The Momentum Builds

Remember back in 2003 when oil prices had settled back in at $25/barrel after a series of OPEC production cuts had briefly sent the price over $30? Then, well, many things happened (Iraq, Asian growth, etc.) and the price started to climb. We figured that once it hit $50/barrel, everyone would be forced to sit up and take notice of how unsustainable the use of oil was becoming thus providing the perfect opportunity for new thinking on everything from transportation to building efficiency to renewable energy. And it did, to an extent. Certainly there has been an environmental awakening in this country due to the grim prospects of climate change, the rising costs of fuel that tend to have a reverberating effect around the economy, and the zeitgeist of “green”. But it’s been a little slower in coming than we might have originally thought.

Recent History of Oil Futures Prices

First, the effects on the economy have been slower to emerge, even with oil approaching $100/barrel and the potential amplification brought on by the housing crunch that has hurt homeowners and financial institutions alike. There is even some disagreement on what is causing oil prices to spike, with some maintaining that rampant speculative trading is the cause, and others saying that it’s a matter of simple supply and demand. Either way, the cost of oil isn’t likely to go much below $75/barrel any time soon and the economic cracks are starting to appear now. With more bad news about global warming appearing almost daily, the appetite for all things green seems to be growing exponentially.

Second, with a vacuum created by a lack of significant government action it has been incumbent on individuals and business to take the lead. Given the strong self-interest generally ascribed to those groups, it is no surprise that the green movement has been a little slower than expected. That could all be changing, now, however. On Wednesday, the New York Times ran an entire special “Business of Green” section with interesting articles about the raging energy appetites of data centers, the rapid snapping up of U.S. wind companies by larger European conglomerates and the issue of nuclear waste disposal (no country has yet to come up with a “permanent” solution for what to do with their waste), plus a look at the potential for a cap-and-trade program coming out of Congress some time soon.

Right now, Congress is considering a few measures such as increasing fuel efficiency standards, creating a national renewable electricity standard and extending tax incentives for renewable energy generation. These are all positive steps but all suffer from a lack of serious ambition (only 35 mpg by 2020? That’s the best we can do?). We’re optimistic that we will see even more meaningful legislation in the near future and we were heartened by what we heard at last Saturday’s Step It Up! event in Washington Square Park. Listening to speakers such like Rep. Anthony Weiner and Lt. Governor David Paterson, we were heartened to know that there are legislators out there who are getting past the rhetoric and getting down to the business of finding solutions that will . Hillary Clinton even spent a good portion of a day in Iowa this week talking about her proposed energy policy, which goes to show that voters are paying attention. Even if we aren’t seeing everything that we would like to turn the U.S. in to a leader on this issue (ahem, No More Coal!), the gains are starting to pile up more rapidly and with the next big election day just a year away, it’s important to keep these issues at the forefront of every election and to get specific commitments from candidates. Business may be driving the green movement at the moment (in some cases based on their assessment of potential government action in the near future), but it will ultimately be governments that create the framework for the large-scale efforts that will be necessary to tackle a problem as large as the future of our planet.


Posted on Friday, November 9th, 2007 at 1:22 pm | Tagged in Energy, Global Warming, Legislation | posted by Jamie

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