The president tells us there isn’t a quick fix for high gasoline prices. Someone mentioned that while gasoline prices are increasing in this country we are actually exporting oil; selling our domestic petroleum overseas. I checked into that rumor, and by golly, they are right.
According to the CIA World Fact Book, the USA exports 1.92 million barrels of oil per day overseas. All of this time we have been paying higher and higher prices for gasoline the oil companies have been shipping it overseas.
Due to the recession in the US, and the increasing cost of gasoline, demand is decreasing, at a time when domestic energy production is increasing. If oil production is increasing and demand is decreasing prices would usually go down.
World oil prices are increasing because of the trouble in the Middle East, and the economic growth of China and India. Rather than accept a lower price for petroleum the oil companies are exporting it in order to receive the higher world price.
It seems dumb for our country to be a net importer of petroleum and turn around and export it as domestic prices are rising. It would make sense for the government to place a tariff on oil exports so that no oil could be exported as long as our country is a net importer, and the price of gasoline was over some bench mark figure, say two dollars per gallon.
A tarrif high enough to stop oil exports would be a silver bullet for high gasoline prices. As long as we were not importing oil, and the price of gasoline did not exceed two dollars per gallon the tariff would not be in effect, and the oil companies could export oil. Such a tariff could be enacted now, and any surplus production would then tend to drive prices of gasoline down.
The president is wrong; then, some things could be done that would drive down gasoline prices in the short term. Our government just doesn’t want to consider any of those things.
If we worked toward converting our entire fleet of gasoline vehicles to burn natural gas, and put our coal fired power plants on a natural gas diet, we could become energy independent. We could even convert our domestic heating systems to burn natural gas instead of fuel oil. Isn't that a silver bullet for energy?
Unfortunately there is no silver bullet for a closed mind. Despite what the president says in campaign speeches the efforts of his administration have been to promote the green energy agenda. His desire to remove the petroleum tax credits will make it unattractive for us oil companies to develop domestic resources.
The efforts of the smaller oil companies lead to the discovery and production of the huge shale gas reserves, and the technology to free the natural gas in those areas. Tax credits help them compete with the major oil companies.
When we experienced the Arab oil embargo our government knew that our nation was vulnerable to supply interruptions, and that some action needed to be taken to prevent additional interruptions in supply. Both parties have ignored that situation as it has steadily worsened.
In 2008 we experienced a period of rising gas prices and we got the same lame excuses from our government. That was all we got; excuses. Nothing was done by either party to improve our domestic energy supply. That we are in a somewhat better supply situation today is because of the work of private industry, not the government.
The trucking industry has discovered the economic advantages of burning natural gas instead of diesel fuel and some operators are converting their heavy duty trucks to burn natural gas. The limitation on burning natural gas is the lack of refueling facilities.
Private industry is at work building refueling facilities at truck stops along the interstate highway system. Even if government continues to maintain its head in the sand attitude toward the development of domestic energy resources, private industry may eventually be able solve our energy problems.
A government policy promoting domestic energy development could slow the increase in prices, and expedite the development of domestic energy supplies. If OPEC was convinced we were committed to becoming energy independent it might change their attitude on oil prices.
We citizens do have a silver bullet for high energy prices and we can fire it on Election Day. We can hire a new crew for our government that is committed to working for the USA.
Comments