Re: oil and cold feet and hands
- At $120 all sorts of complicated ventures makes economic
> sense under current use and distribution patterns. Lots of oil offof
> west Africa. Oil under 2 miles of water and 3 miles of oceanfloor.
> All extractable if the price is high enough and burning of it isor
> otherwise costless. At the same time as the price of oil rises the
> alternatives to oil become attractive. We won't suddenly run out of
> stop using oil.Money is a complete abstraction. Dwindling oil supplies certainly
will drive the price up which will motivate more complicated ventures
there's no doubt. At some point though the abstraction of money
becomes apparent. It takes energy to extract and refine oil. The more
difficult the oil is to get to the more energy it takes to extract
it. Oil sands take more energy to refine than the clean stuff of
yesteryear. When the time comes when it takes more energy to extract
and refine the oil than the oil will produce then the game is over.
It will no longer matter how much money you throw at it.
Oh, and Morgan thanks for the rants, I always appreciate them. And
I'm glad you're feeling better. There's a lot of beauty in the world
even in these crazy times.