Is the rising price of oil a good thing?

[Sven]

I wonder if in 10 to 20 years if we are going to look back on this time of rapidly rising oil prices and think of it as a good thing as it kick started a new era in our view and use of energy. I don't know. The pricing is hard to swallow right now- but my neighbor just traded his 3/4 ton truck for a 1/2 ton that has the engine technology that runs on 4 cyclinders when at crusing speed- the savings in gas is paying for the truck (it's his work truck), I'm seeing more people riding their bikes to work, I'm seeing talk for train use again, I just saw an article saying wind power could be on par with nuclear in terms of production in the US. There are start ups in manufacturing that are working on high tech energy related projects.

I just don't know- I'm just wondering what the silver lining is going to be.

[Dennis]

I think there needs to be more suffering before some real change in energy policy takes place. So for people have been able to absorb the higher energy costs, but there will be a tipping point and not until that happens will there be anything more than fringe elements looking for some real changes in how we use energy. It is nice to see the seeds of creativity starting to be sown.

[Different]

My guess is that Dennis is correct. Unfortunately, it takes a fairly long period for the changes in consumption, although they are happening.

The big three all had bad financials last year, because Americans are buying fewer SUV's. People are buying more efficient cars now, but it will take a while for large numbers of people to have converted their vehicles.

I think that it definitely has a silver lining provided the impact on lifestyle lasts long enough to force people to act on the alternatives that they are looking into now.

[B3]

Maybe this will be a part of it...

Making Renewable, Carbon-Neutral Oil - From Algae
http://blog.wired.com/cars/2008/05/making-renewabl.html

Anyone with some venture capital lying around?

[Sven]

Talked with a guy yesterday who moved into town so he could dump his car. That's one way to beat gas prices! Not sure how he heats his house though.

[Sven]

thought this was an interesting article:

http://money.cnn.com/galleries/2008/news/0805/gallery.real_people_g...

[Chuck]

The oil crisis is spurring all sorts of responses and I think T. Boone Pickens' foray is highly provocative. His TV ads make the point that the $700 billion we are sending to foreign nations is the largest transfer of wealth in history. www.pickensplan.com

His plan focuses on large scale wind and solar to replace natural gas, which can then be used to power vehicles. In terms of energy independence and CO2 emissions, this is a very good strategy. When looking at the economics of choices, it's always important to examine the cost of "business as usual" or doing nothing. That's what has brought us to this point of extreme vulnerability. $700 billion would go a long way toward jumpstarting massive solar and wind projects.