State of the ‘Oil’ Nation: Are we Being BUSHwhacked?

In his 2007 State of the Union, President Bush called for a 20% decrease in gasoline use over the next decade. President Bush also urged for an increase in the fuel economy of cars and trucks – and an increase in the amount of renewable and alternative fuels used for transportation namely ethanol. (See Bush Seeks Mandatory Alternative Fuels Increase)

Some referred to President George W. Bush’s State of the Union speech “nothing more than stay-the-course on global warming”. Citing references to the Presidents desire to increase the nation’s strategic oil reserve, adopt more nuclear energy and continue to utilize coal through ‘clean coal’ technologies – some analysts regarded President Bush’s message as nothing more than political bravado silencing other issues like the War in Iraq or Healthcare.

And the World turns. Or we should say the “World Inc.” turns. As it does – we see near term action by some of the world’s largest firms on complex issues like climate change, balanced energy policies and addressing social needs. This past week a coalition of companies and their leadership formally called for mandatory reductions in greenhouse gas emissions as part of a so-called cap-and-trade system. The coalition, consisting of 10 industry giants including Alcoa, BP, Caterpillar, GE, Duke Energy, PGE, FPL, PNM Resources, DuPont, and Lehman Brothers, urged Congress to enact legislation "to significantly reduce greenhouse gas emissions." The coalition announced their intentions with key environmentalists. (See CEOs Lobby Bush on Climate Change)

We see this theme of “How the Growing Power of Business is Revolutionizing Profits, People and the Future of Both” again and again. It is very significant when you see some of the worlds largest energy, chemical, materials, electric-utility and financial leaders push their own market-based solutions to address climate change. We’ve noticed this trend for the past decade and report on it in World Inc. As we have looked inside the corporate mansion, we have discovered leaders we can trust, and now begin to understand how their panic for the future can lead to resolve.

We see that panic and resolve emerging in folks like Jim Rogers, Chairman of Duke Energy who, in response to a cap-and-trade system stated, "It must be mandatory, so there is no doubt about our actions…the science of global warming is clear. We know enough to act now. We must act now."

So as “World Inc.” continues to turn – and political bravado deflects core issues and entrenches opposition – we will continue to report on these megatrends shaping our world.

Mark C. Coleman
January 24, 2007