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Author Topic: Do you feel more drilling will reduce the price of Oil? Back to Topics
Sporttster

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Message Posted: Sep 1, 2012 12:39:32 AM

I'd love to think that would be the case, but I don't believe it would. Right now, Oil is disconnected price-wise from supply/demand fundamentals. If we add more supply to the equation by drilling, it won't do a thing to reduce the price of Oil. I think that the ONLY way it would would be if so much Oil was found that it flooded NY and the speculators that bid the stuff to the moon. Maybe THEN they'd realize we've got enough and would call off the dogs. The only thing that will help us is a diversity of options to fill our tanks up. That is it. A car that runs on ethanol, methanol, gas, liquified natural gas, diesel, biofuels...this is what is needed and the most important thing would be a fuel that couldn't be market manipulated. Otherwise we'll be in the same boat due to greedy speculators.
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Boomer1949
Rookie Author Wichita

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Message Posted: May 31, 2013 11:21:06 PM

No! Why would it when the oil companies export 40% of the refined gasoline and diesel?
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snirt
Champion Author Anchorage

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Message Posted: May 31, 2013 4:24:35 PM

yes. but no, they would drill, but find a way to keep the prices necessarily high
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nraacct
Champion Author North Carolina

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Message Posted: May 31, 2013 1:19:31 PM

Not when you have speculators betting on higher prices.
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RaceFan6
Sophomore Author Fort Worth

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Message Posted: May 31, 2013 12:48:18 PM

no
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chuckl95453
Champion Author California

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Message Posted: May 31, 2013 12:41:16 PM

They'll do what ever it takes to keep gas prices high no matter how much oil there is.
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2Tall
Champion Author Maryland

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Message Posted: May 31, 2013 12:19:39 PM

no
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gvan
Champion Author Chicago

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Message Posted: Apr 17, 2013 9:29:27 AM

No. Much of the additional drilling will result in refined products being exported.
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Somis1
Champion Author Ventura

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Message Posted: Apr 17, 2013 9:16:22 AM

If it would the drilling wouldn't be done.
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OceansidePoms
Champion Author Massachusetts

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Message Posted: Apr 17, 2013 9:12:39 AM

@fdp1968- exactly
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fdp1968
Veteran Author Akron

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Message Posted: Apr 17, 2013 8:23:44 AM

The oil is there. They chose to control the price.
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RadarIN
Champion Author Indiana

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Message Posted: Apr 17, 2013 6:53:56 AM

no
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Seekingone
Champion Author Florida

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Message Posted: Apr 17, 2013 5:59:09 AM

yes
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cv
Champion Author Raleigh

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Message Posted: Apr 17, 2013 5:39:26 AM

If the resulting increase is exported, we probably won't see any difference.
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zardoz74
Veteran Author Houston

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Message Posted: Apr 16, 2013 8:40:21 PM

No - but it might help to keep it from getting more expensive.
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nichols
Champion Author Halifax

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Message Posted: Apr 16, 2013 5:32:47 PM

slim possibility
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NickoliMB
Champion Author Manitoba

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Message Posted: Apr 16, 2013 5:19:08 PM

Could result in a surplus and lower prices.
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Saab93turbo
Champion Author Washington

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Message Posted: Apr 15, 2013 11:06:46 PM

When there's a refinery fire, supply gets tight. More oil does mean cheaper. I do understand that some people hate cars and want expensive gas to punish others.
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bradley3533
Champion Author Texas

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Message Posted: Apr 15, 2013 9:59:29 PM

yes
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Jef4ers
Rookie Author Dayton

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Message Posted: Mar 8, 2013 1:23:02 PM



brerrabbitTX wrote:
Oil companies risk billions of dollars and make an 8 to 9% return. If it was your money where would you invest? In something that returns 8% or something that returns 28%?

Oil companies are generally good at what they primarily do and that is petroleum/chemicals.
They are also good at presenting a good face for public opinion.
Very good at using influence over politicians.
And the large companies made money(and shiploads of it) when oil was $.50 a barrel, so much in fact that Standard and John D. had every politician and world leader kissing his dingleberries.......has things changed much? YES!
Cleveland is not the home of Standard any longer.

Now before you blow a 'cap', Brerrabbit, even you realise that too many useless shenanagins are taking place between DC and most of industry in the country. The govt. shouldn't be a partner but rather a facilitator for everything that will benefit America, its industry and its citizens.
Currently they perform simular to the regimes of the likes of Mexico and Afghanistan.
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Jef4ers
Rookie Author Dayton

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Message Posted: Mar 8, 2013 1:06:31 PM

You are so right Traffic Cop....I was generalizing. Trying to get people to think about things. The administration and congress and don't forget the unelected bureacrats have enough power to make anything happen. Most of us hear a few 'birdies' in a bush squreeching about something such as spilled oil or gay marriage and actually believe that those birdies have some sort of influence. Alot of those 'birdies' are really plants, with no power but rather put in place to fool us into thinking that even a few of us can make a difference in the goals of the powerful and influential.
Although, we can not change the course (some believe the Kennedy Bros. tryed), we can grow a sense of perception that allows us to witness what the big boys are doing. If we complain enough about the RIGHT things, even the elite take pause. We can sometimes even effect a step back.

Many things are not what they appear today and the outcome is to say the least 'dicey'.
We need to be aware of the influences going on behind the veil and not continue to follow the daisey trail.
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brerrabbitTX
Champion Author Houston

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Message Posted: Mar 7, 2013 5:27:01 PM

Drilling won't bring prices down that much. We are essentially rangebound price wise on gas. It will float between $3 and 5 dollars for a while. There is a tremendous amount of drilling and new oil coming on to the market today and it is not effecting the price all that much. You have Bakken oil in the Dakota, Eagleford Shale in Texas, Permian Basin production from improved fracing, Canadian oil etc. Prices have not dropped that much as a result.

Two things you need to always be mindful of with energy prices, especially gas. First excess oil production does not translate to lower fuel costs. Oil is part of the process yes but there are significant restarints otherwise such as refinery capacity, what the refinery is set up to run, location of the refinery, transportation from the refinery to the market, and the 39 different fuel blends mandated in this country by the EPA and the state regulatory agencies. Extra gas on the Gulf Coast does not translate to lower prices in California because California requires a totally different blend and there is no economical way to get it to California. Also when Keystone pipeline was designed it was going to take heavy crude from Canada to refineries on the Gulf Coast. THose refiners spent billions of dollars to retool them to handle that crude. In the meantime there comes a glut of Bakken, Eagleford Shale and the likes that is light oil. To run that in the retooled refineries means less effciency and less product from the crude meaning less product for the same cost so the cost per gallon goes up.

Secondly as to how much oil is out there to be drilled for, that is not known. What is known is what is called the economic production horizon. That means that every time the price of a barrel of oil goes up they have the investment capital to spend to find more. Projections have pretty much born out the fact that if oil was still valued at $50 a barrel and had stayed in that range up till now that we would have only half of the oil we have today.

It's a simple principle the more something is worth, the more money you are willing to spend to find it. We have pretty much found all the low hanging fruit in terms of the cheapest oil to produce. Spindletop outside ou Beaumont Texas that started the whole oil boom in Texas was a wood derrick with an impact drill run on a wood fired steam boiler that drill a 1,200 foot deep well. That was cheap! Today oil companies pay billions of dollars to the US government for offshore oil leases that give the rights to spend billions more to assemble offshore rigs and drill in excess of 18,000 feet to find oil. That is not cheap. Without the money provided by the higher priced oil they would not be going after that oil. Even the Bakken cost a lot of money for the research and geological studies done to perfect the new fracturing techniques. More proof comes from the fact that oil companies rates of return on invested capital is 8 to 9%. Apple and Microsoft makes 28%. Oil companies risk billions of dollars and make an 8 to 9% return. If it was your money where would you invest? In something that returns 8% or something that returns 28%?

All this means is that if you think oil is going to $50 a barrel again then you might be waiting a long time for that to happen and if it does we will be running out of oil pretty soon thereafter.
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traffic cop
Champion Author Boston

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Message Posted: Mar 7, 2013 5:00:52 PM

jef4ers, I agree with you much of the time, but I think you are over-generalizing when you wrote, " The govt. never directly tells business anything.....they imply the consequences of failing to follow thru. Either comply or we sit on your lease etc, the EPA does alot of work for the govt. too!"

Posting on a thread has limitations, but I'll just say that a heck of a lot of legislation is worked out by lobbyists and legislators' staff--out of the public view. Similarly, a lot is done by by regulators, administrators, lifetime bureaucrats who reflect the political philosophy of the President who appointed them. It is through such processes that both citizens and corporations are TOLD what they can and cannot do.

So those are two big variables.
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Jef4ers
Rookie Author Dayton

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Message Posted: Mar 7, 2013 4:37:27 PM

Grampi wrote: The gov has no business giving tax breaks and/or subsidizing any part of the energy industry.
>I am sure you are aware that Ohio et al. passed laws requiring electrical sources other than natural resources and then in conjunction with the feds provide grants and incentives (our money)to put up wind turbines and solar fields.
Without that money those places would all rust.

zachlCA wrote:
reason for high gas prices is because it is related to the value of the dollar"

Well....what about supply and demand? Or did that economic standard go out with Chicago corruption?

jrfan wrote: they need to be told to cut prices also if our economy is hurting

> Some would say that is socialism or facism or commies or something BUT in a nut shell that is exactly right. The govt. never directly tells business anything.....they imply the consequences of failing to follow thru. Either comply or we sit on your lease etc, the EPA does alot of work for the govt. too!
Trouble is most of us believe or want to believe that the govt. really trys to do the right thing. The big question is "FOR WHO?"

I said it once and I'll say it again: If Chavez and others can supply regular gasoline for less than $.50/gal, then by george W golly, then we should not be allowed to be fleeced and stolen from!
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grampi47
Champion Author Illinois

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Message Posted: Mar 7, 2013 4:22:38 PM

"No, they know we'll pay that much for it, no matter how much supply they have."

We already have more refined product than we use, which is why we are exporting so much, which is also why more drilling isn't going to reduce our price...the more that's produced, the more they'll export, but our price isn't going to be reduced...
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zachlCA
Champion Author California

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Message Posted: Mar 7, 2013 3:38:17 PM

Its not so simple as just drilling for more oil, the reason for high gas prices is because it is related to the value of the dollar if the dollar is worth less, then the price of oil will go up. And considering what we are doing to try to get out from under the debt crisis we find ourselves in, you can expect oil and gas prices to keep going up.
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wbacon
Champion Author Philadelphia

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Message Posted: Mar 7, 2013 3:37:34 PM

I don' feel it will reduce the price, I KNOW IT WILL!!!!!!!!!!!!!!
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PDN57
Champion Author San Bernardino

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Message Posted: Mar 7, 2013 3:31:05 PM

Yes it will
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Zig0
Champion Author Tennessee

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Message Posted: Mar 7, 2013 3:16:14 PM

No, they know we'll pay that much for it, no matter how much supply they have.
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jrfan6767
All-Star Author Kansas

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Message Posted: Mar 7, 2013 3:00:57 PM

the way i see it is that our government gets involved in everything else except for the oil companies. they need to be told to cut prices also if our economy is hurting oh thats right 99.99% of all government elects own shares in oil companies so that will not happen
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traffic cop
Champion Author Boston

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Message Posted: Mar 7, 2013 2:43:13 PM

A problem, grampi47, is that in other countries the government(s) give certain industries and companies some form of subsidy (e.g. tax breaks, cheap energy) to give them advantages over US companies. China does this big-time. So should we, or should we not, do this for our companies?

This has a history in America. Example: the railroads were given huge amounts of land abutting their new lines into the West, because the government decided this was the best way to populate and develop the territories.

Do we want more domestic energy? Speaking GENERALLY,* I would say give American companies certain benefits and advantages that go beyond mere deduction and depreciation of their investments. The goal is to advance energy independence, create jobs and wealth, reduce our vulnerability to vicissitudes of imported oils, improve our balance of payments, grow the tax base.

*The devil is in the details. We have to protect against convoluted, one-sided, behind-closed-doors giveaways that are excessively generous. This is what has corrupted so much of the so-called "sustainable energy" industry.
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grampi47
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Message Posted: Mar 3, 2013 10:50:03 AM

Jef4ers

The gov has no business giving tax breaks and/or subsidizing any part of the energy industry. Providing energy is a business, just like any other business and the gov needs to stay out of it. The gov screws up everything they get involved with. Fact is, almost all of our current energy sources are of finite supply, and while no one knows exactly when, there will come a time when we will have to figure out how to make alternative/renewable energy sources affordable, or do without. It's that simple. Since energy companies are in the business of providing energy, it's only logical THEY should be the ones researching and developing alternatives....yeah it's gonna suck in the beginning getting over all the hurdles and working through all the bugs, and it's gonna cost a lot of money, but the payoff will be huge. The only part in the energy business the gov should have is making sure the energy industry has a clear pathway to develop these alternatives and eliminate any and all restrictions towards progress...
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wbacon
Champion Author Philadelphia

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Message Posted: Mar 2, 2013 5:34:07 AM

yes
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Jef4ers
Rookie Author Dayton

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Message Posted: Mar 1, 2013 2:18:22 PM

Well, not all liberal thinking is eco-nutz. If a balance is not sustained by what is good for the people and the infrastructure and at the same time promote heavily practical economic engines across the spectrum of wealth generation then we all become slaves to the biggests, the richests and the ones with the most influence.

As in nature its called balance....moderation! We can see who holds the cards today.....its not the little people.

As far as the unsustainable green energy, you should write more on that. I think that we could all mostly agree that a few wind turbines and solar farms are fine to act as supplemental sources BUT the goal is to pass laws that require these things then give huuuuge grants and tax 'credits' and at the same time pass laws that prohibit natural resource powered gen. stations from emitting as much carbon dioxide as a single human breath.
They all know that the coal gens are the cheapest longest sustaining and most effecient. This a story that will not have a happy ending and its all by design!

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vulcan96
Champion Author Ohio

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Message Posted: Mar 1, 2013 5:18:24 AM

oil yes, gas no.....
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Philo_Gray
Champion Author Twin Cities

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Message Posted: Mar 1, 2013 12:59:36 AM

Yes, drill, drill, drill!
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traffic cop
Champion Author Boston

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Message Posted: Mar 1, 2013 12:06:43 AM

Except for the slant on some details, I'm on the same page with you, Jef4ers.

A sensible, wealth-producing energy policy is being held by the Administration which enriches the crony capitalists who back what I call "UN-sustainable energy." They'll "sustain" exotic infeasible technologies at the expense of ("to") the US consumer.

With, of course, the support of what I call "eco-idealogues," a special specie of liberalism. You know what Lenin called liberals? "Useful idiots!"
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Jef4ers
Rookie Author Dayton

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Message Posted: Feb 28, 2013 3:10:58 PM

More drilling certainly could reduce the price of oil as long as you are drilling in heavy reserves and we have heavy! Problem is that the country no longer is sovereign enough to prioritize US needs above the wants of corporate desires and globalists diagraming all the control for themselves.

Drilling could and should have helped England.....but gasoline is about 10 bucks a gallon US.
Canada certainly has a glut, on average, today, the cost of gas in Canada is roughly 30% higher than in the USA.
Eh! you say! Yep somebody is being helped but its not the consumer!
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traffic cop
Champion Author Boston

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Message Posted: Feb 28, 2013 12:45:52 PM

Grampi47: "(W)e are still on the bad side of alternatives and we are going to have to get through all of the painful stuff in order to get their technlogies to place where they can be used affordably.

Buddy, I can no longer give the "sustainable energy" industry the benefit of the doubt. More information shows that this is a scheme whereby political insiders make good profits on the basis of the scientific hoax of "global warming." Whether it is "the population bomb" or "a new ice age" (1970-80's scare) or "depletinn of resources...farm land...ocean plankton..." or something else, there will be yet another scare used to scalp us.

Example: The Wall Street Journal pointed out that in spite of the purported dangers of the federal budget "sequester," the Navy is STILL paying $27/gal for biofuels.

It takes about 90 days for a well to be drilled, producing, and hooked into the raw product network. Doing so would increase supply with the natural result of depressing prices. We have to develop the infrastructure of transport and refining, of course, but the private sector will do this in the anticipation of that evil thing, "profits."

We can reduce energy costs AND our negative balance of payments with this, create jobs and pump our GDP. It would be a win-win-win for the economy, but the Administration wants wins for "green energy" and their corporate cronies.
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hjl17
Champion Author Toronto

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Message Posted: Feb 26, 2013 8:58:21 AM

yes
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rxpx40
Veteran Author Austin

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Message Posted: Feb 26, 2013 8:57:18 AM

Absolutely no way. Huge profits are being made off these prices.
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grim_farva
Champion Author Kansas

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Message Posted: Feb 26, 2013 8:54:21 AM

no, speculators will find a way to keep prices up. Take speculators out and prices will drop
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grampi47
Champion Author Illinois

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Message Posted: Feb 26, 2013 8:40:53 AM

Traffic cop

Unfortunately we are still on the bad side of alternatives and we are going to have to get through all of the painful stuff in order to get their technlogies to place where they can be used affordably. Also unfortunate, I believe we are going to have to move to alternatives eventually and continuing to keep putting it off only means the transition becomes more and more painful....
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LeeLavergne
Champion Author Texas

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Message Posted: Feb 24, 2013 5:43:30 PM

In the long run
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stoihor
Champion Author San Bernardino

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Message Posted: Feb 24, 2013 4:48:24 PM

Not really.
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traffic cop
Champion Author Boston

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Message Posted: Feb 24, 2013 4:45:20 PM

Grampi47 (I was born in 1947!)--

I don't argue with you on "Green technologies need further development so their cost is more affordable...as with any new technology, the more it's developed, the more it's cost comes down... "

The problem is that these are not being advanced by the market, where successful innovations succeed and inferior ones perish. They are being pushed artificially with government money (taxes, loan guarantees, tax breaks, consumer tax incentives, forced utility surcharges, etc.)

So what's happening is that inefficient cars like the Volt are forced on the market. The corruption is astounding. Solyndra is only the tip of the iceberg. We'd need another thread, but time and again the money trail leads back to political insiders.

An example of politically directed bad technology: Europe (which the ecomaniacs say we should emulate) is now finding that many of their wind turbines (with amortization schedules of 25 years) are now WEARING OUT AT 10 AND 12 YEARS! So of course, they have to be replaced...
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MIT05
Champion Author Massachusetts

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Message Posted: Feb 24, 2013 5:59:16 AM

No.
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vulcan96
Champion Author Ohio

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Message Posted: Feb 24, 2013 4:43:00 AM

oil yes, gas - no
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coach39
Champion Author Pittsburgh

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Message Posted: Feb 23, 2013 9:13:25 AM

Yes
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grampi47
Champion Author Illinois

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Message Posted: Feb 23, 2013 9:12:21 AM

traffic cop

Green technologies need further development so their cost is more affordable...as with any new technology, the more it's developed, the more it's cost comes down...
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sheba24
Champion Author Long Island

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Message Posted: Feb 23, 2013 7:05:37 AM

no
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