Thank God for High Oil Prices

Oil prices have recently hit record highs. It now costs about $72 to buy a barrel of crude.

And it looks like prices aren't coming down any time soon. Iranian president Mahmoud Ahmadinejad has stated that "The global oil price has not reached its real value yet."

Thank God!

What?! Am I crazy? Why am I happy that we have to pay so much to fuel our cars and heat our homes?

I am happy because, in a capitalistic economy like ours, ridiculously high oil prices will accomplish what decades of governmental policy have been unable to do - high oil prices will drive investment and innovation into producing alternate sources of energy.

Iran is shooting itself in the foot by taking this stance. The only reason Iran has any leverage, power, or economy is they're sitting on a bunch of oil, and the world is addicted to oil.

By driving up prices, Iran is ensuring that the immense power of American, European, Chinese and Japanese research and development will be focused on developing alternate sources of energy - energy that does not depend on politically unstable and unhinged governments like those in Iran and Venezuela.

Some very smart people and a lot of investment capital are starting to pour into developing alternate energy sources. Companies are busy developing hydrogen fuel cells, biodiesel, solar power, wind power, methods of refining gasoline from Canadian oil sands, hybrid automobiles, clean-burning coal plants, and clean nuclear power.

Just look at the stock prices of alternative energy companies Evergreen Solar and Energy Conversion Devices. They're going nuts!

Higher stock prices mean easier access to investment capital for these companies, money they will use for research and development.

Our technological innovation is gaining momentum. Soon, it will reach juggernaut status and nothing will stop development of fantastic, environmentally safe, and American energy sources.

So say it loud and say it proud:

Thank God for high oil prices! May they keep going higher!