A few months ago we were discussing the need to get the US off of oil, that it was damaging to our national security, and that $4 per gallon gasoline would provide the incentive we need to finally build and buy small, fuel-efficient cars. That $120/bbl oil would spawn a large wind and solar industry.
Yet, here we are. Oil is about $70/bbl and gasoline costs less than $2.75/gal in many places. At this price, many alternative fuels (bio-diesel, ethanol, etc) are no longer economically competitive--R&D will likely grind to a stop if the situation continues.. GM is bleeding red ink, headed for possible bankruptcy, and putting a big bet on--a plug in electric car that cannot be sold at a a break-even price with oil at this level.
According to "New Energy Finance" (as given in today's WSJ) renewable energy stocks have dropped 45% in the last 3 months (compared to a 23% decline in the DJIA).
Sure, oil will go back up again, and the process will start over. Is that the right answer? Use the cheap oil while we can ("somebody's going to burn it--it might as well be the US getting the benefit") and develop alternatives once the oil price goes up and stays up.
Trek and/or others who were looking into alternative energy stocks--are you staying with them or getting out? Is this the time to buy--maybe a golden last-chance window to get into these before they zoom up for good?
Just an observation. Alt energy looked like a sure thing just a few months ago--now the risks are more readily apparent..
Yet, here we are. Oil is about $70/bbl and gasoline costs less than $2.75/gal in many places. At this price, many alternative fuels (bio-diesel, ethanol, etc) are no longer economically competitive--R&D will likely grind to a stop if the situation continues.. GM is bleeding red ink, headed for possible bankruptcy, and putting a big bet on--a plug in electric car that cannot be sold at a a break-even price with oil at this level.
According to "New Energy Finance" (as given in today's WSJ) renewable energy stocks have dropped 45% in the last 3 months (compared to a 23% decline in the DJIA).
Sure, oil will go back up again, and the process will start over. Is that the right answer? Use the cheap oil while we can ("somebody's going to burn it--it might as well be the US getting the benefit") and develop alternatives once the oil price goes up and stays up.
Trek and/or others who were looking into alternative energy stocks--are you staying with them or getting out? Is this the time to buy--maybe a golden last-chance window to get into these before they zoom up for good?
Just an observation. Alt energy looked like a sure thing just a few months ago--now the risks are more readily apparent..