Apparently corporate ad agencies have realized that despite the millions they’ve spent on denial campaigns, people aren’t buying it. So they’ve changed their messaging. I can’t be critical of this, though I certainly am cynical about what it really means. However there is huge money in developing a new global infrastructure for energy. In developed countries like the US and the EU, this means a new grid and energy efficient transportation, not mention renewables. In under-developed countries it gets more interesting. The correct analogy is the spread of mobile phones.

Before affordable mobile phones, people in poor countries had no means of communicating with each other. Telephone lines and switches were primitive and costly and there was no incentive for telecom companies to invest in these poor economies. So, as mobile phones became ubiquitous even in these countries, it became obvious that they don’t require the networked telecom grids. Just build towers which is far cheaper than running fiber to houses and businesses. They are not tied to telecom grids.

The same will happen with energy. Solar, wind, geothermal, etc. can be localized to a building or a village. It does not require a physical link to a power plant hundreds of miles away. This means that we should see rural electrification in places like Africa which will help them pull out of the vicious cycle of poverty.

The awakening of the corporate giants to energy opportunity that is not tied to fossil fuels will be slow. However their futurists know that the current model is unsustainable, not just on supply issues but also because the vast majority of oil comes from regions that are politically unstable (Iraq, Iran, Venezuela, etc.). As the supply shrinks, the use of oil as an economic weapon will increase, creating instability in oil markets worldwide. Without a serious effort to provide alternative sources on both a national and local level worldwide, we will see wars waged over fossil fuels. As it is, a lot of us believe that the jihad being waged now is really about distribution of energy.

A number of things reinforce this beyond those things he covers in his op-ed piece. First, much of the world’s oil production takes place in extremely unstable geopolitical regions. Exxon Mobil has shut down its 800,000 barrel a day Nigerian sources due to strikes. A UK union strike has shut down a BP oil pipeline that supplies one quarter of that country’s oil. Oil production in Iraq is corrupt and undependable due to the war, Iraqi incompetence and the US failure to modernize and repair war damaged facilities. Venezuala’s Chavez sees oil as a weapon to advance his nutty authoritarian agenda. And on and on.

Demand worldwide has skyrocketed and this will only increase. It appears that we have reached the tipping point on oil energy costs. A doubling of fuel prices means a doubling of the cost of virtually everything else except wages. And there is no going back.

Get ready for $5/gallon gas (which Bush won’t know about until a reporter asks him).

Today oil passed the inflation-adjusted high reached during the Arab Oil Crisis of the late seventies and early eighties. World stock markets are in a tailspin. The House of Representatives have passed a bill ending $17 billion in handouts to oil companies (who made $146 billion in profits last year) and moving that money into alternative energy tax credits. These credits are critical to encouraging rapid development of sustainable energy alternatives that can help us end our oil addiction. Yet Republicans in the Senate are blocking this bill and the President is threatening a veto. This partisan block voting is destroying our economy in exchange for short term gain by an industry sector intimately associated with this Administration.