http://www.businessweek.com/managin...?chan=top+news_top+news+index_news+++analysis
The wealth and power of the US is being transferred to other countries that have low cost energy.
Furthermore it is not likely that the US will have a lower cost of production even if it uses the oil within its own borders. The larger ME producers can lift oil at less than $5 per barrel, with the US lifting cost substantially higher, thus always leaving protectionism the only way out.
Thirdly, the non oil options are not ready, or the time table of change is too long. It would take over 20 years to replace the car fleet alone. However auto conversions would take less time, perhaps.
Thus is it in fact inevitable that over $10 trillion will simply have to be transferred over, and perhaps a lot more over just the next 10 years alone?
...............................................................................................
What is the solution for not having to pay out over $10 trillion and most likely more over the next 10 years?
The solution is to create energy that has a cost of production cheaper than ME oil.
Ok, so how does this happen ?
.................................................................................................
In order to view what the lowest cost of fossil fuel could be domestically in the US, one could explore what would be the costs of production if one removed all fossil fuel taxes and legal largesse.
The question is, would the production cost be less than that of the ME ?
If not, then what strategy can be employed such that a domestic energy replacement would be less in cost than that of the ME ?
....................................................................................................
Category 1 Mature energy....
oil
coal
hydro
nat gas
Category 2 energy
nuclear
Category 3
batteries
ethanol
biodiesel
wind
solar
............................................................................................
What energy can be cheaper to produce than ME energy, and take far less than 10 years to replace ME energy ?
First take out all the laws and taxes which prohibit any form of energy development and review the prospects.
If the cost of production is more than ME production of energy, then a tariff has to be defined such that US wealth is no longer being transferred to other countries.
................................................................................................
Just look at how wonderful the globalization of enegy really is for the US and its citizenry. What is very telling is that if all taxes and laws were removed from energy production, the energy would be sold to the world not just the US.
.................................................................................................
Another method.
Just have the US miltary take ME oil for its citizenry. The question is can this happen in less than 10 years. This would keep the US from having to pay nationalized premiums of over 50% which cause rediculously high prices. After all this is a natural resource, and the country who owns the real estate has done nothing to create it other than just being lucky to be where it is.
Even with the Iraq/Iran wars sitting on top of the lowest cost of production oil reserves in the world, the cost of the wars has to be factored in, which by default make the cost higher than that of SA in the ME.
.....................................................................................................
Ok so over $10 trillion leaving the US in 10 years is a given, which leaves the question, how can the US pay the freight and remain competitive to other countries ?
And just how is the US going to become energy independent in a cost effective manner?
..................................................................................................
The wealth and power of the US is being transferred to other countries that have low cost energy.
Furthermore it is not likely that the US will have a lower cost of production even if it uses the oil within its own borders. The larger ME producers can lift oil at less than $5 per barrel, with the US lifting cost substantially higher, thus always leaving protectionism the only way out.
Thirdly, the non oil options are not ready, or the time table of change is too long. It would take over 20 years to replace the car fleet alone. However auto conversions would take less time, perhaps.
Thus is it in fact inevitable that over $10 trillion will simply have to be transferred over, and perhaps a lot more over just the next 10 years alone?
...............................................................................................
What is the solution for not having to pay out over $10 trillion and most likely more over the next 10 years?
The solution is to create energy that has a cost of production cheaper than ME oil.
Ok, so how does this happen ?
.................................................................................................
In order to view what the lowest cost of fossil fuel could be domestically in the US, one could explore what would be the costs of production if one removed all fossil fuel taxes and legal largesse.
The question is, would the production cost be less than that of the ME ?
If not, then what strategy can be employed such that a domestic energy replacement would be less in cost than that of the ME ?
....................................................................................................
Category 1 Mature energy....
oil
coal
hydro
nat gas
Category 2 energy
nuclear
Category 3
batteries
ethanol
biodiesel
wind
solar
............................................................................................
What energy can be cheaper to produce than ME energy, and take far less than 10 years to replace ME energy ?
First take out all the laws and taxes which prohibit any form of energy development and review the prospects.
If the cost of production is more than ME production of energy, then a tariff has to be defined such that US wealth is no longer being transferred to other countries.
................................................................................................
Just look at how wonderful the globalization of enegy really is for the US and its citizenry. What is very telling is that if all taxes and laws were removed from energy production, the energy would be sold to the world not just the US.
.................................................................................................
Another method.
Just have the US miltary take ME oil for its citizenry. The question is can this happen in less than 10 years. This would keep the US from having to pay nationalized premiums of over 50% which cause rediculously high prices. After all this is a natural resource, and the country who owns the real estate has done nothing to create it other than just being lucky to be where it is.
Even with the Iraq/Iran wars sitting on top of the lowest cost of production oil reserves in the world, the cost of the wars has to be factored in, which by default make the cost higher than that of SA in the ME.
.....................................................................................................
Ok so over $10 trillion leaving the US in 10 years is a given, which leaves the question, how can the US pay the freight and remain competitive to other countries ?
And just how is the US going to become energy independent in a cost effective manner?
..................................................................................................
