Rational energy policy is needed
June 15, 2011
Trust the politicians – and believe us, Federal Reserve Chairman Ben Bernanke is one – to pat themselves on the backs for jobs well done, even when the U.S. economy remains in the tank. And trust them, too, to blame factors allegedly beyond their control for persistent problems such as high unemployment.
Bernanke admitted recently that the economy has weakened during the past few weeks.
Did he blame the Fed’s inflationary tinkering? Did he blame expensive yet ineffective programs by President Barack Obama’s administration and liberals in Congress?
No. Bernanke said higher gasoline prices and the crisis in Japan are to blame. Indeed, the tidal wave that struck Japan earlier this year has sent ripples into the U.S. economy. And yes, gasoline prices are hurting all Americans.
What Bernanke did not mention is that gasoline prices have curbed economic growth many times in the past – and will continue to be a drag now. That would be different only if petroleum prices decreased to a pre-recession level, and that is not going to happen.
One reason why the U.S. economy is a hostage to oil prices, usually set by foreign powers, is that we have lacked a rational energy policy for decades.
The United States should be focusing on several strategies to make us less dependent on foreign suppliers of vehicle fuels.
More should be done to commercialize coal liquefaction technologies. The cost of producing a gallon of gasoline from coal may be close to the cost of refining it from petroleum.
More domestic drilling, including in offshore areas, is needed. Yet Obama continues to block it.
More oil should be imported from Canada, yet the Obama administration continues to place roadblocks in the way of a proposed major pipeline from that country to ours.
Biofuels have promise, but represent only one piece of a viable energy strategy.
Finally, enormous natural gas resources in the Marcellus Shale and other formations can help. Gas can be used as a vehicle fuel – but the government is doing virtually nothing to expedite that.
Bernanke is not the only politician so busy patting himself on the back that he is ignoring reality – and hoping voters do the same. Until the electorate demands a rational energy policy, don’t look for anyone in Washington to address the subject.
See article here.
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