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To: HangnJudge
Until the process is worked out, the economies cannot be meaningfully calculated

No, of course not. Once the process is better defined, then economies of scale kick in and the price starts to drop. Simultaneously, the price of gas will continue to rise. When those two lines cross, we can tell the princelings of Araby to go pound sand.

70 posted on 05/25/2007 12:18:42 PM PDT by Redcloak (The 2nd Amendment isn't about sporting goods.)
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To: Redcloak

[Simultaneously, the price of gas will continue to rise.]

If anything cuts into the demand for gas, its price will fall. The same happens if supply is increased.

This is part of why alternative fuels that are feasible with $60 barrel oil have failed in the past. There was an “oil boom” in Colorado in the 80’s when it looked like oil shale could produce oil cheaper than the then-current price of crude. Then OPEC opened the spigot to increase supply, the price of crude fell, and the “boom” went “bust”.

If there is one thing government might intelligently do to promote alternatives, it would be to take the risk out of large scale development by guaranteeing a price it would purchase alternatives for — a price that is profitable, but still lower than the current price of crude. That would take the power away from OPEC.


73 posted on 05/25/2007 1:52:17 PM PDT by Kellis91789 (Liberals aren't atheists. They worship government -- including human sacrifices.)
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