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    Monday, October 03, 2005

    Energy Prices Likely to Remain High


    Alright. This is just plain annoying. We need alternative energy sources and we need them now. I propose that our federal government immediately cut off all aid to foreign nations and go through the bloated budget and cut all pork spending. Then, with all that money, invest in an alternative energy research endeavor that eclipses the Manhattan Project. At the very least, I would like to see a viable SEPS program within the next few years. Oil producers need to learn that if they want us to buy their product, they need to keep the price stable. SEPS would provide constant energy that always cost the same to produce. Such a situation is much easier to factor into a budget.

    There is an amusing line in the article that I link to above: "How long before we return to normal [referring to gas prices]? It's hard to know, because we have not yet got an assessment"

    Guess what, folks? We left what can be called "normal" more than a year ago. I don't think gas prices will ever return to normal. That's why we need look toward abandoning it as or primary source of fuel.

    Our economy depends on energy. The instability of energy cost cannot be tolerated. We need new sources. I suggest SEPS, but I am open to other viable options.


    Blogger Aaron Singleton said...

    I firmly agree that new energy sources are in order. I firmly disagree that the government should "invest" in any kind of research having to do with energy sources. What it should do is get out of the way. Stop subsidizing oil companies and protecting them from competition. Drop all the uselss and harmful environmentalist legislation that keeps oil prices high and that keeps other fuel sources from enjoying the freedom to develop. Lower taxes so that businesses and individuals have more money and more hope of a decent ROI for investing in alternate energy source production. If the market were allowed to properly function in this arena this problem would fix itself.

    What we don't want is some new national bureaucracy in charge of alternative fuel sources. Government cannot really invest because it is not subject to the profit and loss incentives that exist on the market. It cannot rationally allocate scarce resources in accordance with consumer demand. Instead it just throws untold amounts of money into whatever suits its fancy without regard for what is actually viable and profitable. There is absolutely no reason that the market can't provide energy efficiently and at a reasonable cost. In this case as in most, government is the problem and markets are the solution.


    10/03/2005 3:48 PM  

    Blogger The Sovereign Editor said...

    Thanks Aaron. I have a very bad habit of picturing the Apollo program when I think about this sort of government research program. You are, of course, correct. Look what's happened to the space program... we could never have made it to the moon if Apollo were attempted under today's mindset. Afterall, this is a NASA that sat on its hands while a space shuttle burned up. No one wanted to take responsibility for trying anything in case what they tried failed.

    In the immortal words of John Galt [addressing such a government as we now have], "Get out of my way!"

    10/03/2005 8:26 PM  

    Blogger individ said...

    Yes, I will second Aaron's comment. Further, oil companies shouldn't keep the price constant if supply and demand are varying.

    10/07/2005 12:16 AM  

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