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Original thread:
Post 29 made on Monday July 7, 2014 at 01:26
RTI Installer
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On July 6, 2014 at 14:42, Anthony said...

His economics is also not completely sound. He looks at something like this and thinks the price of crude is fixed and if you throw away the gas the rest will need to make up the difference (for example double in price). But that is not completely true since gas is one of the major driving forces in the price of crude. If gas were to become worthless the price of crude would also drop by a lot. In the end each component will be priced depending on the component price that makes sense like it is now and not as a % o f the total price of a barrel.

Yes but you have to really think about this carefully. The corporate mandate is growth and profit. We all know that oil companies are really big on profit, but so is the US and local governments who place very heavy taxes on vehicle fuel.

Maybe I should put it this way.

Taxes on cigarettes are used among other things to fund a very large anti smoking government engine. If everyone stopped smoking the anti smoking engine would run out of tax money to fund it thousands of people lose their jobs, and the people who recived money from those people also suffer a loss on down the chain. So then the gov not wanting to cast its own to the side and suffer bad voting press will in a manor of speaking retool the agency to do something else all at tax pay expense. This is an example of the rule of unintended consequences.

The whole electric car issue is full to the top with future unintended consequences. The very obvious unintended consequences relate to Oil as I mentioned before. If the price drops so does the incentive to drill and pump, if you have less supply the price can go back up per barrel, remember the oil industry is run by cartels who have an oligopoly agreement just like banks with each other so that they can fix global prices.

So OK now they have the price of oil back up but the unintended consequence is that refining is down in proportion to the reduction in pumping, now you have less available ingredents for non fuel products like plastics & lubricants used in electric cars.

Another unintended consequence  to consider is that the oil companies will simply sell more crude to china and other emerging industrialized nations that are not totally on the electric bandwagon yet, with the same result, leaving the USA with less crude to refine.

Personally I love electric cars I think everyone should have one or two.

However, before we can become a truly electric society, we will have to figure out how to move away from being a totally oil based society

 
Never Ignore the Obvious -- H. David Gray


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