They would be the solution if the price increase led to increases in new research. But what exactly is handing out $400M+ severance packages a solution for? There is ZERO incentive for these companies to invest their windfall profits as its the shortage that is providing them these profits. I'm sure they'll just do what's right for humanity though right?
I do agree that this has finally forced the country to look at conservation as part of the solution and not just "a sign of personal virtue"
Dick Cheney, the epitome of leadership...
Steve Towsley
Fri, 05/12/2006 - 2:39pm
High gas prices would be a less painful solution if our government had not taken decisions in the last few years that amounted to an assault on the middle class.
The oil companies want to stay ahead of the game because they want to continue to own the energy business and maintain or increase their profit margins. If people are moved to start buying ethanol and other alternatives, they'll try to beat competitors into that arena.
The people championed ethanol as a CHEAPER alternative but since government has picked up that banner they've been talking only about getting off foreign sources -- no promises that ethanol will be available for significantly less at the pump.
Do we want cheaper fuel, or did we just want to change the formula?
I think the oil companies hope to run the ethanol/alternatives business and support those prices so that they don't have to make less profit (reduced profit is what they always claim are "losses.") Now that we're used to folding money per gallon, I imagine they would like our thinking to stay in that mode.
Comments
They would be the solution if the price increase led to increases in new research. But what exactly is handing out $400M+ severance packages a solution for? There is ZERO incentive for these companies to invest their windfall profits as its the shortage that is providing them these profits. I'm sure they'll just do what's right for humanity though right?
I do agree that this has finally forced the country to look at conservation as part of the solution and not just "a sign of personal virtue"
Dick Cheney, the epitome of leadership...
High gas prices would be a less painful solution if our government had not taken decisions in the last few years that amounted to an assault on the middle class.
The oil companies want to stay ahead of the game because they want to continue to own the energy business and maintain or increase their profit margins. If people are moved to start buying ethanol and other alternatives, they'll try to beat competitors into that arena.
The people championed ethanol as a CHEAPER alternative but since government has picked up that banner they've been talking only about getting off foreign sources -- no promises that ethanol will be available for significantly less at the pump.
Do we want cheaper fuel, or did we just want to change the formula?
I think the oil companies hope to run the ethanol/alternatives business and support those prices so that they don't have to make less profit (reduced profit is what they always claim are "losses.") Now that we're used to folding money per gallon, I imagine they would like our thinking to stay in that mode.