Energy Policy

Senator McCain has memorized all of energy bullet points. Solar, wind, wave, geothermal, hydrogen fuel cells, off shore drilling, natural gas, clean coal technology and nuclear power roll off of the lips of many politicians. The good news is that McCain has a bullet point for every possible source of energy. Senator Obama has memorized some of the energy bullet points but has forgotten (on purpose) nuclear power, off shore drilling and clean coal technology.

However, these bullet points are merely a list – not a plan! Neither candidate has offered a comprehensive plan than can make America energy independent. Senator Obama has told us that he will spend $150 billion on energy. Unfortunately, raising taxes $150 billion is as far as he has gotten. Senator McCain says he will explore all options, but does not know what that means yet. Where is a leader?

I will offer one option that would work. Washington can not regulate our consumption levels, but we can. When we do, the marketplace will adjust accordingly. Clearly the recent surge in gasoline prices has made many Americans reassess their driving habits and their choices when buying a new car. If there were ever any doubt that supply and demand were directly related, they should erased by this recent energy crisis. The American people will react to existing energy conditions – whatever they are.

A large majority of our oil is obtained from U.S. sources, Canada and Mexico. Much less oil is imported from unstable sources around the globe. We (America) produce 5 million barrels of oil every day. We import 10 million barrels every day. Mexico and Canada supply 3.3 million of the 10 million of imports.

Here is a plan. We cap the imported oil from outside of the northern hemisphere to the existing rate of 6.7 million barrels a day. Then every year for the next ten years, the amount would be reduced by 10%. All Americans would know that we would be making a gradual – but definite- withdrawal from our foreign oil addiction. It is a long enough time period so that everyone would have time to adjust without incurring any significant hardships. However, it is short enough to actually affect the energy choices that we would make as citizens. Automobile purchases, the proximity of a new home and one’s job location, and numerous other choices would be affected by the evolving reality of a society that will be using less petroleum.

This new dynamic would spur the market place to offer alternative sources of energy. The auto industry would become much more motivated to produce cars and trucks that ran on hydrogen, batteries, solar and other new technologies. If there was a general understanding by the American people, that significant changes in our use and production of energy were underway, we would alter our cultural attitudes and behavior. That would also change the behavior of the markets.

The government can not solve our energy problems. However, the government can (and must) create the social environment that will cause the American people to make intelligent personal decisions that are in their own best interests, as well as in the best interest of our country. Catalytic converters were mandated by the federal government in order to insure the quality of the air that we breathe. The government did not need to build the cars – just set the rules of engagement. The marketplace adjusted accordingly. The same will be true for oil and other forms of energy. This is a common sense solution. Certainly other elements of an overall solution will surface, however this plan will set the framework for additional ideas and solutions.

America is the most resourceful country in the history of the world. If our president will set the stage, our citizens will rise to the occasion. We need a president who is willing to trust the American people.