Showing posts with label Oil. Show all posts
Showing posts with label Oil. Show all posts

Friday, July 6

Book Review: Private Empire – ExxonMobil and American Power by Steve Coll


If you were expecting Private Empire, the latest book by two-time Pulitzer Prize winning author Steve Coll, to serve as a hit piece on ExxonMobil (and 'Big Oil' in general) you’ll be somewhat disappointed.

For anyone unfamiliar with his previous work, Steve Coll’s earlier books include the highly recommended Ghost Wars, arguably the definitive geopolitical account of the activities of the CIA and other national intelligence agencies in Afghanistan and Pakistan from the time of the Soviet invasion up to the eve of the 9-11. Ghost Wars won the Pulitzer Prize in 2004 for general non-fiction and was one of the books a newly elected President Barrack Obama was reported to be reading upon entering office.

Steve Coll describes in an interview with Charlie Rose what lead him to want to write Private Empire and how his original idea for the book was to tell a broader story about the oil industry in the style of Daniel Yergin’s The Prize. He soon realized, however, that he needed a central character and Exxon was for him the only logical choice.

Coll’s portrait of Exxon begins in March 1989 with the Exxon Valdez oil spill in Prince William Sound, Alaska, an event which made the company the most reviled in the United Sates. The book’s timeline spans the subsequent transformation of the company, which was led by CEO Lee “Iron Ass” Raymond, up through its present day stewardship by current CEO Rex Tillerson. Along the way we learn a great deal about Exxon, including its somewhat peculiar cult-like corporate culture, its blockbuster merger with Mobil, its controversial stance and efforts on global warning, the access it enjoyed to political leaders such as Vice President Dick Cheney, its somewhat misleading approach to reporting oil reserves, and the company’s record setting financial success. The book in fact makes for a compelling business case study and students of business history, strategy and management will find much of interest.

The most interesting sections of the book are the ones detailing ExxonMobil’s operations in some of the world’s most politically unstable regions. ExxonMobil’s bread and butter business is to invest billions of dollars drilling holes in the ground in countries like Equatorial Guinea and Chad and then spend the next 30-40 years working to make sure that nothing interrupts the company's return on investment. Coll’s account of the 2004 attempted coup in Equatorial Guinea by a group of British and South African mercenaries, who were supported from some elements within the Spanish government, is one of the most fascinating stories in the book.

Continue reading the full review here.

Friday, October 28

Recommended links

1. Rogoff: 80% chance that Greece will leave the euro (Bloomberg)

2. More Greece love from Sarkozy: Greece should have been denied euro (BBC)

3. Nominal GDP targeting is unlikely to work (INET)

4. World power swings back to America (Telegraph)

5. Hugh Hendry at LSE Alternative Investment Conference (Greshman's Law). My writeup on Hugh's Jan. 2011 interview at the AIC can be found here. Hugh has agreed to come back to the 2012 AIC conference, which I look forward to attending.

6. Portugal enters the 'Grecian vortex' (Telegraph). AEP has been on a roll lately.

7. Italian 10-Year Yield Tops 6% in Auction, Setting Record (CNBC)

Sunday, September 25

QOTD from World's Largest Currency Trader, John Taylor: "The euro is going to hell"

Here are some other highlights:
So why should the U.S. dollar appreciate in such a horrid environment? As the world's reserve currency, Taylor says, the dollar has become a reverse indicator of the globe's economic health. "Whenever things are good in the world, [the] currency goes down," since there's ample liquidity. But when the rest of the globe is doing poorly, there's no liquidity and therefore the U.S. dollar is worth more. "That is the most important thing to know about foreign exchange nowadays–it is kind of backwards," he says. 
Greece's default is more a matter of when than if, he says, as the Greek citizenry won't support the austerity measures necessary to stay in the euro zone. There will be a referendum this autumn on some of the recent changes, and the outcome could upend the fiscal cuts already decided upon, Taylor warns. 
He now sees the euro trading between $1.37 and $1 over the next 18 months—nearer to the top side "if the Fed does its best at ruining our currency, and the euro manages to survive somehow." The world is pretending the European debt crisis is fixed, he adds—necessary if you are trading short term, but "long-term, a debt deal isn't going to work. The euro is going to hell. Every time they do things to fix it, it gets deeper and deeper." 
Are there any other currencies worth paying attention to? Taylor is positive on the commodity-based ones, such as the Australian and New Zealand dollars, despite their run-up. "We use commodities to forecast currencies," he notes. For instance, Norway's krone is a function of the price of oil, which he thinks is a solid long-term bet on the next growth cycle. In five years, he says, "we could see oil at $500 a barrel. I would be a buyer on dips of oil.
Among Taylor's influences is the 1991 book, Generations, by historians William Strauss and Neil Howe, which identifies longer-term cultural and demographic cycles in American life. "Every 80 years, we go through a deleveraging cycle," he says. "It's hard to measure, but that's where we are now. It has to do with the period 2010-20, compared with 1930-40." The so-called Millennials, who were born between 1980 and 2000, "will be the ones to save us, but they'll have no money, no entitlements," says Taylor.
Full article here

Sunday, May 1

Refreshingly Candid U.S. Senator Graham On Clean Tech, 'Polar Bear Politics', and Why Cap & Trade is DOA

U.S. Senator Lindsay Graham
I'm not sure whether there is something unusual about London or the LSE which triggers frank discourse from U.S. policymakers, or if honest talk is simply de rigueur for policymakers when they venture abroad.

Regardless, I highly encourage you to listen to this talk and Q&A from U.S. Senator Lindsay Graham. He speaks plainly about the the politics of climate change, what a big kick in the pants $5/gallon gasoline is for pols, and how the U.S. can prevent being left behind by China in the race to develop next generation clean technologies.

For more about Graham here is a NY Times Magazine piece from last year, and below is his bio:

Lindsey O. Graham was elected to serve as United States Senator on November 5, 2002. He serves on five committees in the U.S. Senate: Appropriations, Armed Services, Aging, Budget and Judiciary. A native South Carolinian, Graham grew up in Central, graduated from D.W. Daniel High School, and earned his undergraduate and law degrees from the University of South Carolina in Columbia. Graham logged six-and-a-half years of service on active duty as an Air Force lawyer. From 1984-1988, he was assigned overseas and served at Rhein Mein Air Force Base in Germany. Upon leaving the active duty Air Force in 1989, Graham joined the South Carolina Air National Guard where he served until his election to the U.S. House of Representatives in 1994. During the first Gulf War, Graham was called to active duty and served state-side at McEntire Air National Guard Base as Staff Judge Advocate. He received a commendation medal for his service at McEntire. Since 1995, Graham has continued to serve his country in the U.S. Air Force Reserves and is one of only three U.S. Senators currently serving in the Guard or Reserves. He is a colonel and is assigned as a Senior Instructor at the Air Force JAG School.

Friday, February 25

Chart of the Day - Why Might NATO Intervene in Libya?

Is the reason NATO's heartfelt concern over the rising Libyan death toll? 

Courtesy of CNN, that appears to be the television sound bite to be dished out by NATO member politicians. Here's Simon Henderson (a senior fellow at the Washington Institute for Near East Policy) on the rationale for NATO intervention in Libya:
"What's an acceptable number of civilian deaths? I don't know. Choose your figure," Henderson said. "At the very least, instead of having a casualty list certainly in the hundreds, possibly in the thousands, we don't want a casualty list numbering in the tens of thousands, or 100,000 or so."
With all due respect, Simon, here's a figure for you: not-so-long ago NATO couldn't be bothered to lift a finger when approximately one million people were slaughtered in nearby Rwanda.

The below chart illustrates the real reason Libya's civil war matters more to the NATO powers that be than nearby Rwanda's:

(click to enlarge)

Source: Economist

Thursday, February 24

Photos of the Day: Infamous Dictator-Democracy Handshakes

Outrage du jour

Former U.K. Prime Minister Tony Blair & Libyan Dictator Gaddafi 

Current French President Sarkozy and Gaddafi


Gaddafi and Current U.S. President Obama

Perhaps history's most ironic...


Meet Your (Future) Maker Moment: Donald Rumsfeld and Saddam Hussein

... and arguably the most infamous:

Appeasement: UK Prime Minister Neville Chamberlain and Nazi Führer Adolf Hitler

Tuesday, February 22

Revolutionary Tipping Points: Is This 1989, 1968, 1848 or NOTA?

Revolution and the Muslim World
By George Friedman, STRATFOR

The Muslim world, from North Africa to Iran, has experienced a wave of instability in the last few weeks. No regimes have been overthrown yet, although as of this writing, Libya was teetering on the brink.

1848 Europe
There have been moments in history where revolution spread in a region or around the world as if it were a wildfire. These moments do not come often. Those that come to mind include 1848, where a rising in France engulfed Europe. There was also 1968, where the demonstrations of what we might call the New Left swept the world: Mexico City, Paris, New York and hundreds of other towns saw anti-war revolutions staged by Marxists and other radicals. Prague saw the Soviets smash a New Leftist government. Even China’s Great Proletarian Cultural Revolution could, by a stretch, be included. In 1989, a wave of unrest, triggered by East Germans wanting to get to the West, generated an uprising in Eastern Europe that overthrew Soviet rule.

Each had a basic theme. The 1848 uprisings attempted to establish liberal democracies in nations that had been submerged in the reaction to Napoleon. 1968 was about radical reform in capitalist society. 1989 was about the overthrow of communism. They were all more complex than that, varying from country to country. But in the end, the reasons behind them could reasonably be condensed into a sentence or two.

Some of these revolutions had great impact. 1989 changed the global balance of power. 1848 ended in failure at the time — France reverted to a monarchy within four years — but set the stage for later political changes. 1968 produced little that was lasting. The key is that in each country where they took place, there were significant differences in the details — but they shared core principles at a time when other countries were open to those principles, at least to some extent.

The Current Rising in Context

In looking at the current rising, the geographic area is clear: The Muslim countries of North Africa and the Arabian Peninsula have been the prime focus of these risings, and in particular North Africa where Egypt, Tunisia and now Libya have had profound crises. Of course, many other Muslim countries also had revolutionary events that have not, at least until now, escalated into events that threaten regimes or even ruling personalities. There have been hints of such events elsewhere. There were small demonstrations in China, and of course Wisconsin is in turmoil over budget cuts. But these don’t really connect to what is happening in the Middle East. The first was small and the second is not taking inspiration from Cairo. So what we have is a rising in the Arab world that has not spread beyond there for the time being.

The key principle that appears to be driving the risings is a feeling that the regimes, or a group of individuals within the regimes, has deprived the public of political and, more important, economic rights — in short, that they enriched themselves beyond what good taste permitted. This has expressed itself in different ways. In Bahrain, for example, the rising was of the primarily Shiite population against a predominantly Sunni royal family. In Egypt, it was against the person of Hosni Mubarak. In Libya, it is against the regime and person of Moammar Gadhafi and his family, and is driven by tribal hostility.

Why has it come together now? One reason is that there was a tremendous amount of regime change in the region from the 1950s through the early 1970s, as the Muslim countries created regimes to replace foreign imperial powers and were buffeted by the Cold War. Since the early 1970s, the region has, with the exception of Iran in 1979, been fairly stable in the sense that the regimes — and even the personalities who rose up in the unstable phase — stabilized their countries and imposed regimes that could not easily be moved. Gadhafi, for example, overthrew the Libyan monarchy in 1969 and has governed continually for 42 years since then.

Any regime dominated by a small group of people over time will see that group use their position to enrich themselves. There are few who can resist for 40 years. It is important to recognize that Gadhafi, for example, was once a genuine, pro-Soviet revolutionary. But over time, revolutionary zeal declines and avarice emerges along with the arrogance of extended power. And in the areas of the region where there had not been regime changes since after World War I, this principle stays true as well, although interestingly, over time, the regimes seem to learn to spread the wealth a bit.

Thus, what emerged throughout the region were regimes and individuals who were classic kleptocrats. More than anything, if we want to define this wave of unrest, particularly in North Africa, it is a rising against regimes — and particularly individuals — who have been in place for extraordinarily long periods of time. And we can add to this that they are people who were planning to maintain family power and money by installing sons as their political heirs. The same process, with variations, is under way in the Arabian Peninsula. This is a rising against the revolutionaries of previous generations.

The revolutions have been coming for a long time. The rising in Tunisia, particularly when it proved successful, caused it to spread. As in 1848, 1968 and 1989, similar social and cultural conditions generate similar events and are triggered by the example of one country and then spread more broadly. That has happened in 2011 and is continuing.

A Uniquely Sensitive Region

It is, however, happening in a region that is uniquely sensitive at the moment. The U.S.-jihadist war means that, as with previous revolutionary waves, there are broader potential geopolitical implications. 1989 meant the end of the Soviet empire, for example. In this case, the question of greatest importance is not why these revolutions are taking place, but who will take advantage of them. We do not see these revolutions as a vast conspiracy by radical Islamists to take control of the region. A conspiracy that vast is easily detected, and the security forces of the individual countries would have destroyed the conspiracies quickly. No one organized the previous waves, although there have been conspiracy theories about them as well. They arose from certain conditions, following the example of one incident. But particular groups certainly tried, with greater and lesser success, to take advantage of them.

In this case, whatever the cause of the risings, there is no question that radical Islamists will attempt to take advantage and control of them. Why wouldn’t they? It is a rational and logical course for them. Whether they will be able to do so is a more complex and important question, but that they would want to and are trying to do so is obvious. They are a broad, transnational and disparate group brought up in conspiratorial methods. This is their opportunity to create a broad international coalition. Thus, as with traditional communists and the New Left in the 1960s, they did not create the rising but they would be fools not to try to take advantage of it. I would add that there is little question but that the United States and other Western countries are trying to influence the direction of the uprisings. For both sides, this is a difficult game to play, but it is particularly difficult for the United States as outsiders to play this game compared to native Islamists who know their country.

But while there is no question that Islamists would like to take control of the revolution, that does not mean that they will, nor does it mean that these revolutions will be successful. Recall that 1848 and 1968 were failures and those who tried to take advantage of them had no vehicle to ride. Also recall that taking control of a revolution is no easy thing. But as we saw in Russia in 1917, it is not necessarily the more popular group that wins, but the best organized. And you frequently don’t find out who is best organized until afterwards.

Democratic revolutions have two phases. The first is the establishment of democracy. The second is the election of governments. The example of Hitler is useful as a caution on what kind of governments a young democracy can produce, since he came to power through democratic and constitutional means — and then abolished democracy to cheering crowds. So there are three crosscurrents here. The first is the reaction against corrupt regimes. The second is the election itself. And the third? The United States needs to remember, as it applauds the rise of democracy, that the elected government may not be what one expected.

In any event, the real issue is whether these revolutions will succeed in replacing existing regimes. Let’s consider the process of revolution for the moment, beginning by distinguishing a demonstration from an uprising. A demonstration is merely the massing of people making speeches. This can unsettle the regime and set the stage for more serious events, but by itself, it is not significant. Unless the demonstrations are large enough to paralyze a city, they are symbolic events. There have been many demonstrations in the Muslim world that have led nowhere; consider Iran.

It is interesting here to note that the young frequently dominate revolutions like 1848, 1969 and 1989 at first. This is normal. Adults with families and maturity rarely go out on the streets to face guns and tanks. It takes young people to have the courage or lack of judgment to risk their lives in what might be a hopeless cause. However, to succeed, it is vital that at some point other classes of society join them. In Iran, one of the key moments of the 1979 revolution was when the shopkeepers joined young people in the street. A revolution only of the young, as we saw in 1968 for example, rarely succeeds. A revolution requires a broader base than that, and it must go beyond demonstrations. The moment it goes beyond the demonstration is when it confronts troops and police. If the demonstrators disperse, there is no revolution. If they confront the troops and police, and if they carry on even after they are fired on, then you are in a revolutionary phase. Thus, pictures of peaceful demonstrators are not nearly as significant as the media will have you believe, but pictures of demonstrators continuing to hold their ground after being fired on is very significant.

A Revolution’s Key Event

This leads to the key event in the revolution. The revolutionaries cannot defeat armed men. But if those armed men, in whole or part, come over to the revolutionary side, victory is possible. And this is the key event. In Bahrain, the troops fired on demonstrators and killed some. The demonstrators dispersed and then were allowed to demonstrate — with memories of the gunfire fresh. This was a revolution contained. In Egypt, the military and police opposed each other and the military sided with the demonstrators, for complex reasons obviously. Personnel change, if not regime change, was inevitable. In Libya, the military has split wide open.

When that happens, you have reached a branch in the road. If the split in the military is roughly equal and deep, this could lead to civil war. Indeed, one way for a revolution to succeed is to proceed to civil war, turning the demonstrators into an army, so to speak. That’s what Mao did in China. Far more common is for the military to split. If the split creates an overwhelming anti-regime force, this leads to the revolution’s success. Always, the point to look for is thus the police joining with the demonstrators. This happened widely in 1989 but hardly at all in 1968. It happened occasionally in 1848, but the balance was always on the side of the state. Hence, that revolution failed.

It is this act, the military and police coming over to the side of the demonstrators, that makes or breaks a revolution. Therefore, to return to the earlier theme, the most important question on the role of radical Islamists is not their presence in the crowd, but their penetration of the military and police. If there were a conspiracy, it would focus on joining the military, waiting for demonstrations and then striking.

Those who argue that these risings have nothing to do with radical Islam may be correct in the sense that the demonstrators in the streets may well be students enamored with democracy. But they miss the point that the students, by themselves, can’t win. They can only win if the regime wants them to, as in Egypt, or if other classes and at least some of the police or military — people armed with guns who know how to use them — join them. Therefore, looking at the students on TV tells you little. Watching the soldiers tells you much more.

The problem with revolutions is that the people who start them rarely finish them. The idealist democrats around Alexander Kerensky in Russia were not the ones who finished the revolution. The thuggish Bolsheviks did. In these Muslim countries, the focus on the young demonstrators misses the point just as it did in Tiananmen Square. It wasn’t the demonstrators that mattered, but the soldiers. If they carried out orders, there would be no revolution.

I don’t know the degree of Islamist penetration of the military in Libya, to pick one example of the unrest. I suspect that tribalism is far more important than theology. In Egypt, I suspect the regime has saved itself by buying time. Bahrain was more about Iranian influence on the Shiite population than Sunni jihadists at work. But just as the Iranians are trying to latch on to the process, so will the Sunni jihadists.

The Danger of Chaos

I suspect some regimes will fall, mostly reducing the country in question to chaos. The problem, as we are seeing in Tunisia, is that frequently there is no one on the revolutionaries’ side equipped to take power. The Bolsheviks had an organized party. In these revolutions, the parties are trying to organize themselves during the revolution, which is another way to say that the revolutionaries are in no position to govern. The danger is not radical Islam, but chaos, followed either by civil war, the military taking control simply to stabilize the situation or the emergence of a radical Islamic party to take control — simply because they are the only ones in the crowd with a plan and an organization. That’s how minorities take control of revolutions.

All of this is speculation. What we do know is that this is not the first wave of revolution in the world, and most waves fail, with their effects seen decades later in new regimes and political cultures. Only in the case of Eastern Europe do we see broad revolutionary success, but that was against an empire in collapse, so few lessons can be drawn from that for the Muslim world.

In the meantime, as you watch the region, remember not to watch the demonstrators. Watch the men with the guns. If they stand their ground for the state, the demonstrators have failed. If some come over, there is some chance of victory. And if victory comes, and democracy is declared, do not assume that what follows will in any way please the West — democracy and pro-Western political culture do not mean the same thing.

The situation remains fluid, and there are no broad certainties. It is a country-by-country matter now, with most regimes managing to stay in power to this point. There are three possibilities. One is that this is like 1848, a broad rising that will fail for lack of organization and coherence, but that will resonate for decades. The second is 1968, a revolution that overthrew no regime even temporarily and left some cultural remnants of minimal historical importance. The third is 1989, a revolution that overthrew the political order in an entire region, and created a new order in its place.

If I were to guess at this point, I would guess that we are facing 1848. The Muslim world will not experience massive regime change as in 1989, but neither will the effects be as ephemeral as 1968. Like 1848, this revolution will fail to transform the Muslim world or even just the Arab world. But it will plant seeds that will germinate in the coming decades. I think those seeds will be democratic, but not necessarily liberal. In other words, the democracies that eventually arise will produce regimes that will take their bearings from their own culture, which means Islam.

The West celebrates democracy. It should be careful what it hopes for: It might get it.


Revolution and the Muslim World is republished with permission of STRATFOR

Wednesday, February 16

The 'Shoe Thrower's Index': Middle-East Interactive Country Profiles

Click here to toggle the BBC's profiles and data on the Middle Eastern countries currently experiencing unrest.


Based on the below 'Shoe Thrower's Index' Yemen takes the cake at 87% (100% = most unstable).


Thursday, January 20

Video: On Why Becoming More Energy Efficient is Simply Not Good Enough

"Like salt, we need to strip oil of its strategic importance."  
-Gal Luft, Executive Director of the Institute for the Analysis of Global Security and a founder of the Set America Free Coalition

As Luft points out in this brief video the buzzterm 'energy independence' cannot simply be achieved in the U.S. by more domestic drilling for oil in areas such as the ANWR.

The word 'independence' implies choice, and when it comes to an energy source for automobiles the vast majority effectively have zero choice.

For a long time now oil has had a monopoly as THE energy source used in vehicle transportation, and we must find a way to put an end to oil's stranglehold.

Luft's and coauthor Anne Korin's book, titled Turning Oil into Salt: Energy Independence Through Fuel Choice, argues for the importance of making oil as un-strategic a commodity as salt has become.

Many have forgotten or never learned that wars used to be fought over salt. The 'primordial condiment' as some have called it was one of the most effective ways to preserve food, making it perhaps the world's most strategic commodity.

Nissan Leaf
Today we no longer fight wars over salt because it has been rendered non-strategic. We must do for oil what we did with salt. The good news is that for oil we have right now the technological equivalent of canning and refrigeration, which put an end to the strategic importance of salt. One of the keys to reducing oil's strategic importance is the wide adoption of 100% electric (not hybrid, fully electric) vehicles such as the Nissan Leaf.

Their book can be found in the Good Books and Films section on the right side of this blog.

The Key Reason Electric Vehicles Matter

While most of a recent Seeking Alpha article titled 'Plug-in Vehicles and Their Dirty Little Secret' with 444 comments and counting is correct, there's a lot more to the electric vehicle story than the author's focus on emissions would lead the reader to believe.

EV Emissions and the Present and Future Grid

From an emissions perspective, running your car on electricity is about 25% cleaner than a standard car that gets about 25 mpg. But compared to a hybrid that gets more like 45-50 mpg, electric cars produce more emissions (e.g., carbon).

It's also true that more charging will likely occur at night, when the power produced is more heavily coal-weighted. However, while charging at night is worse from an emissions perspective it is much better from a grid stability and grid transmission perspective.

It's also worth noting that the mix of generation sources that provide power to the grid is changing - it is getting cleaner. Coal's share of the gird (in the U.S.) has gone from ~55% in the late 1980s to ~45% today. This trend will continue, especially as the U.S. continues to retire many of its older coal plants and replaces them with natural gas power plants, and more wind/solar.

The Environmental Protection Agency continues to tighten emissions regulations on power plants, so even newer coal plants (the few that will get built) are much cleaner and more efficient than the current ones. So using today's grid mix in assessing EVs ignores the improvement in emissions we'll be seeing in the future as the grid becomes cleaner.

How Much Do Electric Cars Really Cost?

There is one misleading remark the author makes on cost: in many cases running your car on electricity is actually cheaper than gasoline. $3.00/gal gasoline for a car that gets 30 mpg = $0.10/mile. If that car ran on electricity, it would get about 3 miles / kWh, and so for an electricity cost of $0.12/kWh (the US average), that works out to only $0.04/mile, or 60% less.

But this is only one example. Californians pay a lot for electricity, so it could be more expensive to run the car on electricity. Note: PG&E is working on rate structures that make it cheaper to charge at night, thus helping improve the economics for electric cars.

However, the cost of battery packs is expensive, so if you amortize the cost of the battery pack over the lifetime mileage of the pack, then that cost/mile obviously goes up for EVs. But is it really fair to do that? Do we similarly amortize the cost of a gasoline engine, fuel system, tank, etc? No. But without question, these battery packs are expensive, so the costs of the cars will be higher.

Why Electric Vehicles Truly Matter

So what's really behind all this fuss about rechargeable cars? If it's not about saving money, and not about reducing emissions, then what's left?

Energy security.

The biggest challenge our worldwide energy system faces is the near complete monopoly that oil has on the transportation sector. We heat our homes using a variety of energy sources. We make electricity using a variety of energy sources. But when it comes to the 3rd category of energy consumption (transportation) it is essentially all oil.

And making things worse is the fact that the U.S. imports about 2/3 of its oil, and 40% of those imports come from OPEC. This is not a very encouraging situation for whole host of reasons and warrants a separate article.

Hybrids help reduce oil consumption, which is obviously good for reducing emissions, fuel costs, and it helps reduce dependence on oil imports. But it does little to break oil's monopoly on the auto and overall transportation sector.

We need to find alternatives to oil, and the longer we wait the more painful it will become.

(Note: for more information on electric vehicles check out MIT's EV team page here and this recent report from the MIT Energy Initiative.)

Friday, December 3

Video: Better Place CEO Shai Agassi on Charlie Rose

Perhaps one of the more interesting and ambitious startups of recent years is Better Place, which is working to the build global infrastructure necessary to support the widespread use of electric vehicles. The San Francisco Bay Area, Japan, and Israel among some of the locations which have already begun to employ Better Place's electric vehicle infrastructure.

Many of the world's fundamental environmental, economic and geopolitical challenges are due to the heavy reliance on oil as source of energy. There is very little hope of ending the U.S.'s dependence on foreign oil imports until alternative transportation infrastructure, like Better Place and Nissan's new Leaf electric car, are widely available. The effort to create this infrastructure is one of the most important and ambitious undertakings underway today.

For more information about Better Place check out CEO Shai Agassi's recent interview on Charlie Rose.