Wednesday, July 16, 2008

Conrad on T. Boone Pickens' energy plan...

From Conrad's Comments...

T. Boone Pickens is an oil geologist who became a multi-billionaire. He is concerned about the enormous amount of money that the United States spends on importing oil, about $700 billion this year, and the Peak Oil crisis, the world demand for oil is still increasing and the supply of oil production has reached a maximum. He has an interesting proposal to deal with the oil crisis.

His plan has two parts:

1. Encourage private enterprise to build enough wind turbines along the Mid-Western corridor, from Texas to North Dakota, to supply 22% of the US electricity generation needs. That should cost about $1 trillion. Also, allow the businesses to build the power lines to supply the electricity to other parts of the country. That should cost about $200 billion. The time frame is about a decade. However, in that decade America will spend $10 trillion dollars in imported oil.

2. As the wind farms are built, the natural gas now used to generate electricity can be used for transportation. There are already several million natural gas vehicles (NGVs), but not many are on American roads. If enough Americans drove NGVs, about 38% of American oil consumption can be reduced by substitution.

I believe the USA should develop wind power. NGVs are less polluting than internal combustion engine cars, and natural gas is cheaper than gasoline. I do not mind that Pickens will increase his forturne because of the economic and political problems we will face from the end of the cheap oil era. Let him sell his electricity and his natural gas.

Of course, it may be better for Americans to switch to battery electric vehicles (BEVs). It cost $0.75 for a gallon equivalent for a BEV versus the $1.59 for a NGV. The Royal Dutch Shell company has developed a technology to turn natural gas into gasoline.

What do you think about the Pickens Plan?

His plan on his website:
http://www.pickensplan.com/theplan/

An interview with Katie Couric who also asks about his support of the Swift Boat Veterans:
http://www.youtube.com/watch?v=zrvpblaKCig

Wrap...

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