1Declaration: Free Markets, Free People, Free Minds

Energy has become one of the most divisive issues on Capital Hill today as Americans are pleading for a solutions to the high gas prices that are dragging down the US and global economy. Democrats and Republicans cannot seem to agree on an appropriate course of action. Democrats have been duped by environmentalists claiming global warming will kill us all or the caribou in Alaska or some other species will be devastated by drilling. Republicans seem to totally neglect the need for research into other alternative sources of energy claiming drilling will solve all our problems.

Could it be that both sides are right? Without a doubt.

The Democrats

Democrats are correct about continuing the development of other sources of energy such as wind, solar, geothermal, bio-fuels, and the like. This has nothing to do with the threat for global warming. Instead the argument should be made and is being made in most cases that alternative energy development will help decline our dependency on foreign oil and more generally oil and natural gas. Our dependency on oil as a primary fuel source is a national security threat and has helped fund some of the same extremists our country is fighting against, a completely inefficient concept. We must increase our diversification of energy sources. As any investor knows, putting all your investments into one area can lead to complete devastation.

In similar measure Democrats are correct in their assertion that we need to remove the $18 billion in tax subsidies that has been given to energy companies like Exxon Mobil. The fate of these companies is not at stake as can be seen by the large profits taken in by the companies.

Overall these points made by the Democrats are beneficial towards lowering energy cost in the long term. Their plan however lacks any immediate impact as many of the alternative energy sources mentioned are not yet economically viable nor can they yet produce large sums of energy. Nothing in the Democrats plan will help cut out the speculation on oil prices.

The Republicans

Republicans hold the view that drilling will solve all of our problems. This is a bit watered down but for the most part gets the point across. Drilling and refining are necessary functions now that need to be expanded until another economically efficient solution comes forward for mass energy production. Announcing the lifting of regulations on drilling will help secure more supply in the future and drive down speculation in the marketplace.

Republicans are also right that the windfall profits tax touted by the Democrats will have no effect on gas prices. This test has already been tested before and its results were devastating. Domestic production of oil and gas decreased by an average of 6% and increased our dependence on foreign sources of oil by around 15%.

Overall the Republican solution acts to increase supplies today but does little to nothing for the long term to diversify our energy portfolio. With a lack of diversification we will to continue to fund the dictators and terrorists in the countries we are currently fighting justly on unjustly.

The Solution

The Democrats and Republicans cannot seem to get things done but the solution is right before them. If they would end the partisanship and begin to work towards an economically and politically viable agreement that coupled both long and short term strategies our energy problem would have a solution and both side would be satisfied with the results.

First thing to tackle will be the near term solution. Lift regulations on drilling and the building of refineries. This will help tackle speculation and help solidify the future supply of oil. Lift the current $18 billion worth of tax subsidies on oil companies unless they agree to invest in the creation of alternative energy sources such as wind, solar, geothermal, and etc. To help further solidify oil supplies, the US should invest the the building of coal to oil plants. Both of these are both short and mid-term solutions.

Second we need to address the mid-term to long-term solutions to increase our diversification in energy resources. First we need to start a mass conversion to nuclear and clean coal energies. Nuclear is a readily available, economically viable, and environmentally friendly option that both Italy and France are investing quickly in. If we really want to reduce our dependency on oil in an environmentally friendly way nuclear is the best option.

The other mid to long term solution is increasing our use of coal. Coal has been in the past and can be a very dirty energy source. New technologies are available that can reduce carbon emissions to near 0% and utilize nearly 70% of coals energy source through a process involving carbon sequestration and the conversion of hydrogen laden emissions into hydrogen fuel cells. The US is the Saudi Arabia of coal. We should use this natural resource to our advantage and with todays technologies it can be used in an environmentally friendly and efficient manner.

Other energy sources are available such as wind and solar and can be constructed but they are more expensive and less reliable that both the nuclear and coal options. None the less, if areas such as in West Texas and Oklahoma can be used for wind generated energy this is a good way to increase our energy diversification. This method also helps soothe environmentalists qualms. bio-fuels are yet another option. These are all sources of energy that both Democrats and Republicans can embrace.

Finally long-term solutions towards energy independence are needed. This is a more research oriented phase that Democrats are offering such as clean energy. Some of these sources are viable now like solar and wind but are still expensive and with further research and development can become an economically viable and viable energy source. Research into other energies such as hydrogen fuel cells should increase. These long-term solutions in research will help solidify our future because oil and gas are quickly running out.

Conclusion

The solution offered unilaterally by Democrats or Republicans are incomplete. Democrats lack the short range solutions and would increase the prices and decrease the output of oil and gas through windfall profit taxes or other taxes like the Climate Security Act. Republicans lack the longterm solutions that the Democrats are recommending and are offering subsidies to oil companies that are not needed.

If Democrats and Republicans would work together they would see that their goals are the same in increasing our energy independence, bringing down energy prices, and increasing our energy diversification in the short, mid and long terms.

By working with both sides, our energy independence can be secured and sources of clean energy can be developed to reduce pollutants into the air that can cause health problems. End the partisanship and start working towards a viable energy solution that embraces that positive aspects of both sides and negates the negative aspects.

Sources

(1) "Dumb or Ill-Informed," by Walter Williams, Townhall, 4 June 2008.