I don’t mean to be a broken record on this, but if the U.S. doesn’t follow Tom Friedman’s advice and install a serious energy tax on oil, the alternative energy business is going to collapse and we will be even more in the clutches of the Petrogarchs.
Advocates are concerned that if the prices for oil and gas keep falling, the incentive for utilities and consumers to buy expensive renewable energy will shrink. That is what happened in the 1980s when a decade of advances for alternative energy collapsed amid falling prices for conventional fuels.
In order for investment to flow into the Alt. Energy business there needs to be a floor under the price of oil. The Europeans and Asians already have accomplished this, but the dreams of a new American economy based around ET (energy technology) will only be realized if domestic producers of solar, wind and geothermal can compete in the near term as well as the long term. I’m aware that this is a tough sell politically, but it is worth the next President spending political capital to make it happen.