You are right on point here. To generate hydrogen a huge amount of electricity is required, which off course is going to come from either the fossile fuel or the nuclear sources. Ironically, they want to produce cleaner fuel by burning the not-so-cleaner fuels.
It makes me laugh when I read the ads of hand dryers in the wash rooms telling us that hand dryers are much more enivronment friendly because you are not using paper towels which come from trees. To power these hand dryers which suck in a lot of power, we have to burn trees somewhere anyway,
Oil prices rally on news of Saudi king’s death Futures briefly hit record high above $62 a barrel
Oil prices jumped $1 a barrel to a new high Monday after the death of Saudi Arabia’s King Fahd raised concerns about the kingdom’s long-term political stability. King Fahd died early Monday, 1st of August, 2005, after a prolonged hospitalization, the Saudi royal court announced. The power is shifted to 82-year old Crown Prince Abdullah, in the World’s biggest oil producer.
Light sweet crude for September delivery briefly rose as high as $62.30 a barrel on the New York Mercantile Exchange, then retreated to settle at $61.57, a rise of $1. The previous closing high on Nymex was $61.28, set July 6, while the previous intraday high was $62.10. Oil prices are still well below the inflation-adjusted high of about $90 a barrel set in 1981.
With daily global demand expected to average more than 84 million barrels a day and excess production capacity below 2 million barrels per day, traders’ fears about potential output disruptions were also sparked Monday by the anticipated restart of uranium reprocessing in Iran.
More: http://www.msnbc.msn.com/id/5612507/
Fundamentals do not matter when markets are seized by momentum players. Remember the tech bubble? By end of 1999 and early 2000, everything was set for the next fifty years, goldilocks economy was here to stay. Alas, we know that was not to be. Then came the energy trading bubble (Enron), even then people refused to acknowledge that financial trading instruments require strict regulatory authorities and even companies like Enron can make a mistake. What happened post Enron debacle is part of history.
As long as we have markets, human beings will speculate and create new bubbles. Energy also resembles another bubble, though smaller in nature. High energy prices over the last few years have driven capex budgets higher for public and national companies who have embarked on adding new supplies. When will this happen? Probably very soon. Fact is, free markets have self-correcting mechanisms and we are experiencing a perfect storm in the form of higher prices which will determine a natural ceiling for demand and at the same time create enough cash for redeployment back into the industry. What comes first, economic slowdown in the form of a recesion or new supply is the million dollar question. But the end result will remain the same ie energy markets are overheated and need to take a backseat.
Round two began today, Halliburton, Nabors drilling, and Carbo Prop.
Halliburton is trying to increase their prices globally and has a very agressive marketing campaign. Nabors have won a few major contracts, they will be sending about 50 drilling and workover rigs to Saudi Arabia, with the increased activity in fracturing, carbo prop, maker of proppant that is pumped in the formation during a fracture job is selling tons and tons of their 20/20 mesh proppant.
I just bought a Civic SI, damn happy I never went with an SUV, cause I was thinking about a Grand Cherokee or Xterra, but man gas is a complete rip off these days. I dont see things changing anytime soon. I'm not sure what the break even point is where a hybrid will start paying for itself,,, anyone know?