RE: Peeved at the pump

From: Glenn Morton <>
Date: Sat May 15 2004 - 12:38:10 EDT

-----Original Message-----
From: Howard J. Van Till []
Sent: Saturday, May 15, 2004 8:40 AM
To: Glenn Morton;; Al Koop

Sorry to have slipped into such vitriolic sarcasm. I do get rather
tired of 'solutions' which don't solve a thing and I still contend,
Howard, that the poor can't afford 75 dollars to fill up a gas tank once
a week and at the same time afford a 12,000 GBP car, especially when in
Britain the government taxes both items to the hilt. You can't ensure
that taxes would go for anything in energy and even if it did, the
government usually funds uneconomic forms of energy which means a waste
of energy. Once a government has taxes, they use the taxes for other
things. In Texas they said we would use the lottery for education. Only
part of it was used for education. Can't trust a politician to keep his
word. Thus taxing merely removes money from people's pockets and does
little of value.

>Agreed. That's why we should ration its use. If taxing it more would
help the population to learn the actual value of oil,
>then tax it and use the proceeds to develop alternative energy systems.

We tried that during the Windfall profits tax days back in the late 70s.
The government came in and taxed away the oil company profits which
meant that the oil companies couldn't invest as much money in drilling.
Over the past 10 years, oil companies have reduced their exploration and
capital expenses, because the return on investment has been attrocious.
Capital fled to other industries--like the Tech sector, which depends
upon a good electricity supply which California doesn't have as will
probably be demonstrated again this summer.

>Second, the price of oil has been so low that there is little incentive
to drill.

True, but that is what one would expect at peak oil production time.
Too much oil. But the market is about to show people the true value of
oil simply because everyone will bid the price up to try to get the
supply. Those who bought Hummers, God bless you. They will soon eat out
your sustenance.

>So how could that situation be changed? Would the world's governments
have to think more than 4 years ahead? That could be >a problem. (Oops,
I slipped into sarcasm again.)
Received on Sat May 15 12:38:53 2004

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