Uh Matt25,
We got a problem here. You make an assumption here that needs to be corrected. You say that the oil, gas and coal will eventually run out. I say that they won’t and here’s why:
Let’s say that the known reserves of oil in the world are 3000 barrels of oil (just picking a number for convenience). Let us also say that the current usage of the world is 100 barrels a year. How long before the world runs out of oil? Answer: Never. You might have been tempted to answer 30yrs after doing some simple math. That is the answer in a mathematical model, but not an economic model. The economic model corresponds to the real world. As a commodity gets scarce, the price for it goes up. When that happens, those forced to to pay those higher prices make adjustments to use less of it, driving down demand, and hence the price. In Europe (and especially Britain), where petrol is much more expensive than in the U.S. because of taxation, people adjust by driving smaller cars with diesel engines. Eventually, if a commodity is too expensive to pay for, alternatives take their place. Alternatives are being found all the time that make supplies of certain existing commodities irrelevant (Ex: we no longer have a huge demand for whale oil, which was a major commodity in the 19th century). This is all because of the law of supply and demand. In fact all predictions about the imminant collapse of certain commodity supplies have been proven wrong. In the mid 1980’s, Stanford University’s Paul Ehrlich (of
The Population Bomb fame) made a wager with economist Julian Bond. Ehrlich believed that the price of various commodities like oil and copper, adjusted for inflation, would go up in 10yrs. Bond believed they would go down. Bond let Ehrlich pick any 10 commodities and select the time frame for when their prices would be checked again. At the end of the time frame (approx. 10 yrs), Ehrlich had to pay off Bond; every single commodity dropped in price. With regards to oil, not only have steps been taken to moderate consumption from the big, bad 1970’s, but proven oil reserves have increased about 10-fold since President Carter famously predicted the end of petroleum supplies.
Once an economical alternative to petroleum is found, you can bet the farm that everyone will jump on it. Already, there are predictions that in 10 years, more than 50% of the vehicle sold in the U.S. will incorporate hybrid technology. If petroleum prices stay high, the conversion will happen even faster. When hydrogen cell technology becomes practical, we’ll have more petroleum than we could possibly use. I reccommend the following links to get more information:
fumento.com/environment/gas.html
aei.org/news/newsID.21811,filter.all/news_detail.asp