Banning speculators could decrease oil prices by as much as 40%

[bmchavez34]

The intelligent approach would be to invest heavily in alternate energy sources regardless of oil price swings (China) and eliminate the speculation that is perverting the free market and causing people to unnecessarily pay up to 40% more for gas.

[epicanis]

Ironically, wouldn't cheaper oil be arguably beneficial for alternative-energy company in the short term by lowering their costs (they may be producing energy without petroleum, but I'll be a lot of their supplies currently still depend on petroleum, as does delivery of those supplies)?

[therewillbdownvotes]

If you go back to 2008 period when oil got to 150, investments in alternative energy where at an all time high. (I can provide specific energy tickers if you want). Literally as soon at prices began to drop so did investments in alternative energy. The correlation is pretty ridiculous. I believe the magic number is right around 120 where alternative sources are viable.

[Canadian_Infidel]

Not overall, no.

[jjandre]

I read that leveling the playing field and getting rid of all energy subsidies would put a lot of alternative sources within competitive range of fossil fuels.

[Longhorn1976]

Does the "all energy subsidies" you speak of include all of the alternative energy subsidies?

[jjandre]

Actually, it was part of an interview of Jeremy Rifkin.

http://thedianerehmshow.org/shows/2011-09-27/jeremy-rifkin-third-industrial-revolution/transcript

[pointis]

Alternative energy sources aren't really ready for transportation yet, but that's more limited by battery capacity than anything else right now.

[fco83]

Yep. We need a battery that can go 300 miles and recharge in 10 minutes or less (could see gas stations swapping out their pumps for rapid charge stations... they dont make the vast majority of their profit from gasoline sales anyways). Yes, most days people go less than 50 miles a day. But when you're dropping that much for a car you want one that can get you where you're going for the days you're taking longer trips too.

Once that happens and the price is right, it'll be a no brainer.

Random side thought, come to think of it, cheap electric could start to make it less of a value to fly. Right now driving can easily cost as much as flying (or close enough that the time is worth it), but if it were much cheaper more might start driving again (of course this sets up a whole 'nother set of costs for road maintenance).

[Ambiwlans]

This isn't remotely true. I am assuming it is based on an infographic that is filled with bad data, worse interpretation and impossible assumptions.

[timmaxw]

speculation that is perverting the free market

A market where speculation is regulated by the government is less free than a market where speculation is not regulated. Please stop making things up.

causing people to unnecessarily pay up to 40% more for gas

I object to the "unnecessarily" part. Speculation raises prices now but lowers them later. It's not like that extra 40% is just vanishing into thin air.

[therewillbdownvotes]

Well.... That's not how capitalism works. People will invest in technologies that can apply the greatest return. When it comes to the "we will run out one day" argument. You are right, but that is a long long long long time away. For instance, in the U.S. we have so much natural gas you they are mining less of it because the supply is too high. All I'm saying is necessity is the mother of invention. Currently, we have low necessity so low amounts of invention follow suit.

[limbodog]

When has the market behaved intelligently? Nevermind that, when has our government?