LONDON, October 31 /PRNewswire/ -- At a Press Investor Conference at The Geological Society of London on 30th October 2008, Professor Kenneth Hsu, Director of Kenneth Hsu Consulting (UK), announced the company's technological inventions, to alleviate the global energy, water, environmental and economic crises, to an audience which included Chinese government officials, overseas Chinese trade delegates and Chinese media.
Professor Hsu, who is also President of Kenneth Hsu IHC Technology Development Limited (Beijing), Senior Advisor at the Kenneth Hsu Institute for IHC Development (National Institute Of Earth Sciences, Beijing) and Director of the Center for Environmental Health Engineering (Henan University, Kaifeng), has advised the governments of Argentina, Brazil, mainland China, Malta and Taiwan.
At the Conference, he presented his analysis of the cause of the current economic crisis, which attributes the subprime mortgage crisis, inflation and recession, to the rise of the crude oil price, from US$12 to US$147 per barrel in less than a decade. Conscious of the dangers of a Great Depression, Hsu, who was born in 1929, spoke of the impact of the current crisis on China, with its dependence on exports. To overcome the current crisis, and counter the threat of recession, Hsu is advising the Chinese Government to constitute a national corporation of residual oil to moderate the energy cost, and a national corporation of environmental engineering to carry out public-work programs for full employment.
According to Hsu, the recent rise of the crude oil price was an artificial crisis of supply. The price rose 10 times its existing value, in less than a decade, then stumbled to less than half that, within a few weeks, during 2008. As soon as the economy began to recover, the OPEC met to cut production so as to maintain the high price. Meanwhile, in Hsu's view, the corporations in the oil industry, found no incentive to invest in new technologies to exploit residual oil, so they could create an artificial supply shortage instead, with the policy earning them excess profit.
Hsu pointed out that there are plenty of known oil reserves in the form of residual oil (oil underground), that cannot be recovered by current technology, and cited expert, Professor Stefan Luthi, who stated in 1999 that for the total amount of oil produced so far (800 billion barrels), an amount twice as high has been left behind. The development of known reserves awaited technological breakthroughs, which came in 2000, when Hsu combined the newly developed techniques of hydro-fracturing and horizontal drilling to invent 3-D water-flooding to exploit residual oil, with a production cost of $10-20 per barrel. After securing patents in North America, the Middle East and Africa, Hsu contacted Prime Minister Wen Jiabao of the PRC, when the crude oil price rose above 50 US$ per barrel in 2005. The Chinese premier immediately instructed the Chinese oil industry to take action.
In February 2006, an Expert Panel called by former Petroleum Minister Dr Wang Tao, unanimously agreed Hsu's invention was innovative, and should be tested and applied in China. In April 2006, PetroChina reported a successful test at the Changqing Oil Field (Northwest China), first discovered in 1907. Prior to the test, its annual production was about 10,000 tons. In 2006, this rose to 10 million tons, and in 2007, to 20 million tons, confirming the great value of Hsu's invention.
Hsu proposes offering exclusive licensing of the patent to an international corporation, which China can propose to the United Nations Security Council, be managed by an Agency of the U.N., to exploit the world's 1.2 trillion barrels of residual oil, and control the crude-oil market. Instead of an inflated price, a cost-plus price of $25-50 per barrel would stabilize the energy supply, indispensable to the functioning of the global economy. Reasonable profit from the corporation could be used to supplement the United Nations' budget.
Environmentalists speak against burning fossil fuels, emphasizing the perils of global warming. Current opinions fail to take account of Hsu's invention of Carbon-capture Utilization (CCU) technology.
In 2007, Hsu contacted Prime Minister Wen Jiabao to advise that carbon emissions can be used to change the pH of polluted lakes to exterminate polluting algae, and to culture diatoms (a common type of phytoplankton) which eliminate excessive nutrient-enrichment. The State Council asked various ministries to evaluate Hsu's Integrated Hydrologic Circuit (IHC) technology, and all gave positive evaluations. After research and development in Beijing and Dongguang, the high technology has found many applications. Kenneth Hsu IHC Technology Limited (Beijing) has been negotiating with two dozen local governments on numerous projects, including:
1. Rehabilitation and maintenance of polluted lakes: The Three Lakes (Dianchi, Tai-hu Cao-hu), Tongsha Hu in Dongguang; Grass Sea in Gweizhou, etc.
2. Elimination of the pollution of inner-city lakes and waterways, such as the Olympic Lake in the Olympic Village; Jade Lake Park Wetland in Beijing; Yuanminyuan, Kunminghu, Beihai, Zhonanhai etc, in Beijing; Qinhuai He and Xuanwu Hu in Nanjing; Suzhou He in Shanghai; polluted canals in Dongguang, etc.
3. De-nitritization of treated waters to provide a drinking water supply which could reduce cancer-mortality. KHC has discussed with various local governments, the desirability of using IHC technology for sewage-water treatment works in Chinese cities, especially to add to the process of biological cleansing of discharges from current sewage treatment works, so that they could be recycled as a source of healthy drinking water, or as water for irrigating crops.
4. De-nitritization of the sources of bottled water. Hsu's Center for Health Environmental Engineering (Henan University, Kaifeng) is conducting clinical experiments to confirm the observation that drinking nitrite-free water could reduce the cancer-mortality rate by half.
5. Carbon-capture Utilization (CCU) to provide carbon dioxide to change the pH of waste and polluted waters to initiate and maintain conditions for biological cleansing of lakes, streams, canals etc.
6. A still more effective means to sequestrate carbon dioxide by growing vegetation in deserts, through the use of water-saving irrigation technology known as capillary irrigation. Thanks to a research grant from the Ministry of Science Technology, KHC has successfully carried out experiments to grow corns in the Minqin Desert, without surface irrigation.
With the support and assistance of the Chinese Government, KHC has been able to develop the IHC System of water technologies that utilize carbon emissions to resolve the environment, water and health crises. This forms the basis of KHC's optimism that through the new residual oil recovery and water technologies, China will lead the way out of a global recession into a Greener World.
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