activity

EIA News says, "Ecuadorian Court Rules Chevron Must Pay $9 Billion for Oil Pollution A judge in a small jungle town in Ecuador ordered Chevron to pay more than $9 billion in damages, finding the energy giant responsible for the oil pollution that has fouled a stretch of land along Ecuador's northern border. (washingtonpost.com)".

The returns are not yet in. The opinion of a judge in a small town may not be indicative of the attitude of the Ecuadorian federal government. We must wait until this develops.

It could be good or bad news for the US. If the Ecuadorian federal government supports the small-town judge, Chevron will likely reduce any drilling activity in Ecuador. Chevron will then be available for jousting with President Obama and Energy Secretary Chu for drilling permits in the US.

Conversely, if the Ecuadorian federal government extends a welcoming hand to Chevron, Chevron will then not be available for US drilling.

Is General Electric Contradicting Itself?

EIN News says, "GE to Buy John Wood Unit for $2.8 Billion General Electric Co.'s oil and gas business has reached a deal to buy the well support division of John Wood Group PLC for around $2.8 billion, GE said in a statement. The deal, which must be approved by Wood Group's shareholders, is expected to close later in the year. It's another in a string of acquisitions for the oil and gas unit as it moves to expand in a growing market for drilling and transporting equipment. (msnbc.msn.com)".

President Obama and Ken Salazar of the Department of Interior want to change the face of American transportation. They want to dump millions of gasoline powered vehicles and replace them with electric vehicles. This will also require production of considerable electricity to power the new vehicles. However, President Obama and Ken Salazar are opposed to electricity production from coal-fired power plants. They have been promoting wind and solar energy sources.

General Electric presently manufactures various parts of wind turbines, which are used in developing this new energy source. Perhaps as an indication of their cooperation, General Electric last November announced that it would purchase 25,000 electric vehicles mostly from General Motors by 2015.

With the above announcement of General Electric's $2.8 billion purchase of an oil and gas unit, we start to wonder how serious General Electric is in believing that the country will actually go to electric vehicles. Perhaps their common sense has allowed them to reconsider their position since last November and recognize that going to electric powered vehicles is unnecessary pie-in-the-sky, especially since new drilling technology has predicted a considerable increase in US produced oil. The only thing that can stop the anticipated flow of US oil is the Department of Interior's withholding of drilling permits, which they have been strongly prone to do in order to force production of wind energy.