Investments in clean energy projects and companies reached $155 billion last year, surpassing fossil fuel investments. According to a United Nations report, $13.5 billion in new private investment was directed to companies that are developing new technologies, with almost half that (according to Private Equity Intelligence, Ltd.) coming from clean technology-focused private equity funds.

Clean energy sources account for the majority of energy investments last year, with $105 billion spent on developing 40GW of wind, solar, small hydro, biomass and geothermal energy generation capabilities. Large hydro (25GW) accounted for another $35 billion in investments.

Totaling $140 billion, this accounts for 56% of investments in power last year. The aggregate 65GW, however, represents only 41% of new capacity developed in 2008. Renewable energy dominated the clean technology space, 75% of the total at $117 billion.

Investments in clean energy technology grew 5% from 2007 to 2008, leading to a second consecutive record-setting year. Emerging markets made the difference last year – particularly China and Brazil. China has become the second largest wind market in the worlds (as measured by new capacity) and the world's top photovoltaic manufacturer.

Geothermal appears to be on the horizon for several countries, including Australia and Kenya. Nonetheless, the ongoing financial crisis has put the squeeze on the clean energy space. U.S. investments fell 2%, and growth slowed considerably in Europe.

In light of oil's rise to triple-digit prices, the United States' inability to pass an energy policy aimed at increased efficiency, renewable energy, and energy independence, represents an opportunity squandered -- on two fronts: transportation and power generation.

True, oil has retreated from the $135 range to the $125-128 range, but the nation now faces record-high gasoline/diesel prices, along with high prices for heating oil, natural gas, and coal. As a result, the broad-based disposable income -- so essential for U.S. economic growth -- has been squeezed, with many economists now arguing adequate GDP growth is not possible, if energy prices remain at current levels.

At minimum, the U.S. faces a period of economic and social adjustment -- corporate, public, personal -- as it copes with the brave new world of $4 gasoline ... and that's if gasoline remains in the $4 per gallon range. A variety of scenarios could quickly send gasoline over $5 per gallon and higher in 2009.

Almost on cue, following oil's $12 rise in two days to $134, the International Energy Agency said the world needs to invest an additional $45 trillion in the decades ahead to vastly expand both nuclear power and wind power capacity to meet global energy needs.

Strictly speaking, the IEA's call to action was rooted in reducing the world's greenhouse gas emissions and achieving what it argues will be "a clean, clever, energy future" and not to move away from oil or fossil fuels solely on cost grounds. (pdf)

Still, the report's 2050 ETP Baseline scenario projects that CO2 emissions will rise by 130% and oil demand will rise by 70% - - the latter total being equal to five times Saudi Arabia's current oil production. If the IEA's oil projection is correct, that would suggest additional large increases in the price of oil in the decades ahead - - on top of oil's more than 400% price rise since 2001.

While most of the world is hoping to see oil dependence decrease over the next couple of decades, Exxon Mobil Corp. (NYSE: XOM) has taken the position that alternative fuels will play only a small role in energy consumption through the year 2030.

The company announced today that it is estimating that fossil fuels will continue to dominate the world's energy supply, and believe that 80% of energy demand will come from fossil fuels in 2030. Wind and solar power is expected to increase sharply, but, according to chairman and production director of Exxon Mobil International Ltd., Robert C. Olsen, this growth will only lift the demand up to around 1%.

If you read enough about oil, you are bound to have encountered the theory that the world is rapidly running out of fossil fuels. Exxon looks to debunk that theory, stating that there are 3 trillion barrels of conventional, recoverable oil across the globe, three times as much as the 1 trillion barrels that have been produced over the past 100 years. Of course... we are using a great deal more of the precious crude now than we were 100 years ago!

In another part of his statement, Olsen did reiterate Exxon's newly taken stance that global warming has been taking place, and that fossil fuel burning has been a contributing factor in the rise of global temperatures. A good sign from world's biggest oil company that up until recently was one of the biggest opponents to the argument that fossil fuels contributed to global warming.

Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor's Observer. DISCLOSURE: Mr. Fowlkes owns and/or controls diversified portfolios of long and short stock and option positions that include holdings in XOM.

America's third largest oil company, ConocoPhillips (NYSE: COP), came out today with a stark confession. The company's chairman and chief executive, James Mulva, acknowledged that his company's main product, fossil fuels, are permanently warming the Earth's atmosphere.

According to Mulva, the company has been studying its impact on global warming for several years now and it has become obvious that the science speaks for itself. The oil industry as a whole has become more willing to fess up to its impact on global warming, but still have not completely embraced the concept that the burning of fossil fuels is indeed leading to global warming.

As recently as this February, the CEO of the nation's largest oil company, Exxon Mobil Corporation (NYSE: XOM), stated that he was still not 100% convinced of the impact that the burning of fossil fuels is having on climate changes. "There's clearly a change in the climate," Tillerson, XOM's chairman and chief executive said. "It's getting warmer. How that all interrelates with industrial activity is not 100% clear." Come on Tillerson, I think it's about time to just admit what the rest of the world already knows to be true.