Exxon Mobil once again sets the record for the highest corporate quarterly profits ever for any business in history, beating themselves. This is called profiteering because if they only raise prices in response to underlying costs then their profits should not rise. They are intentionally racking up the biggest gains they can because their scenarios undoubtedly show a fall off down the road.

OPEC announced that they will not increase production or artificially lower prices despite our President getting his hands and knees and piteously begging them to. Reason? See above.

The population of the planet will grow by 50% in the next 40 years and they are all going to expect better living conditions, as is their right. If you think oil prices are high now imagine when there are 3 billion more people using it.

Meanwhile, a new solar film plant, one of the largest solar manufacturing plants in the world, was opened by NanoSolar in California and they announced that their entire next 18 months of production are sold out. To whom, you may ask. The answer is the country of Germany which intends to have solar on every building in the country, regardless of current high costs. They intend to wean the entire country off of oil, coal and nuclear. Visionary yes, practical here? Nope, we can’t even set emissions standards in states where everyone wants them because the EPA chief overrules his own experts and forbids it.

In a world where senior executives make so much money, regardless of performance, there is no incentive whatsoever to take a long term perspective when building a business. I’d even argue that when a CEO has hundreds of millions in personal net worth, running the business is nothing more than a game. I often wonder if these people ever think of the world their grandchildren will inherit. Probably not because those grandchildren will be completely insulated from reality by their own inherited money.

Our politicians and leaders of society know these things- that is why they are going overboard trying to enrich themselves and their friends as soon as possible. This cannot mesh with the greater needs of the planet as a whole.

I hear derisive laughter from the sheiks and the boardrooms.

The title of this post is a subject that will dominate the news this year on climate change. For all intents and purposes the debate on the human causes of warming is over and irrelevant; the time for accelerated action, both personal and global, is here. This blog will no longer engage in arguments regarding the reality of climate change or its causes- the evidence is everywhere and its stature as a global catastrophe is equally evident. The energy put into arguing and denial campaigns needs to be redirected into useful actions designed to slow and eventually reverse the process.

National politics offers very little in the way of actions or financing of these efforts. Climate change is not a national issue, it is a global issue. Weather, flooding, droughts, fires, rising oceans, warming, water issues and cooling have no respect for for borders. The only border that contains this change is the thin atmosphere of our small planet and it encompasses all of us as humans equally. Money may buy individuals some reprieve but no matter how wealthy you are you cannot protect your grandchildren from a world that will little resemble the one we have enjoyed and abused.

Economics will be the driving factor in combating climate change. Savvy business managers and investors know that crisis always represents opportunity to grow and profit. The rising real cost of gas and home heating fuels is finally bringing energy innovation into the forefront as entrepreneurs and scientists see the opportunity to provide innovation as a solution and a means to grow rich. Market forces are already creating change that activists and politicians were helpless to accelerate.

While our President belatedly realizes the awful mess he has created with his short-sighted energy policies and goes begging to Middle Eastern Oil countries, the markets are adapting. The fact that a conservative President is so ignorant of market reality that he thinks the sheiks can simply change prices is appalling but offers obvious backing for the reality of markets as the drivers of change- prices are not up because of Arab greed, they are up because massive new sources of demand, principally India and China, have appeared.

The only solutions to escalating energy demand and growing carbon and greenhouse gas emissions are in technological innovation combined with market regulating systems like carbon credit trading. Both work because both represent opportunities for profit. It would be nice to believe in an altruistic business rationale that takes responsibility for long term consequences of decisions made today, however the profiteering of the oil companies in recent years and short-sighted lobbying against even mild CAFE standards by automakers are just two examples of why we cannot expect anything but growth and profit to really force change.

The fortunate conclusion of this idea is that markets can force change and speed to market often determines success. Those who solve the big problems in energy, sustainability, reduction and elimination of carbon, population issues and more will be the titans of the next century. I only hope it’s not too late and they are not too greedy in the short term like those who have gone before them.

And I’m wondering what price will initiate real change. The recent protests in Burma against the military oppressive government weren’t triggered by human rights abuses, they were the result of the government removing their artificially low gas prices (under 10 cents a gallon). Overnight it became virtually impossible to afford to drive. This triggered an entire country to rise and confront their government on a wide range of issues.

Recent earnings reports from the big oil companies had their results down sharply from the year before (when they recorded the highest profits in history for any kind of company). Ask yourself why? My answer?

They have been intentionally keeping gas prices at the pump from rising as oil prices have risen because they know the social implications of a sharp rise. One economist estimates that a $10 rise in oil should increase retail gas prices by 2.2 cents a gallon. Oil has risen almost $50/gallon without a related rise in gas prices over the past year. However, on the heels of these earnings reports and the extremely unstable political situation in the Middle East (Kurds and Turks fighting, Musharraf showing his true thug nature, Israel and Hamas fighting, sword-rattling between us and Iran…) we’re finally seeing prices rise. High test today was $3.47! Now these are New York state prices that include high taxes but…

So oil is nearing $100/barrel which puts the true cost, adjusted for inflation, higher than at our worst point during the Arab oil crisis of the seventies. I’m old enough to remember gas lines, rationing and an uptake in public transportation. I imagine that these things won’t happen until we hit $5 because we’re slightly more efficient mileage-wise than we were then. But only slightly, thanks to the insane lobbying to keep gas-guzzling behemoths legal by the US auto industry.

We could easily be driving 100 MPG vehicles today. If we were, we wouldn’t be at war in the Middle East, we’d be in a position to tell the Saudis to stop this fundamentalist craziness, we’d be an example in fighting climate change for the rest of the world and we’d be creating a better world for our grandchildren.

So bring on the $5/gallon gas if that’s what it takes to wake us up.

BTW, GM posted a $39 billion dollar loss today. This would never have happened if they had any real strategic long-term planning instead of the afore-mentioned lobbying and reliance on old technology instead of innovation.

Residents of Atlanta, Georgia may open their taps in the next month and have nothing come out. 14,500 lawn and landscape workers have been laid off because there is no water. The state has done nothing to deal with the crisis except for asking residents to ‘take shorter showers’. (!) Real estate developers have built like crazy and were never required to prove there was enough water to support the development.

North Carolina today asked its residents to halve their water use through Halloween so the state can evaluate its ability to handle a water crisis.

300,000 Southern Californians (update- make that 500,000) flee fires that cannot be fought because of Santa Ana winds, extreme drought conditions and large amounts of dead, dry brush. Thousands of homes will be lost.

The Great Lakes are down seven inches from their normal levels due to very dry winters. Each inch of loss means that 8000 tons of raw materials that drive manufacturing in the region cannot be shipped this year because of the danger of shipping running aground.

In Canada’s West glaciers are rapidly disappearing. These glaciers supply the lakes and rivers that are the primary water sources for huge farms. The permafrost on the mountains is melting so that snow runoff, instead of running into the streams, is being absorbed by the ground, accelerating the losses to the water sources.

The Colorado river is drying up. It is the only supply of water for the entire South West including much of Mexico as underground aquifers are no longer viable. Yet there have been 300 hundred golf courses built in the region in the last five years.

These stories are all current today. In each case there is no man-made solution, no emergency action we can take to fix the problem. Nor are we doing anything about this- not a thing. We are building housing like crazy in areas that have no regional water sources. A study released today shows that carbon emissions worldwide have risen drastically since 2000, much faster than expected. Again, we are doing nothing.

No matter how rich we are here in North America, we cannot sustain life without water. We have no infrastructure to produce water where there is no natural source and building such an infrastructure would mean mustering hundreds of billions of dollars and a solid political consensus that understands the emergency nature of the problem. Not much chance of that taking place.

I have friends who tell me they can’t read this blog too often because it is depressing. I have held off on blogging because there is too much climate change news every day. It is obvious that this thing is upon us full force yet there is still denial at the very center of power. We have to reach these people somehow and get their attention. Perhaps having dry faucets in the thousands of McMansions around Atlanta will wake a few people up.