pansyed

Ethanol: Three Developments to Watch

Over the past few years I think much has changed in the oil patch. At $55.00 per barrel oil few people worried and few talked about peak oil. Now with oil at almost double the price and the realization that there are a whole lot of people in other countries competing for the oil we are beginning to realize there could be a shortage. In addition world wide traders are having a field day scalping and there is little that can be done about it.

In fact we are just beginning to get to the alternate electric and alternate fuels use. Yes some of it is near economic but we are going to need more oil to even think about holding the price.

For so many years America has not produced the engineers needed to advance the electrical cycle for needed improvement. Advances are coming but solar and wind or present alernate fuels do not and are not going to fill the gap for a number of years. We will not have enough silicon to keep up with demand for present solar needs for a year or two. To accelerate that rate of production is several years off. Wind energy is coming along nicely but it has a number of drawback. Each of the alternate energy products needs time to overcome a number of hurdles.

Drilling is needed just to hold the fort while the alternate methods are developed and implemented. Lets be pragmatic. To think we can overcome the petroleum needs in just a few years is not going to happen.

We do need the oil companies to drill like hell for a few years to fill the gap. But by giving them a tax break there is a necessity to assure they are using the money developing more petroleum reserves. If there is legislation it should state that a tax break is tied to drilling.