Category Archives: energy

How convenient for them

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Your Pain, Their Gain

Peter J. Schwartz 05.05.08, 12:00 AM ET

Crumbling home prices and $100 oil helped Wall Street’s Highest Earners pull in $19 billion last year

Problems paying the mortgage, filling the gas tank and feeding the family have eroded living standards for millions of Americans during the past several months. Not so for people who manage big piles of money–many of them made a fortune betting correctly on the housing debacle and rising commodity prices last year.

Our second annual look at the pay of folks who run hedge and private equity funds shows that the top 20 took home a collective $18.7 billion last year, 43% more than in 2006. To even make the list you needed minimum earnings of $350 million, which is $90 million higher than the year before. No chief executive of a traditional Wall Street investment bank even came close.

Our top-ranked earner, hedge fund manager John Paulson ($3.3 billion), reaped much of his bounty from shorting the ABX Index, which tracks the strength of the subprime mortgage market. Paulson earned an estimated $2.3 billion from his share of fees charged to investors and $1 billion from the appreciation of his own capital invested in Paulson & Co. funds.

Fund manager Philip Falcone, who ranked third with $1.7 billion, posted triple-digit returns by shorting subprime credit, resulting in $11 billion of growth for his two Harbinger Capital funds, excluding assets raised from new investors. John Burbank, who runs San Francisco hedge fund Passport Capital, made $370 million last year, also in large part by shorting home mortgage companies and mortgage-related debt ( see story).

Some members of our list, like Texans T. Boone Pickens ($1.2 billion) and John Arnold ($700 million), made their fortunes the old-fashioned way: betting on energy. Pickens’ $2.7 billion BP Capital Equity Fund grew by 24% after fees, while his $590 million Commodity fund grew 40% thanks to large positions in Suncor Energy (nyse: SU – news – people ), ExxonMobil (nyse: XOM – news – people ) and Occidental Petroleum (nyse: OXY – news – people ). For hedge fund billionaires Pickens and second-ranked George Soros ($2.4 billion), whose own investments compose a significant portion of their funds, there’s more to be made from asset appreciation than from fees. Soros made $2 billion from the growth of personal investments within his $17 billion Quantum Endowment Fund, which returned 32% for the year.

http://www.forbes.com/forbes/2008/0505/038.html

Hang ‘Em High

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“Internal memo: If we have to devastate the planet and kill billions to line our pockets, that’s a small price to pay.” [Ooh – ooh, let’s have some soccer mom say it.]

– Deleted scene, from America’s Energy Future, brought to you by the Oil and Gas Industry.

If Oil Industry Profits Are Up, Why Aren’t Gas Prices Down?

Could critics be right in accusing oil industry of gas price gouging? – KTKA.com


Please, God — damn them all to hell.

Nothing but blue skies

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The first manned, hydrogen-powered plane has been successfully tested in the skies above Spain, its makers say.

The small, propeller-driven craft, developed by aviation giant Boeing, made three short flights at an airfield south of Madrid, the company said.

It was powered by hydrogen fuel cells, which produce only heat and water as exhaust products.

The tests could pave the way for a new generation of greener aircraft, the company said.

Boeing’s chief technology officer John Tracy said the flights were “a historical technological success” and “full of promises for a greener future”.

BBC NEWS | Technology | Hydrogen-powered plane takes off

X Prize dangles $10 million for fuel-sipping car

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 Runs on market forces.

X Prize dangles $10 million for fuel-sipping car | Green Tech blog – CNET News.com
The X Prize Foundation, best known for sponsoring space travel competitions, on Thursday offered $10 million to make a super-efficient car.

At the New York International Auto Show, the foundation and sponsor Progressive Casualty Insurance announced the newly named Progressive Insurance Automotive X Prize. The competition, open to both established automakers and unknown engineers, is meant to result in “real cars” that are available for purchase, rather than concept cars.

An X Prize contender: the Air Car from Zero Pollution Motors
Credit: Zero Pollution Motors

More than 60 teams have for a signed up for the competition, including Aptera Motors and Tesla Motors, California electric-car manufacturers; Loremo, a German maker of diesel fuel cars; and a team from Cornell University, according to the Associated Press.

The winners will participate in a cross-country race in 2009, in which entries will be judged on fuel efficiency, speed, distance, and other factors. One entrant in the competition will be the air-powered car from MDI Motors, which will be developed in the United States by Zero Pollution Motors.

Idiots from Hell

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Global Warming Skeptics Insist Humans Not at Fault

   

Washington Post Staff Writer
Tuesday, March 4, 2008; Page A16

When Christopher Monckton, who served as a special adviser to former British prime minister Margaret Thatcher, ponders the current political push to curb greenhouse gases linked to climate change, he thinks of King Canute.

According to Monckton, Canute — the Viking who ruled England along with much of Scandinavia nearly a thousand years ago — took his courtiers to the ocean’s edge one day, set down his throne and ordered the tide not to come in. The tide, of course, came in, and the king got his feet wet.

The lesson? The king taught his advisers “humility,” Monckton said, by showing them that even he, a king, could not control nature. In the same way, he argued, modern-day politicians should not fool themselves into thinking that humanity is having a big impact on climate.

Monckton, along with other high-profile global warming skeptics such as University of Virginia professor emeritus S. Fred Singer and Virginia state climatologist Patrick J. Michaels, are gathered in New York this week for a conference aimed at challenging the idea that a scientific consensus exists on climate change. Sponsored by the Heartland Institute, a free-market think tank funded by energy and health-care corporations as well as conservative foundations and individuals, the 2 1/2 -day session poses a stark contrast to the near-unanimous chorus of concern expressed by top U.S. politicians and most of the scientific mainstream.

Must read

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I love this woman.

Hunter Lovins

 

Natural Capitalism: Creating the Next Industrial Revolution, by Paul Hawken, Amory Lovins, and L. Hunter Lovins, is the first book to explore the lucrative opportunities for businesses in an era of approaching environmental limits.

In this groundbreaking blueprint for a new economy, three leading business visionaries explain how the world is on the verge of a new industrial revolution—one that promises to transform our fundamental notions about commerce and its role in shaping our future. Natural Capitalism describes a future in which business and environmental interests increasingly overlap, and in which businesses can better satisfy their customers’ needs, increase profits, and help solve environmental problems all at the same time.

Natural capital refers to the natural resources and ecosystem services that make possible all economic activity, indeed all life. These services are of immense economic value; some are literally priceless, since they have no known substitutes. Yet current business practices typically fail to take into account the value of these assets—which is rising with their scarcity. As a result, natural capital is being degraded and liquidated by the wasteful use of such resources as energy, materials, water, fiber, and topsoil.

 

Download chapters for free:

Natural Capitalism – Read the Book