What ABOUT alternative fuel companies? How much of a difference . . . (read on)?

Question

OK, so we all know that oil companies are "sleeping with" politicians, and for all we know, maybe not figuratively (lol). So what if a new fuel is discovered, maybe something we haven't even thought of yet? What will stop those companies from doing the exact same things that oil companies are doing now? "Hey, if they can get $3 a gallon for gas, why shouldn't we get $3.50 for a better product?" (for example) -- And getting into politics just the same way, while they're at it.

Pardon me if I show ignorance here, but I'm a little pessimistic of human nature in general.

Thanks all!

Answer 1

You are right on. The farmers are "sleeping with" the politicians now, so you can expect a farm bill that grows the farm subsidy in a time when farm profits and prices are at an all time high. If we can't do the right thing when farmer's pockets are bulging with corn profits, how can we expect to ever have affordable fuel.

As long as everything "goes through Washington", they will take their piece of the action is the same way that the mob gets their "vig" for snowplowing at LaGuardia and JFK.

Answer 2

1- The price

2- The price

3- The price

As long as you work on a price basis and not on the basis of the cost you can´t solve the problem.

Cost=Price+externalities

What are externalities?

Some examples:

- climatic impact

- decreased independance

- worse trade balance

- atmospheric pollution

- geostrategic instability

- increased wealth disparities

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Like for every new product, the deployment of new alternative energies needs an initial investment and takes time. This time and cost barrier for research and development and then market penetration need to be removed.

For this and to spare some time you need a policy to encourage their start.

Answer 3

Lack of cash if it won't bring in votes.   RE businesses don't have the money to entertain (bribe) polliticians so they arent thrown a big enough bone to grow to where they could challange established energy.   BP is diversifying into wind, solar, geothermal and a couple other fields, so they are planning ahead when oil gets too expensive for most people.

Ethanol production from corn costs more than the output is worth, but its buying millions of votes in the corn growing states.