perhaps you could offer some specific rebuttals to the argument. no new business is going to invest in a sector where they cannot determine the price point for their new product, based on what established technology in that sector charge. its not going to happen, it isn't happening now in the energy sector (for oil alternatives) - the only energy initiatives are small scale, or are already government funded trial projects.
anyone who thinks that there is going to be huge private investment to develop oil alternatives, based on the current price of oil, is dreaming. its not going to happen, the price is too volatile and the market is being whipsawed by speculative excesses.
I'll tell you how I see the situation but as far as rebutting your argument I believe you are basing your thoughts on the flawed assumption speculation is the root cause. Speculation is not the root cause but the result of world oil demand for the first time in 30 years beginning to outstrip world oil supply. Ceteris Paribus... all things being the same this results in higher prices. This will continue until a new supply/demand equillibrium price is reached.
Speculation may be involved in the price appreciation but speculators are in this market because of the fundamentals. Speculation is good.... it provides liquidity to the market. Speculation is human nature. It was a speculation that gas prices would stay low when millions of Americans boughts SUVs the past 10 years. It was speculation when millions of American moved out to the suburbs the past 50 years.
Intervention in the pricing mechanism of oil by the government is the last thing we need. Price is a reflection of all our human decisions. It is the mechanism that provides the benchmark price you so urgently refer to in your arguments. If any company needs to know the cost of entry into the market for their alternative energy product, they need not look further than the market place and the price consumers are paying for units of energy. The market place is where alternatives have begun on a small scale. The turkey waste oil recylcing plant is an example. If an alternative solution proves profitable at the small scale then it will be used at a larger scale.