[SteveC]

While electrics seem like a good idea. The first questions that come to my mind are;[*]1) Just exactly where is all the extra power generation that's going to be required to do the charging going to come from and what fuel is going to be used to generate it?[*]2) How is the national power grid going to support all this additional load that it's going to have to distribute, since its infrastructure is pretty much pushed to its limits many times, and it's maintenance hasn't been kept up with as it should have been.[/list]Don't take what I've said in the wrong manner, I'm not trying to criticize anything, but there are inherent problems with all proposed solutions, that will have to be addressed sooner or later.

 

[SteveC]

I know that I'm going to be bucking the current trend in "conventional wisdom" with this.

However, as far as I can see the main cause of the current rapid rise in the price of gasoline in the U.S. has more to do with the devaluation of the U.S. dollar. Rather than any increase in demand on the world crude oil market, supposedly caused by China and/or India.

For example, take a look at how the Canadian & U.S. dollar compare over approx. eight years. Then cross reference that with how both the Canadian & U.S. dollars compare to the Euro over the same period.
02-JAN-2001 1 CD = 0.67 USD
14-MAY-2008 1 CD = 1.00 USD

02-JAN-2001 1 CD = 0.71 Euro
14-MAY-2008 1 CD = 0.65 Euro

02-JAN-2001 1 USD = 1.06 Euro
14-MAY-2008 1 USD = 0.65 EuroNotice that the Canadian dollar hasn't changed much at all against the Euro, But the U.S. dollar has reacted almost the same to the Canadian dollar & Euro (i.e. lost close to half its value), and that isn't the result of increased demand on the world crude oil market. But it darn sure is going to effect the price we pay for everything.

The above is courtesy of the financial mess we've allowed to develop in the U.S. and the recent actions of the U.S. Federal Reserve. You remember, pumping all those wonderful little pieces of paper printed with such nice colored ink, into the economy, and repeatedly dropping the interest rate. Trying to compensate for the lousy economics we've practiced.

Heck, if the U.S. started drilling in all those areas that are currently taboo, and by the grace of GOD hit the mother-load of all crude oil deposits. It wouldn't do much, because the fact is there hasn't been any investment in increasing our refining capacity so we couldn't do much with it. Don't know, but you might be surprised if you go take a look at the increase in the volume of gasoline (note that is gasoline, not crude oil) that the U.S. now imports.

 

[SteveC]

Raymond

I hope that you're right, cause if California as a guide, well it doesn't seem that they've jumped on correcting the deficiency they have in power generation. Like Doug stated above Canada makes a good deal of money on what we're unwilling or incapable of doing in that area.

Even if they do jump right on it it won't happen quickly, it sure won't be inexpensive, and the tax payer will be expected to foot the cost. Finally the cost per energy unit is going to follow the free market rules, price follows demand

 

[SteveC]

Posted By Charles on 05/16/2008 7:01 AM

«snip...» Steve C- Prices are not being control by the "free market" but by unregulated speculators that with a drop of a hat raise the cost of a barrel for very minor situations. Think about it, oil is much higher now that with Katrina. There is nothing (including increase demand) that in the system of supply and demand that justifies the large increase overall and in this past month, weeks or even as of today. If Katrina took off line a large portion of refineries and oil supplies with the resutling "market adjust" that had some rationale then how can the greater increase be justifed with the increase we currently see (no drop in oil production, refineries at full capacity, China/USA has not proportionally changes usage, some adjustment for seaonal fuel)? Simple- greet due to irrational price setting. «snip...»
Charles

While all of what you've stated to varying degrees are true, and each in turn has its own affect on the price of crude oil. However nothing in what you've stated invalidates what I've said above