JREwing

An Energy Policy That Makes Sense, Revisited

Don't worry they will be drilled, if necessary they're gonna put up a rig on the White House lawn. All depends on the price.

An Energy Policy That Makes Sense, Revisited

First lowmoor, right on!

Second:The two Peak oil and anti Peak oil warriors (just kidding) up there.

Brian Pursley: You can't pump the same barrel twice. Once a resorvoir has hit its peak, it has hit its peak. Sorry man, that's how it is. To paint a picture: It's like takin' a leak. The emptier your bladder gets, the less pressure (you know daily production).

Fitz: While it is difficult to produce UDW subs-salt reservoirs, it obviously not impossible. There are producing wells and I doubt that oil companies would spend a fortune on UDW projects, if there was no chance in hell for success. 20 years from now no one would have dreamed of developing such fields.

Everything works out as it should: High prices constrain demand growth and enable oil companies to develop new reserves.

An Energy Policy That Makes Sense, Revisited

Any politician who proposes a policy, that makes transportation more expensive won't get elected dogcatcher. Not even here in Germany. That was alright in the 90s when gas was cheap. Now including taxes I am paying 9$ a gallon, and suddenly folks a crying for a tax relief even here in 'ever green' Germany.

Fact is, people don't want to see the problem, and anyhow, it is much easier to pull a 'COMMY' and blame the oil companies.

Your points are well taken, FITZ. I commend you on your thought process. But: People won't buy it.

Here is how I think this is gonna play out.

First, I don't want to play the arrogant European here (We got a lot to learn from America/and we are only free peoples because of you guys),
but 3.51$ a gallon is so cheap, I just can't believe it. Every time I go on vacation, I usually go to the US, and I rent the biggest damn car there is (funny enough: last summer I was Dallas and rented a HUMMER)- because it is paradise for me.

So, before people really, really gonna start to think about this is, when gas cost 9 or 10 bucks a gallon.

It is the pain and nothing but the pain, the sheer necessity to change behavior, that brings change.

Darwin really got that right. Poetry socialists may like it not: In the end everything has to adapt to a changing environment or go under.

As long as gas is cheap - and don't get me wrong, it is cheap here in Europe as well, otherwise people wouldn't drive around in their convertibles for fun on a nice day like this - Detroit will figure it is more important to NOT get tough with their union buddies, instead of investing in R&D, Airlines will continue to ask their Unions for permission to become more profitable in order to buy at least on or two planes, that are up to date, when it comes to fuel consumption and so on...

Interesting, that the industries with the biggest need to improve are union dominated.

Bottom line: The market will take care of this. Should there be any government intervention, it will be aimed at the symptoms not the cause and will therefore be counterproductive.

Drive Diesel and save fuel!