Now Greenspan thinks that High Oil Prices are a good thing?
4/05/2005 08:34:00 PM | Author: baloghblog
Via NY Times:

Greenspan expressed a hope that higher prices would spur conservation by businesses and consumers and greater energy exploration by energy companies. That should help get prices under control, he said.

I am not hearing anything about how meaningless the production of more oil would be given the fact that China and India will eat up any available surplus with their growth.

The Bush administration has been pushing Congress to enact energy legislation. Lawmakers in the House are working on a bill with the aim of promoting increased production of a broad range of energy sources -- from coal to natural gas. The measure is not expected to have much impact on the price spikes seen in recent weeks, however.

Congress has been trying for five years to enact broad energy legislation. A compromise on a bill fell apart in 2003 in a dispute over liability protection for manufacturers of a gasoline additive and concern about the bill's $31 billion price tag.

Greenspan also said that the higher energy prices will not only stimulate new exploration but also research and development ``that will unlock new approaches to energy production and use that we can now only scarcely envision.''

i.e. It is a good thing that we've waited until prices are through the roof, and the oil companies are filling their pockets enough that they now have some spare money (ours) to dedicate to finding new sources of energy. (Instead of a proactive government that provides incentive and funding for new technologies and forms of energy.)
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