John wrote:
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.
JDG - They don't call it the "dismal science" for nothing, Maru...
So what would be the point in tapping the ANWR?
--
Doug
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