General Electric, the world third largest conglomerate surprised the financial world recently by announcing the splitting of its huge energy business into three separate entities, effective during 2012 fourth quarter. The current organizational makeup of GE energy activities will be phased out by the end of the year.
The current GE infrastructure numbers over 100,000 employees and is expected to generate USD 50 billion in revenues, in the context of GE’s total business approximating USD 150 billion this year. Also significant is the fact that the new stand-alone businesses, GE Power and Water, GE Oil and Gas and GE Energy management will report directly to the business behemoth boss Mr Jeff Immelt.
Although the controversial head of one of the world corporate super giants is closely allied with the Obama Administration as Chief Advisor to President Obama for job creation, Mr Immelt obviously has far greater appreciation than Obama for the economic dynamics that fossil fuels provide to a malingering economy. This is unlikely to improve before the November 6 general election.
GE dramatic split-up of its massive energy business bespeaks an expectation of future growth far exceeding the already impressive levels it has reached currently. Mr Immelt appreciation of energy’s dominant future likely influenced Obama to impose the shackles that have temporarily been forced on the Environmental Protection Agency and its fiery boss Ms Lisa Jackson.
Since the General Electric CEO is obviously committed to Obama re-election, Mr Immelt likely believes he could restrain the newly re-elected President from letting the EPA boss lady from running wild. It’s no exaggeration to posit the belief that she would not only bankrupt America’s globally dominant coal industry, but possibly do the same for oil and eventually natural gas.
This lunacy, tempered by a distorted belief in renewables could put America resurgent energy drive into permanent reverse from which this country would never recover.
Source - mydesert
(www.coalguru.com)
