June 19th will probably go down in history as one of the reason for a major change of scene and probably in coming years change of power and wealth. Well this is factor was analysed by Marquit in her blog in ‘the panelist’. The press reported that about $14 billion over ten years will be shifted in developing alternate energy sources. Looks like that free ride for Big Oil will be over, as the major subsidies granted to the Oil companies would be reduced or taken away.
Of course Exxon and American Petroleum are completely against such a shift. The Capitol Hill is only happy that this change would reduce the dependence on foreign oil and economy. It is a known fact that White House will only look at such changes favourably. It is another thing that alternate fuels like Ethanol’s share did flare and it had created an ‘Ethanol Bubble’ but now looks like the bubble has burst given that factors like ‘efficiency’ of the fuel and the ‘transport cost’ involved in transporting ethanol, cost of farm products proove to be a major hurdle. Well other types of alternate energy like hydro, solar needs to be developed and tuned in terms of ‘fuel efficiency’
Big oil in the long run would definetlly face the low. But for the short term it would do well. As far as the long shot is concerned we need to identify on alternate energy sources.