YJ Draiman welcomes innovative renewable energy zone approach which will create 200,000 + new jobs over the next 5-10 years.

An ambitious project that will transform the way universities, business and industry collaborate, and establish Los Angelesas a world leader in the research, development and design of next generation renewable energy technology, was announced today, January 2, 2011. Spearheaded by YJ Draiman and the Economic development agency, Draiman Enterprise, and National Technology Renewable Energy Zone, will be established in the city of Los Angeleswith the Universities of Southern California Technology Innovation Development at its heart.

A large parcel of land will be allocated to set up the renewable energy enterprise zone site, which will be within the boundaries of Los Angeles. There will be an academic center which will be transformed into a center of excellence for academic research, commercialization and industry collaboration.

The renewable energy zone initiative, which would span further than the confines of the City of Los Angeles and include Southern California, is expected to create 200,000 + new jobs over the next 5-10 years and give a boost to the Los Angeles economy through further industry academia collaboration and inward investment.

The developer said: “This new vision of the Renewable energy Technology Innovation Center will be the cornerstone of Los Angeles Technology and Renewable Energy Zone. The developer’s vision for The Renewable energy Zone is to provide a breeding ground for ambitious companies to harness cutting-edge research, access the best people and develop the products which will shape the renewable energy industry of tomorrow.

“Southern California has already claimed a place on the renewables map attracting energy heavyweights and pioneers in the solar and wind sector and we believe that by establishing this zone we will help reinforce Los Angeles position as a location of choice for the rapidly expanding renewables industry.”
Developer said: “The Universities in the Los Angeles area’s Technology and Innovation Center is a transformational project for Los Angeles, building on California’s great tradition of innovating new technologies and developments in fields; including energy and engineering while creating and supporting hundreds of jobs. Through this collaboration, the aim is to quadruple the scale of research program investment in Los Angeles in areas key to economic growth by up to $10 billion + in five to ten years. “And now, as an integral part of Los Angeles Enterprise’s new Technology and Renewable Energy Zone, which aims to establish Los Angeles as a premier location for inward investment into world-leading technology and renewables research and development, we have the potential to deliver huge economic and social benefits, not only in Los Angeles but nationally and beyond.”

The developer said: “The Technology and Innovation for renewable energy zone will help transform Los Angeles and Southern California. By capitalizing on our leading, industry-relevant research, the renewable energy zone will attract billions of dollars of inward investment to the city of Los Angeles, drive global businesses, create jobs, and support the development of our highly-qualified graduates and postgraduates. “As a leading technological hub of Universities, they are committed to sharing knowledge to address challenges that affect every area of society, including energy, health, manufacturing and economics. The renewable energy zone will forge new levels of collaboration between researchers, the public and private sectors to accelerate the pace of research and development and deliver benefit to companies, the economy and Southern California.” The collaborative approach with the Universities, Los Angeles Enterprise and existing pioneering renewable energy leaders means that companies locating in the zone will have access to government support and some of the world’s best industry and academia in the fields of technology, engineering and energy. The project represents a supportive government and business environment where companies locating in and around the zone may be eligible for additional support for job creation, innovation and staff development, delivered through various California Enterprise schemes.

When the need arises we will establish facilities within the existing Zone that offer temporary accommodation for prospective tenants until construction of the research center is complete or, if required, a purpose-built industry engagement building is created within the Zone.
Renewable energy Zone is designed to draw onSouthern California’s existing competitive advantage by providing the right business environment for the renewables industry to continue to grow and further develop. Recent announcements from industry leaders have reinforcedSouthern California’s position as a world leading city in solar, wind research and development. A leader in energy innovation with unrivalled human and natural resources in renewable energy,Southern California is building on its rich history of oil and gas exploration and developing an infrastructure to cement its position as a world class location for international companies looking to invest in renewable energy and Energy efficiency.

“Good leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion”

“It is Cheaper to Save Energy than Make Energy”

YJ Draiman for Mayor ofLos Angeles 

YJ Draiman for Mayor of Los Angeles 2013

YJ Draiman for Mayor – proposes a Los Angeles City government for the people by the people, let us take back our city, it is long overdue to listen and address the concerns of the people of Los Angeles. Implement fiscal responsibility; restore trust and integrity in our government. This starts from the Mayor on down to the rest of government officials.

We must stop wasting revenues and resources, implement efficiency and productivity. These are hard economic times; in order for us to survive, we must take immediate action and implement the necessary actions to lessen the impact.

This starts at the top – “Lead by example”, leadership starts the pattern and the rest will follow.

The peoples brigade for Honest government

Americas financial sustainability begins with Made in America

Americans must wake up and take action to protect our liberty and way of life.

America must rejuvenate itself and become the huge industrial power it once was.

It starts by re-inventing the wheel and building manufacturing facilities in the United States that employ Americans who produce quality goods at a competitive price with space age technology and modernization.

Organized workforce and benefits has to be revamped to meet today’s economic conditions.

Government and its bureaucracy must be reduced and streamlined. Rules and regulations must be revamped to be conducive to business growth and development.

This is a must in order to increase employment and bring backAmerica’s economic vitality.

We could try to give tax incentives for products made inAmerica. It brings revenues and employment, reduces financial drain on the government.
“It is cheaper to save energy than make energy”
YJ Draiman for Mayor of Los Angeles 2013

One of Americas statesmen stated “government is not the solution to our problem; government is the problem.” His presidency ushered in an era of disdain for government and a widespread cynicism that government could be effective in addressing our challenges.

Today, as we confront a crisis that has shaken confidence in our financial system and economy, we have an opportunity to restore public trust and confidence in the legitimate role of government. Indeed, to effectively tackle our economic challenges and to implement the reforms we need in our healthcare, education, energy, and environmental policies, our government will need to garner strong public support.

However, rebuilding public trust will not happen in the face of a pervasive perception that government is not transparent and accountable, cronyism is rampant, and public officials are more interested in helping themselves than in serving the public good.

Taking strong, swift, and decisive action to address abuses and begin to rebuild public trust should be the first priority for our city, state and federal government in the new legislative session.

Create a Task Force on Public Integrity with a mission to develop a comprehensive proposal for ethics and lobbying reform in our city and state. Which addresses reforms in three areas: (1) strengthening enforcement of ethics, campaign finance, and lobbying laws; (2) strengthening civil and criminal penalties for abuses; and (3) improving awareness and education for public officials.

Reinforce honesty, integrity and transparency by government officials as the core requirement to be and stay in office, any violations of these core tenets will cause the removal of the public official and the loss of “all benefits” retroactive. I think we should consider putting public official on a base salary plus commission based on performance.

While the many of our elected officials and government employees are honest, dedicated public servants, the actions of a few create a dark cloud over all.

Taking strong, swift, and decisive action to address these abuses and begin to rebuild public trust should be the first priority for our city, state and federal government in the new legislative session.

“The benchmark of a civilized society is the quality of its justice”

Compiled by: YJ Draiman for Mayor of LA – 2013

PS

We need honest government with integrity.

“Good leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion”

Public confidence in the integrity of the Government is indispensable to faith in democracy; and when we lose faith in the system, we have lost faith in everything we fight and spend for.

As citizens of this democracy, you are the rulers and the ruled, the law-givers and the law-abiding, the beginning and the end.

Change is inevitable. Change for the better is a full-time job.

Action speaks louder than words.

Every age needs men who will redeem the time by living with a vision of the things that are to be.

Freedom is not an ideal; it is not even a protection, if it means nothing more than the freedom to stagnate.

Action speaks louder than words.

An Independent is someone who wants to take the politics out of politics, a person with principles.

“The benchmark of a civilized society is the quality of its justice”

YJ Draiman for Mayor -2013

PS

Voting: In the United States, it is often said that those not voting in elections have no right to complain about the outcome. Voting is extolled as our primary civic duty, and the most legitimate means to express protest.

“A vote for DRAIMAN is a vote for you”

I am motivated by the wish to serve the Los Angeles community and protect our quality of life.  I have the skill, experience, long time community involvement and personal commitment to lead the city.  I will work hard to preserve residents’ priorities and the city’s coffers, during the difficult financial times ahead.  Some of my more specific goals are encouraging economic vitality, preserving and improving the City infrastructure, protecting the quality of our neighborhoods, supporting our open space and bicycle trails programs, working with the Neighborhood Councils and the Chamber to encourage local, innovative green businesses, and proper Urban Planning for Los Angeles, among others.

I previously ran for City Council in District 12.

I decided that to do the job right I must run for Mayor.

I am an Energy/Utility Auditor/Consultant for over 20 years.

I am planning on completing my PHD in Energy Conservation in 2011

I am married to a darling wife, we have two grown children – my oldest son is David Draiman a famous Rock Star with a Band by the name Disturbed, my younger son is a Psychologist doing research.

I am looking forward to being elected and serving the people of the City of Los Angeles.

We must work together as a cohesive force to improve our city.

“Transparency and accountability is my motto”

YJ Draiman for Mayor – 2013

WEB:  www.draimanformayor.org

“To put the world right in order, we must first put the nation in order; to put the nation in order, we must first put the family in order; to put the family in order, we must first cultivate our personal life; we must first set our hearts right.” When you start realizing that you alone are responsible for your own life, then things start getting better. It might be scary at first, because now you do not have anyone else to blame. However, there is a level of freedom associated with taking responsibility for your life. “The price of greatness is responsibility.” There is some point in your life where you can no longer be persuaded by what the crowd is doing. You can no longer feel comfortable with the status quo. You have this feeling deep within you that there is more to life and that, “if it is to be, it is up to me.” That day is a very good day, because you have just learned a major secret to life. You are the creator of your own destiny and only you can make your dreams come true. “Accept responsibility for your life. Know that it is you who will get you where you want to go, no one else.”

Family, Honesty and morality are the foundation of society.

Our current economic crisis is the number one concern of every American. It is time we exercise our constitutional right.

It is a government by the people for the people.  It makes no difference whether you are a Democrat, Republican, Libertarian or any other political affiliation, and it is time America’s citizens take control of their country starting from the city government to the county, state and the federal government. All elected officials must be accountable to their community and its residents. Our current budget crisis was brought about by the current administration – do you want this to continue and lose city services. I am a soldier in the battle to restore fiscal sanity for our district and our city, improve the economic well being of the district and the welfare of all residents.

Capitalism has not failed. The people in charge of the economy have failed Capitalism!!!!! Capitalism has been hijacked by career politicians, who disguise themselves as representatives of the people.

Enough is enough; we need to replace as many incumbents as possible, business as usual must stop here and now, government treasury should not be the personal piggy bank of the politicians.

We need new representatives in our government, representatives whose allegiance is to the residents of their district, representatives who care about Los Angeles surviving the current economic crisis and becoming better for it.

We must reduce big government – The bigger the government the less efficient it is.

Our energy consumption is growing rapidly; we must produce a hundred percent of our energy needs in our own country.

We have the manpower and technology, let us utilize it.

We must encourage new businesses, create more jobs and stabilize the economy.

Government cannot create jobs. Government should be reduced by at least fifty percent, streamline government, enact laws, rules, regulations and taxation that are friendly to small business. Encourage investment in our economy and workforce.

This economic crisis is a national emergency. People are losing their jobs and homes, and we must establish a mechanism similar to the Manhattan project of World War 2, with an all out genuine national effort to resolve the current economic crisis which threatens to destroy our country.

Transparency and accountability is my motto

YJ Draiman for L.A. City Council District 12

(March 8, 2011 Election)

Contact:  yjdraiman@yjdraiman.org   818-366-6999

How to Find Them, Eliminate Them & Get Your Money Back!

If your business still gets its phone service through the old “AT&T and Verizon, etc” local phone company (as opposed to one of the newer competitive phone providers) then you need to double check your phone bill each and every month for charges you did not authorize. You may not know it but the local phone company allows other companies to bill you through your local phone bill. And while the local phone company allows other businesses to bill you through your local phone bill, the local phone company does not verify that the charges being billed to you by the other company are valid. When these unauthorized charges fraudulently appear on your phone bill it’s called “cramming”. Unfortunately you as the business owner or manager are the only one that can spot the unauthorized charges and if you don’t comb over your bill every month to spot these unauthorized charges – you’ll pay for them.

Why does the local phone company allow other companies to pass charges onto your phone bill? “Third-party billing” is supposedly a great convenience in that you only have to pay one bill instead of separate bills for obvious authorized phone related charges like yellow-page advertising in the “real yellow pages”, 411 information calls and long-distance calls from your chosen long distance carrier. Over the years though, some less-than-scrupulous companies have realized that most businesses rarely scrutinize their local-phone bills. To take advantage of this, these companies have come up with elaborate schemes to place

unauthorized charges on your phone bill that you’ll end up paying for without even thinking. Unauthorized

charges you can end up paying for include charges for unwanted (and unused) email accounts, web sites,

directory information calls, directory advertising in obscure publications, voice mail accounts and other

services.

In theory, before these charges can be placed on your phone bill, the company that is originating the third-party billed charges is supposed to have a verification of the order like a voice recording. In reality though,

all the company needs to do to initiate the charge is submit your name and phone number to the billing

entity. The verifications are only required to be produced if a complaint is filed.

To prevent these charges from appearing on you business phone bill it’s helpful to understand the four

parties that make unauthorized third party phone charges a costly reality. Party number one is any

employee who can answer your business phones. The unauthorized charge is rarely random and it usually

happens after one of your company employees gets a telemarketing call. Employees should be instructed to

document and report any overly aggressive telemarketing calls they receive. Party number two is the

telemarketing company that originates the unauthorized charges by trying to get your employee to accept

some service for which you’ll be billed through your local phone bill. Party number three is the third-party

billing company that has billing agreements with your local phone company. The name of the third-party

billing is the one that is prominently displayed on your phone bill. After the third-party billing company’s

name is the name of the company that is originating the unwanted charges. Party number four is your “former Ma Bell” local phone company that collects the unwanted charges (keeps a share for “Ma”) and then passes the rest to the third-party billing company (who keeps a big share) and then passes the balance on to the company that initiated the unwanted charge.

Following are some of the top third-party billing names and unauthorized charge originators you’ll find on

your phone bill. If you see these names on your phone bill you’ll want to call the toll free number listed next to the charge to confirm it’s a charge that’s been properly authorized to be placed on your bill. Following are actual examples that we’ve recently found while auditing business phone bills.

We recommend customers should review any utility bills issued by deregulated utility companies. (In most instances today, consumers are paying higher charges to the deregulated gas and electric supply companies).

All Utility – Energy, gas, electric and water bills should be reviewed for proper reading and tariff.

If you suspect that you have been overcharged ask for detailed explanation and or file a complaint with your State Utility Commission.

Compiled by: Jay Draiman, Utility & Telecom Auditor

Often partial solutions to our problems are presented on the Internet but nobody puts the pieces together. Recently, I have focused quite a bit on the energy issue, and I have found that solutions abound, but the political will to implement them is lacking, or they appear uneconomical because they are, by themselves in fact uneconomical.

A good example of this is wind power penetrating the grid at more than about 20%. By itself taken in isolation, with all other variables ignored; more than about 20% seems impractical because of the variability of wind. But taken with other solutions the picture is quite different.

Our existing electrical grid is mostly an AC grid, the east and the western grids aren’t substantially connected, and overall it’s inefficient, unreliable, and at capacity straining to meet ever growing demands.

If this weren’t the case; if we modernized our electrical grid adding east-west ties and converting all spans longer than 300km to DC transmission, first, doing this alone would be like adding 15% additional generating capacity to the grid without any additional pollution because we could cut the losses from around 17% to around 2%. Moreover, efficient east-west transmission would allow us to distribute the peak load across the time zones requiring less peak capacity and making more efficient use of the capacity we already have, above and beyond grid losses.

If we can utilize geographical diversity with wind generation, something only possible with the modernization of our power grid; then the total capacity available from wind power never falls below about 1/3rd of peak capacity, and then we could, if we choose, simply overbuild capacity and supply our entire electrical needs from wind alone. I’m not advocating wind alone, ideally we’d use a mixture of renewable sources, solar, geo-thermal, ocean-current, ocean-wave, tidal, ocean-thermal, various forms of hydro (there are forms that can capture energy from the movement of river water without dams), etc.

We could generate all of our electricity by wind if we so choose simply by building 3x as much capacity as we need and modernizing the electrical grid. But there is a snag, wind, presently the least expensive method of generating electricity, less so even than coal now, would lose its attractive economics if we had to overbuild by 3x AND if there were no market for that peak power.

Add in some other technologies, for example, we can take electricity, carbon dioxide, and water, and using one of three processes, we can make an alcohol called Butynol (Butynol is manufactured by combining the petroleum gases. isobutylene and isoprene at the extremely low temperature of 100 degree centigrade) which can directly be used as a replacement for gasoline in ordinary gasoline cars. Butynol actually has tremendous advantages over gasoline. Butynol produces only 3% of the hydrocarbon emissions, almost un-measurable carbon monoxide emissions, and greatly reduced nitrous oxides relative to gasoline. It also produces slightly better fuel mileage and power, greatly reduced acidic blow-by products (thereby enhancing engine life) and less waste heat (also enhancing engine life).

We can make Butynol from electricity, carbon dioxide, and water by one of three methods. There exists a kind of reverse fuel cell that was recently invented that uses a catalyst in the presence of electricity to convert carbon dioxide and water to Butynol. That is one method; it’s a method that from what I’ve read Richard Branson paid to have developed to produce Butynol as a renewable jet fuel. However, there are two other methods also that can be used, carbon dioxide can be electrolyzed into oxygen and carbon monoxide, the carbon monoxide can be mixed with steam to form “process gas”, and then in the presence of catalysts, this can be used to create a variety of useful hydrocarbons including Butynol. Lastly, electricity can be used to create sufficient heat to disassociate carbon dioxide into carbon monoxide and oxygen and then the same process that follows electrolysis can be used. The last process has been demonstrated on an industrial scale, I’m not sure if the first processes have made it out of the lab, but they have at least been demonstrated in the lab. Using the latter two processes it is also possible to make synthetic diesel.

If use the electricity generated during times when there is excess capacity to create Butynol, we can replace imported oil used for gasoline and diesel, while at the same time providing a market for the peak electrical production, thereby allowing wind power to be economical even when capacity is overbuilt, and we create a market for the carbon dioxide generated by existing coal and gas fired plants instead of just releasing the carbon dioxide into the air. When the Butynol is burned it will release carbon dioxide, but this is displacing oil that would have been burnt, so the net result will be a reduction in carbon dioxide and if we can bring enough renewable electricity capacity online to eliminate the need for fossil fueled power generation, then we can continue to make Butynol by sequestering carbon dioxide directly from the atmosphere, thus making the process a closed loop resulting in no net carbon dioxide increase.

Any one of these elements by themselves may not be economic; but they are all mutually synergistic and implemented together they could eliminate our dependency upon foreign oil first, and later eliminate our dependency upon fossil fuels (or for that matter abiotic oil) entirely. (Abiotic – generally asserting that oil is formed from magma instead of an organic origin)

We should be doing this, and we should not be doing it ten or fifty years from now, we should be doing it now.

Jay Draiman said…

Water is the source of life – treasure it! R4.
Water is the source of all life on earth. It touches every area of our lives. Without it, we could not thrive — we could not even survive.

Sustainability – “We strive to meet the needs of the present generation without compromising the ability of future generations to meet their own needs”.
We should discourage wastefulness and misuse, and promote efficiency and conservation.
“Conservation is really the cheapest source of supply,”
For the benefit of mankind, maintain the quality of life and preserve the peace and tranquility of world population. Water resources must be preserved – to sustain humanity. We must eliminate wasteful utilization of water, conserve our water sources and implement rigid conservation methods. We should utilize solar and or other source of renewable energy to operate desalinization projects from the oceans. Utilize renewable energy sources to purify and transport the water to its final destination. As world population increases the scarcity of water will become a cause for conflict, unless we take steps now to develop other sources of water for drinking, rainwater harvesting – storm-water and gray-water utilization. Designing of landscaping that uses minimal amount of water.
“With power shortages and a water scarcity a constant threat across the West, it’s time to look at water and energy in a new way,”
To preserve the future generations sustainability, we should look into urban farming – vertical farming. The term “urban farming” may conjure up a community garden where locals grow a few heads of lettuce. But some academics envision something quite different for the increasingly hungry world of the 21st century: a vertical farm that will do for agriculture what the skyscraper did for office space. Greenhouse giant: By stacking floors full of produce, a vertical farm could rake in $18 million a year.
Jay Draiman, Energy and water conservation consultant
June 29, 2008
PS.

Hydro dynamics: forget oil. Sharing freshwater equitably poses political conundrums as explosive and far-reaching as global climate change.
Quoted from other sources
Anyone who has ever stood on a beach and looked out into the vast expanse of an ocean knows that there is a lot of water on this planet. In fact, 70 percent of the Earth’s surface is covered by water. It may seem like water is all around us, but safe, clean, reliable drinking water is not a ceaseless resource. The problems facing drinking water range from failing infrastructure, to climate change, to insufficient supplies.

Personal Conservation
Preserving our water resources is not a job for water industry professionals alone. We all have a vested interest in ensuring that water remains safe, affordable and available. Therefore, each individual American has a responsibility to monitor and control their water use, There are many simple ways for people to reduce excess water use, lower water bills and protect the environment, especially in die spring and summer months, Beyond the standard constraints of watering the lawn only when necessary and washing car wisely by using soap and a bucket of water, some steps include: draining water lines to outside faucets, disconnecting hoses, shutting off outdoor water sources during cold weather and running a small trickle of water on whiter nights to prevent pipe from freezing.
Conclusion:
Water supply management is an issue that affects us all. It may not be apparent to every citizen today, but with climate change and population shifts transforming the United States, it soon will be. Effective solutions need to be put into place today before we are faced with a water crisis. A focus on careful planning, treatments, innovations and conservation measures will help to create stability for long-term water management. Commitment to keeping water at the top of the list for communities and citizens will better prepare us for whatever the future of water holds.

WATER!
The indispensable source of life-without water there would be no industry, no agriculture and, most importantly of all, no life. In dry parts of the world this essential commodity is even more precious. Almost all human actions involve water from taking a shower to reading a newspaper to driving a car or simply eating a sandwich – almost everything we do or touch is somehow related to this precious treasure. We ask that you stop and think how you use water and what you can do to conserve this essential natural resource.
*Water, beliefs and customs,
*Water as a vehicle of the economy,
*Water, source of art and life, irrigation and cultivation.
The people have decided to act to try and develop a real awareness program on the theme of water preservation and distribution in an attempt to help maintain the original purity of rivers and streams.
In many parts of the world water sources and wells are not equally distributed. Water as a source of life can also be at the source of conflict.
Whether we live in India, Iceland or the Atlas… we have always tried to trap and tame water. Dams, pumps, canals, water treatment centers; there are so many different ways to exploit this resource that we often forget how fragile this unique and essential treasure actually is.
Unfortunately, many of the things we do every day can harm our water. That’s why all people and government should be working with municipalities, farmers, business leaders and developers just like you to take action to protect our water and clean it up.
Small changes can make a big difference. This guide outlines practical things we can all do to preserve and protect our water. We all need to be part of the solution.
Concentrated Solar Power, which requires no solar panels at all. It works by concentrating sunlight onto a small pipe using cheap parabolic reflectors. The pipe contains a liquid that’s heated to very high temperatures by the sun and drives a steam boiler that rotates a turbine to generate electricity (much like nuclear power plants, but without the nuclear waste). It’s cheap, low-tech, and far more affordable than solar power. Plus, it can be built in practically any desert, so it doesn’t take up valuable land. As another bonus, when CSP operations are built near the ocean, they can desalinate ocean water as a side effect, providing fresh water for irrigation to grow food. This is the only renewable energy technology I know of that can produce cheap energy, fresh water and crop irrigation all at the same time. Plus, it has no emissions, no toxic chemicals, no nuclear waste and very little environmental impact..
“You can’t escape the responsibility of tomorrow by evading it today” – Abraham Lincoln said it.
“That man is richest whose pleasures are the cheapest” – Henry David Thoreau.
“To waste, to destroy, our natural resources, to skin and exhaust the land instead of using it so as to increase its usefulness, will result in undermining in the days of our children the very prosperity which we ought by right to hand down to them amplified and developed” – Theodore Roosevelt.
“When the ‘study of the household’ (ecology) and the ‘management of the household’ (economics) can be merged, and when ethics can be extended to include ‘environmental’ as well as human values, then we can be optimistic about the future of mankind. Accordingly, bringing together these three E’s is the ultimate holism and the great challenge for our future” – Eugene Odum.

Water, it’s been said, is the “oil of the 21st century” — a commodity whose availability and quality may be subject to both known and unknown influences. For companies, that poses significant risks, and many companies are making water a strategic issue, creating water management plans that include efficiency and conservation as well as contingency plans should water become less available or more costly. Many firms are examining their products, policies, and processes through the lens of a world in which the availability of water becomes a constraint to doing business.

June 29, 2008

Comment  

To be sure water is important to life; it’s one of the first things we look for on another planet when considering whether that planet may or may not be capable of supporting life.

That said; fresh water on Earth is a secondary problem. Water is an issue only to the degree energy is an issue because there is plenty of salt water and energy can turn salt water into fresh water.

You and I disagree with respect to priorities. You make the statement, “As population rises water will become more scarce”.

Well, that’s true; but let’s look at the first part of that equation, “As population rises”, and attack that issue first.

Population doesn’t rise in developed countries with robust economies except through immigration.

The lesson there is, if we can eliminate poverty globally, we’ll eliminate population growth. In my view, this ought to be priority number one because sustainability depends upon a stable population.

Eliminating poverty, even with conservation, is going to require increased energy production and that can’t be accommodated by fossil fuels.

Even worse; the production of fossil fuels has at least temporarily peaked, and even though recent discoveries and new technology will no doubt allow it to continue to grow, no new technology will produce more air; or ocean capable of absorbing carbon dioxide; therefore it’s important that the use of fossil fuels not increase, even if we are capable of doing so.

However, the demand is growing and supply is stable or shrinking, if this issue isn’t addressed immediately we’re looking at a world of economic collapse, widespread hunger, and increased population growth rate.

So we need to consider every option available to replace declining sweet light crude production, we can not, absolutely can not “forget oil” as you suggest.

June 29, 2008   

Our current methods of living are not sustainable

How we make a future for ourselves and our children.

I think if corporate America is serious about energy conservation; it must start with people at the top and roll down from there to the rest of the executives and employees.

In order to accomplish such an important mission as energy conservation every executive and employee has to believe that what he is doing is the right thing.

They must practice the same attitude at home and implement energy conservation at home. This attitude will carry on to the workplace.

First thing that must be done is, each employee should be asked what has he/she done in their own lives to conserve energy, and than if the answer is positive advance the initiative from there, if not an education process must be implemented to drive the process home once this process has been achieved, it will be easier to get everyone to participate in energy conservation.

The motive and behavior has to come from within each individual person – it must become part of a routine practice – it must become a way of life – reducing waste in any form.

In today’s rising cost of energy – conservation must become a national theme.

Jay Draiman, Energy Analyst

Spurred by soaring energy costs, food prices and other goods and services have risen nearly 20 percent or more in the past 20 months — more than double the usual increase.

Commodity prices for corn, wheat, soybeans and other staples have been skyrocketing over the past year to more than double their prices from 2006.

Economists have also pointed toward the growing demand for grains for ethanol and other biofuels, tying the price of corn to the price of oil and increasing the pressure and demand for land use.

“It is important to note the contribution of runaway energy prices to the retail cost of food goods and services. “Transportation, processing and packaging all cost significantly more now than in prior years.”

The snowball effect of soaring energy prices is causing increased prices for all goods and services, from food, medical, construction and other material.

Speculation is often criticized as the cause of surging grain prices. But the current abnormal price increases could not have occurred without firm demand. Indeed, farmers are cultivating cash plants while buyers are seeking cheaper alternatives, forming a chain of price surges.

World food production must rise by 50 percent by 2030 to meet increasing demand.

Biofuels to blame?
The increasing diversion of food and animal feed to produce biofuel, and sharply higher fuel costs have also helped to shoot prices upward, experts say.

The senate and the House should call for expanded funding for weatherization and tax credits for other energy-saving programs, $100 billion for expansion of mass transit systems, $100 billion for renewable energy development and renewable energy projects and $50 billion in bonds for roads, bridges and other transportation projects.

Traders are also at fault

A boom in speculation and trading by investment banks and hedge funds has put our energy markets on steroids. Contract volume in the futures markets has risen by a third in just the last year. Oil closed at a record high of $125.96 a barrel (USO: , , ) on the New York Mercantile Exchange on Friday. That’s double the price two years ago, a difference clearly caused by market manipulation.

This isn’t complicated finance. The way traders push up prices is surprisingly simple. They buy in European futures markets, which don’t have the limits that U.S. markets do. That drives up U.S. prices where they may already have positions. It’s a move to think about next time one of these exchange chiefs talks about all of the benefits of “market globalization.”

None of it would matter except that these markets are supposed to be driven by supply and demand. China and other rapidly growing countries may be using more, or will use more resources, but the reality is that demand and supply haven’t changed enough to warrant the price of oil doubling in less than three years.

Hedge Funds and Banks driving oil prices

In the most recent sustained run-up in energy prices, large financial institutions, hedge funds, pension funds, and other investors have been pouring billions of dollars into the energy commodities markets to try to take advantage of price changes or hedge against them. Most of this additional investment has not come from producers or consumers of these commodities, but from speculators seeking to take advantage of these price changes. The CFTC defines a speculator as a person who “does not produce or use the commodity, but risks his or her own capital trading futures in that commodity in hopes of making a profit on price changes.”

The large purchases of crude oil futures contracts by speculators have, in effect, created an additional demand for oil, driving up the price of oil for future delivery in the same manner that additional demand for contracts for the delivery of a physical barrel today drives up the price for oil on the spot market. As far as the market is concerned, the demand for a barrel of oil that results from the purchase of a futures contract by a speculator is just as real as the demand for a barrel that results from the purchase of a futures contract by a refiner or other user of petroleum.

Perhaps 60% of oil prices today pure speculation

Goldman Sachs and Morgan Stanley today are the two leading energy trading firms in the United States. Citigroup and JP Morgan Chase are major players and fund numerous hedge funds as well who speculate.

In June 2006, oil traded in futures markets at some $60 a barrel and the Senate investigation estimated that some $25 of that was due to pure financial speculation. One analyst estimated in August 2005 that US oil inventory levels suggested WTI crude prices should be around $25 a barrel, and not $60.

That would mean today that at least $50 to $60 or more of today’s $115 a barrel price is due to pure hedge fund and financial institution speculation. However, given the unchanged equilibrium in global oil supply and demand over recent months amid the explosive rise in oil futures prices traded on Nymex and ICE exchanges in New York and London it is more likely that as much as 60% of the today oil price is pure speculation. No one knows officially except the tiny handful of energy trading banks in New York and London and they certainly aren’t talking.

By purchasing large numbers of futures contracts, and thereby pushing up futures prices to even higher levels than current prices, speculators have provided a financial incentive for oil companies to buy even more oil and place it in storage. A refiner will purchase extra oil today, even if it costs $135 per barrel, if the futures price is even higher.

As a result, over the past two years crude oil inventories have been steadily growing,

resulting in US crude oil inventories that are now higher than at any time in the previous eight years. The large influx of speculative investment into oil futures has led to a situation where we have both high supplies of crude oil and high crude oil prices.

Compelling evidence also suggests that the oft-cited geopolitical, economic, and natural factors do not explain the recent rise in energy prices can be seen in the actual data on crude oil supply and demand. Although demand has significantly increased over the past few years, so have supplies.

Over the past couple of years global crude oil production has increased along with the increases in demand; in fact, during this period global supplies have exceeded demand, according to the US Department of Energy. The US Department of Energy’s Energy Information Administration (EIA) recently forecast that in the next few years global surplus production capacity will continue to grow to between 3 and 5 million barrels per day by 2010, thereby “substantially thickening the surplus capacity cushion.”

Compiled by:  Jay Draiman