[cb]

Lots of energy sources in this price range, but require large investments. Few will take this risk when the arab cost of production is $4-5. (which means they can drop the price under your cost anytime they want) This difference is the reason that the arabs have played us on this global oil market since 1973. The only solution is to produce all of their oil and then get on to the alternatives.....which I think is what we are doing.

[Pessimist]

I think you got it just right.

Everything will take care of itself in the long run when the true cost of oil increases to the point that it makes various other alternatives feasible.

In the meantime though, we'll no doubt do everything we can to screw that up via politics.

[thackney]

Few will take this risk when the arab cost of production is $4-5. (which means they can drop the price under your cost anytime they want)

Arab countries do not have the ability to produce enough oil to meet the worlds oil demand.

[metalcor]

Another solution: render mideast oil supplies unusable. The resulting economic turmoil would insure rapid development of domestic sources through good ol' capitalistic greed leaving us stronger and the Arabs with nothing but sheep and camels to fight over as is the natural order of things.

[Dead Dog]

It would almost be in our strategic interests to develop these technologies for the US military. Excess could be sold on the open market. This would do two things, it would secure a war time energy supply, and it would pretty much nail the price at $35-$40 bbl. Price stability is a good thing.

This is about the only interference in the free market I think is appropriate for the fed government.