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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (138365)	7/30/2001 4:45:36 PM
From: TimF	Read Replies (1) \| Respond to of 1583503

Tim, that's true that if oil prices go up two or three times their current levels, those alternatives will be viable. However, if oil does go up 2 or 3 times current levels, our economic system will be in tatters. If we choose to not conserve, its very likely we will pay a very steep price. Its not a suddent all or nothing transition with no changes happening until oil reaches some certain price point. As prices go up, people will conserve more if oil or things derived from oil are not subsidized. Also non-oil alternatives will start to find some minor niches, then bigger postions, finally at 3x or more the current oil price other alternatives will start becoming dominent. The changes can happen in small steps that make economic sense when the market is free to adapt. If on the other hand the changes are forced by government then a change that doesn't make economic sense may get rammed through and billions of dollars can easily be wasted. If changes happen slowly then oil prices 2 or 3 times the current level will not leave our economic system in taters. If changes happen over night then government conservation programs and subsidized research in to alternates to oil will not prevent our economy from tanking. Tim