I got an e mail from a family member yesterday. It was a forward that was trying to organize a gas price protest. I usually get these about once a month. They are usually pretty similar in that they target oil companies as the culprit if pricing and seek to diminish their profits by boycotting gas for a day. This one was different in that it targeted corporations instead of the whole industry.
Either way, the resentment is misplaced. Any action ought to be directed at incumbents and candidates for Congress. I sent a response to the e mail that read:
The problem is not the oil companies. The reason they jack prices up is because of supply constraints. They do profit a lot off of it, but the high prices keep demand low enough to prevent a shortage. Only one problem would be worse than high prices and that is complete supply cut off. The oil companies set prices as a response to the very complex situation that the US legal system has created. There are four things that Congress can do to get gas prices down.
First, drill in the Alaska National Wildlife Refuge and reduce our dependence on foreign supplies. Jimmy Carter shut that down because they thought a few oil wells would endanger reindeer and bear populations. Coal mining has not done that here and oil wells are less intrusive.
Second, cut the red tape necessary to refine oil. We have not built a new refinery since the 1970s in the US and we have lost a few. Much of our oil is now refined in Venezuela, a country led by an anti-American madman.
Also we have a bewildering set of laws that vary from state to state on the cleanliness of gasoline. Refineries have to create a wide variety of blends to match state and local laws. They have to determine the supply and demand necessities for all those localities and that is impossible to do. Why not take the best environmental standard and make that the national standard?
Last, phase out oil fired power plants. We have resources at home that can run our power plants; we certainly do not need to keep importing oil for that purpose. West Virginia itself, between coal, natural gas, and wind, can produce a lot more power than it can possibly consume. All we have to do is construct the plants. If we are smart, we will allow them to be built here in West Virginia near the sources and export the power out.
First, drill in the Alaska National Wildlife Refuge and reduce our dependence on foreign supplies. Jimmy Carter shut that down because they thought a few oil wells would endanger reindeer and bear populations. Coal mining has not done that here and oil wells are less intrusive.
Second, cut the red tape necessary to refine oil. We have not built a new refinery since the 1970s in the US and we have lost a few. Much of our oil is now refined in Venezuela, a country led by an anti-American madman.
Also we have a bewildering set of laws that vary from state to state on the cleanliness of gasoline. Refineries have to create a wide variety of blends to match state and local laws. They have to determine the supply and demand necessities for all those localities and that is impossible to do. Why not take the best environmental standard and make that the national standard?
Last, phase out oil fired power plants. We have resources at home that can run our power plants; we certainly do not need to keep importing oil for that purpose. West Virginia itself, between coal, natural gas, and wind, can produce a lot more power than it can possibly consume. All we have to do is construct the plants. If we are smart, we will allow them to be built here in West Virginia near the sources and export the power out.
The first two points came directly from John Raese's campaign for US Senate and they make sense both in terms of our economy and security. Combatting high gas prices while maintaining a strong economy means looking at the complex relationships between supply and demand as well as the obstacles placed in the way of oil companies who desire to meet that demand.
A way to phase out oil-based home heaters would also help. Gas, electric, solar, co-generation, and even geothermal can be used as alternatives. Oil is too valuable as a transport fuel to be used in stationary fixtures.
ReplyDeleteAlso, if the west coast NIMBYs can be neutralized and a LPG/LNG port can be opened on the pacific coast, then we could import natural gas, which would become cheaper and more cost-competative.