Re: Replicators

At a recent conference in Saudi Arabia, the Saudis said they worried
that $140 per barrel would cause those in the West to develop
technologies that make oil obsolete well before they run out of oil.
The major oil companies worried about the same thing, which is why it
was not generally reported in the news. As far as the public is
concerned, there are no solutions to our energy problem, except pay
increasingly high prices. Which is ludicrous.

I have spoken with the White House, and Congress, and the Pentagon,
since 2004 - and I have said the same thing. A strong COMMITMENT from
the leadership of this nation to a workable alternative energy program
that delivers synfuel at $25 per barrel - would IMMEDIATELY be
discounted by speculators, and producers alike, and quickly bring oil
in under $25 per barrel. Just the announcement of a program to
deliver $25 per barrel oil, and a national commitment to make enough
synfuel to export it at this price, would immediately reduce the cost
of oil.

So, why hasn't the leadership done this?

SDI helped defeat the Soviets, even though SDI wasn't built. Same
here. The day the President commits this nation to low cost energy,
is the day energy prices come down.

So, why hasn't the leadership done this?

Well, I think it has to do with debt to equity. Just as a minor
decrease in equity caused by the collapse of the subprime loan market
killed Bear Stearns - so too, will a relatively large decrease in oil
prices cause the collapse of presently strong - oil companies -
because with their escalating cash and revenue - oil companies have
increased their debt loads, and if the price of oil in the ground
collapses, their equity situation would quickly lead them bankruptcy
despite strong cash flows and the ability to service debts.

.

Relevant Pages

  • American Energy Policy, Asleep at the Spigot
    ... American Energy Policy, Asleep at the Spigot ... JUST three years ago, with oil trading at a seemingly frothy $66 a barrel, David J. O’Reilly made what many experts considered a risky bet. ... As gasoline prices climb beyond $4 a gallon, Americans are rethinking what they drive and how and where they live. ... Nearly 70 percent of the 21 million barrels of oil the United States consumes every day goes for transportation, with the bulk of that burned by individual drivers, according to the National Commission on Energy Policy, a bipartisan research group that advises Congress. ...
    (soc.retirement)
  • Re: embracers of lunatic economics(the free market)continue to bite us long after they are dead and
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    (sci.econ)
  • Top 10 reasons to blame Democrats for soaring gasoline prices
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    (alt.politics.bush)
  • OT - Fuel Prices
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    (alt.sports.basketball.nba.la-lakers)
  • Congress refuses to develop our oil
    ... It's a pet peeve of mine that congress seemingly does nothing but block energy production. ... If they feel energy must be mostly or totally from renewable sources, then they need a detailed plan on how we get there from here. ... Prices will seem cheap today by comparison and our economy will be in shambles. ... IMO we are in immediate need of waking up and using what we have a lot of (oil, coal, nat gas) while much longer term development of renewables is being pursued. ...
    (misc.invest.stocks)
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