So the Senate approved drilling in ANWR, and with little fanfare in the blogosphere. The politics of the issue seems that opposition to inconsequential drilling in a miniscule portion of a barren tundra is hard to sustain when the price of oil has hit $57 a barrel. Good- there is no real reason we shouldn’t be extracting our natural resources for our benefit.
However, the notion that this will stop our energy problems is absurd. More crude does not boost our refining capacity. More crude does not do anything about demand. More crude does not really impact our main energy consumption- electricity and the production of electricity.
As usual, both parties have their own oxes that need to be gored. Liberals need to get over their knee-jerk opposition and outright demagoguery regarding the use of nuclear power. Republicans need to quit catering to the auto industry and dramatically increase CAFE standards (which are ridiculously low considering the technological breakthroughs of the last 20 years- even FORD admits certain vehicles are environmentally unfriendly). Both parties need to infuse money into industries researching alternative energy sources. Tax credits and incentives need to be boosted for those who conserve or use energy conscious products.
I doubt any of it happens.
*** Update ***
If you happen to think that CAFE standards are stupid or unnecessary, then fine. I would much rather have no Cafe standards than ineffective, outdated, and useless ones.
Ervin Kosch
My Lord, someone who actually makes sense on the oil issue!
I do want to make one point about drilling: it
wild bird
I,ll bet the eco-freaks will send out the usial junk mail underlined twice in red saying PLEASE HELP US STOP THE OIL DRILLING IN THE ECO-SENISTIVE ANWR BECUASE IT WILL HRT THE WILDLIFE what a line of malarkey from the eco-freaks why dont they go sit in a tree let a bear or mountian lion climb up there with them and scare the granola out of them
triticale
The popularity of SUVs is owed in part to the mindless structuring of the CAFE ratings, which due to their limited multi-tiered structure drove full-sized station wagons from the market.
The unrealistic models on which the EPA mileage tests based are are now also coming home to roost, as they effectively mask the inherant thermodynamic inefficiency of hybrid drivetrains.
Kimmitt
The popularity of SUVs is owed in part to the mindless structuring of the CAFE ratings, which due to their limited multi-tiered structure drove full-sized station wagons from the market.
I have to disagree — the popularity of SUVs has to do with the fact that car size is a normal good in America. That is, people just like larger cars. If we apply CAFE standards to SUVs, people will gleefully drive the (slightly more expensive) more fuel-efficient and less pollutive SUVs, possibly even trading up for a larger SUV, due to the decreased gasoline costs.
Aaron
I’m with Kimmit.
Mileage standards seems to be a strong case where government can create a public good, where the market might not.
For more on oil prices and a possible solution:
http://www.econopundit.com/archive/2005_03_01_econopundit_archive.html#111064748850700213
Ken Hahn
SUV’s are trucks according to CAFE standards, station wagons are cars which must meet higher standards. I’d rather have a station wagon, but they aren’t really available because of the CAFE idiocy. The standards are worthless and shold be abolished.
Bryan C
I think I agree with Ken on this one. The CAFE rules don’t make any sense to consumers, and they only encourage auto mfrs to play weird games with their vehicle designs to meet the equally weird standards. (Like Subaru tweaking their Outback station wagons so they can be classified as light trucks.)
It reminds me a little of the road taxes in Britain which spawned all sorts of freakish three-wheeled vehicles. Not because people liked them or because they were safer (they weren’t). Only because they were taxed like motorcycles instead of cars and were cheaper to drive.
mike the analyst
“However, the notion that this will stop our energy problems is absurd.”
But drilling for our own crude, means we BUY LESS foreign crude. That’s a good thing, isn’t it?
Kimmitt
Sure, but it’s a drop in the bucket.
S.W. Anderson
A big reason why this is being pushed now is that Republicans want to benefit their corporate mealtickets in the energy industry while they can.
In the not too distant future, a significant number of motor vehicles in this country will be powered by hydrogen technology or alternative fuels made from agricultural waste, maybe even used cooking oil. That eventuality is going to be hastened significantly by the fact that tens of millions, then hundreds of millions of additional vehicle owners in China, India and elsewhere in Asia are soon going to bid the price of oil way, way, way up, making alternative fuels and technologies not only economically viable, but essential.
It’s a case of getting while the getting’s good, because, when alternative forms of motive power are the rule in this country, even with all the new drivers elsewhere, Big Oil knows it’s likely to suffer a painful reversal of fortunes.