I would think that the low oil prices over the years has slowed the
development of alternative sources and more fuel efficient designs. I would
not say that higher prices are the answer because the higher profits would
never translate directly into R&D Dollars. What is needed is greater and
ongoing incentives (tax breaks? grants?) to to make the development of new
designs a worthwile effort. Right now the only incentive will be higher
prices.
What the country, the world, as a whole should have been doing is preparing
for this event and have alternatives ready so that we could just give OPEC
the finger whenever they want to drive up prices. As usual our elected
officials didnt learn from the gas crisis of the 70's so I guess we may just
be doomed to repeat it.
Another observation, I think that the consumer is getting gouged by the oil
industry even further. I Live in NJ and prices here are generally 30 - 50
cents cheaper than in NY now the variation has dropped to about 15 - 20
cents, something to think about.
Scott
>From: van Hoy <vanhilla@PACIFIER.COM>
>Reply-To: van Hoy <vanhilla@PACIFIER.COM>
>To: L-FORWARDLOOK@LISTS.PSU.EDU
>Subject: Re: [FWDLK] GAS OUT DATES HAVE CHANGED!!
>Date: Wed, 15 Mar 2000 08:00:57 -0800
>
>Our local paper ran a New York Times article yesterday about gas prices.
>Basically said that, at $17.50 per barrel, oil prices are a bargain. US
>has
>lost 500,000 oil jobs and imports 55% of the oil we use, making us
>dependent
>upon OPEC. Development of US oil fields and offshore drilling would only
>be
>justified by $25-30 per barrel prices, they claim. Went on to say,
>"American consumers have been lulled into thinking cheap oil is their
>entitlement."
>
>The article then switched gears; "We insist on driving gas-guzzlers and
>using a grossly disproportionate amount of the world's energy, and we
>believe we should forever be able to do so at bargain prices." A
>discussion
>of SUV's ensued.
>
>So what do you all think? Is the USA a becoming second-rate world power
>because of our reliance on cheap foreign oil prices? Should the USA take
>control by raising prices double-triple so we can tap our own natural
>resources?
>
>What does this have to do with Forward Look? Well, if you interpret
>"forward" in terms of future, will we enjoy driving our classics at $3.00
>per gallon? Just maybe the country would be better off with high gas
>prices
>and economical daily drivers rather than $30K GM Subdivisions.
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