The Truth: Oil Crisis
Let’s face it. Over $4 a gallon for gas is ridiculous, and it is hurting the middle-class and, thus, damaging our economy. As long as oil floats around $130-140 a barrel, than we are screwed. There are many possible courses of action in dealing with this problem, but of course no one can agree on which is the best. Here is my opinion: No one course of action will get us off of foreign energy, lower gas prices, and increase national security. What we need is a confluence of actions to get us out of this crisis. And yes, it is a crisis.
So, what do we need to do?
- Increase domestic production
- Decrease consumption
- More alternative energies
It all comes down to those few things. In fact, you can simplify it to decrease comsumption and increase production. Now of course, decreasing consumption of anything is usually bad for the economy because out economic system thrives on consumption. Plus, the less mid-east oil we consume, the more China is able to get. Any consumption that we don’t do, they will do it. You could say that China will do the job that Americans don’t want to do. However, as of right now, it seems that Americans don’t really want to consume less. Many people are still driving around in there big SUV’s. Of course, there are signs that the tides are shifting. More people are buying economy cars (truck and SUV sales are tanking) and more people are taking public transportation. But still, most people, at $4 a gallon, are unwilling to make major changes to their habits.
It will take years for gas consumption to go down, and it will happen more because of an influx of alternative energies to the market rather than less consumption. Cars will be built more efficiently, but most people don’t buy new cars every few years.
We certainly could increase domestic production. Drilling offshore, in ANWAR, even in areas of Montana and Wyoming. However, powerful environmental groups are against eny such action. They say it will have little effect on the price but devestaing effects on the environment. I saw that’s a buch of crap. All the government needs to do is open up these areas of exploration. The oil companies will make the decision as to whether or not we should drill there. LET THE FREE MARKET WORK. And with the new types of drilling technology out there, we CAN drill and be environmentally responsible. By the way, after Hurricane Katrina, no oil was leaked into the Gulf of Mexico from oil rigs. Those things are built like tanks.
So, when can we see lower prices? One chance is after the Beijing Olympics, when China should stop stockpiling oil (thanks, Stuart Varney of Fox Business for that). Until then, we might be in for a tought time. We must get off foreign oil, for National Security and our economy. If we don’t, our country will face irreparable harm.
Some scars can’t be fixed. This is one that will be permanent.
