flying breeze

Oil Price Resilience in Doubt for 2010

Interesting article here suggesting $30 oil is in our future: www.biofuelsdigest.com.../

Anyone care to poke some holes in the argument?

BP: Beyond Petroleum and Back

So what are the costs of fossil fuels vs renewables? It is the cost structure that is being redefined at the moment. Fossil fuels now have to add onto their list of expenses:
-green house gas production mitigation
-carcinogens and national health costs
-loss of local/national employment (economic leakage)
-economic risk from price volatility and foreign control

Renewables can subtract from their costs or add to revenue
-partnership relationship with energy efficiency and conservation programs which have the greatest potential to reduce user costs
(think smaller cars and more home insulation)
-import reduction
-proven long term cost reduction curve and price stability