GE to Build Huge Solar Plant

In a surprising and exciting move, GE announced it will build the world's largest solar panel plant to become "a major player" in the industry. The plant is planning on employing "400 workers and create 600 related jobs." GE is already a huge player in the wind energy industry and with this new purchase, signs point to them becoming a big player in the solar energy business as well. This plan could really expand their company and really help solar energy grow.

As an alternative energy supporter, I am excited about this news. I believe solar energy is a great business and is one that should be invested in. It is one of the largest and fastest growing energy industries in the world. I think GE made a smart decision by giving this plant the go-ahead.  Not only will it create more clean energy, this plant will create a lot more jobs. Not to mention the fact that GE is a very well established company that knows how to make money and stay green. With a name like GE as a major player in the industry, solar energy could continue to rise at an astounding rate.

http://www.nytimes.com/2011/04/07/business/energy-environment/07electric.html?_r=1&ref=solarenergy

Securities Markets

The analysts say that available assets require large investments as industry’s costs are rising on labor and equipment, as well as increased taxes. Upstream growth options for International Oil Companies (IOCs) are becoming limited. Thus, analysts believe that there are major exporting nations who found they have more influence with consuming countries than they did previously, and therefore they are tightening their grip on upstream production.

“Energy security has emerged as a global foreign policy concern. Energy security is no longer just about the availability of supplies at affordable prices, but now includes other issues such as the disruption of supplies, security of demand, supply diversification, buffers against supply shocks, globalization of the entire energy chain, and increased interdependence in the world.” (NetAdvantage)

What is recommended? The IOCs need to adapt to this new competitive vibrant, as the limited resource environment will work against them, such as the drilling available for purchase today may be much harder to find in 20 years. One way to adapt to this new model is to exploit their core skills in size and technology.

If peak oil were a fixed point, analysts’ believe it’s more like a moving target. “As technology improves the pool of recoverable oil increases and therefore the reserve base is continually changing, driven by economics and technology.” (NetAdvantage)

BP Tries to Get Back to Drilling

Just recently the BP oil company has asked US regulators to have permission to start up oil drilling again in the Gulf of Mexico. BP had stopped the drilling of oil since one of their rigs blew up and spilled 4.9 million barrels of oil into the ocean (NY Times). BP is asking for 11 existing drill sites to be continued in July. The agreement is probably going to be reached in the next month. Although they will probably end up drilling in the near future, there will be much higher safety standards. These regulations will help prevent oil spills in the future.

Even though BP made a huge mistake and will probably never recover, I agree with this procedure. I believe it is the right move to let BP get back to what it should be doing. With higher safety regulations the 11 drill sites that are going to be continued will be much safer and will get BP back in business. While some might say it is too early or dangerous, I believe it will be good for the economy and hopefully start to build more trust in the company and the oil business.

http://www.nytimes.com/2011/04/04/business/energy-environment/04bp.html?_r=1&adxnnl=1&ref=earth&adxnnlx=1301897292-7/W2O7AH39fLMjrtJLYk1w

Recession on the Inudstry

The impact of the recession on the energy industry boils down to which part of the energy one is discussing. There are negatives and positives. The recession causes people to have less money in their wallets, thus, it's feasible to presume that people will cut back on traveling by car. The effect of this is less trips to the gas station in an attempt to minimize spending. The less people buying gas, the less money oil companies make. But, as this allows for different sectors of the energy industry to grow. With a growing political movement to end dependence on foreign oil comes a greater emphasis on how America can produce the energy with which it needs. This enables alternative forms of energy to be implemented. Therefore, companies which which desired to go into solar, wind, thermo, or nuclear energy have better chances of receiving funds from the government.

Energy Industry- Finance

In our Finance Lab assignment, we found out how many players, and the top 5 players in the Energy Industry. In the Energy Industry there are 2014 members, and the top 5 players are Exxon Mobil Corp., Petrochina Company Limited, Petroleo Brasileiro SA Petrobras, Royal Dutch Shell and Royal Dutch Shell (PLC). The total sales are approximately $ 53225040030, and the Oil and Gas Refining and marketing total sales is $ 204521750.

Therefore, in general the energy industry is growing, “A surge in oil and gas prices since 2003 enabled international oil companies (IOCs) to report record profits and build up considerable cash. Nevertheless, these are uncertain times for the IOCs. Oil and gas prices plunged in late 2008”. (Net Advantage) The energy sector has been cyclical in nature. However, its costs are rising due to labor and equipment, as well as increased tax and royalty rates. Generally the energy industry is growing due to alternative energy sources such as wind and solar powers. The competitive dynamics between the national oil companies (NOCs) and the IOCs has permanently changed, driven by high oil prices and limited access to upstream resources.

Advances in Solar Energy

Eli Yablonovitch was an employee of Exxon in the late 1970s. After the 1973 oil crisis, Yablonovitch began researching solar energy. His goal was to create more efficient and inexpensive tools for converting solar energy into power. Exxon supported his work until oil prices dropped and, once again, it became the most popular energy source.

Today, solar energy has become a major focus of the energy industry and people are realizing the importance of creating tools such as those Yablonovitch envisioned. Had his work been continuously supported, the U.S. would have made huge strides in alternative energy. However, China has now become the major contributor to the production of solar energy.

Yablonovitch's story demonstrates the importance of supporting alternative energy research. Had his work been supported in the 1970s, the U.S. and the world as a whole would be better equipped to produce and sustain alternative energy sources.

http://blogs.wsj.com/venturecapital/2011/03/14/sun-shines-on-yablonovitchs-research-but-it-took-years/?KEYWORDS=solar+energy

Oil Spill in South Atlantic

 A week ago there was an oil spill in the South Atlantic Ocean. The spill crashed into a very small island about 2800 km from the nearest large land mass, South Africa (NY Times). "The ship has broken in half and an additional 800 tons of fuel oil is believed to be leaking from the front section of the hull" (NY Times). The worst part of this story was that the island contains endangered penguins. This oil spill is threatening the life of the species.

While this oil spill is obviously nothing like the BP spill, it does raise more concerns about the safety of oil drilling and oil transportation. This oil spill will most likely exterminate the penguin species in the area. While this is not a huge issue, it is just another example of how dangerous and destructive these oil spills can be. This is why more money should spent on alternative energy. Alternative energy is much less dangerous and will not decimate species.

http://www.nytimes.com/2011/03/23/science/earth/23spill.html?_r=1&ref=earth