Politicians Should Look Abroad for the Source of Our Energy Woes
Reader Comments
economy
I may not have answers for our economy but every suggestion helps. ask the people for their input. quit blameing republicans and democrats. Put our heads together and lets get
ourselves out of this. I think the president should put a hold
on this TV transition. Feb. 15. People are losing their homes and cars now their TV. Lets close our boarders and take care of our selves. Easier said then done Mabey But if we don't make it so easy for them to get assistence & jobs when they are here
maybe so many wont want to come. We need to revisit some of our
welfare programs. Not enough help to do this then lets take some of the people behind the desks and let them walk the beat.
and by that I mean actually see where the money is going. Maybe
offer incentatives to people for turning in people when they see the money being misused. incentatives can work for alot of things let the people work for you, Taxes,crimes,They need help nd so does the government. Lets not be greedy anymore look where that got us morgages, interest rates, and gas prices. a little is better then nothing. We need to start capping some of the influxtion of these things. Before things get worse. I know everyone can backtrack a little. I don't mean cut in half cut down. These big conglomarates. Oil co. morgage co. banks, loan co. Real estate. Rent prices for bus. is crazy look at all the empty buildings. I would like to open a small bus. can't afford rent. So their are pioneers out there that would like to do this bring back some jobs but can't because out of the space rent.
lets all keep thinking of ways to get out of this let the people open their minds and the governent bend their ear. We
can do this United we Stand Divided we fall.
Our future economy and our competitive position in the world
Our future economy and our competitive position in the world will depend on inexpensive and abundant energy. Energy is the basis of all of the world’s economies. The country that has the lowest cost of clean energy will have a significant leg up in the future world economy.
The primary source of energy for most of the economies in the world today is oil, coal and natural gas. These are commodities that are purchased on a worldwide market. We all pay the going rate and therefore we all have the same basic cost of energy.
We are currently faced with peak oil. In the next few years our existing oil will diminish and demand will increase. Supply and demand dictates that the world wide price of oil will continue to escalate.
A new paradigm for worldwide economic competition:
The country that has the lowest cost of energy will be able to supply goods and services to the world for a lower cost or a higher profit margin. This would also mean a higher standard of living and a more robust economy for a country that has the lowest cost of clean energy.
Sufficient amounts of clean energy, will probably necessitate constructing multiple large nuclear power plants. Wind, solar, geothermal, tide and wave power are all great and will probably not be enough to meet the realistic demands of our economy.
Basically we need to:
• Add a carbon tax or cap and trade system that will sufficiently add to the cost of those who pollute. Use the revenue from this tax to subsidize alternative energy.
• Carbon and pollution cost will also need to be added to imported goods.
• Fast track the construction of nuclear power plants and utilize the technology that will transfer large amounts of power for long distances with little or no line loss.
• Add a tax to gasoline that will gradually increase, on a timescale, to a very significant amount. This tax money will go into a fund that can only be used to subsidize the purchase of the cleanest most gasoline efficient cars.
The abundant power of the nuclear plants can also be used to generate hydrogen gas. The hydrogen gas can be used in many ways; a substitute for gasoline, diesel, home heating, etc.
The gasoline tax and subsidy for the purchase of small clean cars will dramatically change the cars that are produced. The manufacturers will be scrambling to create the cars that receive the greatest percentage of the subsidy. Theoretically one could buy the equivalent of a Toyota Prius and have the government pay for one half or more.
These are drastic economy shaking ideas.
The reality of our needing to eliminate our dependence on foreign oil and the immediate and real threat of catastrophic climate change, justify and demand drastic changes.
Creating our new energy environment, and fast tracking these changes, will invigorate our present economy. Fast tracking means, environmental impact report not needed and a moratorium on lawsuits. The environmental impact of the status quo is obvious
oil energy crisis
short memories are the problem
this happened 1973 1979 etc. the energy crisis is solved by developing new technologies and new energy goals not by staying in the same short term dumb loop. the politicians need to define and enact this as the new reality instead of continuing the above.
oil leases
I think instead of giving oil leases to the oil companies the politicians should set up a division within the natinal parks to drill and mine on federally controlled land. The division could go to Alaska or where ever they could get the oil on the market fastest and drill. They could build a pipeline to ship the oil across federal land and sell it at market price. $4-5.00 per barrel could be put into a fund devoted to clean up of federal land even to the point of returning the land to its natural state once the oil is gone. Half the profits could be used to finance other mining and drilling operations on federal land. The other half could be used to finance environementally friendly projects. Instead of leading the world in pollution the US could lead the world in the fight against global warming.
not how oil market works
This article presents an Econ 101 view of the oil market. A simplistic view that isn't true.
Most oil contracts are long-term contracts, and the price is based on some benchmark. Many of the benchmarks are the prices set on the commodity exchanges in New York and Chicago. Sometimes they use benchmarks from other markets, but those prices are linked to the US markets through arbitragers.
In the past 6 months, more than 70% of the oil futures trading was done by speculators, according to the CFTC. Most of the time, speculators comprise only 20% of oil futures trading. Who were these speculators? They were mostly momentum investors, buying because the price was going up. The futures market gave them enormous leverage, requiring only a small deposit to control a large amount of oil. So to say that speculators played no role in the price increase is wrong. They saw the fire, and added fuel to it. They pushed up the futures prices, and that had an enormous ripple effect throughout the oil market as contract benchmark prices were adjusted to follow.
What is the proper government response? The CFTC should have raised the margin requirements on oil futures contracts to reflect volatility in the market. Speculators, facing margin calls, would had to liquidate some of their positions, popping the speculative bubble.
There are real, economic reasons why the price of oil has increased in the past 10 years, and many of these are discussed in the article. There is a big difference, however, between short term and long term price behavior. The past 6 months have all the earmarks of a bubble market - a rapid rise in prices, followed by an even more rapid decline. The CFTC should have stepped in to do more to limit the damage to the economy that occurred.
You're ruining my fantasy
You mean McCain and his new accessory, Princess Palin, are lying to us. You mean there is no "energy independence"?
You mean the pig (policy promises) really has the lipstick of Palin on it? Oh, say it ain't so. Her shrill voice is so "fetching". Her faith is so "inspiring." Her red high heels are so, uh---"high". And her kids are so "wholesome".
Aaarrrgh!!!!
OPEC's greed is showing
Why not have our new president just send people like this to http://www.greedypeople.com before we do business with them? That way, we'll know just how much they want to take advantage of us and maybe we can avoid these messes we keep getting ourselves into!
