Tim,
re: Weaning ourselves slowly off of oil will happen as oil gets more scarce. Government programs to speed it up will more likely then not just cause more pain.
From "Cool Hand Luke", What we have here is a failure to communicate.
There is a dead end coming wrt oil. Ted is talking 30 years, other estimates I've seen are 10 years. And the market is great at anticipating inequalities in supply/demand... note the price of gasoline is expected to hit an all time high this summer.
The new sources of oil are not increasing as fast as the world demand for oil. At the same time, the oil that is available, from SA and other oil producing countries, is getting more expensive to produce. Iraq is the last place on earth with "easy, cheap" oil that hasn't been exploited (what a coincidence).
The demand supply curve is heading for a severe reckoning. As the overwhelming number one consumer of oil, we are placing ourselves at a huge competitive disadvantage in the new world situation.
With 4% (?) of the world population, the US is consuming 26% of the worlds oil.
Here is where you may choose to disagree, but it doesn't change the outcome. Our entire Mid-east policy is based on our need for oil to fuel our economy. If it were not for the oil, we wouldn't be involved. And out involvement is what is causing the animosity, the bin Ladens, the hate and terrorism against America. If you think we are doing all this sh-t out of democratic principles, then you haven't been paying attention. It's self interest, pure and simple. And the self interest is our constantly growing oil hunger.
So where do we go from here? We're blessed with technology capabilities, we're blessed with a great economy (excess cash flow). Do we use those advantages for our military, to secure overseas oil fields? Even when we know that, ultimately, there will be a day of reckoning? Or do we use our economic and technology resources to promote alternatives to oil? And in the process, promote and build new industries, technologies and new jobs?
Great companies fail because they don't boldly respond to new realities; the same is true for great countries.
John |
