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May 26th, 2008 A WINDFALL OF STUPIDITY I presume that you are ready, willing and able to pay $10 per gallon for gasoline. As Memorial Day weekend passes and the official summer driving season commences in America, we also have ushered in record high pump prices in excess of $4 per gallon on average (and much higher in some places; I drove past a station Roseville, CA on Sunday May 25 selling regular unleaded at $4.29 per gallon, premium was $4.59). With increased driving ahead (and the looming reality that we are a nation addicted to our vehicles), the possibility of hurricanes wiping out refineries and oil platforms, OPEC refusing to increase production, the specter of an Israeli attack on Iran’s nuclear facilities and the overwhelming majority of oil producing countries engaging in loathing our very existence, it is naïve at best to disregard how high gasoline may go. Thus begins the argument. Is the solution to explore, offer, create and mandate alternative sources of energy? Many argue that the biggest industry of this century will be the creation of progressive, clean, green, viable fuel sources that are not related to oil for that is where the future relies. Others claim that there is too much money tied up in NOT solving America’s dependence on foreign oil. They may all be correct. On the other side, people argue that the Earth is made of oil and there is no shortage of it, nor any indication that there ever will be. Some say there is “proof” in our ocean floors that the Earth recreates its’ own oil and it is there for our taking. Extending the argument, we are then encouraged by the crowd that believes that oil is the fuel of the engine of freedom to go get our share, reduce our reliance on anyone other than ourselves and control our own destiny. There are salient arguments against both scenarios. To the anti-oil crowd, many say they are unrealistic, naïve and simply intolerant of “big oil.” The ethanol experiment has been an abject failure while simultaneously creating a world spike in food prices not seen in decades. Not to mention the fact that we are only beginning to realize the extensive environmental harm caused by ethanol production, not the least of which is huge amounts of fertilizer run-off polluting our streams and rivers (1). Other forms of “clean” energy are decades, not days away and in many cases have repercussions to them that create daunting new problems (analysts say, for example, that an onslaught of electric cars would destroy the nation’s power grids and create never ending brown outs across the country). {2} Others point out that current forms of “gas savings” products don’t actually do anything to save consumers money. The cost of buying a Prius or Explorer hybrid offsets any savings in filling up the tank, making the point moot to buyers, and some allege that the damage to the environment caused by making a Prius is as great or more so than other vehicles. (3) As for those who support drilling our way out of the problem, the objections are well documented and seemingly never ending. We’re really not sure how much oil there is in Alaska and off our coasts, and that alleged proof that the Earth will keep reproducing oil is arguable at best. Additionally, it takes time and tons of money to start exploring and drilling and to what end? If it took us 10 years to get 1 million barrels per day out of ANWR, would that really be worth not devoting our time and energy to finding a whole new source of fuel? (4) Others argue that no matter how much oil America finds and produces within its’ borders, the best we can ever do is to still produce less than half of our consumption rate and thus, we are always going to be beholden to other nations as long as we use oil (5). The piece de resistance, of course, are the environmental concerns of all things related to oil exploration, which are too innumerable to count and in some cases, to irrational to repeat. Enter my frustration. Yet again, we have people who hold polar opposite views digging in their heels and marrying themselves to their ideas, not to solutions. The age of being right, as opposed to being correct has finally caught up to us at the pump. Were I in a position to do so (and I am not, for I am just a lowly peon who pretends to live in a nation where my voice still matters) I would demand an answer to this question; why not do it all, try it all and see who gets to the church on time first? There are countless reasons why we should experiment with ways to reduce our dependency on foreign oil, but we must do so with realistic expectations and an understanding of what we are trying to achieve. Let’s not kid ourselves. Oil is not going away and neither is our need for it. The list of products made from the starting point of oil is daunting and seemingly endless (6). Oil is here to stay, folks, and our need for it is only going to rise. It is time to stop insisting the Earth is flat and join hands as one with a common goal; let’s find a way to coexist with oil. The world is an essentially free market, so if the oil companies don’t like the competition, that’s too bad for them. They are free to invest in the future along with everyone else. Or, they can choose to focus on finding, obtaining and producing more of their product. Meanwhile, my proposal is simple; remove, extinguish and stop all forms of government mandates, tax breaks, restrictions and incentives that are not covered by the blanket of basic laws on all forms of fuel exploration. If farmers want to pursue ethanol production, let them do it because they believe it is a viable form of energy, not because the government is mandating that 30% of the fuel sold in America has to be made from corn. Ethanol producers can get rich the old fashioned way in America; they can take the risk and reap the rewards after they create a product that the nation and the world can’t do without. That’s how we do it in this nation; ask the railroad, steel and car industries about it. Meanwhile, those who stand high atop their mountains screaming about finding new forms of energy can invest their money and ideas into wind turbines, solar panels, hydrogen cell research, electrical car manufacturing and maybe even nuclear and coal. No incentive, no restriction. The incentive comes from being correct and becoming wealthy beyond your wildest dreams. Certainly if clean, alternative energy is the wave of the future there is a line of people willing to line up and invest in it, correct? Meanwhile, while we pursue the 21st century’s answer to gas, we must also acknowledge all of the alternative fuel ideas will take time and none can promise today that they will replace oil. If someday the market decides to relegate oil’s fate to that of the dodo bird, then so be it. Until then, we need to find oil, we need to refine it faster and ironically, we have the ability to do both a lot better and cheaper right here in America, we just don’t have the balls for it. So be it. Pay $10 per gallon but stop bitching about it until you build new oil refineries, remove drilling restrictions and allow Americans to go get American oil. The argument that drilling for oil in America or off her coast is somehow dangerous to the environment is more than intellectually insulting. Great Britain and Norway have been drilling off their coast in the North Sea for decades (7), which remains one of cleanest bodies of water on Earth. China is drilling just off Cuba’s coast, in America’s sightline with no negative effects (and believe me, we’d know if there were any). America is falling behind and being laughed at under the guise of protecting something that doesn’t need protecting. Modern technology has made oil production safe, clean and even aesthetically pleasant. Coastlines are not and would not be marred by the oil platforms of 30 years ago thanks to deeper drilling and better designed systems. For those who believe oil is a dinosaur, they can choose not to invest in the new exploration. Similarly, the United States no longer needs to offer incentives to oil companies making more than $60 billion in annual profits to find new oil. Exxon can re-invest in itself, with removed restrictions, and go find more oil. It’s there. Additionally, stop with the windfall profits tax talk. Not only is it stupid and anti-American, it is also counterproductive. We do not punish success in America, we reward it. The age of class warfare needs to end so that we can solve our problems. Punishing someone else for their success has never made other people successful or happy. Robin Hood was an idiot and it’s time to do away with robbing from the rich. Rather, let’s thank them and ask them to help make more of us rich along with them. Some argue that all of these possible solutions will take too long. I ask what their answer is? There is no easy, quick way out of this mess that we created at the end or World War II. While we search, unabated for solutions, the private sector will create millions of jobs and send a chill down the spine of the world knowing that America is in the game. At all previous times throughout history, once America engaged, the world knew it was imply a matter of time before we found a better, faster way. Let’s engage the full power of the American people on our most pressing problem; unleash our abilities on simultaneously finding new oil and creating alternatives as well…we’ll decide who was correct later; for now there is work to be done and nothing to be afraid of except being wrong. Get over it. (1) http://www.sciencedaily.com/releases/2007/10/071010120538.htm
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