Big Oil Exploits Global Warming Fears

Whatever the cause, the planet is warming up. It is happening. The effects are yet to be seen except one: it's a great way for oil companies to get the government to help pay for them to move to alternate products to insure sustained profitability should oil become non-feasible economically. They care little about the environment.

There has been much debate about global warming, and at the same time a vigorous discussion about how much oil we have left. The people in charge of the refineries and the companies probably don't know the reasons for rising temperatures more then anyone else. But I am willing to guess they have a much better handle on how much oil they have. Even if the current supply was enough to last forever, they can only pump out so much of the stuff, refine it, and distribute it. Once the maximum output is reached what's left is incidental. Just won't matter if it is heavily outweighed by increasing demand.

Money and self-preservation are the names of the game for oil companies, not global warming. Think about it for a moment. What is more of a danger to Exxon in the next ten years, having a product no longer economically feasible with no alternative or a warmer planet? One of those is inevitable, the other isn't. It could very well cool down, who the heck knows with this world we live on. Or it might not be our fault it happened.

No matter the whys and ifs, oil companies must find ways to continue to stay in business long term, and we stand at a threshold where we are beginning to develop somewhat legitimate alternate fuels and get them to the market. One of them, ethanol, or E85, is the first alt out of the gate, a product around for decades that struggles with high prices and a lack of places to fill up. But it's a good fit for Global Warming. It is no accident the industry is eying ethanol production.

In 2005 the Energy Act passes, which provides subsidies for oil companies. But this will not be enough to take the next step, to break into the lucrative manufacturing part of the ethanol industry. More needs to be done.

Enter Shell and its president, Jon Hofmeister, who are in the midst of what they call a "50 City Tour" where they are talking to and listening to the consumers about their energy issues. In an interview in The San Antonio Express News, he was asked how long would it be before biofuel stations were common place:

"There is a debate that I think still has to take place over the growth of biofuel as a primary product - in other words, E85 (a fuel that's 85 percent ethanol and 15 percent conventional gasoline). Do customers want E85? We don't know the answer to that yet.

The reality is that E85 warrants a new infrastructure. Secondly, it gets what some would argue is 20 to 25 percent less miles per gallon. And for most of this year, something like eight months out of 10, the cost of ethanol has been greater than the cost of gasoline. So the questions that the marketplace has to decide is: Are people willing to pay more to get less?"

Probably not unless the price was cheaper. I wonder if he was hinting that if the oil companies can break into the manufacturing end, they could be more efficient at production. But the lack of infrastructure is one of the hurdles they would face financially.

Hofmeister was later asked about subsidies, and if they would help. His reply:

"If there were not a subsidy for ethanol, I think it would be far less popular as an idea. How long do the American taxpayers pay a subsidy for their fuel needs? And how big will that bill get for the American taxpayer?"

It doesn't matter how big they are because if the people are on your side on an issue like this, they will continue to pay. If enough people think alternative fuels will solve the problem of a warming earth, that's all the industry needs. Get them to want and demand cheaper E85.

Our best interests are not at heart in this situation. Fears of a warming planet and its repercussions are being used as a selling point for Big Oil's entry into the production of ethanol on a large-scale basis.

We can give subsidies so that oil companies can manufacture E85 and maybe gas will be cheaper and we can all feel good that we helped the environment. In the end, though they will get the last laugh if we don't say no to them. They will reap the rewards.

But it's ok because it helps stop Global Warming right?

(Quote source: Vicki Vaughan / San Antonio Express News)