Like the Price of Gas? America is Not in an Energy Crisis- Rather an Energy Management Crisis
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Written By: Paul Imbriale
America is currently experiencing record energy costs. This rise in energy costs is not only making it more expensive to drive our automobiles, it is putting pressure on other commodities. Our food needs to be delivered and the myriad of products we use in every day life also have a basis in petroleum. To some this is a surprise. To those like Mitt Romney, who are familiar with economics and energy, it is a vindication of all that they have been warning about for a long time.
America is not in an energy crisis as is constantly regurgitated in the liberally biased media. In fact, our woes are self inflicted. We have had a moratorium on oil drilling and refineries in this country for 20 years. We created these problems for ourselves by ignoring the free market, and common sense. We have for too long caved in to liberal environmentalist special interests. With the oil reserves in this country we could run on domestic oil for 60 years without importing a drop. When shale oil is factored in, we could be energy independent for over 120 years. Sadly, we still have not learned our lesson. There are still no plans to build nuclear plants or drill for oil. We continue to hear platitudes about our oil addiction, and the need to rid ourselves of foreign oil. Yet, no constructive measures are taken. President Bush asked to drill in ANWR. The response from Speaker Pelosi was a call to raise taxes on oil companies. With that “plan” you will be paying an additional $2 a gallon by next year. If we did nothing more than hold a new drill over an oil reserve the price of oil would drop just on the threat that we would be moving toward a market based energy solution.
The 2 constants you may ignore at your peril but cannot avoid are supply and demand and market forces.
In my research of oil, I have recently had the feeling that oil is going to have similar consequences as the dot com crash a decade ago. Oil as a commodity is going to rise to such a high level that government will either be forced to place price controls on the commodity or produce more of it or face what Thomas Jefferson is quoted as saying "a little revolution is good from time-to-time."
Right now, the only way to slow the price of oil is to have investors fear it is going to experience a dramatic drop in price as a commodity. The only way to cause investors to think that is to suggest the posibility of lower demand and the advent of oil shale production in Utah, Colorado, Wyoming, Montana, and North Dakota. I am also familiar with an engine that was recently developed in Utah that runs on any fuel source. News like this could change the tide of the oil commodity prices.
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