Monday, August 11, 2008

IS THIS MY LAST WORD?

TWO OPINIONS IN NY TIMES this week could be of interest.
  1. Editorial, Energy Fictions (August 10), concluding paragraph: "Here is the underlying reality: A nation that uses one-quarter of the world’s oil while possessing less than 3 percent of its reserves cannot drill its way to happiness at the pump, much less self-sufficiency. The only plausible strategy is to cut consumption while embarking on a serious program of alternative fuels and energy sources. This is a point the honest candidate should be making at every turn." The point of this editorial..."A toxic combination of $4 gasoline, voter anxiety and presidential ambition is making it impossible for this country to have the grown-up conversation it needs about energy."
  2. Thomas L. Friedman, Flush With Energy: (Aug 10): He comments on his recent visit to Denmark where, since 1973 taxes have been applied to gasoline to raise the price to the equivalent of USD10 per gallon and applied these, along with carbon taxes, to the development of alternative energy. The result of this has been the transformation of a society that was almost completely dependent on foreign oil to one that is now energy sufficient. Friedman says, "What was the trick? To be sure, Denmark is much smaller than us and was lucky to discover some oil in the North Sea. But despite that, Danes imposed on themselves a set of gasoline taxes, CO2 taxes and building-and-appliance efficiency standards that allowed them to grow their economy — while barely growing their energy consumption — and gave birth to a Danish clean-power industry that is one of the most competitive in the world today. Denmark today gets nearly 20 percent of its electricity from wind. America? About 1 percent."
Personally, I would hate to pay $10 a gallon. It would surely change my driving habits. I believe that this sort of price will eventually be paid as world consumption of oil significantly outstrips production and reserves. Accustomed as we Americans are to amazingly abundant resources, living in the expectation that these are limitless and that somehow science and technology will produce a deus ex machina, a magical solution, that will return gasoline to (I wish) $3.00 a gallon. Is it really possible that we could get as smart as the Danes or that enough politicians will appear who are sage enough to grasp the nettle of our energy crisis? Could we really grow up and do so in time?

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