Wednesday, December 29, 2010

$5 a gallon of gasoline in 2012? I love it!!!

$5 a gallon? It's not coming fast enough. And I wouldn't be opposed to a bit of a government push on that matter. Let's say an extra 10 cents/gallon tax (28.4 cents/gallon instead of 18.4 cents/gallon?)

According to John Hofmeister, the former president of Shell Oil, it's highly likely that gasoline prices at the pump will hit $5 per gallon in the summer of 2012, essentially because of the continuing growth of the Chinese and Indian economies, and a probable American continued recovery in 2011.

The immediate effect on the economy would be increase sales of hybrid and electric cars, decrease sales of gas-guzzling SUVs, and a steady creation of green jobs! Use the additional gasoline tax revenue to increase energy efficiency project tax breaks, and we'll see even more of a boom in the residential solar and wind industries.

With the current US gasoline consumption at about 9 million barrels a day, an additional tax of 10 cents per gallon is an extra $1.1 billion a month of revenue that could be used directly to subsidize hybrid car purchases, or solar or wind residential installations. At $5,000 per household, that's about 220,000 households per month who would benefit.

So given that kind of huge economic benefit, what's an extra 10 cents per gallon when the price is going to go from $3 to $5 per gallon?

Call me crazy, but I think it's a good thing. The faster we reduce the consumption of fossil fuels (especially the imported kind), the better for the environment, the economy, and the security of this country. Many people won't be happy, but they'll agree that it's a necessity and it'll help up convert faster to a green economy and energy independence.

Tuesday, December 7, 2010

With newfound confidence and IPO dollars, GM hires 1,000 for EV division

GM announced on Nov. 30 that it's hiring 1,000 engineers and researchers over the next couple of years for its electric vehicle division. When was the last time GM announced the creation of high-paying jobs?

This time around, GM is very optimistic, and full of new found confidence. With billions of dollars from a recent IPO, and a single order for 12,000 Chevy Volts from GE, who wouldn't be?

Today's GM is a far cry from the GM of 2 years ago, having done a complete U turn from gas guzzlers to plug-in electric hybrids. It took awhile, but finally it seems that GM is giving itself a chance to grab back its competitive edge, and the #1 position from Toyota.

“GM is going to lead the industry in the adoption of various vehicle electrification technologies, whether its electric vehicles with extended-range capability, like the Chevrolet Volt, or the recently introduced eAssist technology that will debut on the 2012 Buick LaCrosse,” GM CEO Dan Akerson said. “We want to give our customers energy choices other than petroleum and to make the automobile part of the solution when it comes to the environment."

"Deep experience and expertise in batteries, electric motors and power controls will ensure GM provides the best possible electric vehicle choices to customers around the world," Akerson said.

The 1,000 engineering and researh jobs represent a big commitment to EVs on GM's part. At an estimated $100,000 per year per job, it's $100 million a year that GM will spend on these new green jobs. GM has already spent $700 million building the manufacturing infrastructure for the Volt, and is also investing over $400 million in advanced battery technology and powertrain development.

In addition to GM’s investments, suppliers such as LG Chem, utility companies such as DTE Energy and organizations including the University of Michigan and Wayne State University, are investing in Michigan jobs to support Chevy Volt and electric vehicle development.

“The state of Michigan is proud to continue our long partnership with GM as it drives toward a leaner, greener future,” Michigan Gov. Jennifer Granholm said. “As we work to diversify our state’s economy both within the auto industry and outside of it, electric vehicles will play a major role in re-establishing Michigan as the North American center of automotive manufacturing.”


Read the full text of the GM press release on the Green Job Bank.