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What do you really know about the oil industry? It is amazing how many global warming alarmists and their followers treat it like a religion and are so apt and motivated to chastise, criticize, and even attack the oil industry or verbally assault the sector as if they were some sort of band associated with eco-terrorists. It is my belief that people just don't understand. Not long ago, I was discussing all this with a liberal-socialist admitted progressive, who claimed he had no real problem with the oil industry, and supported them through the transition to alternative energy.
Still, he didn't know much about the oil industry, how many millions of barrels a day the United States uses, or how things would look in the US if the oil stopped flowing suddenly. Therefore, I sent him a research paper about the oil industry, and I stated;
"I have sent you a very interesting research paper which you should read, because folks that claim that alternative energy is the way of the future, and that by taxing fossil fuels now we can make it profitable for alternative energy generation to compete in the marketplace do not understand the full impact of what they are saying."
You see, first of all right now 60% of the electricity we generate comes from coal-fired plants, and alternative energy sector and I'm speaking about wind and solar is only about one or 2%. That's basically zero, and you cannot over-tax 60% of the energy generation and make it cost more for everyone if you can't replace it yet with the alternative energy sector today.
Secondly, the alternative energy sector needs to be profitable and efficient enough to compete directly with oil, it should not be subsidized. If we end up subsidizing it, all we are doing is making that industry weak, and in the future will we take the subsidies away they won't be able to compete with the coal, which by then we will have clean coal technologies scrubbing all the CO2 from leaving the smokestacks.
For the oil industry it is a similar scenario, only with biofuels, which aren't there yet, and we've already made horrible mistakes subsidizing ethanol and bio diesel. As the bio fuel industry gets a reboot and new technologies hit the market, there are still concerns with environmental hazards if some of this stuff escapes in the environment. If we raise the cost of energy generation for electricity, and then we think we are going to go to electric cars, we've defeated the purpose.
Also, the battery technology isn't quite there yet, and it is too costly, not to mention that most of the ion lithium in the world is in places like China and Bolivia, and Chile. Yes, we have some of these elements here in the United States, but we have such insane environmental rules, that digging it up and doing any type of mining in the United States is a very risky venture, and you can trust the environmentalists or the politicians, the bureaucracy obviously has a mind of its own when it comes to mining natural resources in the US.
And, while a little bit of it is justified, such as the federal Clean Water Act with regards to strip mining, often these new environmental laws are so broad base that they end up destroying many industries for no reason with insane rules which have no bearing on the reality of your operations.
Further, what many people don't understand is Brazil and Argentina have found extremely large oil reserves off their coast, Liberia has found a huge reserve off its coast, and the Iraqi oilfields will be fully up and running with all the infrastructure needed by 2014. And if there is a huge amount of reserves which is a little bit hard to get to at the North Pole, and huge reserves that have not been tapped into off the coast of Haiti, Cuba, and Florida. However, after the Gulf oil spill and the incredible fiasco created by the media, it is doubtful that any of that will go smoothly.
The concept of peak oil is just not a reality, and even though China will soon be using as much oil as the United States, we have more oil, than people are led to believe. And as new technologies become efficient enough to compete with oil, we will see a slight move in that direction. But forcing it now and disrupting the industrial base of the first world economies is not wise.
We don't live in a perfect world, and most of the environmentalists, and all the alternative energy folks who treat global warming as a new religion, clearly don't understand the realities of the energy sector. It would be best if they just kept quiet, or went to learn about what's really going on before they jump on their blogs, and protest in the streets for environmental causes.
Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank. Lance Winslow believes this article was sponsored by; http://www.calling-plans.com
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