Friday, September 08, 2006
"At $70 a barrel you could probably find oil in your own back yard. You’d just have to dig awfully deep.”Wholesale gas prices have dropped below $1.70. Of course, you have to add taxes to that, and taxes per gallon generally range between $.40 and $.60 per gallon. In my part of GA, you can now buy regular at several stations for around $2.45.
One thing that interests me about the whole "peak oil" debate is that it illustrates what seems to be a broad spectrum difference between those who tend toward the conservative side of the political spectrum compared to those who lean toward the left. The conservativish group tends to have more idea about how markets work, and that higher pricing leads to greater supply. The leftish group tends to see higher prices as an indication of a diminishing resource, but don't seem to grasp the idea that this is usually a temporary condition.
I have often read commentary by various sources on the right about the left's problem with personal responsibility, i.e., they don't believe in assigning personal responsibility. This is a logical outcome if you subliminally view life as a set of discrete conditions. But isn't this a trait shared by the extreme right? Neither group is really comfortable with the graduated reality of life, and so they seek safety in absolutes.
read about it on my blog:
Also, people looking at large investments in energy production have to be worrying about what happens to them if oil goes back to $30/bbl and stays there for quite a while.
I think the cost would be somewhere around $40 a barrel, but it is feasible. The refining process does release pollutants. But it's worth a look as another alternative!
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