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75 comments on Albany Coddles the Oil Addicts

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David JM on May 11, 2006 - 11:35am Permalink | Subthread | Comments top
As long as people like Michael Lynch, Daniel Yergin and CERA, EXXON-Mobile, and the USGS are telling people that the next fix will be in the spoon for the next 50 years then the addict is not going to be interested in quitting.  The addict will only consider quitting when the downside to doing the drug is greater than the upside and when the downside is relatively far away relative to the pain of withdrawal HE IS NOT GOING TO EVEN CONSIDER IT.  Sad but true.  Oil supply optimism could truely be considered irresponsible at this point.  
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westexas on May 11, 2006 - 12:20pm Permalink | Subthread | Parent | Comments top
Re:  The "Iron Triangle" at work

Boone Pickens gave a speech in Dallas this week advocating a sharply higher gasoline tax, to bring our price of gasoline up to what Europe pays, offset by cuts to the Payroll Tax.  

The major media, as usual, completely ignored the speech.  The after the speech, the Dallas Morning News ran an interview with the former chief economist of ExxonMobil, in which she said she was amazed that oil prices haven't fallen yet.  She suggested that since development costs in the Middle East are only $5 per barrel, it is only a matter of time until oil prices fall sharply.  

My "Iron Trinagle" comments:

http://www.energybulletin.net/15126.html

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Glenn on May 11, 2006 - 12:25pm Permalink | Subthread | Parent | Comments top
There are many other industries that feed into the Iron Triangle you so aptly describe WT. For instance real estate is another huge commerical interest that loves cheap gas - they get to sell large inefficiently built suburban homes allow more room to put your oversized stuff which benefits Walmart and other discount retailers, etc...
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dinopello on May 11, 2006 - 3:24pm Permalink | Subthread | Parent | Comments top
Did Pickens say cut Payroll or Income taxes to compensate, or both ?   Either way, I'm with T Boone.  

However, if gas prices are lowered by reducing taxes wouldn't the market reaction be to increase consumption, and if supplies are really constrained, the price will just bounce right back up to equilibrium, right?  Only difference is that someone in the supply chain would be getting the extra money instead of the public coffers.

The best bad alternative might be price controls so that shortages develop.  That would really get people's attention.  I'm only half kidding.  

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westexas on May 11, 2006 - 5:42pm Permalink | Subthread | Parent | Comments top
He suggested a cut to the Payroll Tax, which is highly regressive, levied on the first dollar of income.  
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jim burke on May 11, 2006 - 7:09pm Permalink | Subthread | Parent | Comments top
WesTexas; I love your iron triangle metaphor.

Might I suggest that the attitude you describe is so pervasive that it might be called an "iron curtain" of denial?

jim

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tate423 on May 11, 2006 - 12:40pm Permalink | Subthread | Parent | Comments top
Don't know where to post this....

http://www.livescience.com/environment/ap_060510_hydrogen_prize.html

What a waste of human capital!

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fallout on May 11, 2006 - 2:10pm Permalink | Subthread | Parent | Comments top
God....I'm at a lose for words.  
Yes, a complete waste indeed.
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jim burke on May 11, 2006 - 7:15pm Permalink | Subthread | Parent | Comments top
Waste indeed.

It isn't just the prize money; it's the active encouragement of US engineering skills and investment capital being applied to a complete dead end.

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