The New Cold War

The New Cold War
Monday, December 19th, 2005
Baltimore, MD * Jackson, WY * Missoula, MT

In this Issue...

* Stop Thief!
* School Thermostats Dive

Quote of the Day

"The belief that the world's oil supply is close to an irreversible drop
is no longer on the fringes of the market."

- Arjun Murti analyst with Goldman Sachs

_____

The New Cold War
By Luke Burgess

On Thursday I shared my eye-popping gas and electric bill with you.

If you can remember correctly, my gas and electric bill increased over
162% from the previous month.

Most of the total from the bill, 68% to be specific, came solely from
the natural gas commodity.

Mike Schaefer was the first to warn me about this over the summer. The
television, internet, radio, and newspaper media soon followed.

And using my philosophy of "everyone can't be wrong about the same
thing," I figured that my heating bill was going to increase. But I
certainly had no clue it was going to be that bad.

And my story is just one of many others just like it. Let me quickly
explain.

The Burgess family celebrated Christmas early this year. Several of us
are going to out of town next weekend, so we decided to exchange gifts
and have dinner yesterday.

As I passed the mashed potatoes across the table yesterday evening, the
conversation of gas and electric bills came up.

Get this. The gas and electric bills for 6 of the 7 homeowners in my
family increased over 100%!

Now I can only assume that this is an indication to what everyone else's
gas and electric bills in the U.S. Northeast are like. And it isn't
pretty.

I see and hear things everyday that validate how bad the energy crisis
really is and how bad the energy crisis it is getting.

I found two interesting stories that I want to share with you today that
point to the severity of the energy crisis. Here they are.

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December 12, 2005, Associated Press.

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_____

Stop Thief!
Boy Steals Energy

Take a look at this:

It looks like some kind of weird fusion between a Chinese boy and a
queen termite. But it's not.

This picture is of a boy speeding away from a crime he just committed.

His crime, you ask?

Stealing natural gas.

Good thing he's not a cigarette smoker, huh?

I didn't think it was possible to steal natural gas this way. But
apparently I was wrong.

Farmers around the central Chinese town of Pucheng frequently filch
natural gas from a local oil field.

As the Chinese economy booms and automobile use spreads, the country as
a whole appears to be on a feverish quest for fossil fuels.

Oil consumption rose by 11 percent last year, and the number of private
autos hit 14 million in 2003-and is expected to rise to 150 million by
2015.

Now as you already know, the energy crisis is not just in China. It's
worldwide.

And for me, this picture really sums up the energy crisis.

The fact is people are, or soon will become, desperate. And when people
become desperate, they'll do just about anything. Including risking
their lives to steal 10 bucks worth of gas.

You know, if my gas and electric bill continues to look like last
month's, it might be only a matter of time before you see the old
Lukester pedaling down the street with a big bag full of gaseous goodies
himself.

Advertisement

United Nations Declares - "Water Shortage is the Most Immediate &
Serious Threat to Humankind."

Right Now, more than 40% of the world, 2.4 Billion, has no access to
safe drinking water.

* Wells across the globe are drying up.
* Half the world's rivers and lakes are seriously polluted.
* Water is the One, You Can't Live Without It, Utility
* And as the world's population continues to Double, Demand for
water Triples!

Desalinization, a process of turning saltwater into safe drinking water,
is our only hope.

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_____

School Thermostats Dive
As heating bills continue to rise, thermostats go down is public school

As oil and natural gas prices soar, public schools are turning down the
thermostat, finding alternative sources of fuel, even cutting back on
the school week.

School officials are now encouraging students to wear zip-up sweatshirts
and fleeces to stay warm.

My girlfriend is an art teacher for a Baltimore City public school. She
told me that her classroom is flat out cold. She reported the problem to
the administrative office. They told her there was nothing they could do
about it.

The school thermostat is set at 67 degrees and that's where it's
staying.

Public schools are being walloped with high fuel bills, whether it's
diesel fuel to run their buses or heating oil or natural gas to keep
buildings warm.

Even the cost of brewing a cup of joe at pubic schools is going up.

In St. Paul, Minn., the school district has come up with a
$25-per-appliance annual fee as one in a series of steps to recoup
utility costs. That means teachers have to pay to plug in their coffee
makers, microwaves and refrigerators in classrooms and offices.

In western North Dakota, the Killdeer School District is considering
going to a four-day school week, triggered in part by higher fuel costs.

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_____

With the coldest months ahead, school business officers are worried most
about heating their buildings.

Now let me tell you. I've been to the school where my girlfriend
teaches. I'm not a building contractor. But I know enough to tell you
that her particular building is inadequately insulated if at all. I
expect that poorly insulated buildings are not limited to Baltimore City
Public schools. Rather this is probably a problem across the entire
country.

The cold war of the 80s may be behind us. But there is a new cold war.
This time the war has nothing to do with contentious Soviet-American
relations.

This time the war is on cold itself.

- Luke Burgess