Achieving Energy Independence

By Christian Milord | 07/07/08 | 10:41 AM EDT | 0 Comments

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How would you like gas prices to return to a more reasonable $2 to $3 a gallon, as prices were a year or two ago? While plenty of folks think that this will never happen, it could occur if certain events are set in motion. Indeed, there is no need to remain dependent on foreign oil. The problem of rising fuel costs has hit the world very hard over the past year, impacting the costs of other goods and services that rely on energy sources and transportation systems. People in several countries pay even more for fuel than Americans currently pay. These rising costs could reduce demand to a degree, encourage conservation and the use of alternative fuels, and/or trigger more development of fossil fuels. OPEC and our domestic oil companies are trying to pump more oil to meet an escalating demand. However, available supplies aren't keeping pace with the demand, thus the higher prices. If supplies increased and outstripped demand, then the prices would go down. The role of commodities speculators in this dilemma has been exaggerated. They have minimal influence in lowering, or raising prices since they are only part of the overall equation. Our energy problem could have been solved years ago, if Congress had acted to lift regulations on energy exploration, research and development. Most members of Congress claim that they want to reduce dependence on Mideast oil, yet they fail to act in order to achieve that end. Unfortunately, too many members are more concerned with self interest, instead of the national interest of energy security. Although more Americans might someday drive battery powered cars, hybrids, and vehicles powered by hydrogen, that scenario is still many years away. Ethanol is impractical because it's cost prohibitive to develop with huge amounts of corn that could go towards human and livestock consumption. Let's face it. Developed and developing nations still need coal and petroleum products to power their primary, manufacturing, and service industries. Alternatives such as hydrogen, biofuels, nuclear, solar, water, and wind power are limited in scope at the present time. Certainly, we can encourage the use of cheaper and cleaner fuels and technologies. However, it could take decades to transform machines, entire industries, and the engines of buses, cars, planes, ships, trains, and trucks over to different types of fuels. So what can Americans do to lower fuel costs, and push for energy independence? Well, we can besiege members of Congress with calls and letters. Congress ought to stop wasting time on petty issues and start spending time solving problems related to national prosperity and security. Congress doesn't have to set up new agencies, or committees to study the energy problem. Congress and some states should just eliminate the ban on offshore drilling, so that oil companies could develop oil resources off all of our coasts. Moreover, there should be more development in the land areas of the USA. Drilling, pumping, and refining have become much cleaner during the past few decades, so environmentalists don't have to worry as much about pollution. Of course, we want to keep our air, land, and water as safe as possible, but we also need economic growth. When Congress and the Executive ease the regulations on R&D for oil, oil companies could move quickly to increase the supply at existing sites, as well as develop new fields, and build refineries. These actions don't have to take many years, as some gloom and doom Congressional members often state. In addition, it's unnecessary to apply a "windfall profits tax" on oil companies, because that gives them less incentive to produce oil. Reasonable regulations and taxes can facilitate greater productivity, and profits can generate further development of efficient fuels and technologies. We could still purchase some oil from more stable nations such as Canada (Alberta tar sands) and some Latin American states. Remember, shorter distances for tanker trips can translate into fewer accidents and oil spills. Gradually we could wean ourselves away from foreign sources, as our supplies of oil and natural gas increase to meet the demand, and alternative fuels are utilized to a greater extent in the future. It's quite possible that if Congress acts in the national interest, Americans won't have to worry about spiraling energy prices. Prices could become more stable, which could positively affect other consumer prices and keep inflation under control. In fact, if engineers, inventors, and oil companies are allowed to use their talents, America could someday even export some surplus energy supplies to nations that need it. Achieving greater energy independence can certainly help America become stronger. It can also help foster greater prosperity and stability around the globe through business partnerships and trade. Congress needs to do its duty and get out of the way, so that America can have more autonomy as it moves ahead in the 21st century.

TAGS: Capitol Hill, oil prices

 

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