As discussed before, all fossil fuels are at historic highs currently. Natural gas is the only major fuel that is not at an all-time high in the US — but that record could be broken this winter, if not before. The key reasons emerge from both supply and demand.
On the demand side, our consumption is rising swiftly. After a 6.5% leap in consumption in 2007 (almost half of global demand growth), the EIA predicts another 2.2% of demand growth in 2008.
On the supply side, (more…)
Coal has been hailed as an abundant, cheap source of energy for over a century. Compared to oil, it is abundant with its 3.3% production increase in 2007 versus oil’s decline. But even with the increase in supply, demand is currently growing faster and driving price increases that rival its fossil fuel cousins. Additionally, as I mentioned a few blogs back, the annual BP Statistical Review of World Energy reported a huge drop in proven reserves of 7.3%. After printing a reserves total of 909 billion tonnes at the end of 2006, the number fell to 847 billion tons at the end of 2007. The largest downward revisions occurred in India, Poland, Indonesia, Brazil, the Czech Republic, Turkey, and Pakistan and are left unexplained as they surpass the amount produced.
The price of internationally traded coal has doubled over the last year, (more…)
As the most fuel-intense travel method, flying is increasing in cost faster than road and rail. So, the skyrocketing price of oil is having a huge impact on the industry. Twenty four airlines have filed for bankruptcy in just the past six months, and a recent report by the institutions Airline Forecast and the Business Travel Coalition predicts much more contraction to the tune of “catastrophe.”
If prices stay at current levels between $130 and $140 per barrel, the report predicts an additional cost for US airlines of $30 billion in 2008. Recent changes in air travel including fees for checked baggage, current fuel surcharges, and charging for drinks and food will only raise a few billion dollars, leaving a huge mismatch between higher costs and revenue. They add that if predictions of $200 oil come true, (more…)
US natural gas stockpiles gained less than anticipated last week, putting further pressure on rising prices of the fuel. Electricity rates may be increased soon to help utilities cope with the nearly doubling in price for natural gas since last year. One factor restraining price growth today is the strengthening of the dollar compared to the euro. Almost every day now, energy markets are sending a clear message: its time to transition to an efficient use of renewables as quickly as possible. SET aims to help individuals and communities do just that.