This past four weeks we had greener weeks than in many past years. What caused the change? Was it Obama’s idea to release oil from the strategic reserve? Was it the IPO on Friday of KIOR? Was it a breakthrough at Bezerkley that turned water into hydrogen by sunlight? Actually none of the above made the weeks any greener. What happened during the week was that I noticed that the US economy is again in a double dip recession and that diesel consumption in these ignited states is down significantly versus last year. The US Petroleum Balance Sheet for the Week ending 6/17/2011 as presented by our Department of Entropy shows that for the four weeks ended 6/17/2011 versus the four weeks ended 6/18/2010 our diesel consumption is down 5.7% at 3,668,000 barrels a day versus 3,891,000 last year. In 2007 when we still had a developed economy we used 4,100,000 barrels a day of diesel.
Diesel consumption in these summer months has nothing to do with home heating. It is all about the hauling of freight around the country. It is not like 2010 was a great year for economic activity so the comparison between 2011 and 2010 is between worse and bad. The department of entropy is kind of like the movie dumb and dumber but our economy is now worse than bad. The release of the 60 million barrels of strategic reserves from the US and our allies will have a temporary effect of lowering oil prices but it will not change the fact that the so called developed economies are struggling and the so called political leadership of these countries are as lost as the prime minister of Greece in coming up with solutions.
A little on the IPO of KIOR a company brought to you courtesy of Vinod Cost Us the clown. Their alchemy is to rapidly turn swichgrass into diesel in a reactor. Al Gore is not on the board of this thermodynamic dead end, Vinod reached across the aisle and grabbed Condi Rice for this board membership role. Yeah we remember Condi being so certain we will find weapons of mass destruction in Iraq, now she is certain that KIOR will produce weapons of mass combustion in some shiny steel reactor with a magic catalyst that yields copious amounts of clean diesel from switchgrass to be grown on the prairies.
This was the press release in the New York Times of Condi joining
“June 22, 2011
Former Secretary of State Condoleezza Rice plans to join the board of biofuel startup KiOr in July. Not coincidentally, the news comes the week that KiOr is reportedly planning to official price its IPO, which could raise up to $241 million on the Nasdaq.
Rice is no stranger to board seats, the oil industry, or Valley startups. Before she was Secretary of State, she sat on Chevron’s board; she is a director at C3, the carbon software tool backed by Thomas Siebel; and is a Professor at Stanford. While she was Secretary of State, she played a major role in how the U.S. responded to the Kyoto negotiations, (she was widely quoted at the time as proclaiming Kyoto to be dead).
If greentech startups have the heft, they try to bring on well-known, often-times political, figures to help open doors and raise their profile. Khosla Ventures — which basically controls KiOr — also brought on former British Prime Minister Tony Blair as a senior advisor. Kleiner Perkins has Al Gore and Colin Powell. Rice will probably be able to help KiOr make some important connections, given her political status and her Chevron time.”
KIOR did their IPO yesterday and it did not raise $241 million they only managed to fleece $150 million from the thermodynamically impaired. Interesting that Condi under the Bush was against Kyoto but now that she can make some bucks as a board member of KIOR she is all for the color green.
Sadly we have a shattered economy but thankfully we are being greener about going our no business.