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Energy Alternatives: Oil Essay

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Energy Alternatives: Oil

Every day the world burns more that 80 million barrels of oil. By 2016, estimates believe that oil consumption will rise to around 100 millions barrels a day. (Oil Facts) The United States was responsible for 25% of the world oil consumption in 2002, and those numbers are rising. (Oil Demand) As demands increase and the supplies of oil continue a rapid depletion, large political powers in the US struggle to keep their heads afloat.

Many conspiracy theories have dabbled in the pool of scandal within the Whitehouse’s knowledge of September 11 before it happened, and George W. Bush’s master plan to wage a “War on Terror”, with a backdrop of draining the last of the oil supplies from the
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Enron had a $3 billion investment in the Dabhol, India power plant. Beginning in 1992, this project was intended to supply India with about one-fifth of its energy by 1997. This was a huge development project for Enron, as it owned 65% of Dabhol. The question is, why would Enron, in a time of crisis, opt to make such a large investment in Dabhol? The World Bank warned Enron that the energy produced from Dabhol would be too costly for India, which was true; energy from the plant was 700% higher than electricity from other sources! (Callari)

Enron knew they needed to find cheap liquid natural gas, and fast! In 1997, Enron spent over $1 billion building pipelines between the Dabhol plant and India’s network of gas pipelines. (Callari) This 400 mile pipeline extended from Multan, Pakistan to New Delhi, India. This lea them closer to the Caspian Sea gas that could enter Enron’s pipeline from New Delhi and provide them with cheap LNG, for three more decades and help make the energy affordable. (Callari) The same question arises: Why is Enron taking all this trouble? There must be a greater reason.

Enron’s route for cheap LNG (Enron)

Enron also desired greatly to extend the pipeline to the Pakistan coast, where there was estimated to be $1 million barrels of LNG/ days worth of oil exportation to Japan and Korea. (Largest consumers of LNG in the world) If Enron could enter the South Eastern
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