Benefits of high oil prices

[Ryan Salo]

1. High gas prices = private sector thinking out of box. Have you seen how many inventors are coming out of the wood work with water powered cars and oil from microbes? I have always been taught that the private business will respond with new technology when the market dictates it. Remember when hybrid cars first came out? My mom bought one and I thought she was crazy, now I wish they made hybrid mini-vans! I think this is an incredible time for our economy and for our environment. We are going to stimulate jobs in industries that have been trying to get off the ground for decades.

2. Less travel, I have no numbers to back this, but I know from the people I know, more people are sinking money into local attractions rather then traveling and spending money out of the state. This is probably bad for places like Florida, Chicago and NYC but great for places like here.

3. Mortgage rate increase
With the fears of inflation the mortgage backed security market had been hit hard. Rates will continue to climb which actually has some benefits; Higher interest rates combined with more restrictive lending practices will keep many potential problem home owners out of the market. When lending practices were loose and rates were low it allowed many renters to purchase a home for the same or less then they were paying in rent. This flooded the market with people that had never owned homes with most having put very little or nothing down. This left a large hole in the renters market (remember all the fears with the dozens of for rent signs out in Lakewood?)

4. General energy policies - it gets the government and the public involved in conversations about all energy policies.

My thoughts may not be 100% accurate thats why I am posting them to see what others think.

Anyone else have any positives?

[Tim Liston]

High gas prices will also (finally) motivate us to rebuild our passenger rail system. In fact, there was an article in this morning's Plain Dealer about proposed investments in high-speed rail at the federal level.

http://blog.cleveland.com/metro/2008/06/highspeed_rail_line_for_ohio_g.html

Passenger rail makes even more sense as high fuel costs are causing the aviation industry to implode.

[Brad Hutchison]

This is an easy one, but I'm walking everywhere, and finding I love walking everywhere (but ask me again in January). I've always known Lakewood as a walkable city, but I'm realizing how "small" Lakewood is. Granted, I'm pretty centrally located, but I'm finding places I always thought of as driving distance are only 20-30 minute walks. It's better for me, better for the environment, and keeps money in the city. You discover a lot of new businesses when you're walking.

[Jim DeVito]

High gas prices will also (finally) motivate us to rebuild our passenger rail system. In fact, there was an article in this morning's Plain Dealer about proposed investments in high-speed rail at the federal level.

http://blog.cleveland.com/metro/2008/06/highspeed_rail_line_for_ohio_g.html

Passenger rail makes even more sense as high fuel costs are causing the aviation industry to implode.

Tim,

Valid point. I hope we take this idea seriously. We could finally be like all the industrialized European Nations. With cheap, clean, high speed rail service I see a market for competition with the air carriers. As long as we do not muck it up with incompetent and rude TSA workers. I believe a lot of people will be willing to forgo the hassles at the airport for the high speed rail lines cris-crossing the country.

[Brad Hutchison]

I think a naional high-speed rail system would be great. I foresee a problem with momentum, however. It's something that people will think is a good idea if they could have it NOW, but they'll think by the time it's done in 8-10 years, gas will be $1.20 again.

[Jim DeVito]

I think a naional high-speed rail system would be great. I foresee a problem with momentum, however. It's something that people will think is a good idea if they could have it NOW, but they'll think by the time it's done in 8-10 years, gas will be $1.20 again.

I do not think gas will ever be 1.20$ a gallon again. (gasoline that is not some kind of new fuel) I have a problem with the 8-10 year projection. Why does it take us that long to do something like this.

A.) We are the richest country in the world.
B.) We have rising unemployment that could be curtailed in public works projects.
C.) We are the most technically advanced country in the “freeâ€

[Tim Liston]

You think $168 billion could build a high-speed passenger rail system in this country? I do. Well, that's the tab for the "stimulus program" now underway. You know, the one where everybody (but me) gets checks for $600 or $1200 or whatever and is encouraged to spend them on things things they probably don't need. Why we didn't spend that money putting people to work on our infrastructure is beyond me.

[Brad Hutchison]

I do not think gas will ever be 1.20$ a gallon again.

Agreed. They have us right where they want us. All they have to do is jack it up to $6.00/gallon for a couple weeks, then we'll turn cartwheels when it comes back to $5.80.

I have a problem with the 8-10 year projection. Why does it take us that long to do something like this.

I don't know why these things take so long, but they tend to, and that's why they always lose steam.

[Bill Call]

You think $168 billion could build a high-speed passenger rail system in this country? I do. Well, that's the tab for the "stimulus program" now underway. You know, the one where everybody (but me) gets checks for $600 or $1200 ....

I was a little suspicious about $168 billion building much until I did some figgering.

$10 million per mile builds 16,800 miles of rail. That's enough to cross the country 4 times. A while back I read that over the last 70 years the airline industry lost money. That's without the recent annual loss of $20 billion. It's a silly business that wouldn't exist without a lot of subisidies.

When the interstate highway system was constructed someone suggested making room for rail lines between the traffic lanes. To bad it didn't happen.

The stimulus package was stupid on a lot of levels. If $1,000 checks are good why not $50,000 checks? Why not $500,000 why not every man a millionaire?

Oppose any effort to build a passenger rail line through Lakewood without the guaranty of $300 million in development money for the City.

I guess everyone agrees that much of our "current" policies make no sense. We just can't agree on which ones and what should replace them.

High gas prices are a good thing.

[ryan costa]

about 10 years ago the paper ran an article on Stan and Iris Ovshinsky. http://www.ovonics.com/fo_ecd_ovonics_founders.cfm

they had revolutionized technology for storing electrical energy and also generating electricity with solar power.

The industry mostly sat on it for decades. It was pre-empted by the energy heavy weights. Let's not forget Ronald Reagan literally tearing Jimmy Carter's solar panels off the white house. Why aren't the Ovshinsky's as rich as Bill Gates? Their stuff seems more usefull than the last ten years of microsoft.

It took a lot of deliberate money and attention to dismantle most of our old passenger rail and build up the interstates. Fortunately perhaps that leaves room to rebuild railroads on the curb lanes of interstates.

Last I read the volume of oil commodities trading had risen 600 percent. That is less a straight supply and demand issue then it is western commodities traders passing the oil contracts back and forth to each other six times more than usual. I'm not sure how much of those mark ups actually go to the people who initially sell the oil, but Sam Walton would call the commodities guys unnecessary middle men. However, the mark ups force Americans to consume more conservatively without having to think too much about why it is good to be conservative.

Another new technology is smaller sized retail stores. They'll probably shrink back down to old Woolworth's sizes and smaller specialty shops.

[ryan costa]

In the future there will be a lot of Science!

A species of Dandelion can be used to produce rubber. Presently the United States must import all of its natural rubber, and synthesize the rest from Oil.

http://www.theprairiestar.com/articles/ ... ocal10.txt

The roots of Dandelions are rich in a latex-rich sap that can be refined into rubber.

Tropical rubber trees will probably all be cut down to grow rice or soybeans or Palm Oil producing trees or sugar cane. Now America can use marginal lands like South Dakota or Idaho to produce rubber.

[Jim O'Bryan]

In the future there will be a lot of Science!

Yes Ryan there will be!

However we are not in the future.

And this high speed rail line benefits? Runs from? For what? I have to think unless the government underwrites the entire plan, it will run from Vegas to LA, another one from Boston to Baltimore with so many stops it never reaches full speed, and?

Just curious, to me this always seems like one of those great ideas, but...



.

[Brad Hutchison]

http://www.msnbc.msn.com/id/25265682/

Just a new article about a proposed maglev from LA to Las Vegas... some interesting politcal dynamics at work.

[Brad Hutchison]

http://www.newsweek.com/id/147648/page/1

Interview with Amtrak CEO about the future of passenger rail in the US...

[Ryan Salo]

http://www.costar.com/News/Article.aspx ... 3E01D8237E

"As the price of gas continues to rise the affordability differential of living in suburbs and bedroom communities is diminished," said Michael Beach a director at Captec Financial Group in Southern California. "We see population growth stronger nearer the city center and, if prices continue to rise, a likely drastic reduction in urban sprawl. Likewise, we expect reduced traffic at regional malls and outlet centers in markets where there are alternative places to shop."

I have seen more and more article like this.

This is great for Lakewood!