New drilling can drive an alternative energy future
Using American energy to win the future
Just finished watching some of President Obama’s speech at Georgetown University regarding America’s energy future. Essentially, the President highlighted some of his administration’s blue print for his energy policy, details of which can be found at the Department of Energy website.
Overall, the President claimed that American ingenuity would be the key to US energy independence and that there would be “no quick fixes”. Consequently, the US will still be heavily dependent upon oil for “some time” and new drilling will be “necessary”.
In last week’s New drilling, energy independence and insanity I largely argued the same.
The sad truth is that the legacy effect – basically the 300 million+ vehicles already on US roads – will guzzle oil for the next two decades, and today we’re still only replacing a fraction of that fleet every year with 97.5 percent more gas guzzlers. Unfortunately, this legacy effect will almost certainly have to be addressed with new sources of domestic fossil fuels if any timely action on US foreign oil dependence is to be possible.
Of course, new domestic production cannot secure long term US energy independence. As a result the President believes that new fuel standards, alternative energies and greater efficiencies must be the long term focus.
Similarly, I’ve argued that we use domestic energy sources to keep more jobs and money in the US, reduce military exposure in the Middle East, and then use this gain to fund the kinds of alternative energies that can truly power America’s future. Oil and natural gas are not the future, but both resources can help bridge the gap to a new energy future. Objectively speaking, something like natural gas, or even alternative sources of oil, can actually help drive next generation renewable technologies, while also addressing the legacy effect – the key to timely energy independence.
Ingenuity, plus smart regulations, and long term planning can turn new drilling into a win-win. Yet, I cannot help but wonder if the President has the political capital to drive such a plan.
Obviously, those on the “drill, drill, drill” right are open to new drilling and are sure to appreciate Obama’s possible openness to the possibility of a serious embrace of something like natural gas.
But is Obama really open to new drilling? Are Democrats? Even if Obama and Democrats are willing to embrace new drilling, will Republicans be willing to submit to far more aggressive CAFE requirements and big investments into alternative energies as part of a comprehensive, long term energy policy?
One way or another, it seems only serious political compromise, especially with Republicans, can put the President’s plan into action. Unfortunately, the hate between the parties seems to only be increasing as electioneering has become an every day part of the political process.
Then there are the consumers whom the President correctly noted are quite “whimsical” regarding US energy policy. When gas prices are high we demand solutions for cheaper energy. When gas prices decline, we don’t care about energy. WE, the people, are a big part of the problem.
For now, the President’s plan is more about talking points than reality. Moving forward – at least before another election – will require significant Republican support. That doesn’t bode well for the President’s plans, but if he can bridge the parties together on this issue, he’ll have achieved one of the greatest Presidential maneuvers – as well as one of the most important – in US history.
Hopefully, the President, Congress and the People are ready to seize the opportunity.