I was surprised how he said outright that America is addicted to foreign oil and how he\'s making plans to cut us off of 75% of foreign oil by 2009 and all oil by 2025. Now, do I really think this will happen?
Won\'t happen; here\'s the finance/investments perspective that explains the oil industry:
The oil companies have billions of dollars invested in gas/oil projects around the world. The objective of any investor/company is to maximize the return on any investment (or project such as a major drilling rig). They won\'t maximize their return if there are still oil reserves at the site of each project and thus have no incentive to end the project till all reserves are depleted.
The oil companies know there are enough worldwide reserves to keep us "hooked" on oil for decades, regardless of whether it is/isn\'t the socially responsible thing to do. As a result, most of the huge companies that make up the oil oligopoly are spending little, if no money at all on alternative energy projects. They don\'t see the value (return on investment) of adding alternative energy projects to their balance sheets when they will be flush with cash from fossil fuels. Resultingly, the alternative energy industry is comprised of smaller enterprises and little of the big money is going to be there anytime soon. Alternative energy industry will probably remain in a state of infancy till the incentives are enough to allure the big money players.
If your peers (oil companies) aren\'t taking large, expensive positions in alternative energy development projects that provide a lower return on investment and you decide to, you will earn less profit than the peers that stuck to the traditional model of oil-only extractions projects. We all know that investors favor companies that earn higher profits than the competition so I probably don\'t need to elaborate any further.
The good news is that people want both cars that don\'t rely on fossil fuels and homes powered by the sun (among other products). Any technologies that are developed will greet receptive consumers and a governement that is helping to provide favorable tax incentives to those that wish outfit a home with solar panels or buy a hybrid.