More Related Content
Viewers also liked
Viewers also liked (15)
Recently uploaded
Recently uploaded (20)
Ending Oil Addiction
- 1. Fuel Freedom Foundation, September 2011
- 3. Money and Power: How much is too much? What? … … That’s it? $7T World Gold
- 4. Money and Power: How much is too much? Yes, it is only 7 trillion dollars. You should have asked for all the money in all the banks in the world. . $7T World Gold
- 5. Money and Power: How much is too much? Yes, it is only 7 trillion dollars. You should have asked for all the money in all the banks in the world. . $14T $7T World Gold All Bank Deposits
- 6. Money and Power: How much is too much? That still does not seem like much. How about owning the shares of all the public companies? $14T $7T World Gold All Bank Deposits
- 7. Money and Power: How much is too much? That still does not seem like much. How about owning the shares of all the public companies? $58T $14T $7T World Gold All Bank Global Market Cap Deposits of Listed Co.
- 8. Money and Power: How much is too much? You know what’s funny? If you really want to own something, you should have chosen to be the owner of all the debt from every government in the world. (Although I am not sure what it would really be worth…) $58T $14T $7T World Gold All Bank Global Market Cap Deposits of Listed Co.
- 9. Money and Power: How much is too much? $102T $58T $14T $7T World Gold All Bank Global Market Cap World Gov. Deposits of Listed Co. Debt
- 10. Money and Power: How much is too much? Genie, Is that the most anyone can own? $102T $58T $14T $7T World Gold All Bank Global Market Cap World Gov. Deposits of Listed Co. Debt
- 11. Money and Power: How much is too much? Not even close. There is one thing that is worth more than all the financial $102T instruments in the world. WORLD OIL RESERVES! $58T $14T $7T World Gold All Bank Global Market Cap World Gov. Deposits of Listed Co. Debt
- 12. Money and Power: How much is too much? $102T $132,000,000,000,000 $102T $58T $14T $7T World Gold All Bank Global Market Cap World Gov. World Oil Deposits of Listed Co. Debt Reserves
- 13. Money and Power: How much is too much? $102T Oh My... $132,000,000,000,000 $102T $58T $14T $7T World Gold All Bank Global Market Cap World Gov. World Oil Deposits of Listed Co. Debt Reserves
- 15. Petroleum has a monopoly on transportation fuel Transportation is the driver of world commerce World commerce is the driver of the global economy Conclusion: Petroleum has a monopoly on the global economy When you have a monopoly on the global economy you can name your price!
- 16. Everything you need to know about US energy use at a glance…
- 17. US Energy Flow – Cost, Sources and Use, 2010 Supply Sources Demand Sectors Domestic Petroleum Transportation is our Cost: ~$200B most fuel intensive sector with 52% of the cost Transportation Cost Cost: $370B 52% Imported Petroleum Cost Cost: ~$300B 70% Biofuels Cost:~$5B Industrial 23% Cost: $165B Natural Gas 21% Cost: ~$150B Residential & Commercial 11% $80B Coal: ~$30B 4% Electric Power Renewables & Nuclear 14% 4% Cost: $101B ~$30B Data from the Dept. of Energy
- 18. US Energy Flow – Cost, Sources and Use, 2010 Supply Sources Oil is used mostly for Demand Sectors transportation. Only Domestic Petroleum 1% is used to generate Cost: ~$200B electricity. 94% Transportation Cost Cost: $370B 72% 52% Imported Petroleum Cost 3% Cost: ~$300B 70% 1% 3% Biofuels Cost:~$5B Industrial 23% Cost: $165B Natural Gas 21% Cost: ~$150B Residential & Commercial 1% 11% $80B Coal: ~$30B 4% Electric Power Renewables & Nuclear 14% 4% Cost: $101B ~$30B Data from the Dept. of Energy
- 19. US Energy Flow – Cost, Sources and Use, 2010 Supply Sources Demand Sectors Transportation uses oil Domestic Petroleum almost exclusively! Cost: ~$200B 94% Transportation Cost Cost: $370B 72% 52% Imported Petroleum Cost 3% Cost: ~$300B 70% 1% 3% Biofuels Cost:~$5B Industrial 23% Cost: $165B Natural Gas 21% Cost: ~$150B Residential & Commercial 1% 11% $80B Coal: ~$30B 4% Electric Power Renewables & Nuclear 14% 4% Cost: $101B ~$30B Data from the Dept. of Energy
- 20. US Energy Flow – Cost, Sources and Use, 2010 Supply Sources Demand Sectors Domestic Petroleum Cost: ~$200B 94% Transportation Cost Cost: $370B 72% 52% Imported Petroleum Cost 3% Cost: ~$300B 70% 1% 3% Coal, nuclear and renewables, a mere Biofuels 8% of our national fuel Cost:~$5B budget, generate 81% Industrial 23% of our electricity. Cost: $165B Natural Gas 21% Cost: ~$150B Residential & Commercial 1% 11% $80B 48% Coal: ~$30B 4% Electric Power Renewables & Nuclear 33% 14% 4% Cost: $101B ~$30B Data from the Dept. of Energy
- 21. US Energy Flow – Cost, Sources and Use, 2010 Supply Sources Demand Sectors Domestic Petroleum Cost: ~$200B In other words, our energy 94% Transportation Cost Cost: $370B 72%problem is 52% Imported Petroleum Cost 3% 70% petroleum-for- 3% Cost: ~$300B 1% transportation, NOT coal-for- electricity Biofuels Cost:~$5B Industrial 23% Cost: $165B Natural Gas 21% Cost: ~$150B Residential & Commercial 1% 11% $80B 48% Coal: ~$30B 4% Electric Power Renewables & Nuclear 33% 14% 4% Cost: $101B ~$30B Data from the Dept. of Energy
- 22. On the red corner we have the “Drill Baby Drill” and nuclear energy On the blue corner we have the global warming with solar and wind Who is right?
- 23. New mass urbanization in China is driving oil demand at a breakneck pace But new oil is harder to find, takes longer to develop and requires a lot more capital Even with the current record level of domestic drilling oil is still too expensive
- 24. Not really… There may be a 1,000 years of oil supply at $1,000 a barrel The question is how much oil is there at $50 a barrel ? $50 a barrel is equal to gasoline at $2.50 per gallon and to the current cost of gasoline alternatives
- 25. PETROLEUM COAL Use: transportation Use: electricity Direct cost: ~$500 billion Direct cost: ~$30 billion Greenhouse: #1 emitter Greenhouse : #2 emitter Urban pollution: #1 Urban pollution: >#2 Substitutions: cheap Substitutions: expensive Production: 60% import Production: 0% import Supply risk: high Supply risk: very low Out of control pricing: This decade In 200 years
- 26. Nuclear power generates clean electricity It is a replacement for coal, not for oil Solar power generates clean electricity It is a replacement for coal, not for oil Wind power generates clean electricity It is a replacement for coal, not for oil
- 27. If the red corner doesn’t get it… …and the blue corner doesn’t get it… … What do we do? We need to break oil’s monopoly on transportation…
- 28. Natural Gas Methanol Ethanol Biomass Electricity Algae Algae
- 29. All are domestically produced All generate American jobs All emit less greenhouse gases And… all are less expensive than gasoline So how come the price signal fails to change the market? Remember oil’s monopoly on transportation? Turns out there is more than one monopoly…
- 30. Gas Stations’ Petroleum Exclusive Only Cars Relationship with Big Oil Emissions Regulations
- 31. Open the Car Fuel Supply to Other Competition Fuels Simplify Emissions Regulations
- 32. Require new cars to be GEM (Gasoline, Ethanol, Methanol) flexible fuel known as Open Fuel Standard Continue the support structure for early adopters of plug-in hybrids and electric cars Encourage fleets and long distance haulers to convert to Compressed Natural Gas or methanol Remove regulatory barriers for increased fuel efficiency
- 33. Require oil companies to buy all types of American fuels, rather than paying them to add ethanol Use legal action to break the fuel supply collusion √ Phase out tariff on imported ethanol Remove regulatory barriers for a national methanol industry (from natural gas)
- 34. Update EPA regulations and vehicle warranty rules to allow Use of various fuel combinations and CNG Use of aftermarket conversion kits Use of locally produced fuels Use of aftermarket fuel efficiency accessories
- 35. What about electric cars?
- 36. Electric cars are the long-term solution Battery production ramp-up time can be as long as 20 years What is the chance of major oil shocks within the next 20 years? We need interim solutions in the form of alternative liquid fuels
- 37. Don’t we run into the issue of food vs. fuel?
- 38. From 2005 to the middle 900 of 2008 it seemed that 350 800 there was a correlation 300 700 between ethanol production and corn price 250 600 500 200 400 150 300 100 200 50 100 0 0 Monthly ethanol production (1k bbls) (left axis) Crude Oil (petroleum) - Monthly Price Maize (corn) - Monthly Price per ton
- 39. All the while ethanol production continued 900 350 to increase 800 300 700 250 600 500 200 400 150 300 100 200 50 100 0 0 Monthly ethanol production (1k bbls) (left axis) Crude Oil (petroleum) - Monthly Price Maize (corn) - Monthly Price per ton
- 40. However, this correlation was a mirage - once oil price 900 collapsed so did the 350 800 price of corn 300 700 250 600 500 200 400 150 300 100 200 50 100 0 0 Monthly ethanol production (1k bbls) (left axis) Crude Oil (petroleum) - Monthly Price Maize (corn) - Monthly Price per ton
- 41. 900 350 800 A recent World Bank study 300 700 showed that energy cost is 250 600 the largest variable in farming, therefore the price 200 500 of food tends to fluctuate 400 with the price of oil 150 300 100 200 50 100 0 0 Monthly ethanol production (1k bbls) (left axis) Crude Oil (petroleum) - Monthly Price Maize (corn) - Monthly Price per ton
- 42. We are not advocating for ethanol or methanol We are not advocating for electric cars We are not advocating for CNG We know we need reliable domestic oil production But… More than anything, we need to open the fuel market to competition Competition will free the American innovative spirit to find better, cheaper, less polluting solutions
- 43. Doing nothing could: Bring $200 oil and the specter of the Greater Depression Trigger a global resource warfare Reducing our oil burden by half while switching to American fuels would: Save the US consumers over $4 trillion a decade Increase US global competitiveness Increase GDP growth by an extra 1% a year Free 15%-30% of the US defense budget
- 45. “I pledge that my next car will be a Fuel Freedom Car capable of running on something other than petroleum” FuelFreedom.org
Editor's Notes
- One day I went to the beach and I found a lamp. That’s what you do in California all the time. And then there was a genie. We get those a lot, over there. We’re in Hollywood you know. So anyway, I said all the wishes and stuff and then for my final wish I asked, “Can I have all the gold in the world?”
- He said, “Well that’s about 7 trillion dollars. That’s the value of all the gold in the world.” So I said, “Alright, is that all I can have? That doesn’t sound like much. Probably I could have a little bit more?” He said, “Yeah, you can have all the bank deposits in the world. That’s about 14 trillion dollars.” That sounded like a pretty good number to have already. I may be able to do something with it. So I said, “Genie maybe I could get more?” So let’s find out what else can I get. Is there something more I can get? Let’s say you wanted to get the market cap of all the companies around the world. How much is it all together? That’s already a larger number, 58 trillion. That’s a pretty good number out there. So I was about ready to rest, but then the genie said, “You know, if you really want to own something, you should own all the government debt in the world.” I’m not sure how much that will be worth even if I wanted to own it, but you know how much that is? It’s $102 trillion. Total worldwide government debt. Wait, so is that all I can own? Is it the most? No, the most you can own is the world’s oil reserves. That’s the number translated into dollars. Not mystic oil - dollars - $132 trillion. That’s the value of the world oil reserves.
- He said, “Well that’s about 7 trillion dollars. That’s the value of all the gold in the world.” So I said, “Alright, is that all I can have? That doesn’t sound like much. Probably I could have a little bit more?” He said, “Yeah, you can have all the bank deposits in the world. That’s about 14 trillion dollars.” That sounded like a pretty good number to have already. I may be able to do something with it. So I said, “Genie maybe I could get more?” So let’s find out what else can I get. Is there something more I can get? Let’s say you wanted to get the market cap of all the companies around the world. How much is it all together? That’s already a larger number, 58 trillion. That’s a pretty good number out there. So I was about ready to rest, but then the genie said, “You know, if you really want to own something, you should own all the government debt in the world.” I’m not sure how much that will be worth even if I wanted to own it, but you know how much that is? It’s $102 trillion. Total worldwide government debt. Wait, so is that all I can own? Is it the most? No, the most you can own is the world’s oil reserves. That’s the number translated into dollars. Not mystic oil - dollars - $132 trillion. That’s the value of the world oil reserves.
- He said, “Well that’s about 7 trillion dollars. That’s the value of all the gold in the world.” So I said, “Alright, is that all I can have? That doesn’t sound like much. Probably I could have a little bit more?” He said, “Yeah, you can have all the bank deposits in the world. That’s about 14 trillion dollars.” That sounded like a pretty good number to have already. I may be able to do something with it. So I said, “Genie maybe I could get more?” So let’s find out what else can I get. Is there something more I can get? Let’s say you wanted to get the market cap of all the companies around the world. How much is it all together? That’s already a larger number, 58 trillion. That’s a pretty good number out there. So I was about ready to rest, but then the genie said, “You know, if you really want to own something, you should own all the government debt in the world.” I’m not sure how much that will be worth even if I wanted to own it, but you know how much that is? It’s $102 trillion. Total worldwide government debt. Wait, so is that all I can own? Is it the most? No, the most you can own is the world’s oil reserves. That’s the number translated into dollars. Not mystic oil - dollars - $132 trillion. That’s the value of the world oil reserves.
- He said, “Well that’s about 7 trillion dollars. That’s the value of all the gold in the world.” So I said, “Alright, is that all I can have? That doesn’t sound like much. Probably I could have a little bit more?” He said, “Yeah, you can have all the bank deposits in the world. That’s about 14 trillion dollars.” That sounded like a pretty good number to have already. I may be able to do something with it. So I said, “Genie maybe I could get more?” So let’s find out what else can I get. Is there something more I can get? Let’s say you wanted to get the market cap of all the companies around the world. How much is it all together? That’s already a larger number, 58 trillion. That’s a pretty good number out there. So I was about ready to rest, but then the genie said, “You know, if you really want to own something, you should own all the government debt in the world.” I’m not sure how much that will be worth even if I wanted to own it, but you know how much that is? It’s $102 trillion. Total worldwide government debt. Wait, so is that all I can own? Is it the most? No, the most you can own is the world’s oil reserves. That’s the number translated into dollars. Not mystic oil - dollars - $132 trillion. That’s the value of the world oil reserves.
- He said, “Well that’s about 7 trillion dollars. That’s the value of all the gold in the world.” So I said, “Alright, is that all I can have? That doesn’t sound like much. Probably I could have a little bit more?” He said, “Yeah, you can have all the bank deposits in the world. That’s about 14 trillion dollars.” That sounded like a pretty good number to have already. I may be able to do something with it. So I said, “Genie maybe I could get more?” So let’s find out what else can I get. Is there something more I can get? Let’s say you wanted to get the market cap of all the companies around the world. How much is it all together? That’s already a larger number, 58 trillion. That’s a pretty good number out there. So I was about ready to rest, but then the genie said, “You know, if you really want to own something, you should own all the government debt in the world.” I’m not sure how much that will be worth even if I wanted to own it, but you know how much that is? It’s $102 trillion. Total worldwide government debt. Wait, so is that all I can own? Is it the most? No, the most you can own is the world’s oil reserves. That’s the number translated into dollars. Not mystic oil - dollars - $132 trillion. That’s the value of the world oil reserves.
- He said, “Well that’s about 7 trillion dollars. That’s the value of all the gold in the world.” So I said, “Alright, is that all I can have? That doesn’t sound like much. Probably I could have a little bit more?” He said, “Yeah, you can have all the bank deposits in the world. That’s about 14 trillion dollars.” That sounded like a pretty good number to have already. I may be able to do something with it. So I said, “Genie maybe I could get more?” So let’s find out what else can I get. Is there something more I can get? Let’s say you wanted to get the market cap of all the companies around the world. How much is it all together? That’s already a larger number, 58 trillion. That’s a pretty good number out there. So I was about ready to rest, but then the genie said, “You know, if you really want to own something, you should own all the government debt in the world.” I’m not sure how much that will be worth even if I wanted to own it, but you know how much that is? It’s $102 trillion. Total worldwide government debt. Wait, so is that all I can own? Is it the most? No, the most you can own is the world’s oil reserves. That’s the number translated into dollars. Not mystic oil - dollars - $132 trillion. That’s the value of the world oil reserves.
- He said, “Well that’s about 7 trillion dollars. That’s the value of all the gold in the world.” So I said, “Alright, is that all I can have? That doesn’t sound like much. Probably I could have a little bit more?” He said, “Yeah, you can have all the bank deposits in the world. That’s about 14 trillion dollars.” That sounded like a pretty good number to have already. I may be able to do something with it. So I said, “Genie maybe I could get more?” So let’s find out what else can I get. Is there something more I can get? Let’s say you wanted to get the market cap of all the companies around the world. How much is it all together? That’s already a larger number, 58 trillion. That’s a pretty good number out there. So I was about ready to rest, but then the genie said, “You know, if you really want to own something, you should own all the government debt in the world.” I’m not sure how much that will be worth even if I wanted to own it, but you know how much that is? It’s $102 trillion. Total worldwide government debt. Wait, so is that all I can own? Is it the most? No, the most you can own is the world’s oil reserves. That’s the number translated into dollars. Not mystic oil - dollars - $132 trillion. That’s the value of the world oil reserves.
- He said, “Well that’s about 7 trillion dollars. That’s the value of all the gold in the world.” So I said, “Alright, is that all I can have? That doesn’t sound like much. Probably I could have a little bit more?” He said, “Yeah, you can have all the bank deposits in the world. That’s about 14 trillion dollars.” That sounded like a pretty good number to have already. I may be able to do something with it. So I said, “Genie maybe I could get more?” So let’s find out what else can I get. Is there something more I can get? Let’s say you wanted to get the market cap of all the companies around the world. How much is it all together? That’s already a larger number, 58 trillion. That’s a pretty good number out there. So I was about ready to rest, but then the genie said, “You know, if you really want to own something, you should own all the government debt in the world.” I’m not sure how much that will be worth even if I wanted to own it, but you know how much that is? It’s $102 trillion. Total worldwide government debt. Wait, so is that all I can own? Is it the most? No, the most you can own is the world’s oil reserves. That’s the number translated into dollars. Not mystic oil - dollars - $132 trillion. That’s the value of the world oil reserves.
- He said, “Well that’s about 7 trillion dollars. That’s the value of all the gold in the world.” So I said, “Alright, is that all I can have? That doesn’t sound like much. Probably I could have a little bit more?” He said, “Yeah, you can have all the bank deposits in the world. That’s about 14 trillion dollars.” That sounded like a pretty good number to have already. I may be able to do something with it. So I said, “Genie maybe I could get more?” So let’s find out what else can I get. Is there something more I can get? Let’s say you wanted to get the market cap of all the companies around the world. How much is it all together? That’s already a larger number, 58 trillion. That’s a pretty good number out there. So I was about ready to rest, but then the genie said, “You know, if you really want to own something, you should own all the government debt in the world.” I’m not sure how much that will be worth even if I wanted to own it, but you know how much that is? It’s $102 trillion. Total worldwide government debt. Wait, so is that all I can own? Is it the most? No, the most you can own is the world’s oil reserves. That’s the number translated into dollars. Not mystic oil - dollars - $132 trillion. That’s the value of the world oil reserves.
- He said, “Well that’s about 7 trillion dollars. That’s the value of all the gold in the world.” So I said, “Alright, is that all I can have? That doesn’t sound like much. Probably I could have a little bit more?” He said, “Yeah, you can have all the bank deposits in the world. That’s about 14 trillion dollars.” That sounded like a pretty good number to have already. I may be able to do something with it. So I said, “Genie maybe I could get more?” So let’s find out what else can I get. Is there something more I can get? Let’s say you wanted to get the market cap of all the companies around the world. How much is it all together? That’s already a larger number, 58 trillion. That’s a pretty good number out there. So I was about ready to rest, but then the genie said, “You know, if you really want to own something, you should own all the government debt in the world.” I’m not sure how much that will be worth even if I wanted to own it, but you know how much that is? It’s $102 trillion. Total worldwide government debt. Wait, so is that all I can own? Is it the most? No, the most you can own is the world’s oil reserves. That’s the number translated into dollars. Not mystic oil - dollars - $132 trillion. That’s the value of the world oil reserves.
- He said, “Well that’s about 7 trillion dollars. That’s the value of all the gold in the world.” So I said, “Alright, is that all I can have? That doesn’t sound like much. Probably I could have a little bit more?” He said, “Yeah, you can have all the bank deposits in the world. That’s about 14 trillion dollars.” That sounded like a pretty good number to have already. I may be able to do something with it. So I said, “Genie maybe I could get more?” So let’s find out what else can I get. Is there something more I can get? Let’s say you wanted to get the market cap of all the companies around the world. How much is it all together? That’s already a larger number, 58 trillion. That’s a pretty good number out there. So I was about ready to rest, but then the genie said, “You know, if you really want to own something, you should own all the government debt in the world.” I’m not sure how much that will be worth even if I wanted to own it, but you know how much that is? It’s $102 trillion. Total worldwide government debt. Wait, so is that all I can own? Is it the most? No, the most you can own is the world’s oil reserves. That’s the number translated into dollars. Not mystic oil - dollars - $132 trillion. That’s the value of the world oil reserves.
- same