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Politics : Politics of Energy -- Ignore unavailable to you. Want to Upgrade?

To: Eric who wrote (3977)	1/7/2009 6:09:17 AM
From: Road Walker	1 Recommendation Respond to of 86356

We will effectively strand a lot of oil because of the risks involved. That process will move us off of carbon fuels the hard way unfortunately. Exactly why we need to get ahead of the problem regardless of the economics. Right now you have Russia using energy as a political/economic weapon. Iran, Venezuela and even Kuwait have recently been rattling sabers about using energy as a political weapon. And you have peak oil which will eventually throw things out of control very, very quickly. We are the deer in the headlights. We can move forward on solving the problems now or we can wait for the next (and maybe final) crisis and try to do it on an energy crisis management basis.

To: Eric who wrote (3977)	1/7/2009 1:32:35 PM
From: Brumar89	Respond to of 86356

"Where do you find the new oil?" More and more it's in very deep water and the costs to drill there are going out of sight. I'm afraid in the long run the majors will give up because of the ultimate costs. Investments in higher cost oil reserves will only be made if the price is high enough to support the higher costs. Oil prices are almost certain to rise over the long term. Short term market weakness doesn't change that. The higher price will be the best incentive possible to encourage development of cheaper alternatives, whatever they may be. Guess I don't see the problem the price mechanism wont solve. Though the process of solving it will be "hard". But hardness is a necessary and unavoidable part of life.