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Old 03-06-2008, 07:47 PM
Jack Jack is offline
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Join Date: Jun 2002
Location: Georgia
Posts: 6,087
Fabs, take a look at what Brazil did.
Because they have an enormous amount of sugar cane, they were able to make enough ethanol to switch to using ethanol instead of gasoline. Now they import zero petroleum.
One problem they had in doing this was the old chicken and egg thing. Car makers said "we'll build the cars when there's stations everywhere where drivers can get ethanol."
Gas station owners said "It's too expensive to put in a new pump and tank for ethanol when there aren't cars to use it."
And so things sat for a year or so. Finally the Brazilian government employed one of those evil 'government mandates' and said, by a certain date, every fuel station had to have an ethanol pump.
Now, for us, I doubt ethanol is the long range solution. My point is,government does sometimes need to nudge things along.
For example, one factor that drives up gasoline prices is a 'shortage' of refinery capacity. Who owns the refineries? The companies that drill for oil and sell gasoline. The petroleum companies like the 'shortage' of refineries just fine- it drives up gas prices, increasing their profit.
If refineries were owned by independent operators, you can bet the 'shortage' of refinery capacity would soon disappear, and gas prices would come down a little.
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Last edited by Jack; 03-07-2008 at 01:51 AM.
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