jepittman

Tar Sands: How Much Is Out There and Can Nuclear Help?

According to Stratfor Canada is interested in applying our 'clean coal' technology to the tar sands development. This will require some coordination between the two countries regarding international carbon emission regulations(Kyoto accords) but it appears this was on the agenda at the recent meetings between President Obama and Prime Minister Harper. With Chavez of Venezuala looking more like a new version of Fidel Castro, and Mexico's declining production profile, Canada's tar sands look like the logical replacement for unreliable energy from South America.

Oil: A Slippery Slope Ahead?

My reference to 'enlightened government' was perhaps not appropriate. I intended to imply that the incoming administration might well look past the current oil price declines and continue support of alternative energy technology as a national security investment. I would suspect higher gasoline taxes would be DOA. I do agree that sometime soon inflation will become a problem again.


On Dec 02 04:16 PM GeminiAtlas wrote:

> jepittman,
> "enlightened government" ha, that's a good one. If they were enlightened,
> they would probably gradually raise taxes at the pump, let's say
> over the next ten to twenty years. They should get rid of the MPG
> standards and let the market do its thing (people would want fuel-efficient
> cars to pay less tax). With increased tax revenues coming in from
> the pump, they can use some of that to invest in alternative energy
> R&D and other mass infrastructure. Also, higher gasoline taxes
> would accelerate private investment in alternatives as these would
> become more viable economically. But then again, those tax dollars
> would quickly be "reallocated"... to other stuff that congress deems
> so-very-important.
> In any case, what the article didn't factor in was the US dollar.
> Currenly our enlightened government is running the presses as fast
> as they can. What are barrels of oil denominated in? Federal Reserve
> Notes aka dollars, cash-money, etc. There is some deflation now,
> but with all these dollars being pumped into the system, we could
> see an inflation spike in the not too distant future. WIth that oil
> will go through the roof.

Oil: A Slippery Slope Ahead?

Virtually everything in America runs on oil or natural gas. Lower oil prices mean falling costs and expanding profit margins for US companies. It puts $$$ in consumers pockets and thus tends to lift consumer confidence. Falling oil prices also puts less money in the hands of people who do not like us very much. While its true alternative energy will be at least temporarily slowed, strong leadership from an enlightened government can keep R&D alive in anticipation of the inevitable reversal. In the meantime lower oil is a huge positive.