Oil Will Be Valuable
Jane Bryant Quinn states that to stave off the coming energy crunch, "What We Need is Policy". Unfortunately, she does not offer much explanation of this cryptic comment, except that there should be some tax incentives associated with alternative fuels. Right. She shows more appreciation of the magnitude of the problem in her earlier article, "The Price of Our Additiction".
What's really needed is the irresistable motivation of higher prices. This will lead to the innovations Ms. Quinn contemplates. Low prices bring complacency and set the United States up for disaster when the inevitable crunch does come. Those with access to oil need to understand its future value. They should not be inhibited from pushing the price up, or sitting on the oil like an investment.
High prices can also be accomplished via taxation. Excessive taxation is usually a bad thing, but here it is justified in the service of conserving a limited resource.
Most Republicans argue in favor of exploring the Alaska wilderness. This is fine: no serious person doubts that Alaska will someday be pumped dry of any and all oil reserves. But Republicans need to think of this as providing a cushion for the future energy crunch, rather like the Strategic Petroleum Reserve in Louisiana, Mississippi and Texas. It should not be seen as a way to supply consumer demand ten years from now. It is unconscionable for Republicans not to be sensitive to the national security implications of future oil supply. And by all means, allow the Democrats to slow the process down by weeping over the pristine Caribou mating grounds, or whatever. The longer we wait, the more valuable it becomes.
Mendelev, the creator of the Periodic Table of the chemical elements, was one of the pioneer scientists who investigated the incredibly rich possibilities of hydrocarbon chemistry. He is reputed to have said "this stuff is too valuable to burn". And so it is. But we are speeding toward the end of supply.
What's really needed is the irresistable motivation of higher prices. This will lead to the innovations Ms. Quinn contemplates. Low prices bring complacency and set the United States up for disaster when the inevitable crunch does come. Those with access to oil need to understand its future value. They should not be inhibited from pushing the price up, or sitting on the oil like an investment.
High prices can also be accomplished via taxation. Excessive taxation is usually a bad thing, but here it is justified in the service of conserving a limited resource.
Most Republicans argue in favor of exploring the Alaska wilderness. This is fine: no serious person doubts that Alaska will someday be pumped dry of any and all oil reserves. But Republicans need to think of this as providing a cushion for the future energy crunch, rather like the Strategic Petroleum Reserve in Louisiana, Mississippi and Texas. It should not be seen as a way to supply consumer demand ten years from now. It is unconscionable for Republicans not to be sensitive to the national security implications of future oil supply. And by all means, allow the Democrats to slow the process down by weeping over the pristine Caribou mating grounds, or whatever. The longer we wait, the more valuable it becomes.
Mendelev, the creator of the Periodic Table of the chemical elements, was one of the pioneer scientists who investigated the incredibly rich possibilities of hydrocarbon chemistry. He is reputed to have said "this stuff is too valuable to burn". And so it is. But we are speeding toward the end of supply.
posted by Simon Willard at 1:51 PM
1 Comments:
At least she is one of the few mainstream members of media who is even "scratching the surface" of the real problem. Anyone who is really interested it what is happening with energy sould vist this site and make a sincere attempt to read and understand what the author is saying.
http://www.lifeaftertheoilcrash.net/
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