Oil Price Spike Unlikely To Boost Renewable Energy Investment - Reuters

[hatrack]

LONDON - "Investment in renewables is unlikely to be spurred by this year's record rally on oil futures, as only longer-term high prices and stable revenues for new projects will force an energy shift, experts say.

Oil futures in New York shot to record highs of nearly $50 a barrel this month, creating higher costs for energy-importing nations and leading to fears of global economic damage, before prices slipped to under $42 this week.

"Industry is going to need more bad news on oil prices before switching to renewables," said Andrew Oswald, economics professor at Warwick University. "Spikes won't do it as they don't change people's long-term outlook - you'd need to see prices running at $50-$60 a barrel for over a year."

The oil price shocks of the 1970s spurred governments' research in alternative forms of energy, but the drive to cut dependence on fossil fuels faded in the 1980s as oil became cheap once more. In real terms current prices are only half the level for Arabian crude hit in 1980, when the Iran-Iraq war started. Industrialised nations' spending on energy research and development followed oil's curve, peaking in 1981 at $16 billion but dropping to $9 billion by 1987, according to the International Energy Agency."

EDIT

http://www.planetark.com/dailynewsstory.cfm/newsid/26893/story.htm

[TheFarseer]

1. That is why

we need the government to intervene so that we can be assured of having something when oil runs out and in the meantime to nip prices in the bud. Republicans are wrong - sometimes private business does not know best and they certainly don't have everyone's best interest at heart. This is a prime example.

[Tandalayo_Scheisskopf]

2. That's utter horseshit.

The hydroelectric project I am involved with(new technologies, hardly like anything that has gone before...) is getting great interest at banks and state and local levels.

This was a petroleum industry-planted story. Know it.

Go check the BP website and see what they are doing for homeowners and solar energy. I may not be a fan of BP on everything, but they deserve a hearty attaboy for this one.

[Ready4Change]

4. Yeah BP.

They are doing what I'd be doing, were I the head of a large petrochemical company.

And thank heaven oil is now only $42 a barrel and ALL of our oil troubles are things of the past. Yippie. (/sarcasm)

[ramapo]

3. Fiddling while Rome burns

The inability of society to be proactive and finally begin serious consideration and movement to alternative energy sources and probably more important, recognition that our resource-hungry lifestyles cannot continue indefinitely, is absolutely stunning.

Only shock therapy will cure this stick your head in the sand attitude supplemented by the empty happy talk of a bright, expansive future.

After all, aren't we entitled to a carefree lifestyle propped up by never-ending oil supplies? Since God is on our side, I guess he'll just keep making oil to replace what we've taken.

[sam sarrha]

5. *ush Vetoed Solar Project pilot study on new technology , could make 80%

of daytime electricity on 3 or 4 solar plants 100 miles square. *ush Vetoed it his first week in office stalling decades of dedicated research..

there are several things that could free us from domination of the Arabs and our resident robber Barron's.. like AMSOIL a synthetic oil that gets 250,000 mile oil changes and can be recycled. that alone could free us from foreign oil and Bio Diesel from soy and the feared Demon Weed.. Agricultural Hemp which produces hemp oil that burns literally pollution free and present gas engines can be converted very inexpensively...