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July 13, 2005

Comments

Alon Levy

What I think is that the truth is between these two options you posit in a way that encourages more conservation:

There are going to be alternatives to oil, but they'll take time to develop. This time depends on the availability of oil, but there is a minimum time period required to become completely oil-independent.

For example, take electricity: photovoltaic cells' cost is plummeting independently of the demand for oil. The ambitious large-scale alternative energy project, lunar solar power, will take 10-15 years to build.

For other uses of oil, it will take a lot of time to just develop the alternatives, let alone use them. In the meantime, coal, which is now used to produce electricity, can be converted to oil as a stopgap measure, but it won't be economically viable until well after the oil peak. It's necessary to cut down on use of oil until these alternatives become technologically viable.

Mandos

You may be right, but...will people scale back demand? My pessimism rests on this point. Where in history have people scaled back demand prior to the "natural" price of supply rising out of reach?

Alon Levy

No, people will not scale back demand. Eventually they will, after reduction in supply causes prices to soar, but I don't think that's what you're talking about.

Mandos

Yeah, I'm talking about scaling back demand in a foresighted attempt to conserve enough to support alternative technologies that may fill some of the gap, as you mentioned.

Alon Levy

Well, that just won't happen, unless governments (in particular the USA's) start taxing the hell out of gas consumption.

Mandos

Well then doesn't one of my extreme scenarios now apply?

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