Monday, April 21, 2008

Repeal A Few Laws

Do any of the candidates actually have a plan to lower oil prices? You know like opening more areas for drilling? Like clearing the way for more refineries? Or have the Democrats made such things so toxic that the only alternative is to starve third worlders by turning food into fuel? With a net energy output that may actually be negative? So that in the Democrat idea of utopia we get the worst of all possible worlds. Burn more oil. Raise food prices. Lower automotive fuel efficiency (because a gallon of ethanol has 60% of the energy of a gallon of gasoline).

Where did these geniuses come from? They need to repeal a few laws. Let them start with the Second Law of Thermodynamics.

3 comments:

foutsc said...

Funny! Are you saying that because congress produces so much heat as wasteful exhaust they are not efficient? If so, I agree

jj mollo said...

Ethanol has been used for years without disrupting anyone's economy. We could use it successfully ourselves if we were willing to import it without tariffs. Sugar growers have successfully lobbied to keep it out. Brazil, on the other hand, is largely protected from petroleum prices because it was farsighted enough to use ethanol as a way to maintain economic independence.

High prices are good! High prices for petroleum allow us to develop alternative energy sources, including conservation technologies. The only problem with high prices is that they may come down, which puts a damper on innovation. The best way to insure that the prices don't come down is to gradually increase taxes on petroleum products every time the prices fall. High taxes on oil represent a good way to reduce importations from the middle east and keep the profits in our own country.

For someone who understands the drug war so well, I'm surprised that you can't see how the economics of oil addiction is damaging us.

If you believe that the price of oil is going up irrevocably, by the way, then we should delay drilling our own as long as possible, until it's much more valuable than it is today. If you believe that drilling will lower prices, then drilling is a very bad thing. Lower prices mean increased usage, and less innovation. Unless US oil is an unlimited supply, drilling it will just end up making us more dependent.

M. Simon said...

jj,

I'm with you all all of that. Except for one slight detail. The distorting effects of subsidies and mandates.

Crash programs are not as efficient economically as organic (pun intended) development.

So yeah. The drug war is a price support mechanism distorting the market. Same with ethanol subsidies and mandates.

We have no idea what the real price is.