adios
05-11-2003, 04:36 PM
Lieberman unveils plan to reduce foreign oil dependence by two-thirds in 10 years (http://www.planetsave.com/ViewStory.asp?ID=3936)
Senator Lieberman came out with his energy policy this week. Lots of interesting ideas and it is along the lines of decreasing demand. It is very much inline with things I have advocated in the past. I do agree with him that drilling the Alaskan Wildlife Refuge is a bad idea. Last time when I posted about dependence of foreign oil I advocated "shifting the demand curve to the left" as the right approach as well as increasing the supply available. After posting about it I realized that I could be and probably was totally wrong. I believe that Senator Lieberman's proposals will actually increase our dependence of forein oil especially OPEC oil if implemented, most especially Saudi oil. If the demand curve for oil "shifts to the left" the equilibrium price point for oil is sure to be lowered as well. The more the price of oil is lowered the more it becomes only viable for lower cost producers to produce it since profits are squeezed. Who are the lowest cost producers? The only way around this problem is to subsidize US oil companies in such way that they will continue to make a profit. I'm sure it's disappointing to those who advocate socialism, but if companies can't make a profit from oil they won't produce it. Subsidizing the US oil industry has been very unpopular in the past.
On another note I've decided that if people want to believe that the Republican party is anti minorities,especially black; that the USA is run by a group of corrupt, unethical citizens; and maintain that there are all kinds of conspircay theories regarding Bush's motives that there is nothing that I can ever state to change their minds so I won't even try anymore...
Senator Lieberman came out with his energy policy this week. Lots of interesting ideas and it is along the lines of decreasing demand. It is very much inline with things I have advocated in the past. I do agree with him that drilling the Alaskan Wildlife Refuge is a bad idea. Last time when I posted about dependence of foreign oil I advocated "shifting the demand curve to the left" as the right approach as well as increasing the supply available. After posting about it I realized that I could be and probably was totally wrong. I believe that Senator Lieberman's proposals will actually increase our dependence of forein oil especially OPEC oil if implemented, most especially Saudi oil. If the demand curve for oil "shifts to the left" the equilibrium price point for oil is sure to be lowered as well. The more the price of oil is lowered the more it becomes only viable for lower cost producers to produce it since profits are squeezed. Who are the lowest cost producers? The only way around this problem is to subsidize US oil companies in such way that they will continue to make a profit. I'm sure it's disappointing to those who advocate socialism, but if companies can't make a profit from oil they won't produce it. Subsidizing the US oil industry has been very unpopular in the past.
On another note I've decided that if people want to believe that the Republican party is anti minorities,especially black; that the USA is run by a group of corrupt, unethical citizens; and maintain that there are all kinds of conspircay theories regarding Bush's motives that there is nothing that I can ever state to change their minds so I won't even try anymore...