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Developing alternatives to oil almost requires high oil prices. Consider the pace of R&D today vs. that of just 5 years ago. Competing against $130/barrel oil offers a nice payoff for successful ventures that isn't there with $30/barrel oil. No doubt it is very painful for everyone, either directly or indirectly. I often wonder about the scavengers who come through my neighborhood on trash day to pick out cans and bottles for the 5 cent CRV...what % of the money is spent just on gas for their old V8 clunkers? They probably need 100 cans just for the round trip. After that they can start putting food on the table. I leave my scrap metal on top of the bin for them. I once dug out a copper pipe from my yard that was worth about $18 recycled. I even cut it up into short pieces.
IIRC the Middle East is getting around $700B/year income just from the US. They know they have a limited window for securing their future before the oil runs out, because they have no other natural resources, kind of like Japan. They can't even grow enough food to feed themselves. John Mauldin once joked the US and other nations should start OGEC--Organization of Grain Exporting Countries--to control supplies and restore some geo-political balance.
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