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Originally Posted by Baraka_Guru
Yes. I think perhaps my response wasn't detailed enough to reflect that, because I was speaking directly to it. Read on.
This is because no one really knows what goes on until they get more data. Analysts don't "cry wolf," but they are often wrong. A more accurate term would be "inaccurate." They do make corrections and perform new analyses. It's actually quite boring, but the data is out there that suggests we are hitting a peak.
Isn't it possible that prices are partly a reflection of this peaking production in Saudia Arabia and elsewhere? Remember, over the long term, increasing production to keep up with demand requires expanding capacity for tapping new oil. There is a limit to this game; the world is only so big. If it's not peaking now, then when?
This is why there needs to be funding for research and development on fuel alternatives as a whole.
They should shift some of the subsidies going to meat and dairy producers into other agricultural producers for various uses.
If I'm reading that right, over 74% of your agricultural subsidies go into meat and dairy. That's a lot of grain right there going into cows and pigs and such instead of directly for human use (biofuels, for example).
America already has more than the resources it needs. The Third World isn't holding it back. America dumps into world markets because of oversupply and their competitive advantage when it comes to pricing and production. I think they make money at it too. Consider that local prices could be lower than world prices and they can sell at prices lower than the cost of production elsewhere. This is "dumping." But we shouldn't get too off topic here. |
It's off topic, but it isn't. Everything is related to a degree because this so-called 'peaking' is causing a backlash. Right now, the US pays probably the cheapest price for gasoline. But, there's the very possible potential that we will meet what is paid in Europe and elsewhere.
The other side of the "dumping" coin is, if we help to bring the poorest countries up to speed in self-sustaining food production, we could, very possibly, increase their dependency on crude. Yet, reports indicate that our supplying of grain to them on a continuing basis hurts our own efforts for alternative energy research and technology.
So, what do we do? Rationing gasoline wouldn't work nowadays. We have become so dependent on our independence that other avenues have lagged. Mass transport is abysmal; alternative fuels are out there (NJ's PSEG was running vehicles on methane and I think that was stopped, perhaps due to a time limit- although the program was working fine); So-called hybrid cars still run on gas-my father's diesel VW Rabbit got better gas mileage 30 years ago than the hybrids out now.
The cost of fuel has permeated every part of our daily lives and I don't think rationing would bring that back down to acceptable levels.
One possibility is governmental limitations via taxes on profits, but I don't know that that would stop this runaway bus, only slow it down.
The only thing I am absolutely sure about is the chunk of change we are losing every month because what used to cost us less than $30 a year ago for each car each week runs us over $50 each a week now and we ain't rich.
A friend has a Suburban and it costs him close to $100 to fill it. He can't ditch it, sell it or garage it, either. We are at the mercy of the oil cartel and they couldn't care less.