Just as we thought it might be possible to see $20 oil, the dollar weakens and the Department of Energy inventory report indicates a full capacity is some ways off. If assets continue to migrate away from the US Dollar then it should serve to boost the existing energy complex.
Here’s what I wrote just over six years ago in regards to US government’s role in trying to jump start the American economy:In a historic moment, the stimulus package has been signed into law and part of the six key areas in the plan is focusing on renewable energy. The stimulus plan will provide a fix to the tax issues that plagued this industry and stalled critical projects nationwide. It would take several months before the impact of the legislation can take effect and get the industry moving again. However, at this early stage, major players are already gearing up for expected growth and the nation’s direction in developing a Green Economy.
Increasing the nation’s energy efficiency can reap enormous economic benefits for the country. Investing in programs to develop more effective energy efficiency measures can reduce demands in energy, create reductions in harmful carbon emissions, and save money for both residential and business owners. Energy efficiency should be viewed as a reserve for hidden energy and a tremendous economic opportunity for investors and the nation is a whole.
This is all well and good from a macro standpoint, but (and I hate to say this) if you want people to practice energy efficiency on a personal level, then make energy expensive! Give us $6 gas and we’re not driving anywhere. It’s that simple.