On 7/11/2006 8:48:13 AM, jdiebremse ([EMAIL PROTECTED]) wrote: > --- In [EMAIL PROTECTED], "Robert Seeberger" <[EMAIL PROTECTED]> > wrote: > > but because every MW of > > wind power used is that many barrels of Middle Eastern oil we > won't > > need to purchase til later. > > Actually, this is unlikely. > > Let's > say that increased use of wind power results in a decrease in the > price of oil (this too is unlikely since little oil is used for > electricity generation compared to coal and natural gas). This > decrease in the price of oil, would cause a little less oil to be > supplied. However, since the oil produced in the Middle East is > produced extraordinarily cheaply there, the oil that is no longer > supplied is unlikely to be Middle Eastern. Rather, the displaced > oil > is likely to be expensively produced oil from marginal fields in > developed countries like the US. Thus, if > one's interest in > alternative energy is to reduce reliance upon Middle Eastern oil, > this > is is, alas, exceedingly unlikely in the medium term, at least until > such time as those alternative sources can produce oil more cheaply > than not just the global market price of oil, but more cheaply than > the > Middle Eastern price of oil. > I have no problem with your reasoning here, but I was talking about something different. If you generate power by some other means than the use of oil, then you are not using oil for that particular amount of work. That means you do not have to buy that bit of oil in the first place. That is a savings.
But yes, you are correct. If enough alternatives to fossil fuels are used to generate power, then supply should increase and prices should lower to whatever degree. I think any oil we don't buy will just go to some other customer....India or China frex. So it may be a good idea to increase our reserve by buying oil now and storing it in some salt dome or such. So perhaps we should invest in alternatives and use up *their* oil as it suits us. (Christ that sounds so cynical, but perhaps it is simply realistic) xponent Opeckers Maru rob _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
