Davos - Big Oil

The folks gathered at Davos don't think that a cap and trade bill will be passed in the US in the next six months (and the odds of it being passed in the run-up to the mid-term elections are non-existant.)

As world leaders gather to discuss economic problems during the Davos talks, energy execs are calling for a new peak in oil production, and others cite bleak hope for any global climate deal.

Davos, a Swiss ski resort, is the location of the World Economic Forum, which runs through Jan. 31.

At a dinner on alternative energy, about 100 were in attendance, and when asked to raise their hands if they thought a U.S. climate bill would pass Congress before June, no one raised their hand, reports Foreign Policy. About 60 of those in attendance were Americans.

That view is contradicted by Duke Energy CEO Jim Rogers, who said that he still expects cap and trade to take shape in the U.S., reports Reuters. Rogers said that the Democrats’ loss of a seat in Massachusetts was far from the death-knell, that instead a stronger, more bipartisan approach to climate legislation may emerge.

Tony Hayward, CEO of BP, said that there is a “supply challenge” for the oil industry that will necessitate an extra 15 million barrels of oil a day over the coming 20 years, reports the Telegraph. The world currently is producing about 84 million barrels a day. While demand for oil is fading in the U.S. and Europe, it is rising rapidly in Asia.

Hayward said that natural gas extracted from shale or methane reserves is a “game changer” in the U.S. energy market... [environmentalleader.com]