JBL: Alternative Energy

Politicians are demanding that the U.S. become less dependant on foreign oil, but the near-term options seem weak. The politics of drilling in the Alaskan National Wildlife Reserve and the Gulf region are too hot to have anything happen soon. Hydrogen is several years away from being an alternative energy source.

Meanwhile, the highly fragile political situations in the countries that are the greatest sources of oil strongly suggest the price of oil will remain high. Although crude hit a five-month low this past week, it remains up 20% in the past year and will certainly spike higher if any of the situations below turn even slightly more negative.

The President of Venezuela, Hugo Chavez, has said he wants Venezuela oil tankers going to places other than the U.S. Although the U.S. is the No. 1 buyer of Venezuela oil, he, in sum, prefers to earn greater political power by selling oil at a discount to Caribbean and South American countries than at a premium to the U.S.

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