In an oversimplified analogy, you can think of Energy as a commodity like Gold. When gold prices rise, gold mines are reopened, new processes of extracting gold are developed and millions of dollars are spent on new equipment because the higher price of gold and the promise of increased profits justify the development and capital expenditure.

The same thing will happen with energy. As energy prices rise, it will become profitable to develop alternative sources. Until such time it makes no sense to produce an energy product that cost more than the product currently available.

Do you think that Energy companies are going to fold up and crumble away when the supply “runs out?” Corporations are living entities. They want to survive. I’m sure they are as concerned as you are and have been working on this problem since before you were born.

By reading “The Wealth of Nations” I meant the book, not just a few paragraphs on a web site.

Rob (feathers slightly ruffled.)