Skip to comments.Gas diplomacy time for Iran
Posted on 02/21/2013 5:51:34 PM PST by Lorianne
Iran has now agreed to meet the P5+1 (the United Nations Security Council permanent members plus Germany) in Kazakhstan on February 25, which is a feather in the cap for President Nursultan Nazarbayev. Meanwhile, in Iran the continuing plunge of the riyal below 40,000 to the US dollar is exacerbating ferocious in-fighting between the faction of President Mahmud Ahmadinejad and the two conservative factions who repelled the president's power grab early last year.
One of the key reasons for the collapse of the riyal is that vast amounts of riyals are being printed to finance Iran's energy subsidies, which now reflect crude oil prices at the financial bubble level of over US$115 per barrel.
Software is the new oil In my view one of the "big trades" of the 21st century is the exchange of the value of skills, knowledge and intellectual property for the value of renewable energy (megawatts) and for the value of carbon fuel saved - nega-therms of gas, and nega-liters of gasoline, diesel, and so on.
We have seen, post-Fukushima, how Japan has been investing massively in these areas while Germany is also closing down nuclear energy production in favor of renewables. The best example of the big trade is Denmark, which was hard hit by the 1973 oil shock and drastically changed its strategic energy policy to mandate "least energy cost" rather than "least dollar cost" energy production.
The result has been that while the country's gross domestic product has risen by 78% since 1980, Denmark's energy use has stayed the same, and its carbon fuel use has actually declined, through major investment in renewable energy and community heat infrastructure.
(Excerpt) Read more at atimes.com ...