----- Original Message ----- From: "Alex Gogan" <[EMAIL PROTECTED]> To: "Killer Bs Discussion" <[email protected]> Sent: Thursday, September 15, 2005 11:41 AM Subject: Re: Free Markets good but left un checekd they are evil
> On Thu, 15 Sep 2005 11:28:43 -0500 > "Dan Minette" <[EMAIL PROTECTED]> wrote: > > > >This is where we need the governments of the world to actually do > > something to stop the oil speculation >and put some controls in place, if > > not I fear that in a few years we will be looking back at the bygone days > > >when tech and oil was for all, but only the super rich will be able to > > afford it and the world could spiral >down into almost anarchy for the > > masses > > > > Are you suggesting that an international coalition invade oil producing > > countries so it can control the price of oil? If not, how would > > governments control the price? > > > To be honest I do not know.... but I do know that the biggest slice of the cost is not the crude, but when it is converted to gas/petrol diesel etc. Then most gov. place substantial tax's on them as well. Hmm, let's look at prices for Jan. '06 delivery of unleaded gas and crude oil as of right now. I picked January, because the temporary loss of refining capacity from Katrina will have a fairly small effect at that time. Light Sweet Crude Oil prices are $66.35/barrel or $1.58/gal for that date. Wholesale unleaded gas prices are $1.83/gal. The margin of $0.25/gal is not really all that much....considering the costs of refining. Refining margins have been low for years...that's why no new refineries have been built in the US for a long time (20 years?). > But for decades we have known about the shortage, What shortage? 7 years ago, the surplus resulted in massive reductions in the oil patch. To first order, we're still using the capacity generated 25 or so years ago. >so why is there not more work and research done in other alternative fuels Billions are spent on this every year, with little in the way of results. Research is great, as a Phd physicist, I'm all for it. But, it isn't magical. Research in a field does not guarantee that one gets the results one wishes for. For example, one could spend trillions on researching converting thermal energy directly into mechanical energy (without transferring thermal energy to a colder reservoir) and have failure all but guaranteed. Solar power is politically correct, but very costly. If oil prices were to rise to, say $200/barrel, solar power would probably be cost competative. Wind power works in limited areas, but the best areas for establishing wind farms have been/will be used up without supplying any significant fraction of the energy needs of the world. > why is there not better transport infrastructure systems in place to move people >around better, faster >and more environmentally safer. > There could be price control placed on the price of oil to the end user. I know that this in turn can cause >other problems. But eitherway something has to be done... just do not know what exactly. Why not let the market decrease demand and increase supply? Energy prices are still relatively cheap...that's why demand has continued to increase even though prices have gone up. Dan M. _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
