Is BIG OIL stopping the U.S. from developing renewable energy?

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Permalink Reply by Hazel "The Queen" Walker on November 23, 2008 at 8:55am

May have been true to some degree, they and the US Auto Industry. It is not talked about often or at least I do not se it often for BIG OIL and US AUTO are tied together. I think with the Auto Industry in the shape it is in right now both are looking at ways to profit from the changes. As quick as they can find a BIG Profit center in all of this, they will lead the pack. Unfortunately both will want the american taxpayer to foot the bill for their being driven to change then they will turn around a change us a mint for the newer products. Kind of like the DRUG companies.

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Permalink Reply by Pat Coyle on November 23, 2008 at 9:59am

Do you really think the Automakers will change their stripes? Do you really think that a new line of sustainable energy vehicles will really come from Detroit? I tend to doubt it. Seems to me they won't be able to let go of their present business model. They're not really in the transportation business, and the only way innovation will come fast is if we let Detroit go the way of the Dodo if that what it takes.

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Permalink Reply by David Mark on November 23, 2008 at 3:22pm

@ Pat - I agree with you. Check this out below....

Posted on Seth Godin's Blog last week:

What to do about Detroit
I was in Detroit last week... I have family there. I also drive a car. And I would rather that the world doesn't melt and the economy thrive. So I'm uniquely qualified to weigh in on the automobile industry.

Not only should Congress encourage/facilitate the organized bankruptcy of the Big Three, but it should also make it easy for them to be replaced by 500 new car companies.

Or perhaps a thousand.

That's how many car companies there were 90 years ago.

That's right, when all the innovation hit the car industry, there were thousands of car companies, with hundreds running at any one time. From Wikipedia:

Throughout this era, development of automotive technology was rapid, due in part to a huge number (hundreds) of small manufacturers all competing to gain the world's attention. Key developments included electric ignition (by Robert Bosch, 1903), independent suspension, and four-wheel brakes (by the Arrol-Johnston Company of Scotland in 1909).[16] Leaf springs were widely used for suspension, though many other systems were still in use, with angle steel taking over from armored wood as the frame material of choice. Transmissions and throttle controls were widely adopted, allowing a variety of cruising speeds, though vehicles generally still had discrete speed settings rather than the infinitely variable system familiar in cars of later eras.

Between 1907 and 1912, the high-wheel motor buggy (resembling the horse buggy of before 1900) was in its heyday, with over seventy-five makers including Holsman (Chicago), IHC (Chicago), and Sears (which sold via catalog); the high-wheeler would be killed by the Model T.

Back in its heyday, Ford Motor made every single part of its cars, including raising the sheep that grew the wool that made the fabric that upholstered the seats. That's not true any more. Now, suppliers make just about every part. We need those suppliers, and we need them to stay healthy.

What we don't need are giant companies with limited choice, confused priorities, private jets and a bully's attitude.

I'd spend a billion dollars to make the creation of a car company turnkey. Make it easy to get all the safety and regulatory approvals... as easy to start a car company as it is to start a web company. Use the bankruptcy to wipe out the hated, legacy marketing portion of the industry: the dealers.

We'd end up with a rational number of "car stores" in every city that sold lots of brands. We'd have super cheap cars and super efficient cars and super weird cars. There'd be an orgy of innovation, and from that, a whole new energy and approach would evolve. Betcha.

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Permalink Reply by Steve Stuck on November 23, 2008 at 10:42am

I watched the video and looked at the website. Can I ask a question without getting attacked by the greenies? How is our economy (consumers) going to afford it with the proposed carbon tax/regulations on business? I am against any new form of government that affects business's today since our economy is already heavily taxed/regulated and now we are facing even higher taxation/regulation from our newly elected administration. What will be the unintended consequences of this "carbon taxation/regulation" policy in the form of cap-n-trade?

I am not a fan of Norway's taxation policy, but one thing they do is not regulate their business. It is almost a trade off. They tax heavily on income and fuel, but at the sametime, government stays out of the way of their business's working. They also drill for oil off their beautiful scenic areas.

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Permalink Reply by David Mark on November 23, 2008 at 12:29pm

Yes, it's very true (to an extent), but there is hope because these companies are aggressively investing into alternative energy sources. I think "preventing" is a strong and incorrect assumption. There's so much more to this story and I wish oil companies would share at least a Cliff Notes version behind the scenes. Perhaps a reason why this isn't blatant public knowledge is because if I (Mr. Oil Executive) told you there was an incredible alternative energy source coming out on X date, you would probably stagnate your purchasing power for the favorable alternative. This, of course, would be widespread practice and our economy would take a severe hit -- again and again. Furthermore, they need your money to create and implement these innovations (I can see eyes rolling now).

Here's my 'I know a guy who knows a guy' statement:
My father is a high level executive for one of the BIG OIL companies (probably enough stated). Before you start assuming anything ;), he's on the lubricant engineering side and is the co-creator and marketer for synthetic blended products. What does this mean? Most oil companies have two major divisions and are essentially seen as two different companies. Retail supports retail and lubricant supports lubricant.

The retail division is what most of you are familiar with and justifiably gripe about on a daily basis. The lubricant division creates products for the heavy machinery and manufacturing industry. The synthetic blends my father creates and markets are, in fact, environmentally friendly and have inspired massive investments into the "green way". Of course, I'm not here to discuss these products. That's boring. As time goes by, you'll see more and more companies built on the idea of innovating renewable energy. Who are their major share holders? BIG OIL.

On a side note, ABC banned the commercial because Shell, Amoco, Citgo, Exxon Mobil, etc...have huge mass media budgets -- money talks out LOUD!

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Permalink Reply by Erik Deckers on November 23, 2008 at 3:06pm

If Big OIl were smart, they would be leading the charge for renewable energy. Because once we run out of oil, they're out of stuff to sell, which means they're out of jobs.

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Permalink Reply by Steve Stuck on November 23, 2008 at 11:37pm

They are doing stuff. It isn't like they sitting around doing nothing. Shell Oil right now is testing hydrogen gas stations for the new hydrogen brand of GM coming out in 2010. Other oil companies are now investing in wind power in their oil fields in Texas to sell the power to the Dallas/Ft. Worth area. This is coming from billions from investors.

Oil companies do ten times more than most people like "Al Gore". Plus we are nowhere near running out of oil. Just the price of it going down makes it unprofitable to drill in certain areas. On top of that, our country won't be letting any drilling go on under this administration. Why do you think Russia is buddy buddy with Venezuala now? They will probably sieze their oil fields here in a couple of years. China has drilling rights from Cuba and will be slant drilling close to the tip of Florida here in a few years. India is now completing a oil refinary the size of New York City. These people get it.

We as a country are doing nothing for energy while all others across the world are building nuclear/coal plants. They are drilling in areas where we should have been years ago. They are actually buying our coal while we restrict our own people from using our own coal. It takes 20 years just to build a nuclear energy facility because some terd behind a desk in Washington DC says yea or no on permits. Want to build a wind farm, get sued because birds may fly into it. Ban drilling off our coastal line because that is really smart.

This next decade should be an interesting time.

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Permalink Reply by David Mark on November 24, 2008 at 11:00am

Steve, you're right on th $ brother! Venezuela has BILLIONS of oil on reserve and billions more untapped. This being stated, we shouldn't and won't stop aggressively innovating alternative energy sources. Relying on these guys (overseas) is a pride-swallowing seige of a task. Not to mention what we're supporting with our money (Terrorism and corruption).

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Permalink Reply by Hazel "The Queen" Walker on November 23, 2008 at 6:32pm

No, I dont believe they can turn around, there is no way for them to do that and they are two far behind other companies. There is no leadership, no vision, no ingenuity. I do think if it were not for the Union they would be able to spin off some smaller more competitive companies who could create american cars that could compete on the world market, but that cannot happen the way they operate now.

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Permalink Reply by Jim Johnson on November 24, 2008 at 3:47pm

Blaming someone or something is what our country is all about. It happens in politics all the time and now it is evident in this piece. I'm sure that "big oil" is interested in promoting its own interests (just like all of our companies do). Renewable energy options need to be effective, cost-efficient, and reasonable in order for the public to make thoughtful choices. You cannot mandate energy changes without creating something like an eco-police state. Create meaningful products and let the market decide what will succeed.

iPods sell by the millions because it is a great product. I don't think any negative marketing from "big CD" would have stopped or slowed its success. It sells because it is a product that people can't live without...

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Permalink Reply by John Qualls on November 24, 2008 at 7:04pm

I say true. Why has the price of gas fallen so far in the last 4 months? Surely the cost to distribute gas did not go up 300% and magically goes away 4 months before the election. Here's my take:

1. America used to have plenty of mass transit. Remember, Trains, subway's, buses, street cars? Not in the best interest of auto or oil companies to have municipalities investing in mass transit.

2. Election coming. Make gas prices not be an issue for the election. Don't want any elected official pushing the mass transit agenda. Don't want us drilling in Alaska. Don't want us investing in alternative fuels. Let see the investment the administration takes on this.

3. Hybrid cars. Why is a foreign vehicle the number one hybrid (Toyota Prius).They (the Japanese) have been fighting this issue for a long time.

Basically, we got soaked, taken to the cleaners, robbed, etc. I don't believe any of the spin put on the increases.

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