As the California and Northeastern blackouts become a more distant memory, Congress is debating a new energy bill that will do everything but encourage the creation of more cost-effective energy. Although the bill does simplify the requirements for drilling on federal land?which will add some oil reserves to our supply?it keeps the real opportunity to increase supplies bottled up by making no provision for developing new Alaskan and offshore resources.
Alaska’s huge new oil reserves will remain untouched, even though domestic oil prices are hovering around $30 per barrel and the United States is becoming more?not less?dependent on foreign oil. History reminds us that overseas sources may not always be 100 percent reliable. If now is not the time to tap into our much-needed domestic resources, when will it be the right time?
Also included in the bill, tucked away amid 1,700 pages, is a provision requiring a doubling in the use of ethanol. While grain farmers may smile at the guaranteed increase in demand, drivers will pay an estimated $1.75 billion over each of the next five years. With pump prices creeping higher across the nation, we need to ensure an increased supply of oil to keep prices down, not push prices up by adding more costly ethanol.
The “energy” bill also allocates $90 billion in other new spending, heaping more on our growing federal budget deficit through all kinds of subsidies, grants, and giveaways. For example, the bill funds a “necessary” project in Iowa to build an indoor tropical rain forest and aquarium. Perhaps the project was sold as the first step in developing fish power. A billion here, and a billion there adds up to more pork, not more energy.
The heartbreaking reality is that despite ongoing instability in the oil-rich Middle East, and recent blackouts at home, Congress is poised to pass a bill that may look good to the voters during the current election cycle, but which fails to effectively build up energy supplies. What new crisis must come before real energy reform is undertaken?
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