Recently, Congress drilled Big Oil execs, looking for explanations as to why, with huge industry profits, they're not investing more to develop renewable energy sources.

I'll give you two reasons:

1.) Because they choose not to.

2.) Because the very lot that's questioning these guys is the same lot that's been taking kickbacks to enable Big Oil's free ride for so many years.

You know, I find it rather interesting and, really, altogether offensive that the government feels it has a right to question the oil companies about why they haven't invested more to develop renewable energy.

If they don't want to, they don't have to.

Who's questioning these guys, the U.S. Congress or the Politburo?

Listen, if the bureaucrats in Washington wanted to see more investment in renewable energy, they could just rescind the $18 million worth of Big Oil tax breaks already, and allow the oil companies to fund their own exploration without the help of John Q. Taxpayer.

But they can't do that, because half of them are on the take from the very people they're lecturing now.

It's a façade! This whole dog and pony show is nothing more than a PR stunt that those on the Hill are hoping will sedate a growing population of angry voters.

Hush Money and Lies

Of course, some oil companies certainly aren't innocent bystanders in all this either.

It's one thing to decide against investing in renewable energy. That is a decision for the shareholders, not the government. However, it's another to aggressively disseminate misinformation in an attempt to confuse the public. Something many of these guys are experts at.

Take Exxon Mobil, for instance.

When Exxon Mobil Senior VP, J.S. Simon was asked why his company was resisting the renewable revolution, he quickly noted that they had provided $100 million on research into climate change at Stanford University.

What he failed to mention is that many Stanford alumni and students have vigorously opposed Exxon's support for its Global Climate and Energy Project (which Exxon Mobil has thrown $100 million behind), because the company is really doing nothing more than exploiting the Stanford name and reputation to help block shareholder proposals asking Exxon Mobil to reduce greenhouse gas emissions.

It's basically hush money so they can operate business as usual.

Simon also said that current alternative energy technologies just don't have an appreciable impact in the challenge we're trying to meet.

Well, if the "challenge" is keeping the public in the dark about peak oil and the realities of global energy supply constraints and climate change, then yes, alternative energy technologies fall into the category of things they probably want to avoid.

Of course, we know the truth.

We know that...

· The U.S. Department of Energy has stated that wind could provide 5,800 quads of energy each year. That's about 15 times the current global energy demand.

· Researchers at M.I.T. have stated that there are over 100 million quads of accessible geothermal energy worldwide. The world consumes only 400 quads.

· The Electric Power Research Institute has estimated wave energy along the U.S. coastline at 2,100 TWh per year. That's half the total U.S. consumption of electricity.

· According to the Department of Energy's office of Energy Efficiency and Renewable Energy, enough electric power for the entire U.S. could be generated by covering about 9 percent of Nevada with solar parabolic trough systems—a plot of land about 100 miles on a side.

· The Department of Energy's Pacific Northwest National Laboratory released a report in 2006 which stated that "off-peak" electricity production and transmission capacity could fuel 84 percent of the country's 220 million vehicles if they were Plug-In Hybrid Electric Vehicles.

Instead of making excuses, it would be refreshing if Exxon Mobil reps would just tell the truth. They have no interest in pursuing renewable energy investments. That's not a crime! Economically and socially irresponsible, perhaps. But illegal—no.

Though I guess that's asking too much.

Instead, Simon told Congress that imposing punitive taxes (a.k.a.-rescinding unnecessary tax breaks), will discourage the sustained investment needed to continue safeguarding U.S. energy security.

Call me crazy, but wouldn't we be a lot more secure if we didn't have to depend on imported oil from countries that hate us?

Of course, this isn't about logic or what's right and wrong. It's about getting rich at the expense of the taxpayer. And as long as Congress stays on Big Oil's payroll, and Bush and company continue to veto any legislation that offers a real solution to our real energy crisis, then the status quo will be maintained.

Fortunately, the market isn't dictated by the buffoonery in Washington. And that's why we continue to clean up in renewable energy.

In fact, our most recent wind play has delivered gains in excess of 53% in the past 25 trading days. Which means we have about 129% more to look forward to before we sell it for a fat profit.

For instant access to this recommendation, click here and become a member now.

To a new way of life, my friends...and a new generation of wealth,

Jeff

Editor's Note:  On the subject of white-hot energy plays, we've been covering an unconventional domestic oil play for the last two years. Oil and gas companies are already drilling there, reporting one successful oil drilling result after another.  And many Energy & Capital readers have already made their first round of profits off the massive Bakken formation in North Dakota-Montana-Saskatchewan. The best part, however, is that its not too late to get a piece of the action. If you're interested, check it out for yourself at the $20 Trillion Report. 

 

 

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What exactly does big oil have to do with the current energy crisis in North America? The Largest production of electricity is from the Hydro, Nuclear, and Coal fired power plants...
Delving into an issue such as the complete disregard for social ethics by the big oil companies is one thing. However as mentioned this has no link to North Americas electrical issue.

Oil is now a self renewable commodity. Oil is not just fossil fuels.There are plenty of opportunities for oil and gas in North America.
Clean energy is just the right thing to do, not because of imports or shortages.

An extremely poor commentary. Unfounded allegations. Exaggerating oil profits (look at the return as a percent of sales compared to Microsoft, Oracle, Clorox, Yahoo and Qualcomm.

Inflaming rhetoric. A very amateurish attempt. Your youthful enthusiasm has jumped far beyond your command of the facts.

Keep on reporting this crap. I could not believe what I just read, but keep reporting it. Someone will finally get it, that all these bozo's should be removed from office for not following their oath of office. Let's bring real servants of the people to the fore...
TH

Do you think we have the time to survive this climate crisis while still making a profit? While still playing this dumb-assed game of war and wealth? The super-rich know it’s crunch time. Unfortunately for everyone, they’ve pinned their (and, by extension, our) survival hopes on holding all the marbles, rather than the cooperative power of billions (of healthy, educated, able and organised people). Perhaps survival of civilization would be best insured by a re-evaluation of that approach. (There are so very few of them and so very many of us—but how can we get their attention??…hmmm…)
As much as we like to think otherwise, Nature rules.
Apparently, none of the human cultures (the remnants of which we are, and have been actively destroying) that survived the previous temperature/CO2 spike reversal (110kya) were very big into profit or psychopathic corporatism. Maybe we should learn what they can teach us before we kill them off for the resources they happen to be living in/over.
Words from Long ago:
Those who would take over the earth
And shape it to their will
Never, I notice, succeed.
The earth is like a vessel so sacred
That at the mere approach of the profane
It is marred
And when they reach out their fingers it is gone.
For a time in the world some force themselves ahead
And some are left behind,
For a time in the world some make a great noise
And some are held silent,
For a time in the world some are puffed fat
And some are kept hungry,
For a time in the world some push aboard
And some are tipped out:
At no time in the world will a man who is sane
Over-reach himself,
Over-spend himself,
Over-rate himself.
—LaoTzu 600BC+/-

Cheers and happy investing.

Are you nuts/or just prejudiced?.........the best way to get more of anything is "tax credits". Conversely, the best way to get less of anything(especially a natural resource) is to make it less "rich", i.e. take away tax breaks. You need to read more (especially history)!

You have made strong accusations without backup.
If you have proof of people on the
take, please name them.
If not I'll look for your apology.

Jeff,

You’ve got it half right and half wrong. Some points to consider:
CONCEPT: Oil companies are supposed to know how to find new and develop existing oil reserves. Conventional oil economics dictates that when cash flow is positive, some money is set aside for the next down turn and a big chunk goes into exploration for new reserves to replace those which are being depleted to generate the cash.
REALITY: Big oil companies are buying back their stock with money that they should be either exploring, developing, or returning to the shareholders as dividends. Does this mean that there is no more oil to be found, or just that Big Oil has neither the corporate knowledge nor the guts to accelerate exploration?
CONCEPT: Oil companies invest in the future by training and retaining the highest skilled geo-scientists and engineers. Thus, they can come out of the gate running at the beginning of any uptick in the price or demand for hydrocarbons.
REALITY: During the mid 80’s to mid 90’s, big oil dumped tens of thousands of skilled professionals in order to cut costs in response to the disastrously low prices that prevailed.
CONCEPT: Big Oil uses the latest technology to find hard to detect oil reserves in mature basins (missed oil) as well as new reserves in frontier regions such as deep offshore subsalt trends, etc.
REALITY: With regard to mature basins, Big Oil can’t find hydrocarbons in a refinery. As to offshore, the features that they are looking for are huge, and therefore not all that hard to identify if sufficient technology is utilized. The main obstacles are difficult and expensive drilling problems and profoundly expensive facilities costs. All of this takes a lot of capital.
MORE REALITY: The independent oil companies (Little Oil) have provided jobs for the skilled professionals dumped in the 80’s and 90’s. They (we) are smart, resourceful, but capital restrained. We spend huge sums leasing, drilling, and developing new reserves from small hard to find pools that are still to be found in mature onshore oil provinces. We face mind boggling environmental regulations. New pipelines to connect up newly found reserves are often delayed by years of permitting and right of way problems. In spite of the obstacles, Little Oil is finding a lot of new reserves. This reduces the amount of oil that is imported. In contrast, much of the oil now produced by Big Oil is found and consumed in foreign countries. This has no impact on US imports.
CONCEPT: Congress is looking out for the welfare of the average citizen by “Drilling Big Oil”. The implied solution is to take away tax breaks and force Big Oil to direct its abundant cash toward renewable energy.
REALITY: Whatever punitive action Congress decides upon, Big Oil will survive, because Big Oil is really BIG. However, the same punishment will be meted out to Little Oil and we will be, once again, face down in the dirt. This will not help the American consumer and in the long run, will simply increase imports.
MORE REALITY: Big Oil is in the oil (and gas) business, not in the energy business. Renewable energy is not their forte. Congressional pressure to direct Big Oil toward renewable energy is like trying to teach a rock to sing.
ANALOGY: When western civilization transitioned from horse and buggy technology to the motorcar, the same congressional panel would have forced the buggy whip manufacturers to go into the carburetor business. After all, buggy whips and carburetors make the respective vehicles go.
COMMON SENSE: Big Oil looks for big oil reserves wherever they can be found. They should be treated in the same manner as any other big industry with international activities. Big Oil should not be forced, encouraged, or cajoled into pursuits for which it is not suited. Little Oil finds reserves in the US and is, even at these prices, severely capital constrained. Capital retention for the purpose of drilling as opposed to capital confiscation in the form of taxation is a decision that Congress will soon make. Undoubtedly, they will beat Little Oil with the same stick that they are currently waving at Big Oil.
MORE COMMON SENSE: Give tax incentives to new enterprises that have the knowledge and courage to pursue renewable energy. Leave Little Oil alone; we don’t need help and more taxes will severely curtail our spending on new reserves. Push Big Oil to use its excess capital to develop more domestic reserves or give the money to the shareholders, not play patty cake with the Big Funds (another rant for another time).

W. R. Berry

garbadge black helicopter nonsense,
blame big oil, rather this guy should blame big education for his lemming like beliefs.
where is the argument when oil was at $15 bbl. and oil industry people are losing there jobs, and further more big government was trying to stop exploration in and around our waters., big oil has little to gain from a so called government partnership. thank you

Why oil companies are not involved in alternative energy?--they are in the business of "OIL".
Why are their profits so large?-the
world market sets the price and they are necessarily making more profit.

I have purchased stock in the BIG OIL companies and their growth and dividends readily pay for my increase in energy costs.

Strange that congress never complains or holds hearing for their misuse of our tax money.

What has Bush vetoed? Fill me in.

Exactly what unnecessary tax breaks are you referring to? The usual write-offs of all capital investments that all companies get? I don't think you have a clue.