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Caelus Lands Massive Oil Discovery in Alaska

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Poor countries actually are the best place to do this. Examples: Setting up cell phones rather than going landline. Or renewable energy electric systems replacing ancient inefficient power networks instead of the usual expensive upgrading.
Poor countries adopted basic cell phones years after they were introduced and when they got cheap enough for the populations of those companies to afford. They got cheap because the wealthier countries adopted them in massive numbers.

The same thing could happen for renewable energy. First the wealthier countries achieve high adoption rates of solar and wind power along with batteries. That is going to take several more years (Germany is leading the way, as is the American midwest with wind). Then the costs really start to drop and the poorer countries can take advantage of the more affordable technology.

I agree that sustainable energy systems with micro grids offer great promise of low costs and easier implementation that obviates the need for expensive long distance transmission lines.
 
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Poor countries adopted basic cell phones years after they were introduced and when they got cheap enough for the populations of those companies to afford. They got cheap because the wealthier countries adopted them in massive numbers.

The same thing could happen for renewable energy. First the wealthier countries achieve high adoption rates of solar and wind power along with batteries. That is going to take several more years (Germany is leading the way, as is the American midwest with wind). Then the costs really start to drop and the poorer countries can take advantage of the more affordable technology.

I agree that sustainable energy systems with micro grids offer great promise of low costs and easier implementation that obviates the need for expensive long distance transmission lines.
Yep, it's already happening:

Solar can power African homes for $56 per year, says IRENA
 
Any new oil discovery just relaxes the group think of the USA to believe that oil will be here "forever". It won't. The rate of oil demand growth is easily outpacing the negative oil demand effects of EVs and hybrids and I would probably throw in renewables as well. Maybe it is all the trucks driving around selling and installing all the new renewables? Maybe it is all the guys commuting in to the EV production plants building the EVs?

It always bothers me to see Solarcity gas cars driving around. It would help their image if they drove EVs. Maybe Model 3's?

Something is causing the added demand..

Maybe it's because people run-out and buy gas-guzzling SUVs the day after the price of gas drops.
 
BACK ON TOPIC.....
This announcement by Caelus is hyperconditional. Certainly it made top headlines in Alaska early this week. However, as a result of a large shift in Alaska tax policy enacted under a certain former governor Whose Name Cannot Be Mentioned In Polite Company, not only is the state on the hook for real tax credits - in the form of checks to Caelus, not just foregone taxes - to the tune of $100mm right away and apparently another $100mm for other work the company has done....

...but...

even though there is currently a 12.5% state royalty on any Smith Bay oil, Alaska cannot receive any production tax until the average price of North Slope oil reaches $73 a barrel. For the past two years that number has been right about $50; the state's best estimate is that through 2025 prices will remain below $70. So any win-win is to Caelus and its partners only - not at all to Alaska and its residents.

And if you think that slope workers are Alaskans and not Texans who fly home after their 7&7 or 14&14....nope. Very few.
 
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what model 3's?

Drive currently available EVs now but eventually Model 3's. It would make sense, especially after the acquisition.

By the way, speaking of image, it also bothers me that Tesla showrooms and service centers as well as Superchargers don't have solar. Maybe some do but it's not blatantly obvious.

Prediction: kort677 is going to ask me why it bothers me :rolleyes:
 
Solar City as a residential/small commercial installer necessarily operates under tight margins due to the low price of the (now generic) hardware they handle. Be thankful they don't show up on cargo bikes and pushcarts, although that would actually be ideal.

Gold Rush, Land Rush, (Alaska) Oil Rush: New discoveries instantly form a vacuum which of course is filled by enterprisers from elsewhere. Before you know it they have established a power base and resilient political fabric. When the aboriginal fur trappers and lumberjacks wandered back to Juneau they no doubt were dumbfounded at the transformation of their village.
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