Google, Investing on Alternative Energy

Google, is one of the many companies that have put capitals in solar energy projects.



BrightSource Energy, an Oakland, Calif.-based builder of solar-thermal utility plants, announced it raised $115 million in funding to expand into markets around the world.

BP Alternative Energy and StatoilHydro Venture joined Google in the investment, the San Jose Mercury News reported.

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Rising Oil Price Is Hurting Consumers

What would you expect from the oil consumers if its price is no more than the usual? Definitely, they would be infuriated! Costly gas price would mean budget cutting for them.



Despite oil negotiations made by top leaders around the world, still, oil price cannot be stopped from rising. This makes every householder be forced to tighten their budgets, including personal budgets.

The situation could get worse soon. Prices at the pump have been pushed to levels many couldn't conceive of even a year ago, and analysts and the Energy Department are both expecting the cost of gas to rise even further this spring and summer.

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What's the reasons behind high oil price

As the oil price trend continue to affect the global market, everyone is trying to find out some means on how to counter and at least try for a new solution for the alarming high oil price. But, before doing so, one could probably check out what's the reason behind the increasing oil price.


On May 13, the price of a barrel of oil briefly hit a record of $126.98 on the New York Mercantile Exchange The reason was ostensibly that Iran was cutting oil production. But there is no gas shortage. So why are prices still going up?

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Fuel Conflicts Still Increasing

War, cold war, conflict, misunderstanding...whatever you call it, it still creates tension on economy of one's country. This conflict leads to political war and havoc, as the politicians are trying to inject personal and political attachment on the oil issues.


Why is it that oil wealth always fuels conflict among nations, even among oil-rich countries? Its a fact that all countries are craving for oil, as it needs to run the economy. This is why almost all countries are trying to grab possible opportunities on oil industries.

Today, we cannot deny the fact that oil-related conflicts are still growing as we can see the future oil prices are still increasing, making every government to push oil-rich countries to produce more oil and gas. While the oil-rich countries are allegedly hoarding its oil from the oil market, which makes the price escalates.

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A Technology Twist for Alternative Energy

High oil price creates alternative energy market!



Energy alternatives have been the focus of the discussion among energy traders today, due to rising energy costs. Some energy traders are trying their luck in investing on the alternative energy as it becomes popular since the oil price sky-rocketed.

Why not? Alternative energy will surely offer profits for those who want to try it because it can lessen the expenses, yet, it still needs funding before an investor can enjoy profitable returns. In addition, some oil investment companies are focusing on the possible merge of technology and alternative energy to counter the possible funding expenses.

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Oil Price Retreats From $126/Barrel

From last week $126.96 a barrel due to weak dollar, oil price is getting its way down, this time, is due to a strong dollar.

The advance at the end of last week came after Colombia said it recovered documents from a slain guerrilla that indicate Venezuelan President Hugo Chavez has offered assistance to Colombian rebels. Some U.S. lawmakers have cited the documents to argue that the White House should add Venezuela to a list of state terror sponsors that includes North Korea, Iran, Syria, Sudan and Cuba.

Such a move would most likely spur Venezuela to cut off oil exports to the U.S., but analysts believe such a provocative diplomatic step is unlikely.

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Weak Dollar Equals High Oil Price?

Last week, oil price set another record at $125.96 a barrel on Friday following the consistent weak dollar. The question is: Does a weak dollar equal equal high price of oil?


“The problem is that the market for dollar-denominated assets is orders of magnitude bigger than the oil market,” Mr. Diwan says, so this hedging can have a disproportionate effect on oil prices. “It’s like a lake and a pond, and the lake is overflowing into the pond.”

While it’s hard to pinpoint the impact, it’s clear that money has been pouring into commodities over the last five years. In the first quarter of 2008 alone, commodity assets under management rose $30 billion, to $225 billion, according to estimates by Barclays Capital.

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Airline Businesses May Fly Low As Oil Prices Fly High

Here's a contrast on Airline business and oil price: Oil price is flying high while Airline bussiness is flying low. Airline businesses are directly affected by the oil price increase. As easyJet said, it may drive a weaker airline business if the oil price trend will continue. Recently, merging and acquisition of airlines companies was already in the news.

The budget airline reported a 15% jump in passenger numbers for the six months to March 31, with revenue growing 24% to £892.2m. But its pre-tax losses spiralled to £57.5m, triple the loss it made a year ago. The loss, which was expected following the firm's profit warning in March, was primarily caused by dearer jet fuel, which costs 80% more than a year ago.

Every $10 increase in the cost of a barrel of oil cuts around £2.5m off easyJet's profits. Harrison claims the company's relatively young fleet - its 157 planes are three years old on average - give it an edge.

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Oil Market Brings No Good News At All

What do you expect from the oil market? Are you expecting oil price to at least go down a little bit? Last week yes, it fell down a bit lower. But now, oil price becomes more unaffordable as it already hits near $123 per barrel. What is happening to our oil management sector? the OPEC? Isn't it time to act?

Separately, the U.S. government again raised its short-term price forecasts for crude oil and gasoline. The Energy Department now expects average monthly gasoline prices should peak at $3.73 a gallon in June, while regular-grade gasoline is expected to average $3.52 a gallon this year.

At the pump, the national average price of a gallon of regular gas slipped 0.1 cent overnight to $3.61, according to AAA and the Oil Price Information Service.

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