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Oil and our Economy

Posted on: June 11, 2008 6:41 pm
 

We all know that the cost of oil keeps going up and up.  I've seen numerious posts condemning the government for it's lack of action and inability to fix the problem.  I have a solution that I can guarantee just about nobody out there is going to like.  This solution to the problem entails more difficulties for the American people rather than less, however, ultimately this system is the only way that we can be assured of the long term economic survival of the country that we all know and love. 

In order for the crisis with oil prices to be resolved the prices need to continue to go up.  That's right I said up.  Now I understand that places more of a strain on everybody's wallets and really creates economic problems, but here's the thing.  Oil is a finite resource.  The reason that oil prices have gone up is not because of poor government policies, but rather it's an increase in the demand for oil namely from other countries such as India and China.  In order to lower the price of oil you need to either lower demand or increase supply.  Well India and China aren't going anywhere, and Americans are extremely reluctant to pull back on their oil consumption so that leaves increasing supply.  Yes we could drill new oil wells and destroy the environment and yes it could provide us with a short-term fix in oil prices, but what happens as developing countries continue to grow, we're going to be right back in the position we're in, Global warming will have increased to even higher levels, and we could be facing the brink of disaster.

Or we can let the oil prices go up.  This will eventually have positive effects, the first thing that will happen is that it will create a situation where market forces will force people to lower their consumption of gasoline.  This will create a huge demand for alternate forms of transportation.  Because there is a demand for these products, large corporations will step in to provide vehicles that run on alternative forms of energy.  You're skeptical I can see.  Well let me put it to you this way.  Do you think hybrid cars would have been developed if gas was a dollar a gallon?  The fact is they wouldn't be.  Not to mention the fact that now every car company produces hybrid cars and they are more affordable to drive.  Now Chevy is producing an electric car set to be released in 2010.  If that car is comercially successful, then there will be more companies producing electric cars and the result will eventually be a set of vehicles that run on no gas at all rather than gas that is only going to go up and cost more. 

Now politicians do need to work to subsidize alternative fuel power plants.  My hope is that these electric cars can be run on a combination of solar, hydroelectric, wind, and eventually Hydrogen Fusion.  The problem with this hope is that electric cars and alternative energy needs demand.  That demand can only be produced by higher oil prices.  Yes it will be hard.  Yes there will be suffering, but the end result will be a vibrant economy that is free from the shackles of oil and that has done our part to solve the crisis of Global Warming. 

(P.S.  anyone who doesn't buy into the global warming issue just watch An Inconvenient Truth, it is a frightening film)

Comments

Since: Mar 20, 2008
Posted on: June 14, 2008 10:03 pm
 

Oil and our Economy

CAMATT. Thanks for the comps. I'm glad that there are at least a few of us out there that are thinking about the convenience of the EARTH, not our wallets. If we taxed gas, the money wold stay in AMERICA. If we just pay OPEC more, the money goes to the same muslims that the RIGHT wingers(funny how they think that description of their political position is also the definition of the OPINIONS) that we are trying to find their WMD before we are destroyed. And I have been ripped several times on these boards for having a muslim in law and a few muslim friends who are not terrorist. They are friends of mine who chose to live in America because they prefer it to their native countries. Praying to Allah doesn't make you a terrorist. The same people who refuse to grant muslims  religious freedom are on the same tree as those that put all the Japanese Americans into concentration camps in 1942. HOME OF THE FREE(if you agree with the 24% who think Bush is doing a good job)



Since: Jul 2, 2007
Posted on: June 14, 2008 12:34 am
 

Oil and our Economy

Mistom,

Have you actually seen an inconvienent truth?  The evidence in the film is extremely compelling.  I do realize that the earth goes through periodic climactic changes, however, scientists have studied those periodic changes and this period of increasing temperatures is unlike anything that has ever been seen before.  The problem is twofold.  The first problem is that glacial melt is happening at a very rapid pace and the more the glaciers melt, the faster they melt.  This is going to result in many coastal cities being under water.  The second problem is that the melting glaciers are actually going to cause a change in the north atlantic current which will in turn lead to another ice age that will cover most of North America.  I for one don't want to live under a sheet of ice.

Let me also just say that I was extremely skeptical about the concept of global warming too.  I believed it was just a natural climactic shift, however, that movie in addition to listening to a couple of guest lectures has thorougly changed my opinion.  If you haven't seen the movie, I strongly recommend it.




Since: Dec 20, 2007
Posted on: June 13, 2008 11:39 pm
 

Oil and our Economy

Sorry I didn't proofread before posting.  Please excuse the mistakes



Since: Dec 20, 2007
Posted on: June 13, 2008 11:34 pm
 

Oil and our Economy

Nice blog guse, I have to agree with you. I would love to see the price of gas go up to $7 a gallon so that all the idiots who bought SUVs because they are "cool" will feel the impact of their decision.  Americans are easily the most wasteful people in the world, and yet we have the nerve to complain about how other countries do things.

Unfortunately, politicians aren't going to make any real changes because elections are popularity contests by definition and these are not going to be popular decisions

fan, your right, IMO this is the biggest problem in America.  Tough decisions don't get people re-elected so no one ever does anything.  Lobbying is another aspect of this problem because it takes sooo much money to get into office.  Is there any wounder why are health care system, social security, and environment are in big trouble?

We need to drill up North, up in North Dakota, and along the Florida coast now.  We can't wait.  We also need more refineries.

Is there any natural scenary that is sacred?  I would rather pay more for gas and know that there are some places I can go to see nature at its best.  As for the reineries, NIMBY (not in my back yard), no one is willing to allow a refinary near them because they are unhealthy and eye sores.  Would you be happy if a refinary was built in your community?



Since: Sep 17, 2006
Posted on: June 13, 2008 9:45 am
 

Oil and our Economy

An Inconvenient Truth is nothing more then a fictional story narrated by the biggest con ever in US history.  Global Warming (now called climatic change) is nothing more then the Earth changing on its own like it has since the beginning of time.  We have had atleast 6  ice ages historically, what melted them?  Global Warming?  Was there a civilized nation that had coal burning powerplants thousands of years ago that we did not know of?  I ask you, what melted the ice before?  Maybe the Pyramids on Egypt had something to do with it.  Mr Gore is making millions and millions of dollars jet setting around the world off the backs of the nieve. 

 

Oil, we need to be dependent of oil for our nation only.  Drill in Alaska, I can car less about the mating season of the caribou.  Does anyone have a condo property up there that would be afraid the drilling would lower your land value?  The caribou will adjust if not, we can feed our own hungry. I'm tired of people putting more value of life on an animal then on a human.

 

Alternative fuels, we can't wait the years and years it will take for them to be on the market.  Then the years and years it will take to become affordable to everyone.  Most all people in this great nation realy on oil.  Oil will be around long after men has left this world.  Oil is being made naturally by earth daily.  We need to drill up North, up in North Dakota, and along the Florida coast now.  We can't wait.  We also need more refineries.  The enviromental wackos can move to the middle east and tell the opec nations to stop what they are doing.  Will see how long they survive.   



JudgementDay
Since: Jun 23, 2007
Posted on: June 12, 2008 11:44 pm
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Since: Jul 2, 2007
Posted on: June 12, 2008 11:05 pm
 

Oil and our Economy

JD I have trouble understanding the level of pessimism about a technological fix.  The way I see it, if they can apply fusion it will provide energy in the amount we need it.  I also think we need better systems of mass transit as they are more energy efficient, however I don't think that this is necessarily a situation that requires a large change in our lifestyle.



Since: Mar 20, 2008
Posted on: June 12, 2008 5:51 pm
 

Oil and our Economy

Guse, fusion would solve all our energy problems. And you are correct, we have to do it as other countries that lack our technological and
 economic are not going to do it. France has opted for the nuclear route, Russia(Putin) is a major oil supplier, the rest of the Soviet bloc nations don't have the resources. Fusion will come from America or Britain. Unfortunately, American politics are heavily influenced by lobbyist and nobody is more influential than the oil companies. While this smacks of socialism, I think that the oil industry should be nationalized so that their profits truly are put into NEW TECHNOLOGY RESEARCH. They are not going to invent a solution that puts them out of business as long as they are profitable. And no elected officials are going to remove their tax breaks if they hope to have their reelection campaigns funded. This will require an act of Congress(that's gonna be tough) and a vote by the public to pass. For all e know, the technology may exist and is being suppressed by the oil companies. When this much money is involved, any scenario is possible. It took Teddy Roosevelt to break up the railroad and coal mining monopolies. I doubt we will elect any single official who will be forceful enough and dedicated enough to do this. Instead, when the oil runs out, somebody somewhere will unveil a "breakthru" in solar or hydrogen power to save the day. This person will probably be a BP or Marathon employee who has been on the golf course for the last 20 years collecting a million dollars a year as a consultant.


JudgementDay
Since: Jun 23, 2007
Posted on: June 12, 2008 5:45 pm
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Since: Jul 2, 2007
Posted on: June 12, 2008 4:49 pm
 

Oil and our Economy

Thanks for your positive words, and I agree completely that coal plants for electricity are still a problem.  That's why I believe the government needs to step in and fund wind power and solar power plants to at least decrease the use of coal powered plants.  We also need to pump money into cold fusion technology.  That would be the ultimate savior for our energy and environmental problems.  Hydrogen fusion in it's ideal form would fuse hydrogen atoms into helium.  This is the same process that fuels the sun.  Helium is a completely inert gas, and hydrogen is the most common element in the universe.  We just need to survive the trek to fusion technology.  And we also need to be the country to develop it, because it is the next big thing.  The country that develops this technology will benefit greatly a la the internet revolution.


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