Serious about depletion
Your sober and sobering editorial: Serious about depletion (OGJ, Aug. 23, 2004, p. 17), marks a breakthrough in the treatment of this vital topic. This area has for far too long been dominated by the unrestrained optimists and eager catastrophists. A thorough examination of the subject by people who understand the petroleum industry and energy in general is long overdue. I hope that your Journal continues to publish thoughtful articles and editorials in this area so that we are able to make informed decisions as we move towards a truly sustainable economy.
Your assertion that the best policies for government are those that protect markets and let economic forces and human ingenuity deal with the problems must be studied carefully. I do not believe that speculators and rapacious oil producers should be allowed to hold this country hostage. As things now stand, the markets are thoroughly rigged, with the market price far above the extraction cost of petroleum; producers who have little or no interest in alternatives to control the premiums or rents as they are labeled by economists.
Much can be done in terms of public policy to capture some of these premiums to fund a move away from oil. I hope that OGJ would also maintain an open mind about proposals that the government take a more-active role in helping the average person cope with the coming challenges, which are truly enormous.
Alfred J. Cavallo
Consultant
Princeton, NJ
