I’m starting to hear about the windfall profits tax again on the Oil companies. Seriously, this is the dumbest idea on the planet. Well, next to a complete lack of action and/or planning if your country happened to be utterly dependent upon oil for it’s energy requirements.
May 5, 2008 at 9:37 pm
Well, in all fairness, the “gas tax holiday” is almost as stupid. How much worse can we let our federal highway infrastructure get?
May 6, 2008 at 8:50 am
Agreed.
May 8, 2008 at 11:12 am
Not aguing with anyone, just making a few points:
At bottom the oil/gasoline folks are essentially just exhibiting free market behavior. Oil was selling for $35/barrel in 1978; it’s now up to $120. Perhaps we don’t like it but what hasn’t gone up in price that much during the last thirty years? Are there any commodities that have not tripled in price during that period?
We choose to use lots of oil and oil based products. Big cars, big houses. We need to wake up. We’re talking basic supply and demand here.
Don’t think for a second we can wean ourselves off foreign oil. We currently import nearly 50% of our oil from foreign sources. Even cutting that in half or more (which will never happen in our lifetimes) will still leave us completely dependent on foreign sources.
Ultimately, the debate about how to wean ourselves from foreign oil is a non-starter. We cannot.
A so-called tax holiday is ridiculous. It would only encourage folks to use gas, which would increase demand and further raise prices.
Seriously reducing consumption has a shot at bringing the supply/demand curve into a more healthy equilibrium, at least for a while, but I don’t see folks seriously doing that. Unfortunately, I anticipate prices to reach at least $5/gallon in the medium term furture, likely sooner.
May 8, 2008 at 11:26 am
We’ll have to agree to disagree. The debate about how to reduce our oil usage must take place.
Either we figure out a better way or we are doomed to an increasingly polluted planet complete with more wars fought to secure our energy needs.
I believe that instead of spending money on bullets, let’s pour it into figuring out how to power our needs through other means.
May 12, 2008 at 1:10 pm
Excellent intention there Andy. How do you propose getting the special interest’s/big oil lobbyists out of the process so that a REAL conversation on “how to power our needs through other means” can take place?
I’m no fan of our nation’s future being tied to middle east oil sheiks and south american communist dictators, but our national leaders (Legislative and Executive) have not exhibited the backbone to stand up and a) pass new and/or rescind old laws that are restricting us from our OWN oil and b) create a national energy policy that is meaningful and REALLY encourages the alternatives.
May 12, 2008 at 1:53 pm
I believe that, one way or another, it will resolve itself. Gas and other petroleum derivatives will become so expensive in terms of money and/or blood that America will have to take action.
I will grant you that it may take some time.