by Jack Serapiglia

Created on: July 21, 2008

Currently the technology exists to eliminate the world's dependecy on fossil fuels. Solar cars, thermo-energy, nuclear energy, bio-degradable fuels, all of these items have been around for a while. But the world has not yet embraced the technology. And the reason has nothing to do with preference or beliefs or even whether or not you even think global warming is occuring. To paraphrase John Madden from the Replacements, it is all about money. And isn't it always?

Markets, especially the US one, has fought hard to keep the price of gas down. The US government has done this through a myriad of ways (including a war in the Middle East and the opening up the possibility of off shore drilling to increase the supply side of the oil curve). Yet this is a short term solution to a long term problem. It is not helping ween Americans off the need for oil. It is simply delaying the inevitable. And the inevitable is this: oil prices are going to continue to rise. The uncertain political climate in the Middle East, the inability to find other sources for oil, and the growing need for these fuels, such as in the fast developing world powers of India and China, guarantee that the demand for oil is going to rise while the supply of oil is only going to shrink. It is basic economics.

Yet basic economics can also be used to solve the problem. Right now oil has a monopoly on the energy market. The reason is it is still the cheapest method of supply energy for the consumer. Just look at the costs of going with more eco-friendly alternatives. All generally have a higher investment cost then the oil-based alternative. Ethanol cars are more expensive and do not have hardly any pump stations around. Solar energy is a HUGE upfront investment to cut energy usage by 10-20%.

But if the taxes on gas increase, if the cost of filling up your tank goes up another 25-50% PER FILLUP, then the discrepancy between oil based energy and eco-friendly alternatives shrink. Suddenly it makes ECONOMIC sense to look at a bio-diesel car, an ethanol car. The market will shift. Companies will see an opportunity, a niche perhaps at first, to establish themselves in the energy market.

It goes with the old saying: build a better mouse trap and the world will be at your door. And it already has begun to happen. When the average price of gas jumped from $3.00 to $4.00 this past year suddenly car advertisements were talking more about mile per gallon and hybrids then they were about 0 to 60 times. Sales of hybrids

• 1
• 2
• Next Page >>