During the recent run-up to the election, we heard a lot about the importance of energy from both of the candidates. They both touched on renewable resources, while McCain added offshore drilling as part of his platform. I was disappointed that neither of them took the conversation any further.
One of the things that distinguishes the U.S. from the rest of the world is the opportunity that is available here. People literally risk their lives to come to our shores with the hope that they can make their dreams come true if they work hard enough. In many cases they do. So what does this have to do with energy you ask?
Our country is in the midst of a financial crisis like I have never seen, and energy is the answer. Energy is the most obvious way out. I hope that we don’t fall victim to the cheap gas prices, because the prices will rise when the economy recovers. I also hope that we don’t fall victim to political correctness. We should be generating as much energy as we can with ALL of the resources available to us. If we did this, we would be the ones in a position to export energy.
This country led the world with its industrial revolution, and again with the technology revolution. I say we do it again with an Energy Revolution. We have some of the richest reserves of coal, oil and natural gas on the planet. We also are uniquely situated as the most wind-rich country in the world (which happens to lie right in the middle of our country). France is 85% powered by nuclear energy, and it is a safe source of energy. If you add solar, hydroelectric and bio-sources of fuel, there is no reason for us to be so dependent on others for our energy needs. There is also no reason for us to have to pay so much.
I say it is time for American Ingenuity to do it again. Do it all, and let the best and cheapest technologies win. It will be best for our economy, our national security and ultimately, our children. Our government needs to get out of the way, take down the restrictions and let us do what we do best, innovate!
Interesting that you did not tie this post to the previous one on the auto company bail out. Why not make the autos part of the energy solution? Who else could build more and better buses, for instance? If (and it’s a big if) the government provides the “low interest bridge loan” requested, the tit for tat could be more investment in mass transportation products, making that cheaper for municipalities, decreasing our dependence on foreign oil, improving the environment and saving everyone money. As the PepsiCo execs recently noted in an interview, conserving water and power provides good ROI as well as fewer negative environmental externalities.
I’ve also been waffling on the auto company issue. Michigan’s unemployment rate just hit 9.3%. If the auto companies fall (or even if they go to their knees), it could go much much higher, and Michigan would be far from alone. I think the companies have made mistakes (as did many financial institutions that we are bailing out with no sign they are loosening credit…), but I also think they suffer from a) the current economic meltdown and b) a ridiculous health care system. Foreign auto companies don’t pay the huge costs of health insurance that our auto companies do. On the other hand, I’ve not seen many specifics on how the money would be used.
I think the autos should be part of the energy solution. In fact, many municipalities have already made the switch to natural gas fleets for their buses.
As for the automotive industry, they have weathered economic problems in the past. The real problem is in their high production costs, which absolutely includes health care. The payroll and retirement benefits, which include healthcare and much higher pay than the competition, are bound to be the dagger in the heart of American auto manufacturing unless something is done soon.
Note: It looks like the Big Three just received the help they were asking for. Let’s hope they use it wisely. I’m not holding my breath.
I’m just excited that I’m really blogging being such an old fuddy duddy.
This time I think Congress has finally gotten it right. Make the big 3 come up with a “plan” so that the taxpayer dollar is not going down the drain (any more than it is already). So do you think all those financial institutions gave a plan?
I don’t recall hearing about a plan for the financial institutions. Of course, Congress is just learning how to spend 700 billion dollars. You’ll have to forgive them for the first $100 billion or so.