QUOTE(scubatim @ May 24 2008, 07:36 AM)

QUOTE(AuthorMusician @ May 24 2008, 06:34 AM)

scubatim, you are right about conventional cars becoming less affordable for the middle class. However, this is a direct result of bad energy policy, where a misguided war in the ME is sucking down our wealth.
That argument is a continuation of Monday morning quarterbacking. That doesn't change the fact that America still needs oil. We have oil, the ability to collect our oil, almost immediately. If we were to be able to gather that oil and provide our country with the energy we need without the marriage to the Middle East, why not do it?
QUOTE(AuthorMusician @ May 24 2008, 06:34 AM)

But your assumption that people are simply waiting for things to happen is wrong. The true capitalists in this country, and actually across the world, are working hard each and every day to make things happen in what has to become our future. Nobody can depend on fossil fuels. That is the long and short of it.
I have not argued against your dependency of fossil fuels point. I have argued that it will not be affordable to many Americans for an extended period of time. While we are working towards getting the technology affordable to everyone, we need to be independent of the Middle East. That is the long and short of it.
QUOTE(AuthorMusician @ May 24 2008, 06:34 AM)

The only reason the family of four living off of 60k a year drives a used internal combustion car is that only internal combustion cars are available at this time. This should be an obvious thing. Nope, they won't buy the electric cars coming online, nor could they have afforded the hot new CD burner a few years back. These people are not the leading edge of new markets. They do have to wait for goods to become commodities before they can buy, and it's a wise purchasing decision.
So while we wait, as you point out, you don't think we should access the oil in our own country? Why continue the bondage that is our marriage to the Middle East any longer than necessary?
QUOTE(AuthorMusician @ May 24 2008, 06:34 AM)

Making an affordable electric car is a major thrust, along with the hybrids that are taking off. Generating cheap electricity that doesn't screw up the land, air and water is another big push. Everyone wants to save money and just about everyone wants to get off of oil.
And until we do, we are still mired down with the conflicts, and the oppression of OPEC. Nice. Why not get out of there while we are developing the technology that you are talking about?
QUOTE(AuthorMusician @ May 24 2008, 06:34 AM)

That is, unless some people have vested interests in staying on oil. I think we now know who those people are.
Come on, you and I have been having a great debate without making it political. You didn't come out and say it, but making it a R v. D issue muddles an intelligent debate. I have also found that the oil companies are learning that they have a vested interest in renewable energy since they have the ability to deliver the energy.
Scuba- it is not that America is dependent on ME oil supply- it is that the global market is dependent on ME oil supply, and we are as much of the victim of a global oil market as anyone else.
http://www.fool.com/the above is a great resource that steps out of the political and rhetorical part of this debate and jumps in the real world of investment, money and the economy.
The ME will not be the big power player in oil soon, - russia and central america will-
http://www.fool.com/investing/internationa...607_linkdefaulthere lies the crux of the matter:
http://www.fool.com/investing/general/2008...607_linkdefaultPerhaps most astoundingly, late last year
Russia quietly passed Saudi Arabia to become the world's biggest oil producer. After Russian President Vladimir Putin and U.S. Secretary of State Condoleezza Rice recently agreed, face to face, to tone down their increasingly inflammatory rhetoric and concentrate instead on business, Russia's growing oil output and the U.S.'s corresponding decline seem increasingly meaningful, if not ominous.
Bottom line is- Scuba- we have already passed into peak oil for the middle class reality. Fuel prices won't go down much, if at all, again. Crude prices have soared up over 80% since last year, while gas prices have went up only 25%, and we will see 10$ a gallon gas sooner than later- and all the oil fields in the world, pumping tomorow- is not going to change that anymore, short of a massive population reduction and end of the emerging economies of the "second world".
Ted's assertation that somehow, north slope oil from alaska is going to help the lower 48 is a pipe dream, big time. Our own recent think tanks have shown that, though ANWR will be VERY good for alaskans= it will do nothing for the "lower 48". the gazzillions of barrels of oil that Ted things is there, even on our best day, won't be coming out of the ground like that.
http://www.fool.com/investing/general/2008...607_linkdefaultThe difficulty, of course, is that, as I've written recently, with many big fields tiring across the world, it's questionable whether OPEC as a whole could raise its production even if it wanted to. Oh, sure, the cartel's kingpin, Saudi Arabia -- the place where the president issued his request -- has closed its spigot slightly and likely could add to its output. Indeed, I wouldn't be at all surprised if it did so.
Beyond that, Iraq has the potential to eventually ramp up the approximately 2.0 million barrels a day it's currently pumping, although we all know very well why that nation is producing at relatively low levels. But of the other big OPEC producers -- including Iran, Kuwait, Nigeria, and Venezuela -- none is producing at a rate comparable to its highest past level, and most have seen their daily output slip.
For similar reasons, I'll be interested to observe the production rates of the international integrated companies when they report their December-ended quarters in the coming weeks. I won't be astounded if, despite crude prices in the $90s for much of the quarter, the companies' upstream output was down, if only slightly.
If you're noting a theme here, you're probably right: As the president noted from Saudi Arabia, the growing demand for oil from places like China and India is sopping up larger amounts of global supply and affecting prices -- all at a time when, except for a few places like Russia and Kazakhstan, worldwide production may be close to topping out.