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Friday, July 18, 2008

The Energy Solution


ANWR, Alaska


At the very outset, let me state that I am no expert on the economy nor on energy matters. Yet, I venture to write an opinion on the solution to our on-going energy crisis. Although I am no expert, I feel very comfortable advancing my solution because, to me at least, it is based on common sense.

In the light of the ridiculous rise in gas prices, it is clear to any sane person that something must be done. The situation as is cannot be allowed to continue. My ideas are very simple, perhaps so simple that some expert may come along and refute them, but here they are:

First of all, I see both a long-term solution and a short-term solution. First, the long-term solution: Certainly, we must find alternative sources of energy, first and foremost, alternatives to oil. We simply cannot continue being reliant on a finite source of energy to power our transportation vehicles and heat our homes. In addition, to depend upon nations like Saudi Arabia, Iraq, Iran, Indonesia, Mexico and Venezuela (under Hugo Chavez) strikes me as insane. Therefore, I support the idea that we should do whatever we can to find alternative sources of energy. In other words, if you can invent a car that will run on human urine, I am all for it. If we can put a man on the Moon, I am sure we can find something else to run our cars on and heat our homes with.

But that is a long-term project. In the meantime, oil is what the world's economy is based on. Like it or not, that is a fact. That leads me to our short-term solution. We must, in the next 10-30 years, work on providing our own oil. That means we must drill at home. We can disagree on how much oil we can obtain from our own sources, but we must obtain what we can at home. Therefore, it strikes me as common sense that, as we work feverishly to develop alternatives to oil, we drill off the Pacific and Atlantic coasts and in ANWR (Alaska).

And what is the objection to the above? Environmentalism. The environmentalists and their proxies in Congress, the Democrats, are stopping us from any new drilling. Not only that, they have stopped us from building nuclear power plants and new oil refineries for the past 2-3 decades. It is time that we tell the environmental lobby to sit down and shut up. Let's be honest. Some environmentalists are sincere in wanting to protect the environment. Others, however, are driven by a desire to bring America to its knees economically and otherwise.

The argument about ANWR has been going on since Clinton was in office. As Clinton was vetoing drilling in ANWR, Democrats like Senator Charles Schumer were telling us that it would take 10 years before we ever saw a drop of oil from ANWR. That was back in the 90s. Now the argument is the same. The Democrats are telling us that if we started drilling now (in 2008), it would take 10 years to see the first drop of oil. Had we started when Clinton was president, we would be using that oil now.

And how do our presidential candidates stand on drilling? Obama will oppose new drilling everywhere. McCain would drill off the coasts, but still opposes drilling in ANWR because it is so "pristine". Forget the fact that the ANWR drilling area makes up an area about the size of Los Angeles International Airport and resembles a moonscape. Forget the fact that the overwhelming majority of Alaskans favor drilling in ANWR because of the beneficial effect it would have on their economy and jobs.

Then there is the position of the environmentalists and the Democrats. It is all the fault of the "evil oil companies making those obscene profits". Perhaps there is merit to that argument, but it seems to me that this is a problem of supply and demand-especially with developing economic powers like China and India requiring more and more oil. Let us also consider that the oil companies are making a profit of some 8 cents per gallon while the federal government takes in about 18 cents per gallon in taxes and some states like California take in 50-60 cents per gallon in taxes. Yet, we don't see state and federal governments foregoing those (windfall) profits, do we?

As things stand now, President Bush has just come out for drilling off the two coastlines. Just that announcement this week caused the price of oil to drop. If we became truly serious about finding our own sources of energy, the price of oil would drop further. However, the Democrats, led by Speaker Nancy Pelosi, stand in firm opposition. Why? Because they don't want to alienate the environmental lobby.

So what is the alternative? To continue to depend on unstable regions and nations which wish us ill for our oil at whatever price they decide? To worry about the Iranians trying to close the Strait of Hormuz? Or having to go to war to protect our access to Middle Eastern oil? Would it not be preferable to begin now to find our own oil until that grand day arrives when we can run our cars and heat our homes on something else? It seems to me to be a no-brainer.

As for the long-term goal in creating new sources of energy, when that day arrives, I will celebrate (if I am alive to see it). Until it does, oil is what makes the world go around. And those caribou up in ANWR that the environmentalists are so worried about? They will be just fine.

4 comments:

Lance Christian Johnson said...

You touched on the problem of how it would take about a decade to even start seeing results if we started drilling.

Another objection that I've heard though is that what we can get would only last us a few years, so it's not worth it.

Now, I'm not sure if that's just Alaska or also the offshore drilling as well. (I read this about a week ago.) If that's true though, that it wouldn't last us very long, then it doesn't seem to be much of a solution at all.

Gary Fouse said...

That is a matter is disagreement, but as I said, short-term, we need to provide our own oil. Long-term, we need alternative sources. Doing nothing seems to me not to be an option.

Lance Christian Johnson said...

Just did a little research and also saw the concern that there's no law that states that the oil companies have to sell the oil to the U.S.

If we are gong to do that, maybe we do need a law that says that oil drilled here must be sold here. Otherwise, there doesn't seem to be any reason why this would help our situation.

Gary Fouse said...

Correct. Some measure would be needed, like nationalization.
Still, the law of supply and demand would help.