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Energy
Now
is the time for innovative solutions to America's energy
problems. In the past three years the cost of gasoline has
risen
from $1.89 per gallon to more than $4.00 per gallon. Three
years
ago my commute to Marlborough cost me $2000 a year in gasoline, and
this year the commute would cost close to $5000 without the savings I
get from carpooling.
We need someone representing us in Congress who understands the impact
of our nation's approach to energy, someone who can propose viable,
practical solutions to a rapidly increasing expense that is hurting
everyone on the North Shore. The burdensome spike in oil costs is the
result of complex factors that require a multi-pronged solution to
effectively address our short term and long term needs.
It will take at least twenty years for America to migrate to
alternative energy. The American infrastructure depends on
oil. Nearly every family has at least one gasoline powered
car,
and most families' homes are not within walking distance of public
transportation. To weather the harsh New England winters, most of our
homes are heated with oil or gas. Assuming that a cheaper
energy
solution suddenly became available, the changeover costs would be
prohibitive for most households: as much as $40,000 per family to
replace automobiles, and another $10,000 per family to replace a home
heating system.
For the short term, America's highest priority is managing the price of
gasoline and oil. The data (International Herald Tribune, May
14,
2008) is showing that our use of oil has dropped significantly since
the price of oil has risen. We are carpooling, using public
transportation, and driving slower to reduce costs. These
consumer-based initiatives are helpful (and are happening without
government edict), but conservation alone cannot keep pace with oil
prices' continuous rate of increase.
To begin bringing immediate relief, the United States Congress must use
the strategic oil reserve to manage oil prices. The reserve contains
700 million barrels of oil, and was created during the 1974 oil crisis
to provide America with the means to balance the oil markets during
times of short supply.
With prices increasing rapidly in 2008, it is time to sell some of this
reserve into the open market, adding to the supply of oil on the
market. Since the reserves are located close to US
refineries,
this oil will rapidly find its way into the US market.
Congress
should specify that the timing of these sales should be managed to
disrupt the speculators of oil futures by releasing the large
quantities of oil without warning into the market. Since speculators
buy oil futures in anticipation of short supplies and high prices, an
unexpected increase in supply will cause the price to drop.
With
the price drop, speculators will lose money on their investment, and
look elsewhere for speculative investments.
Another short term solution is to repeal provisions of the Energy
Policy Act of 2005 that require ethanol to be added to gasoline. This
corn-based product is not an efficient fuel. It is expensive to
process, reduces gas mileage and increases smog, while it boosts
grocery prices by taking acreage away from food production.
The mid term solution is to increase the supply of oil on the market by
the responsible drilling of oil in ANWR. It will take 3-7
years
for newly drilled oil to arrive on the market. The United
States
Geological Survey estimates that there are 10 Billion barrels of oil in
ANWR, about 25% of the available oil in the United States. Hurricane
Katrina's path through the oil fields in the Gulf of Mexico without a
single oil spill demonstrates that we have the technology to drill
without environmental damage.
For the long term, America needs to develop alternative energy
solutions. This current energy crisis is already propelling and
accelerating innovative research. Even existing solutions that were not
cost effective when compared to $40 per barrel of oil are now viable
alternatives compared to $150 per barrel oil. For instance, solar and
wind power are beginning to complete with oil at the current prices.
The variety of solutions could increase phenomenally in the next few
years, provided that we encourage innovation.
America's free market must be ready to reward teams and individuals who
develop cheaper, more efficient energy solutions. As such, we
need to maintain a strong patent system to encourage inventors to
investigate energy solutions. We need to minimize regulations and allow
inventors and companies the freedom to innovate.
Americans are among the most innovative people in the world.
With
encouragement and freedom we will find long term, inexpensive, and safe
alternatives to our oil-based economy. We need Congress to do its job
without hindering the citizens from doing theirs.
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