Posted by
Patrick "Sarge" Murray on Sunday, June 03, 2007 2:16:51 PM
Gas prices are on the rise once again. Already they have surpassed the highest prices we experienced in July and August of last year. At the time I write this blog entry, the prices have thankfully stabilized some, but the current price is still higher than even previous summers. There are reasons for these high prices, and they do not involve conspiracies or “price-gouging” by one of the left’s favorite bogeymen du jour, Big Oil (cue the whisper-voices chanting “Big Oil” in a George Soros-MoveOn.org-sponsored radio ad!).
The general reason for the rise in gas prices over the past few years boils down to basic market forces of supply and demand. Simply put, demand for oil is at an all-time high. Why? Worldwide economic growth, that’s why. China’s and India’s economies alone are bursting at the seams, largely because after decades of socialist economic policies (more so in the case of China, to be sure), their respective governments have eased certain controls and have allowed more market forces to take hold, thus allowing those countries to prosper more. Same thing with Eastern Europe. With Soviet repression still fresh in the minds of the good citizens of, say, Poland and the Czech Republic, Eastern Europe has embraced capitalism and the rising standard of living that inevitably follows.
Naturally, there’s a small catch. Growing economies require increased energy usage, which is why oil is in great demand. The solution is not to hinder economies; doing so would cause untold human suffering around the globe. Rather, the solution is to find more sources of energy; it’s not as if we’re about to ease our consumption anytime soon, much to the chagrin of the environmentalist whackos and other flavors of socialists.
No, the solution is not price controls, either. The predictable calls of “price gouging” by Democrats and their ilk sound as enticing as the Sirens’ Song, but that course of action will lead to gas shortages and long lines at the pump that are thankfully an aging memory from the 1970s. Dr. Thomas Sowell, one of the great thinkers of our time, has a wonderful recent column on price controls and related issues concerning current gas prices.
The solution concerning the United States’ current energy issues comes in two parts. First off, we have to acknowledge that we’re an oil-based economy, and therefore we need as much of it as possible in order to keep things running smoothly so as to maintain our high standard of living and superior way of life (e.g., driving cars that are not crinkly tin cans like in Europe or East Asia). Second, the wise approach towards oil usage would be to focus/specialize in oil consumption.
There are a number of ways to increase the supply of oil itself. Contrary to the environmental alarmists out there, we’re not about to run out of the Black Gold any time soon. Canada alone has enough oil to feed our current consumption rates for the next 50 years, and that’s barring the discovery of any major new deposits (we get more oil from our friends up north than we do from the Middle East, FYI). Our biggest problem at home has been liberals and their Democrat allies blocking the exploration and drilling of new oil sources at home, such as sites at ANWR in Alaska and in the Gulf of Mexico. Naturally, these restrictions do not apply to Mexico or even Cuba, who have been allowed to beat us to the punch since they’re not beholden to the same arbitrary restrictions that environmentalists shackle us with at home. It also doesn’t help that certain residents of coastal California and Florida won’t let us drill off-shore there, either, because they might actually see an oil rig in the distance on the clear day. The horrors!
In addition to drilling for more oil, we do have other sources of oil that may come to our advantage in the world market in the future. There are two other major geological sources for petroleum; shale and coal. The former of which we have plenty of in Utah and Colorado (take a piece of shale, put it up to your nose and sniff; you can practically smell the oil in that gray rock!). Next, and more importantly is coal. We as the United States are the Saudi Arabia of coal, producing more of that bituminous rock than any other nation on Earth. Kentucky leads the way in coal production, with West Virginia, Pennsylvania, and even Tennessee close on its heels. A fair amount of coal also comes from out west, in states such as Wyoming and neighboring areas. At current market conditions, coal gasification is a very feasible energy policy, and is one that should be pursued so as to put pressure on OPEC and lessen our dependence on Middle Eastern oil.
Second, we need to specialize/focus our use of oil. Currently, we use it for practically everything; heating our homes and businesses, fueling our power plants, as well as for gassing up our cars. The best way to leverage the market so as to put downward pressure on prices at the pump is to focus oil usage on vehicular fuels (gas for cars, diesel for semi trailers, and kerosene/jet fuel for airlines). Naturally, there will always be some uses of home kerosene heaters, but that’s always a small fraction of kerosene usage compared to jet fuel consumption. This need for fuel specialization includes the use of natural gas to for an energy source in power plants. At current market rates, it’s economic suicide to use the vast amounts of natural gas needed to provide our electricity; it’s one of the reasons your natural gas heating bills keep skyrocketing each winter. Indeed, the best way to get our electricity in the future is to go nuclear. France already uses all-nuclear plants to get their electricity; it’s one area where the French are actually ahead of the game compared to where we are in our energy policy. Are we going to stand for this?
As far as “alternative fuels” go, going nuclear also has a great ancillary benefit, that of hydrogen production, which is a result of the nuclear fission that provides the energy for electricity in the first place. This hydrogen production can thus be used to for the fuel cell-powered cars that some folks think might replace the traditional internal combustion engine in the coming decades. In addition, new research is coming up with other sources for hydrogen, which could be the way of the future.
Be that as it may, I doubt of internal combustion will go away completely. There are still millions of us out there who would still like to be able to drive our ’57 Chevys and ’59 Cadillacs, if only for recreational occasions, which brings me back to the earlier point I made about the need for a steady oil supply to preserve our superior way of life.
Don’t be seduced by the talk of ethanol, either. John Stossel has a wonderfully hard-hitting piece on the problems with ethanol. To sum it up, it takes a heckuva lot more energy to produce the stuff than it does to refine oil; you need to fuel the tractors to harvest the corn, and that does not even include all the energy used to convert the sugars in the corn into alcohol. Even then, the stuff doesn’t produce as much energy as gasoline, meaning you need to burn more of the stuff in order to get the same amount of power. Worse yet, by putting food -- and corn is food! -- into your gas tank, it means that the food supply goes down, while the demand stays the same. This equates to food prices going up, as you no doubt have noticed while grocery shopping over the past couple of years. Add all these problems together, and it doesn’t take a Ph.D. in Economics to figure out that ethanol makes for a lousy trade-off.
The bottom-line, Cliff Notes version of this lengthy piece, is thus: we need to drill for more oil (more refineries wouldn’t hurt, either!), and limit its use to vehicular fuel, going nuclear for electricity, and electric to heat our homes (with some possible natural gas exceptions). The environmentalist whackos have stood in our way of accomplishing much of this, so We the People need to rise up and tell these socialists to sit down, shut up, and stop trying to ruin our way of life.