I recall the winter of '73-74, when I was living in Arizona. Amoco discovered that gasoline would bring a higher price in California, and supplies were strained. They sent Arizona's allotment to Cali, and gas lines became common in Phoenix. We'd start lining up at 6AM in order to get 10 gallons before the daily amount was exhausted. Violent encounters were common.
I pitied the poor kid who was sent to attach the "Last Car for Fuel" sign to the last lucky consumer. The next guy in line, who had been waiting for hours, often took offense. The kid, who was way too diligent for his low position, often took a beating trying to defend his sign.
Fortunately, politicians at both state and federal levels took notice and assured us that they would develop a long-term strategy to keep our energy supplies and prices at optimum levels.
That was 39 years ago, and I have heard the same blather from the gas bags in Washington time and time again. During every election cycle, elected officials bring out their plan to assure energy independence and provide all of us with cheap energy.
It never happens.
It won't happen as long as the worthless "representatives" in various government capitols continue to take money from lobbies. Some represent oil companies, and they don't want any alternatives to oil to be developed. Some represent alternative energy, and they want massive subsidies to "level the playing field" (Oil companies also receive massive subsidies and tax breaks. Weren't those designed to help struggling new technologies become profitable? How many centuries old does oil have to be to no longer be "new"?)
In order for our economy to be competitive on a global basis, we need three components: 1) labor - our wage rates are well above those in dirt-poor countries, but barely enough to keep families from starving; 2) capital - here the US has the advantage, since our financial system provides capital as efficiently as anywhere; 3) energy - due to our immense resources, the US had the cheapest energy in the world for decades, but now that our government has helped everybody become globalized, oil is a global commodity and nobody has an advantage except the producers.
Let's see how we compare to the rest of our competitors. 1) Congress has squeezed up the minimum wage rate very slowly. Actual wage earners pay little or no income taxes, so that helps us survive. However, payroll taxes have been expanded regularly, and for most wage earners that is the tax that seizes a chunk of their weekly paycheck. Very little can be done to improve the financial condition of workers here without losing more work to overseas outsourcers. 2) Wall Street has securitized most industries, making their access to capital easier, but the big investment bankers have so compromised Congress that they have been able to take an ever-larger piece of each IPO and charge higher fees for every "service" they perform. Until Congress acts to regulate the activities of those bankers, our access to capital will cost more and more until US businesses are on a level playing field with those under dictatorships. 3) Due to new discoveries of natural gas and lower pricing on solar panels, wind generators, and other alternatives to oil, the US actually has the ability to bring our energy costs down to where we have an advantage. But that requires Congress to back away from the lobby trough and start practicing real leadership.
Do you naively believe that will happen?
T. Boone Pickens has proposed a simple, yet effective plan. Convert a large percentage of our transportation to natural gas. That would reduce fuel costs and cut out our dependence on foreign oil. The economy would improve and our balance of trade would stabilize at a sustainable level. The federal government should get on board with that, right?
Check out what it costs a mechanic shop to get a license to convert a car or pickup truck to natural gas. Special training is mandated - good, that insures a safe installation. Minimum levels of insurance are required - expected, since the insurance lobby is in every pocket in Washington. A license fee must be paid - well, of course that's how government makes its money, by charging people for providing no real service except a piece of paper.
The kicker is that the license fee is high. Try $100k. And, that license only lets you work on one type of engine -- not Ford engines or GM engines, one model of Ford engine. If you want to convert any Ford, you will need at least $1 million in cash for fees. God help you if you want to serve all American-made cars.
Does it sound like Congress wants to help us stop dependence on foreign oil?
Does it seem that our government cares how much we are paying to fill our tanks?
Or does it seem like this is an election year, with all the BS in speeches and promises to fix problems that were never meant to be taken seriously?
For 39 years I have waited for an intelligent energy policy to be formed. What do we have to do to get action -- make all politicians fill up their own tanks instead of riding in taxpayer-funded limos? Vote "NO" in November?
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