Oil Independence

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: nsitions Haug, former Director at the International Energy Agency (IEA), 11 Marianne Haug, former Director at the International Energy Agency (IEA), 11, [“Clean energy and international oil,” Oxford Review of Economic Policy, Volume 27, Number 1, 2011, pp. 92–116, oxrep.oxfordjournals.org/content/27/1/92.abstract] E. Liu First, oil substitution will only happen when technologies —whether alternative fuels or associated end-use products— are ready to be commercialized and scaled up. – Second, low oil prices matter. Substitution of oil, when easily available , cheap, and clearly the lowest cost option, may well not happen. If support for alternatives to petroleum products becomes too expensive, governments tend to abandon such policies. 75 Last printed 9/4/2009 7:00:00 PM Oil DDW 2012 1 Low oil prices bankrupt alternative energy startups Meyer, St. Andrews University - School of Management, 10 Kevin Meyer, St. Andrews University - School of Management, 12-4-10, [“Alternative Investments: Alternative Energy and Oil: Literature review,” http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1588160&http://www.google.com/url? sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CIsEEBYwAA&url=http%3A%2F%2Fpapers.ssrn.com %2Fsol3%2FDelivery.cfm%3Fabstractid %3D1588160&ei=RarwT4_XHa250QHn6NH7Ag&usg=AFQjCNFZXdzQRqJPmiJ9tASLrOuDjQijhw] E. Liu In his TED conference of September 2007, Juan Enriquez (Chairman and CEO of Biotechonomy LLC, founding director of the Life Sciences Project at Harvard Business School) also comments that the vo latility of the prices of oil have an impact on the long term development of alternative energy. For example, the research that could lead to a $35 barrel is interesting when oil prices exceed $35, but not when the prices go lower. Hence, the volatility of oil price can be considered as a major factor in bankruptcies of the numerous startup companies. His solution would be to set a fixed bottom price that will allow private companies to work on long run projects that would create solution competitive with the fixed price. 76 Oil DDW 2012 1 Stability Key to Alternative Energies 77 Last printed 9/4/2009 7:00:00 PM Oil DDW 2012 1 Stable oil prices are key to planning certainty that facilitate transitions to alternative energies Goldthau, head of the department of public policy and associate professor at Central European University and White 11 Andreas Goldthau, head of the department of public policy and associate professor at Central European University and Jan Martin White, 9-7-11, [“Assessing OPEC’s Performance in Global Energy,” Global Policy Special Issue: Global Energy Governance Volume 2, Issue Supplement s1, pages 31–39, September 2011 http://onlinelibrary.wiley.com/doi/10.1111/j.1758-5899.2011.00122.x/full] E. Liu A key concern uniting both oil producers and consumers is price volatility. In many ways, oil price volatility is a bigger problem than high prices as such. In fact, as some would argue, it is primarily excessive price fluctuation – caused by recurring boom-and-bust periods in oil sector investments...
View Full Document

This note was uploaded on 01/30/2013 for the course ECON 101 taught by Professor Burke during the Spring '13 term at Southern Arkansas University.

Ask a homework question - tutors are online