Oil Policy

Energy policy should be a big issue in this election. I am a big believer in alternative energy and a big supporter of biofuels (I oppose the ethanol subsidy, rather I would end the tariffs on Brazilian ethanol and mandate that all gasoline powered cars in the United States be flex-fuel by 2012). I am happy to see that Obama has been talking about biofuels and he has come close to the Zubrin plan, though he has not mentioned it by name. Someone should, immediately, send Obama a copy of Zubrin's book "Energy Victory".

But for the foreseeable future, oil will still be important and it has to come from somewhere. Obama opposes drilling here, drilling in the Artic, and now his comments against tar sand oil. He also complains about the price of oil. His answer is to threaten the oil companies.

I do not think the oil companies are charitable institutions. They are businesses and their goal is to maximize profits. But maybe instead of demonizing them, they should be allowed to drill somewhere. Oil is going up and up, and most of what I read suggests that it is a bubble -- demand increases in China (which had been heavily subsidizing gasoline, increasing demand) in and of itself do not account for the increase. Uncertainty over Iran and Iraq play into it. But ultimately, it is the THREAT of future events that are driving the price. Allowing drilling the Artic or offshore might reduce uncertainty and allow prices to come down to a more reasonable level.

I am not suggesting that we will see $1.10 regular gas ever again -- I know that will never happen. But we need to reduce prices for no other reason than the fact that much of our oil money goes to places that are trying to destroy us -- in effect, we are paying for attacks against us. And drilling here and now, along with buying Canadian oil and getting shale oil regulations passed will give us the breathing room necessary to get alternative sources online (and also a few years so that a flex-fuel mandate will have time to operate). That is important, pushing for drilling now does not mean that alternative energy is forgotten. In fact, under Senator McCain's plan, there would be both. Senator McCain even calls for a flex-fuel mandate!

The Farm Bill

Considering that crop prices are at their highest since, well, ever, why is Congress about to pass a farm bill that increases subsidies? And while I can understand some subsidies to small farmers (to help them along, preserve open land from development and have extra land available for crops in an emergency) it appears that most of this largess will go to large corporate farmers. The bill has passed with veto proof majorities in the House and Senate, with lots of Republicans joining the Democrats. The GOP has learned NOTHING from 2006 and will lose (and deserve to lose) more seats this November as a result.

How about a better idea -- let's get off of subsidies. I am hopeful on biofuels, so instead of an ethanol subsidy that has done little for energy independence while increasing food prices let's go with the Zubrin plan. Require within three years that all automobiles that use gasoline must also be able to accept ethanol and methanol. Wider use of methanol, made not from food crops but rather from stalks and non food crops, should help reduce food prices.

And while we are at it, let's end the tariff on Brazilian ethanol, made from sugar and with a higher energy produced to used ratio than corn based ethanol.