[dirtboy]

I saw a news clip about a year ago where a company in California sold environmentally safe sythentic gasoline for about $2.40 a gallon. Then, it was a debate whether people would pay the price per gallon. Now it appears we are going to pay such a price anyways.

Lots of underlying issues here:

- The Saudis try to tune the price of oil to a point where they make as much money as possible without triggering new domestic development or synfuels development in the United States. If the U.S. were to embark on a major synfuels project, the Saudis would probably signficantly boost the price of oil enough to make the projects economically untenable.

- We'd have to mine coal for the synfuels, and the enviro-whackos will cause as much trouble there as they've caused with trying to drill ANWR.

- Oil is still the most inexpensive motor fuel to produce, and any company wanting to invest in synfuels knows that the current high prices are an artificial creation that could be undone at anytime - which is not the most conducive environment for attracting private capital.

It would probably take significant government underwriting to take on this project, and then you open up the opportunity for all kinds of mischief, similar to the ethanol boondoggle with which taxpayers are currently saddled.

[Dead Dog]

and any company wanting to invest in synfuels knows that the current high prices are an artificial creation that could be undone at anytime

And this is the reason for Bush's hydrogeon fuel BS, as well as drilling ANWAR. It isn't so much about actual supply and demand, as it is a threat to keep oil cheap.

[CROSSHIGHWAYMAN]

Germany made oil from coal and nearly defeated the rest of the world in WW2.

Why the hell can't the US do what Germany did 60 years ago?

Environmentalists whackos!!