II just got done reading another right wing editorial about solving our energy woes by drilling more oil wells. (Investors Business Daily, “What Do the Democrats Take us For? – you have to have a subscription, but any damned fool could have written it for them, so don’t bother.) It’s inescapable logic, hence its appeal to the right, but also (typical of right wing thinking) overlooks a few things:
In peak oil terms, there’s a couple of hundred billion barrels left to be discovered, but they won’t come on line fast enough to offset the decline that is going to take place naturally as we use up existing reserves. That’s already happening. Has been for many years now. Drilling for oil and finding oil are two different things. ExxonMobil these days invests more money buying back its own stock than it does exploring. There’s a reason – most of the significant deposits have been found. The elephants are gone, rapidly depleting. What’s left to explore now are areas under polar ice (soon to be freed), and in Iraq, which deliberately set aside potential reserves for future development. That’s a big reason for invading – a very big part. The electric car, which was used in California for a short while before GM canned it, was developed in response to strict California regulations forcing development of zero-emission vehicles. The regulations were killed, the car vanished. Fact is, necessity does spur invention, and the market is slow to respond, since it waits for an emergency, while government can be ahead of the game and create necessity through regulation. If global warming is real … ah, don’t go there. Even successful drilling will not overcome the declining dollar and market speculation. In terms of the euro, the price of oil hasn’t gone up that much. And since most oil is held in futures contracts hidden behind a black curtain, we don’t really know what it would trade for in a truly free market.
Why the push now to drill drill drill? It’s a never ending saga. Corporations have lobbyists because they want stuff from government – stuff like subsidies, exemption from regulation and, in this case, cheap access to the commons – our public lands. They are using the current price run-up to pressure the public into allowing them to drill the Alaska National Wildlife Refuge. That’s but one prize dangling before their eyes – others are protected offshore areas off our coastal areas. Drilling these areas won’t solve our energy problems – it will only extend the deadline by a few months. And it will be at least a decade before any new finds hit the market.
It’s public relations – the oil men are using current high prices to get the things they always want anyway. We need to hold the line. The real challenge right now is alternative energy, and it’s going to take a massive government effort to spur development. The private sector isn’t capable.
The private sector is not able to think long-term. They can’t see beyond next quarter’s results. Government, not subject to investor pressures to achieve instant results, can afford to think long-term.