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At the Department of Energy (DOE), Steven Chalk has experienced the economic crisis as an opportunity, a chance to push energy efficiency. A career public servant, Chalk manages the distribution of nearly half the $36.7 billion in economic stimulus funds Congress granted DOE this year -- money issued for home weatherization, energy efficient buildings, plug-in hybrid vehicle technology, solar, wind and geothermal power.

At the Department of Energy (DOE), Steven Chalk has experienced the economic crisis as an opportunity, a chance to push energy efficiency. A career public servant, Chalk manages the distribution of nearly half the $36.7 billion in economic stimulus funds Congress granted DOE this year -- money issued for home weatherization, energy efficient buildings, plug-in hybrid vehicle technology, solar, wind and geothermal power.

Energy leaders at the World Economic Forum debated the true cost of fuel on Thursday as they grappled with the implications of world recession and how to navigate out of it. Record-high oil prices close to $150 a barrel in July last year added to the pain of economic slowdown, and now much cheaper prices of near $40 a barrel could help the global economy to rally. But for consumers, producers and the planet, oil at that level could be too cheap as it slows investment in new supplies of fossil fuel as well as in alternative energy. Saudi Arabia, the world's leading oil exporter, said late last year $75 was a fair price for crude -- at the top end of the $60-$80 a barrel many in the industry consider a desirable level. "That seems to be what you need to get investment," BP Chief Executive Tony Hayward on Thursday told the forum in Davos, with reference to the $60-$80 range.

How the world is fed and fueled will in large part define development in the 21st century as one that is increasingly sustainable or a dead end for billions of people. A new and hard-hitting report concludes that dramatically reforming, re-thinking and redesigning two sectors -- energy and agriculture -- could generate significant environmental, social and economic returns. Current patterns of production and consumption of both fossil fuels and food are draining freshwater supplies; triggering losses of economically-important ecosystems such as forests; intensifying disease and death rates and raising levels of pollution to unsustainable levels."

Barack Obama has created a top-notch team to guide his transition into the White House (see "Obama fills key posts on environment, energy teams"). Next, he should create a team to guide America's transition to a new energy economy. I'm not talking about the prestigious group of economic advisors Obama already has assembled to help him identify solutions to the economic meltdown. I'm talking about a team that includes experts in sustainable energy technologies, climate mitigation and adaptation, capital investment, state and local government, business, industry and labor.

As the Big Three US automakers ramp up their pressure on Congress to cough up $25 billion in bailout money, the absence of a long term vision for economic recovery has never been more clear. The outgoing Bush administration and Congress are careening from bailout proposal to bailout proposal, putting hundreds of billions into the hands of the same people that created this toxic economic brew. Naomi Klein has recently detailed the horrifying parallels between the "free-fraud" zone created by the Bush administration in Iraq and the Treasury Department's handling of the bank bailout (http://www.naomiklein.org/articles/2008/10/bailout-profiteers). As tempting as it is to offer bailout money to the US automakers in return for fleet-wide mileage reductions, changes in the mix of their fleets to include more hybrids and electric vehicles, and to support labor, it would be the wrong thing to do under current conditions. Imports from foreign automakers have backed up in American ports over the last few months and now represent roughly double the normal inventory, so the difficulties faced by automakers are not limited to US firms. US automakers, however, have additional problems because their fleets are dominated by too-large, fuel-inefficient models. That fleet makeup cannot be quickly changed.

We are going to have a huge economic stimulus package soon after Obama becomes President. And a big piece of it is going to be aimed at energy efficiency and renewable energy, as the NYT reported today in"Proposal Ties Economic Stimulus to Energy Plan." I have asked a bunch of my wonk ee friends for some energy efficiency ideas, which I'll be posting in the coming days. I'd love to hear some ideas from you - please try to keep them practical. Focus on spending that creates jobs in the next two years AND that either saves energy (like weatherizing low-income homes) or helps jumpstart the transition to a clean energy economy (like 'green' transmission).

The UK's renewable energy targets could prove both costly and risky, and nuclear energy is the most reliable viable low-carbon alternative, according to the House of Lords Economic Affairs Committee. The committee's report - entitled The Economics of Renewable Energy - acknowledges government commitments to increase renewable energy use, but is sceptical as to whether the target of 15% renewables for the UK by 2020, proposed by the European Union (EU), can be met. It also warns that an over-reliance on intermittment power generation options, such as wind energy, could prove both costly and risky in terms of security of supply.

The $825 billion economic stimulus package unveiled by Democrats in the U.S. House of Representatives on Thursday contains billions of dollars in tax breaks for renewable energy and spending for energy efficiency and transmission. The legislation, aimed at boosting the recessionary U.S. economy, would provide $20 billion in tax cuts for alternative energy including a multi-year extension of the production tax credit for wind, geothermal, hydro power and bioenergy. The bill also contains tax credits for research and development on energy conservation and efficiency.

Highlights of a $787 billion compromise version of President Barack Obama's economic recovery plan. Additional debt costs would add about $330 billion over 10 years. Many provisions expire in two years.

"Even if oil demand was to remain flat to 2030, 45m bpd of gross capacity - roughly four times the current capacity of Saudi Arabia - would need to be built by 2030 just to offset the effect of oilfield decline", according to Nobuo Tanaka, executive director of the IEA, speaking at a news conference in London. Oil reached a record peak of more than $147 a barrel in July, but has fallen back below $60, a drop of more than 50pc. Given the high cost of bringing on new output and the struggle to match supplies with demand, the IEA has assumed consumers will pay an average of $100 a barrel for oil over the next seven years and more beyond that. "Current trends in energy supply and consumption are patently unsustainable - environmentally, economically and socially - they can and must be altered," said Mr Tanaka. * o Text Size o click here to increase the text size o click here to decrease the text size * Email this article * Print this article * Share this article o delicious o Digg o Facebook o Fark o Google o Newsvine o NowPublic o Reddit o StumbleUpon http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/3448385/Credit-crunch-risks-world-oil-supply.html Related Content * More on Oil and Gas More on ... Oil and Gas Get feed updates Finance Get feed updates Energy Get feed updates telegraph tools Switch Utilities Save on fuel bills Search the market for the best prices on gas and electricity. Telegraph Utilities Comparison Service Advertisement telegraph financial partners Investment solutions * Investor services * Portfolio management * Investing for income guide * Inheritance tax advice * Reader guides Finance most viewed * TODAY * PAST WEEK * PAST MONTH 1. Row breaks out at easyJet 2. Abandon all hope once you enter deflation 3. B

I've been getting a lot of calls and e-mails from people asking about the falling prices for oil in recent weeks. The immediate explanation is that world economic activity is decelerating. Demand is falling. OPEC announced cuts in output. But the markets still believe that economic decline will trump the ability of OPEC to prop up the price of oil. Enjoy it while it lasts. Just over the horizon, things are about to become dicey. This week, the International Energy Agency (IEA) will release a new report on the future of world energy. In its World Energy Outlook, the IEA will state categorically that "Current global trends in energy supply and consumption are patently unsustainable." There's not much wiggle room in that statement. According to the IEA, despite the recent fall in oil prices, the medium- and long-term outlooks for energy supply are grim. Conventional oil output is destined to decline. Demand will still grow, however, especially in the developing world. And the twain shall only meet by prices rising to clear the market. "It is," as our Arab friends like to say, "written."

What's it got to do with the price of gas? Would some reporter with access to the Republican presidential candidate please ask John McCain why he wants to continue President Bush's Mideast policy when it has proved so ruinous for American taxpayers? Because McCain is determined to ignore our economic meltdown and shift the debate to foreign policy, shouldn't he have to explain why an open-ended military presence in the Mideast will make us economically and militarily more secure when the opposite is clearly the case?

I have known the New York Times energy reporter, Matt Wald, for 15 years, and generally think he is pretty good. But he has published perhaps the most flawed, inaccurate, and indefensible article in his career. Wald's piece could also be a poster child for award-winning journalist Eric Pooley's searing critique of the media's coverage of climate economics (see How the press bungles its coverage of climate economics - "The media's decision to play the stenographer role helped opponents of climate action stifle progress").

Are the relocalization eco-freaks finally getting a clue??

The United Nations Environment Programme's latest Year Book is out: The UNEP Year Book 2009 presents work in progress on scientific understanding of global environmental change, as well as foresight about possible issues on the horizon. The aim is to raise awareness of the interlinkages among environmental issues that can accelerate the rates of change and threaten human wellbeing. The UNEP Year Book 2009 examines in six chapters new science and developments, and discusses the cumulative effects expected from degradation of ecosystems, the release of substances harmful to those ecosystems and to human health, the consequences of our changing climate, the continued human and economic loss resulting from disasters and conflicts, and the overexploitation of resources. It calls for an intensified sense of urgency for responsible governance in the face of approaching critical thresholds and tipping points.

A newly released Black & Veatch analysis addresses issues faced by U.S. electric and natural gas utilities in light of the country's financial uncertainties. A special edition of Black & Veatch's Energy Strategies newsletter (http://www.rjrudden.net/EnergyStrategies.pdf) outlines how utilities are currently in the midst of a variety of risks and other fundamental cross currents. "The utility industry is not immune to the current financial conditions that government, business and consumers face, even though utility securities are often considered safe havens in times of economic difficulty," said Richard Rudden, Senior Vice President of Black & Veatch's Enterprise Management Solutions Division.

Oil Price Plunges from a Zenith In the first half of 2008 we saw oil climb to approach $150 a barrel amid the pundits' warning of oil rocketing to $200 a barrel and way beyond due to the phenomenon of Peak Oil. In the wake of those heady days we have now witnessed the slumping of oil prices to well under $100 a barrel into October. We have often heard that this is all within the context of declining oil supplies and escalating demand due to the rapid economic development taking hold in large regions and populations of earth, for example like in China and India, in addition to the maintenance of development in the more developed countries like the USA and Europe. The graph below illustrated this rise and fall of oil prices, and particularly the fall in prices from an all time zenith of a few months ago (Williams, 2008).

When Clinton and McCain proposed cutting gas taxes, I asked my environmental economics students, "So how much do you think drivers will save?" The students diligently Googled the numbers. "Well," said one, "the federal gas tax is 18.4 cents and the average state tax is 28.6 cents, so that's 47 cents a gallon drivers will save!" "But what about elasticity of demand and supply?" I asked. "Oh!!! Forgot about that!"

Larry Klayman's non-profit watchdog group Freedom Watch has filed a lawsuit against the Organization of Petroleum Exporting States, charging the cartel with engaging in "economic terrorism" by fixing the price of oil. The suit was filed Monday in the U.S. District Court for the Southern District of Florida in Miami, and announced by Klayman, a former U.S. Department of Justice Antitrust Division prosecutor who helped break up AT&T in the early 1980s.

Could the combination of record household and government debt, rising interest rates, soaring energy prices, the bursting housing bubble, a falling dollar and a little nudge in the right direction from Osama all conspire to create that perfect economic storm? Could it all just collapse on us here in the largest "economy" on earth? And if it does, what would the new America look like after the fall?