Candidates Offer Different Views on Energy Policy

From:http://www.nytimes.com/2007/11/28/us/politics/28energy.html

By: Edmund L. Andrews

The Democratic and Republican presidential candidates are offering new energy policy as the oil prices keep raising.

In the future, the prices of gasoline will deeply affect billion dollars on government budget.

On Democratic side, its goal is to reduce the oil consumption, and it is related to the goal of reduce the risk of climate change.

On Republican side, its policy is to produce more oil at our own country, and more new types of energy resources.

The Democratic candidates all hope spend more money for develop the new efficient fuels. The Republican has more aggressive plans. But anyway, people start to wonder those plans are realistic or they just use them as the step stone for their political proposes.

As Leo Hindery, the chief economic adviser to John Edwardssaid, “There is no short-term solution.”

In fact, people expect the candidates can do more than the candidates can do. The high oil price is not a simple that everyone can easily deal with it.

But also, not just between those two parties, even in one party, the conflicts also occurred. Senator John McCain from Republican Party said that he opposed oil and gas drilling in the Arctic National Wildlife Refuge.

U.S. Prosecutors Start Investigating Oil Spill

Workers clean up the oil on the beach.

From: http://www.nytimes.com/2007/11/13/us/13spill.html
http://www.nytimes.com/2007/11/09/us/09spill.html?fta=y

By Carolyn Marshall

The United States prosecutors are beginning to investigate an oil spill that happened in San Francisco Bay. It occurred on Wednesday when a South Korean vessel, Cosco Busan, owned by Regal Stone bumped with the San Francisco-Oakland Bay Bridge. About 58.000 gallons of oil spilled from the ship killing thousands of birds and causing twenty-five beaches to close.

Coast Guard officials said their investigation showed that the oil spill was caused by human error. The National Transportation Safety Board questioned four men who were on the ship when the accident happened. One of them said, “We gave immediate notice to the government agencies, including the Coast Guard that a spill had occurred. But it was over an hour before they responded.” However, the Coast Guard officials did not agree with what he said. In their opinion, the Coast Guard responded to the spill immediately. The crew of the cargo ship might face the criminal charges.

The authorities said they did not see much of oil concentration to be skimmed after they flew over the polluted area after few days. We need more ships and volunteers to clean up.

High-Priced Oil Adds Volatility to Power Scramble

A line for fuel in gas station in China.

From: http://www.nytimes.com/2007/11/07/business/07oilwealth.html?pagewanted=1&_r=1&th&emc=th By Mark Landler

Oil is one of the most valuable sources for many nations. It helps the nation to grow up rapidly and can be used in many different ways, such as transportation, heat, and machines. However, oil is scarce and not enough for everyone to use. The prices of oil go up and up which hit $96.70 on November 6. Many oil imported nations such as India and China are confronting rising economic and social costs while oil-rich nations enjoy the profit they get.

Many oil-rich countries are poor nations and some of their hope for development are depriving by the foreign government. However, they use oil as a tool of national transformation. They use the money to improve the standard living of their people. For example, the government built new railroads and provides the free health care and free education in Venezuela.

While some are enjoying, the others are struggling. China must import half its oil to help the economy grows even though it was exporter before. As the shortage of oil occurred and some Chinese refining companies refuse to supply at an unprofitable prices, China had to raise the retail prices. As the oil prices increase, the burden will become heavier and heavier on Chinese people.

Oil is not a natural resource that can be produced easily. People need to use it carefully and wisely.

Facts about Oil

From:http://www.wisegeek.com/what-countries-consume-the-most-oil.htm
http://www.opec.org/library/FAQs/PetrolIndustry/q4.htm
http://www.eia.doe.gov/emeu/cabs/topworldtables1_2.htm

Which countries produce the most oil?

Country	Crude oil production (1,000 b/d)
Russia	9,358
Saudi Arabia*	9,208
USA	5,136
Iran	4,073
China	3,674
* Including share of production from Neutral Zone.

Which Countries Consume the most oil?

Here are the top 25 oil consuming nations as provided by the CIA World Factbook (2001 estimates); the values represent the number of barrels consumed per day.

United States 19,650,000

Japan 5,290,000

China 4,975,000

Germany 2,813,000

Russia 2,595,000

Brazil 2,199,000

South Korea 2,140,000

India 2,130,000

France 2,026,000

Italy 1,866,000

United Kingdom 1,710,000

Canada 1,703,000

Mexico 1,507,000

Spain 1,497,000

Saudi Arabia 1,452,000

Iran 1,277,000

Indonesia 1,045,000

Taiwan 988,000

Netherlands 895,300

Australia 796,500

Thailand 785,000

Singapore 700,000

Turkey 619,500

Belgium 595,100

Egypt 562,000

It is not surprise to see United States is the one consume the most oil, but it is interesting to see Singapore, just a small city/country(I went to Singapore this summer, compare to New York City, it is so small), consume more oil than larger countries Turkey and Egypt.

Which Countries import the most oil?

(Thousand barrels per day)

Top World Oil Net Importers, 2006

1 United States 12,220

2 Japan 5,097

3 China 3,438

4 Germany 2,483

5 Korea, South 2,150

6 France 1,893

7 India 1,687

8 Italy 1,558

9 Spain 1,555

10 Taiwan 942

11 Netherlands 936

12 Singapore 787

13 Thailand 606

14 Turkey 576

15 Belgium 546

Iraq voids a Russian Oil Contract

Iraqis worked at a pumping station in the West Qurna oil field in 1999.

From:http://www.nytimes.com/2007/11/04/world/middleeast/04oil.html?_r=1&ref=middleeast&oref=slogin
By Andrew E. Kramer

The filed, West Qurna, is a super-giant oil field in southern Iraq. It has estimated reserves 11 billion barrels. A Russian Company Lukoil had signed the contract with Saddam Hussein government. Although later this contract had canceled by the Saddam government, Russian still hopes the contract will be validate.

The one who guided Iraq to cancel the contract is US. It is interesting to see that happened since US had been invaded Iraq for its oil resource. To Russia, Iraq is controlled by the US, especially the oil related, is directed decided by the US administration.

The field will be waiting for a new bidder next year. Nevertheless, Kremlin spokesman said that government will try to protect its company interests in these kinds of affair. Oil is such a important necessary thing to Russia and it wants to expand its oil wealth internationally.

In reality not just Iraq did something to Russia, but Russia also decided to do something to gain what they want. Russia might go to revoke the 2004 deal of forgive $13 billion debt. It seems more like a threaten, but to my own opinion, Russia just doing whatever they want, US has no authority to order Russia what should do or should not do.

This problem might have solution soon because Bush had said US did not push Russian out of Iraq and tried to create a condition that both the countries working together. And in response Putin said, “I have no reason not to believe him.”

So now we should know and understand, how important oil is, not just for economy reason, but also for politics issues.