
The auto companies are practically on life support, and other sectors are paring-back operations, even as international competition mounts. Hundreds of thousands of jobs have been lost. How did this happen? Eight more years of industrial base decline without a viable plan to counteract it? And now, as a result of the financial crisis and de-leveraging, the prospect of a period of less-available credit threatens to delay economic recovery.
Well one remedy for the above, Wang argues, is to invest in the industrial sector via investing in the United States' infrastructure. And what's one project worthy of consideration? Investor T. Boone Pickens' plan to substantially increase domestic wind power via his Pickens Plan, Wang argued.
Pickens' investment fund has fallen on tough times, as of late. His BP Capital investment fund has shrunk by 60%, due to energy sector losses, and will drop to about $500 million after redemptions, by week's end, Pickens told CNBC Thursday. Pickens, who sees oil sector consolidation, expects the price of oil to recover to $100 per barrel in 2009. Oil Thursday closed down $1.81 to $65.69 per barrel.
Pickens Plan: a better investment than AIG?
Wang is less certain about a $100 oil price in 2009, but he is certain about the merit and benefits from investing in Pickens' project, and his argument is compelling. (Wang added that he does not have an investment stake in any power/energy company.)
"On the one hand, we, as U.S. taxpayers have invested more than $122 billion in American International Group (NYSE: AIG), a necessary investment to stabilize the global financial system," Wang said. "However, it remains to be seen if we taxpayers will receive most of our money back from AIG, let alone earn a return." (Our own BloggingStocks Peter Cohan concurs with Wang regarding AIG.)
"On the other hand, the Pickens' Plan would create tens of thousands of good-paying jobs based in the United States, which will boost the economies of local communities and towns, not the bank accounts of oil producing nations, even as it increases our electric power generating capacity," Wang said. "That sounds like a bigger bang for the U.S. Government's buck than AIG."
Further, Wang says Pickens' wind technology could then be leased / sold to other countries, creating another revenue stream and source of export growth.
Energy Policy / Economic Analysis: An investment in Pickens' Plan has merit for a multitude of reasons. The plan would not only increase U.S. energy independence, it would serve as a growth engine for a U.S. economy that sorely needs all of the domestic growth engines, and good-paying domestic jobs, it can get.
| Yes. | |
|---|---|
| No. | |
| Yes, but a smaller amount. | |
| Not sure. | |
| None of the above/something else. |
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Reader Comments (Page 1 of 1)
10-30-2008 @ 6:13PM
Steven said...
It makes perfect sense, but Exxon has about 14 billion reasons why this type of plan would never see the light of day. It's what happens to a country when the corporations rule.
10-30-2008 @ 7:16PM
FRANK said...
WIND POWER IS "OVER bLOWN".
1. PETROLEUM IS USED IN A GREAT MANY PRODUCTS, NOT JUST ENERGY. OIL IS NEEDED AND SHOULD BE INCREASED IN THE USA.
2. ETHANOL FOR ENERGY IS A JOKE. HOWEVER IF THE BARS ARE CLOSED YOU COULD SYPHON YOUR CARS FUEL TANK FOR A DRINK.
3. NATURAL GAS FOR TRUCKS AND BUSES IS A REASONABLE IDEA. HOWEVER IF WE INCREASE CONSUMPTION OF NATURAL GAS, I'M SURE THE PRICE WILL RISE, THUS INCREASING THE COST OF HEATING HOMES, SCHOOLS, OFFICE BUILDINGS, ETC. SO WE MAY NOT HAVE GAINED ANY THING, EXCEPT REDUCED OUR OIL IMPORT. DRILL DRILL.
4. WE WILL EVENTUALLY LOOK BACK ON THESE WINDMILLS AND LAUGH. LOW COST SOLAR AND BATTERY STORAGE FOR EACH HOME OR SUBDIVISION IS MUCH MORE PRACTICAL.
5. BATTERY POWERED CARS ARE COMMING.
10-30-2008 @ 7:51PM
Aaron Sobel said...
What charges a battery car Frank? They are already here but we still need electricity to charge them. Coal, nuclear, hydro, and to a much lesser extent (in the US), solar, wind, and natural gas are our electricity generators. Wind power is an incredible resource with some downsides but the best option we have to invest in right now. It is already proven in Europe and we are merely 5-10 years behind. The cost is already nearly as low as coal and has no fuel costs.
Cons of wind turbines:
Intermittency of wind, an offset from peak load hours in many regions, geographic locations of major wind resources related to population centers, and uncertain number of bat incidents are the only good reasons to hold back. They harm 70-100x less birds than house cats in the US.
Pros of wind turbines:
Unlimited and free, RENEWABLE fuel sources, low environmental footprint, many thousands of new well-paying US jobs, no CO2 generation from operation, comparably cheap electricity, no pollution from generation, scalability (put one at home), no fuel fluctuation costs (no OPEC), long lifespan, taxes to poor communities (like Tangier Island), less dependence on foreign fuel (if we switch to plugin hybrids/electric vehicles).
Are they perfect? No, but they are an amazing solution and the best thing we have today. We have to start somewhere and with upcoming 7.5 MW generators (holy cow!), this is the best investment you can make. Be it in the stock market, or at your own home, invest in wind!
By the way, a windmill grinds wheat. Turbines provide electricity.
10-30-2008 @ 9:54PM
steve said...
Windmills exemplify the very height of idiocy. A throwback to medieval thinking. It's ironic how these eco-freak (anal retentive) Americans will recoil at the site of a plastic bag on the side of the highway (like the crying Indian from the 60's commercial), yet incredulously cannot perceive the nauseating eyesore these gigantic pinwheels create. They don't even stop for a moment to consider the many millions of acres of land and seacoast that would have to be despoiled by these massive monuments to stupidity in order to contribute even a measly 5% to our national energy requirement.
They refuse to consider how fellow Americans, unfortunate enough to live with 1/2 mile of these monstrosities are being driven mad by their monotonous, unending humming noise. They do not even dream of the day when the News Media discovers a bald eagle or condor impaled on the blades of one of these things...and on that day, they will all be shut down, a total waste...and people will die from lack of heat or air conditioning.
Why not ask yourself why Mr Pickens decided to spend millions on his propaganda-like commercials. Could it be that BOON (doggle) PICKENS (your tax dollar pocket) PLAN ( to rob you of your freedom =oil) expects a far greater return to further enrich his own family?
Oil is the life blood of America. It gives us the freedom to seek employment wherever we want (we are not yet limited to bicycling distance). It provides the motive force that brings food to our local grocery stores. It is used in 99.9% of all the products we use.
Even though Congress and the News Media speak of Oil Companies as our enemy, it is THE OIL COMPANIES who provide the fuel we need to exist as a modern nation. Neither Congress nor the News Media, nor any of these cockamamie plans will provide it for us. They instead will say we are addicted to oil, when in actuality, we are addicted to freedom, and I am thinking from their actions, they are not at all happy about that. They would rather we be slaves to their own interests, to the enrichment of their own families and friends (cronies).
10-30-2008 @ 10:01PM
steve said...
Go to GlobalSmarming.com to see The Truth about Boon Picken's Plan.
10-30-2008 @ 10:00PM
Al said...
Lazzaro,
Hey, moron, "how did this happen in just 8 short years...." makes the completely stupid assumption that the jobs moving overseas has happened completely under the current Administration. Nothing could be further from the truth. You are a fraud to suggest that is so. You libs love the labor unions, just for one, and they encourage inefficiency, high prices and job moving overseas. The Clinton admin policies had a HUGE impact in all this, too. Wake up, inform yourself, take some economic & business classes. Uninformed morons such as you.....with a column & a forum....do untold damage.
10-30-2008 @ 10:45PM
Kent said...
I fully agree with Steve about windpower that regurgetates ancient technology back to the future. Of all the options for alternative sources for energy, windpower is the least efficient. Solar power is at least 75 times more efficient per square foot than windpower. I drive through Livermore and Tecahapi, CA where windmills dominate the skyline. They are an environmental eyesore if you haven't seen a windmill farm yet. On the otherhand, I prefer Boon Picken's NG/LNG option. We have an equivalent of 240 billion barrels of oil in natural gas energy on our shores. If clean coal is developed, we'd have an equivalent of 1 trillion barrels of oil energy available.
In terms of oil reserves, they are not destined for the long-haul. We have about 23 billion barrels of oil of known reserves and estimated an additional 10-13 billion barrels if off-shore and ANWR drilling takes place. We consume 8 billion barrels of oil energy annually, and oil obviously is not answer to our energy independence.
10-30-2008 @ 11:02PM
Dominic said...
No,No,No
Mr Pickins only wants this for him to become
richer, Do you know with his plan he will own
all the 'Rights of way ' for the power lines from the wind power.
No No No
10-31-2008 @ 6:12AM
Gregg said...
T Bone Pickens isn't doing all of this for his health. It's a master plan for him to make billions. Mr Picken's cannot be trusted as he financed the Bush campaign commercials which "swiftboated" John Kerry in 2004. As a result, look at where we are today with Bush.
10-31-2008 @ 6:35AM
andy abraham said...
The members of Myinvestorsplace.com went through a list of hedge funds that are having a great deal of problems... T Boobe Pickens fund is one of them... our question is the money for wind...or another bailout??
Andy
www.myinvestorsplace.com
10-31-2008 @ 9:32AM
Virgil Bierschwale said...
I have never met David H. Wang, but this quote sure caught my attention. What do you mean what has happened to the industrial base ?
Are you blind ?
We have been steadily shipping it offshore even though it is crippling our ability and our infrastructure and all because we wanted our bean counters to make our income statements look better so that we could earn an exorbiant salary.
Now after almost 40 years of doing this, it has reached a point that it is starting to affect our economy and because other nations are heavily invested in our economy, it is affecting the global economy.
I wrote an article yesterday that covers this subject and others. I believe it would be beneficaial for Mr. Wang to take off the rose colored glasses and take a look at this site and I will make myself available to answer any of his questions at vbiersch@ktc.com
Virgil
http://www.KeepAmericaAtWork.com
If you're an economist, like David H. Wang, you wake up some days muttering, "What has happened to the industrial base in the U.S. economy?"
The auto companies are practically on life support, and other sectors are paring-back operations, even as international competition mounts. Hundreds of thousands of jobs have been lost. How did this happen? Eight more years of industrial base decline without a viable plan to counteract it? And now, as a result of the financial crisis and de-leveraging, the prospect of a period of less-available credit threatens to delay economic recovery.
10-31-2008 @ 10:53AM
Jeff said...
Everyone who has commented on this article is so blinded by politics it is sad.
A bald eagle dying in a windmill? Lets shut it all down! He's doing it for money? Lets keep it with the oilmen.
How about we all just be like Steve, and every fourth word add a demeaning and for the most part unsubstantiated word of ridicule? OK - Oil is lifeblood of our enemies, you tool.