Energy in focus: China-US talk energy cooperation, while US House of Rep pushes national renewable energy plan and Bush moves to end offshore oil ban

Two developments in the energy sector warrant attention, and two which are unfolding in parallel with one another.

I apologize for a slowdown in updates as of recent, took a bit of a mental break yesterday and was dragged into the Eurocup 2008 when I should have been working.

First, headlines from most major media have reported Chinese and US leaders are meeting in Annapolis, Maryland to discuss energy cooperation. A positive move in the right direction, as described by the attendees, it is about the time to two largest net importers of energy discuss ways to better manage energy supplies and cooperation around the world for the general good of the global economy.

Visiting Chinese Vice Premier Wang Qishan (front L) shakes hands with U.S. Treasury Secretary Henry Paulson (front R) at the opening ceremony of the 4th round of China-U.S. Strategic Economic Dialogue in Annapolis, Maryland, the United States of America, June 17, 2008. China and the United States on Tuesday started here their 4th round of Strategic Economic Dialogue. (Xinhua/Yao Dawei) <-- click here for full story from Xinhua Media.



There is also talk in the House of Representatives for renewing a bill which promotes the development of more sources of renewable energy. As reported by C-SPAN

"Despite federal initiatives going back to the 1970's, renewable electricity makes up less than 3% of the generation mix in the U.S. Sen. Jeff Bingaman (D-NM) chairs a Senate Energy & Natural Resources Committee hearing to discuss the challenges and regional solutions to developing transmission for renewable-electricity resources."

Third, this morning good old President G. Bush made headlines saying he wants to lift the currently in place bans on offshore oil drilling. (See Reuters Article here)

In Washington, the White House press secretary, Dana Perino, said Mr. Bush would urge Congress to “pass legislation lifting the Congressional ban on safe, environmentally friendly offshore oil drilling,” adding, “The president believes Congress shouldn’t waste any more time.”

For a full report check out the article published by today's New York Times. You can view the complete article written by reporter Sheryl Stoleberg by clicking on this link.

My reaction from all these developments, is simply that every side is reacting irrationally to the fact we're paying 4+ / gallon at the pumps. Action does need to be taken, but as many steps forward in one direction, usually following the policy / plan of one side of the political spectrum (either Republican or Democrat), the other side has a tendency to denounce the other sides plans almost immediately. I am far from an expert on the US energy sector, so whether the democrats of republicans have a better plan to help the US with its energy demands, I truly do not know. However, it will definitely be better than Bush's promises that gas prices would go down after the war in Iraq... hehe

As soon as Bush made this proposal, of course Nancy Polosi immediately responded in kind, telling reporters "The president’s proposal sounds like another page from the administration’s energy policy that was literally written by the oil industry: give away more public resources to the very same oil companies that are sitting on 68 million acres of federal lands they’ve already leased.”