Quote:
Originally Posted by ASU2003
I'm still not 100% convinced it wasn't the investors and speculators who drove the price of oil up that high. There was a lot of money that needed to go somewhere once housing started looking maxed out.
|
This is a good point; even still, you get this situation where it's likely that price pressures result from a) investors and speculators, b) peak globalization (i.e. a diminishing oil per capita),
and c) emerging markets (such as BRIC).
This essentially means that $147/barrel is still a distinct possibility. If it happens again, what will the effect be even after a post-subprime economy? The impact of costly oil (and demand
will pick up when the global recovery expands) will rear its ugly head again unless we do something about it.
Quote:
|
But, I think this is a reason why we are seeing the government, energy companies, and individuals investing in renewable energy generation. The problem is that when I stop using gas, it will just lower the price for someone else and will let them consume more.
|
But is this a bad thing? I think we must admit there will be a transition stage where people will stick to oil while many move on to renewable sources. I think it's inevitable. You can't expect to get everyone on board. We're still using coal, after all.