Re: The Middle east -- was a couple of other things

From: Robert J. Bradbury (bradbury@aeiveos.com)
Date: Fri Apr 18 2003 - 10:01:15 MDT

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    On Fri, 18 Apr 2003 Dehede011@aol.com wrote:

    > They let slip that they predict that if the sanctions are
    > lifted it will cost middle eastern countries one trillion dollars in oil
    > revenues over the next few years.

    Ron, I'm not sure I buy this. Is this an assertion of what will
    actually happen, what the papers are "selling" to people, or
    conclusions that people have reached independently?

    From an economic standpoint, it may make a certain amount of sense
    for countries to cut back on oil production because when production
    declines the price will increase and they can sell the reserves
    that have been conserved at that much higher price. So it becomes
    a question of "Do you want less money now or more money later?"
    situation. (Assuming inflation adjustments on the value of money
    of course.)

    Now, obviously the people are not being educated as to their
    relative wealth in terms of solar energy (vs. the energy under
    their feet) [1]. So a proper development path would be to use
    what is under their feet (which is unsustainable in the long run)
    to develop solar energy resources (which are much more sustainable).

    So this whole "cost a trillion dollars" perspective seems highly
    suspect IMO.

    Robert

    1. Bradbury, R. J., "Solar Wealth", (Nov. 2001)
       http://www.aeiveos.com/~bradbury/Papers/SW.html



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