RE: Peeved at the pump

From: Glenn Morton <glennmorton@entouch.net>
Date: Sat May 15 2004 - 20:39:42 EDT

> -----Original Message-----
> From: Howard J. Van Till [mailto:hvantill@sbcglobal.net]
> Sent: Saturday, May 15, 2004 4:08 PM

> Given your dislike for what I have proposed as one way
> (taxation) to deal with the problem of people failing to
> understand the Value of oil, what is your solution? Or is there none?

I knew you were going to ask that. I would tax things, not just oil,
and spend it on solving the fusion problem. Demand for oil will raise
that price well above what is sustainable for economic growth. We need
to think really long term and that is really difficult for people. By
the end of this century comercial quanitites of natural gas, oil, and
almost all the coal will be gone. As one wise man said to me two weeks
ago, yeah, it is amazing how we have a 200 year supply of coal when we
aren't trying to use it. When we try to use it, it probably will turn
out to be a 40-50 year supply.

The scary thing for me is the question of what if we really have peaked
out? We may not have time to solve the other problems before everyone
goes to war over oil. While I expect the high prices for oil will come
down within a year (either due to a recession or due to an easing of the
panic over the threat of terroristic acts affecting the world's oil
supply. If the above question is correct, then transportation will
suffer badly and transportation is what moves goods to the
customer--like groceries. I have mentioned before how lack of oil in
the UK in Sept 2000 nearly emptied the store shelves in 2 weeks.
Globalization has been based upon the mistaken concept that
transporattion was almost free (low cost of oil). That has had two
effects. The OPEC countries haven't made enough money to bring their
economies up to western standards, and we have moved all our strategic
industries overseas where we could buy those items back due to cheap
production. One reason we won WWII was that our oil was at home and the
Japanese oil was overseas. We sank the Japanese tankers which began to
cut them off from their oil. Now we are in that position.
Received on Sat May 15 20:40:09 2004

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