alternative energy limited

Posted on Saturday, April 7, 2007 in Uncategorized

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Related to my earlier question: Shouldn’t we think monetarily about our limited source of energy?

I personally don’t even care anymore who’s right and who’s wrong in the debate on global warming. The truth is the current main sources we have for energy are dwindling at an alarming rate. In the future (as is already happening) the wars will be fought over the sources of energy and water if we don’t do something about it. The companies that make the most money in the future most likely will the ones that are looking for alternative sources of energy now. Why is this something that is being fought against? We know that coal and oil won’t last forever. Why do politicians and energy companies argue over funding research on these alternative sources? Seems to me it would be in everyone’s best monetary interest to start now. And in the end, isn’t that what the real debate is over? Money?

Econ 101. As fossil fuels become more scarce their prices to rise. This will make things that are today economically impractical more attractive. They will be developed and their price will go down. The demand for fossil fuels will go down as a result and those prices will drop as well. It has been this way all through history, no reason to believe it will change now.

That said, don’t be too certain that oil is running out. I remember them bringing big scoreboard things to our classroom in the late 70’s to “prove” based on a computer model that oil will run out by 1990. If we enacted draconian cuts, it might just last until 2000. Pardon my skepticism.

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