GM and Chysler Bankruptcies

[--Pete]

Hi,

Valid point, but slightly off argument. . . . Oil, is slightly different in that it's significantly more finite and has been known to be very finite for a long time.

Actually, the aluminum/oil comparison is a lot closer than you imply. Consider that it was a new and cheap form of energy (electricity) that made aluminum cheap. Now consider oil by its uses. As a form of portable energy, it could be replaced by batteries, hydrogen fuel cells, or something yet undeveloped. As a raw material for the plastics industry, it can be replaced by any hydrocarbon (say, corn) if there's enough cheap energy to power the process. The same is true for lubricants. So, like aluminum, oil can be marginalized by cheap energy, possibly from a new source or a more efficient use of an existing source (or sources). That was the analogy that was skittering around my brain when I posted.

--Pete