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


To: Road Walker who wrote (337282)5/11/2007 1:20:56 PM
From: Alighieri  Read Replies (2) | Respond to of 1574784
 
The biggest obstacle is that as alternative fuels start to take over, oil will again become very cheap. The you will need government intervention or you will have the same situation you had after the last effort to get off oil.

I think Tim F posted in opposition to subsidies or state intervention, but in fact there are issues which transcend pure economics and which should not be left to the mercy of natural market dynamics.

Al



To: Road Walker who wrote (337282)5/11/2007 3:50:12 PM
From: TimF  Read Replies (1) | Respond to of 1574784
 
The biggest obstacle is that as alternative fuels start to take over, oil will again become very cheap.

They only take over as they become more cost effective at the margin. It won't be one day (or year or even decade) where where almost 100% oil, and the next with us using almost 100% alternatives. They will take over as they become price completive to oil, and the transition won't be sudden. Alternative fuels won't make oil very cheap unless they are themselves cheap.