Paul Killinger

Implementing Pickens' Plan for Public Energy Policy

Roman,

After advocating allowing market forces to work to help us out of our current energy crisis, you propose a series of government programs to accomplish these goals. Perhaps you see the contradiction in that?

But, don't worry, after Obama's elected, you'll get your wish. There will be PLENTY of new government programs for energy and everything else.

Implementing Pickens' Plan for Public Energy Policy

It's no secret why Honda can charge more for the Civic GX. It's the ONLY new CNG powered vehicle now being sold in America. Once again, a matter of good old supply and demand at work, which is why gasoline prices skyrocketed in the first place.

This is also why gasoline prices are retreating now. I've maintained for months that gas prices would recede when Congress actually takes action to increase domestic energy reserves. Wall Street sees that happening now.

But I wouldn't short oil just yet. So far, the Greens and the Democrats are digging their heels in. This means we can only end the offshore exploration moratorium in October, when the Senate Republicans can keep it from being renewed for another year.

So stay tuned, it promises to be one hell of a fight!

Implementing Pickens' Plan for Public Energy Policy

Rich,

Years ago the cost of a CNG conversion from a gasoline powered engine was $1,000, and today I'm told it's around $3,000. But in mass production that doesn't account for the $7,000 price difference between a Civic GX and an LX, or how the GX could cost even more than the Hybrid, which must be significantly more expensive than the GX to produce.

Thanks again for the CNG truck info. Let me ask you, would it be feasible for long haul truckers to utilize CNG (...assuming they could readily refuel), and what are the cost differences? I know they work for trash hauling trucks today, and I rode in CNG powered taxicabs 25 years ago.

Implementing Pickens' Plan for Public Energy Policy

Peter,

Thanks for the fascinating post about United Oil, and the tremendous oil and gas reserves off the coasts of Alaska and South Carolina. I have no doubt there are virtually ENDLESS supplies of these resources all around America offshore, enough to power our economy for HUNDREDS of years by themselves.

Indeed, world renowned astrophysisist Thomas Gold believes we have only scratched the surface, and there could easily exist more than 100 TIMES the oil and gas reserves we have previously discovered. That would pose severe problems for both the Arabs and the Greens, both of whom are vitally dependent on the theoretical nonsense of Peak Oil.

Implementing Pickens' Plan for Public Energy Policy

Hondas also merit another $5,000 per unit premium over comparable Chevys and Fords, due to the resounding consumer acceptance of their vehicles here in America.

Implementing Pickens' Plan for Public Energy Policy

As always, supply and demand rules the day. The reason Honda gets a $7,000 per unit premium for its Civic GX (...as versus the Civic LX, which is essentially the same car) is its the ONLY CNG powered vehicle now sold in America, since GM, Ford and Chrysler long ago abandoned theirs due to poor sales.

Implementing Pickens' Plan for Public Energy Policy

Observationist,

No offense, but you obviously didn't get my point about the value of CNG vehicle tax subsidies to CONSUMERS. If MANUFACTURERS raise their prices to pocket such subsidies for themselves, as is clearly the case with the Honda Civic GX, why have them in the first place?

Implementing Pickens' Plan for Public Energy Policy

Brian,

While I believe you and I are essentially on the same page as regards our energy crisis, I'm not sure you're being totally fair to TBP. While he's changed his mind about wind farms, so has the rest of the nation changed its views on domestic energy exploration (...except for people like you, me and TBP, who were for it all along).

Last week he I saw him respond to a question before a Senate committee by saying he changed his mind about opening up ANWR, and that he's for it now. That could hardly endear him to those Liberals, or help get their support for his wind-CNG plans, either.
You might want to consider giving him in a break on this one.

Implementing Pickens' Plan for Public Energy Policy

Rich K,

Thanks for the info on NG supplies and the use of CNG in trucks.

Here's an interesting aside on the "value" of tax subsidies as regards CNG vehicles. A new CNG powered Honda GX sells for $4,000 more than its hybrid cousin, although it's cheaper (...about the same cost as a standard Honda Civic) to produce. Coincidentally, perhaps, the federal tax credit for buying a GX is exactly $4,000, which goes directly into Honda's pocket, not yours! So much for the benefit of government tax subsidies for encouraging consumer behavior.

What the Law of Diminishing Returns Means for the U.S.

Sounds alot like our old friend Jimmy Carter. It took us several years to return to growth after his stint in the White House. We can only hope we're as lucky this time around!