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With the anniversary of September 11th upon us, many
Americans will reflect on such issues as the war on terrorism, our
responsibilities as citizens, and the security of our homeland. Many
of us are also evaluating our government’s efforts to energize our
economy, restore our faith in capital markets, hold accountable
corporate criminals, address the lack of affordable health care
coverage available to all Americans, provide a prescription drug
benefit under Medicare, and preserve Social Security. But in these
uncertain times, another issue deserves attention: America’s
dependence on foreign oil.
This is no excuse for trying to pillage the Arctic National
Wilderness -one of the premiere pristine wilderness areas in the
world - for scarce oil supplies. On the contrary, those lands must
be protected. However, it is time to recognize we can no longer
afford to ignore the importance of conservation or the potential of
technological advances to reduce consumption and the need to take
further steps to ensure a stable supply of oil.
First, the Administration needs to the end to the discrimination
against cars and in favor of trucks, SUVs, and vans by supporting
stronger Corporate Average Fuel Efficiency (CAFE) standards. Sport
utility vehicles (SUVs) are classified as "light trucks,"and
manufactures have exploited the 20.7 mpg standard for light trucks,
while passenger automobiles must abide by a 27.5 mpg standard. All
commuters should make the same contribution to energy conservation.
Funding for alternative fuels is also urgently needed.
Unfortunately, the Administration proposed a budget that would
reduce expenditures on technology research, making us more energy
independent. After September 11th , I hope the
Administration realized just how important that technology is.
The fact is, we will likely be dependent upon imported oil for
the next 30 to 50 years. There is, however, no world oil shortage.
There is a world market for oil, and even if we received only safe
oil - produced domestically, or in Mexico, Canada - the question
would be: how much do we have to pay for it? Together, our friends
in Canada, Mexico, and Texas have sufficient supply, but they seem
to want to charge us the same price that Kuwait is charging Japan.
At some point that oil price becomes so high as to disrupt our
economy, if not create shortages. That is why we need long-term
contracts at fixed prices per barrel of oil and an agreement with
our friends in Canada and Mexico that we should insulate ourselves
from changes in world prices.
Finally, we need to massively expand the strategic petroleum
reserve (SPR). We need two, three, perhaps four billion barrels of
oil reserves to endure several decades of American dependency on
imported oil and sustained disruptions, including warfare, in the
Middle East. Building the pipelines and storage capacity will take
time and money and the oil needs to be paid for, but with the
volatility of diplomatic relations and world markets, can we afford
to wait? |
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