“In recent years, there’s been a view in Washington that we should simply “let the market work” by taking a hands-off approach, rather than adopt a proactive and comprehensive set of energy policies. That prescription is exactly the right one in most economic sectors, but it falls short when it comes to energy. And it ignores the fact that we have policies in place right now that distort how the energy markets function.”
“Our own policies interfere with free-market mechanisms. We subsidize domestic oil and gas production with generous tax breaks, penalize sugar-based ethanol from Brazil, and block investment in nuclear energy. Our navy assumes the prime responsibility for securing the oil routes from the Middle East, effectively subsidizing its cost. Thus, we don’t pay the full cost of Middle East oil, either at the oil-company level or at the pump.” (232)
“Market economists also identify a number of externalities – real costs that aren’t captured in the price of fuel – the most frequently cited of which are the health-care costs of pollution and the climate costs of greenhouse gases. There is a further externality: potentially leaving the next generation in the lurch by using so much oil and energy ourselves – domestic and imported – that our children face severe oil shortages, prohibitively expensive fuel, a crippled economy, and dominion of energy by Russia and other oil-rich states. No matter how you price it, oil is expensive to use; we should be encouraging our citizens to use less of it, our scientists to find alternatives for it, and our producers to find more of it here at home.”
“Many analysts predict that the world’s production of oil will peak in the next ten to twenty years, but oil expert Matt Simmons, author of Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy, presents a compelling case that Middle Eastern oil production may have already reached its peak. Simmons bases his contention on his investigation into the highly secretive matter of the level of reserves in the Saudi oil fields. But whether the peak is already past or will be reached within a few years, world oil supply will decline at some point, and no one predicts a corresponding decline in demand. If we want America to remain strong and wish to ensure that future generations have secure and prosperous lives, we must consider our current energy policies in the light of how these policies will affect our grandchildren.” (233)
http://www.policymic.com/articles/12342 ... itt-romney h/t Leanan
Discuss politely.
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