If there is a solution to runaway gasoline prices, it’s not to be found in the president’s “new” energy proposal. Nearly everyone agrees this country needs a coherent energy policy that would reduce our dependence on foreign oil. But this still isn’t it. Nevertheless, Congress included portions of the administration’s original failed energy bill in the 2006 federal budget reconciliation.
After a failed attempt to woo Saudi Arabia’s Crown Prince Abdullah into pumping more crude, with much-publicized hand-in-hand walkabouts and cheek kissing at the Texas ranch, Bush still has no viable strategy. You’d think that a man with fossil fuels flowing through his veins would better understand the basic oil market. If you can’t increase the supply, you’ve got to reduce the demand. Economics 101.
The “new” policy includes the “old” ploy of opening the Arctic National Wildlife Refuge to drilling, the focus of environmental outrage over despoiling one of the last untrammeled corners of the hemisphere for precious little gain. First of all, oil companies are not falling all over themselves for the opportunity to retrieve a teensy portion of the oil consumed in this country. If oil leases were free, there wouldn’t be any takers. The cost and risk analysis just doesn’t pencil out. British Petroleum, Chevron Texaco and ConocoPhillips have opted out of the ANWR’s chief pro-drilling lobby and Exxon Mobile has decreased its support. They wisely favor investment in richer, more accessible and less politically charged sites.
Damage to the environment would be huge, if what happened to Alaska’s North Slope is any indication. An area of about 1,000 square miles is covered with 4,800 wells, two refineries, 28 production facilities and 800 miles of pipeline. Not to mention the roads.
Besides, the way the global petroleum market works, any oil retrieved from ANWR would be shipped to more convenient markets in Asia, and we’d still be importing our oil from the Middle East and South America.
Bush also proposed building new nuclear power plants. Of course, he hasn’t figured out what to do with the old ones and where to dispose of the nation’s burgeoning piles of nuclear waste. To his credit, Bush at least seems to understand that if we are to continue increasing our use of oil we need some new oil refineries.
In a bid to conservationists, he proposed extending tax credits to people who buy hybrid cars. Excuse me, but the last time I looked the waiting list for a Toyota Prius was about eight months. Incentives not required. Why subsidize a going concern? A simple act to tighten fuel efficiency standards for American-made cars would do hundreds of times more to decrease oil consumption. What is there about weaning our culture from gas-guzzlers that he doesn’t understand?
In countries where petrol prices have always been twice what they are here, fuel-efficient cars are the rule rather than the exception.
And at a time when we should be encouraging public transportation, what does our fearless leader do? He axes the subsidy for Amtrak, leaving loyal riders across the northern states without the only existing rail line connecting them to the Pacific coast.
He has an opportunity to make some fairly significant changes in the nation’s power structure. And he seems to like making bold moves. How about mandating solar panels on all new construction, at least in huge areas of the south and west where sun shines virtually year round? How about tax credits to producers of wind energy and mandating that power providers buy a sizable percentage of their electricity from sustainable energy sources? Tax credits and subsidies shouldn’t go to oil and gas producers to conduct business as usual. High gasoline prices are incentive enough. Oil exploration and drilling is traditionally spurred on by high prices and ebbs when prices tank. Oil prices are market driven, and since we can’t increase a finite and dwindling supply, the only option is to reduce demand.
During the power crisis in California, while Enron and other arrogant power brokers committed their daring daylight robberies, consumers cut their demand by using appliances only in the evening and turning off air conditioning. Clotheslines even made a comeback. Those who could, installed solar systems and small wind turbines, and watched their electric meters spin backwards as unused power was fed back into the grid. Faced with rolling blackouts, we all figured out how to use less.
Americans, caught in the squeeze of outrageous gas prices now and looming power shortages this summer, are demanding relief. Bush should embrace the vision thing. If he were to take a bold and sensible lead, the country surely would follow.