Talk about panderers. Last week the Republicans gained consideration for induction into the infamous Hall of Shame by trying to buy voters off with a $100 bribe. Disguised as a one-time gasoline tax rebate, the plan is to give everyone a check for $100 to help defray the escalation in gasoline prices. The idea behind this proposed move supposedly is to make it look like the Republicans are dealing with the problem.
That's almost as cynical as Sen. Chuck (the Rat) Schumer's plan to break up the large oil companies, claiming that the reason gas prices are so high is because there is no more competition in the oil industry.
I do not pretend to be an expert on economics, nor do I have a great deal of expertise in the area of resource development. However, even I know that the issues surrounding the price of oil are much more complex than slipping taxpayers an extra C-note or busting up Big Oil. I am offended at the audacity of both Democrats and Republicans, who in their hearts must believe that the population at large is comprised mainly of drooling morons.
Here's a lesson in simple economics for the hapless Democrats and Republicans bumbling around Washington in search of a position that will make it seem like they are dealing with the problem: develop a sustainable energy strategy. a sustainable energy strategy will include a short, mid and long-term solution beyond "don't drive and by the way here's a hundred bucks".
a short terms solution for oil prices gone awry includes the release of strategic reserves, which the Bush administration has apparently already begun. It should also include the rehabilitation of the refineries put out of commission by Hurricane Katrina and the search for acceptable locations to build new refineries.
The number of oil refineries in the United States has dropped from a total of 324 producing 18.6 million barrels of fuel per day in 1981 to a current 132 refineries that produce a combined total of 16.8 million barrels of fuel per day. During that 25-year time period, the demand for gasoline and other fuels has increased astronomically. Hurricane Katrina destroyed some 20% of america's oil refineries last year, which is one of the reasons that today the price of gas at the pump is where it is.
What is desperately needed is the creation of new oil refineries within the United States. There has not been one new refinery built in the U.S. in the last 30 years, while close to 200 have been shut down.
Writing in the Sept. 21, 2000 issue of the Christian Science Monitor Mark Clayton makes a strong case for building new refineries. Clayton wrote about one such company, arizona Clean Fuels Yuma, " which aims to locate a high-tech oil refinery in the arizona desert. The hurdles are high. The company is still lining up investors to pay the $2.5 billion price tag. It has to hire biologists to ensure the new plant will not hurt an endangered lizard. a local clean-air group is questioning the project. But if the plan is realized, it would be the first US refinery built since 1976.
"'Maybe Katrina has taught us not to concentrate all refineries in one area, let alone a hurricane-prone region,' says Glenn McGinnis, the company's CEO. ‘We need to diversify.'
"Congress got an earful from industry officials who argued for tax breaks to bolster capacity and complained that environmental regulations and ‘not in my backyard' citizen movements had blocked efforts to build new refineries."
a mid-term solution would be the immediate opening of the arctic National Wildlife Preserve in alaska, which is said to hold as much if not more oil than all of Saudi arabia. In addition, stepped up exploration in the Caribbean, where a recent discovery of significant oil reserves was made off the coast of Cuba, as well as other promising areas will reduce america's dependence of arab oil.
Globalization has increased demand for oil, while the supply has remained more or less stabile. Currently India and China make up over 33% of the world's population. Both countries have recently entered the global marketplace and are now competing with the rest of the developed world for market share as well as energy consumption. as these nations boost their industrial capacity, demand for energy and particularly oil, will be ever greater, meaning that the price of crude will not drop any time soon. So the only answer in the mid-term is to discover new sources of oil.
Finally, long-term solutions should include research and development of alternative energy sources, other than wind-power or solar energy. Nuclear energy has proven to be a clean and safe source of energy. Problem is, because of the 1979 Three Mile Island partial meltdown and the 1986 Chernobyl disaster, we have been reticent to commission new nuclear reactors. We must also encourage research and development of hydrogen fuel technology to eventually wean us off the oil teat.
Last week I wrote that Republicans are starting to occupy the liberal ground that the Democrats abandoned when they took their sharp left turn. The $100 check scheme is proof that this is the case.
Pursuant to Title 17 U.S.C. 107, other copyrighted work is provided for educational purposes, research, critical comment, or debate without profit or payment. If you wish to use copyrighted material from this site for your own purposes beyond the 'fair use' exception, you must obtain permission from the copyright owner. Views are those of authors and not necessarily those of Canada Free Press. Content is Copyright 1997-2024 the individual authors. Site Copyright 1997-2024 Canada Free Press.Com Privacy Statement