[Peakoil] Chris Cook interview

[POLLARD,Sandy]

We've talked sometimes about energy-based currencies, community energy
projects etc.
 
Here's some extracts from an interesting interview with the proposer of
the Iranian Oil Bourse - Chris Cook. More at:
 
http://www.energybulletin.net/19237.html
 
 
"...Having said that I think it is possible to set up a new system, I
call it an Energy Clearing Union. It's not that dissimilar to a proposal
that Keynes came up with at Bretton Woods: an international clearing
exchange with its own currency unit, though not based on any particular
commodity.

JJ: Wasn't it called the Bancor?

CC: That's exactly what he called it. I would go along with that
analysis. What is needed is an energy clearing union, with a petrodollar
which consists of a dollar's worth of energy, in whatever form, at the
launch date. In the same way that the Euro had a launch date, when the
rates were set against other currencies, so you would take a petrodollar
- a US Dollar, and set it against various energy manifestations, whether
it is kilowatt hours, or barrels of oil, or whatever.

And from that point on you have something that is exchangable against
all other currencies, which would vary against it, that would give you
the basis for a rational clearing system, I think that is an eminently
practal proposition albeit one that would take a lot of work to put in
place. I do not see any currency being able to compete with the dollar.

No currency issued by a central bank, if I can put it like that.

What I am proposing is a currency based upon an asset, as opposed to a
claim over an asset issued by a central bank. So it's asset based,
rather than deficit based."
 
--
 
  Re Limited Liability Partnerships (LLPs):
 
"...We can take this legal wrapper and use it in entirely new ways.
Instead of borrowing to do things, we can bring in stakeholder-investors
instead.

A case in point - sticking to the energy field - a wind turbine creates
an energy flow over a period, say 20 years. We can look upon that flow,
as a collective pool of production: 20 times 5 thousand megawatt-hours
over a 20 year period. If we take that pool of production and we find
investors on the basis we will sell to you a proportion 10%, 20% 30% of
the production of this turbine in the next 20 years and we will sell you
that at todays price. It is my experience in working up examples that if
you sell 30% of the production you have funded the turbine, and 70%
stays with the developer or the community, and it is my belief that the
lion's share should remain with the community, unfortunately today it is
the other way round.

JJ: But there would be no reason stopping a community, say in the Outer
Hebrides with plenty of wind, getting together and forming one of these
LLPs and saying: invest in us.

CC: Absolutely, and it means all the stakeholders interests are aligned.
It means that the developer-partner has every interest in putting in the
best quality turbine and doing the best possible work because that will
maximise his return for his x percent of the production - everybody's
interests are aligned - it truly is a partnership."
 
--
 
COMMENT: I like to try this sort of thing on in my part of the world!


Sandy Pollard


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