A Fairy Tale: Cheap Gas
Web edition : Saturday, August 2nd, 2008
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A National Public Radio report, last night, described a purported breakthrough in what had been a congressional “logjam” in tackling the nation’s high gas prices. A bipartisan coalition of 10 senators, who refer to themselves as the “Gang of 10,” suggested a compromise energy strategy. Coming on the eve of a five week congressional recess, nothing will happen soon. But the bill they proposed yesterday — the New Era Energy Reform Act of 2008 — offers a sense of what will be on the table when the lawmakers return.

And I, for one, am not impressed. I think they’ve got it all wrong and largely because they’re playing for votes, not looking at what’s in the nation’s best interests.

The bill recommends new offshore drilling for oil (at least 50 miles off the Southeast coast, for instance, and at new sites in the Gulf of Mexico) in addition to more aggressive investments in alternative energy sources. Within 20 years, some 85 percent of U.S. cars and trucks would also have to be able to run on something other than oil.

Estimated to cost some $85 billion, much of the money for this new energy program would come from “raising oil-company royalties and taking away some tax breaks,” according to David Welna’s NPR story.

Borrowing from Shakespeare, Sen. Ben Nelson (one of the gang) argued that the dilemma being fought over will no longer pivot around whether “to drill or not to drill. That’s no longer the question.”

Added his Senate colleague Mary Landrieu: “This bill will do more to lower gas prices at the pump today than anything that this Congress has done in recent memory.”

I’m not sure I buy her assessment. But even if that’s how it would play out, that’s not what we should be working toward. The goal should not be to lower the price of gasoline at the pump. That sends a signal to continue the fuel profligacy that has reigned for decades in America.

Oil is not cheap. In a real sense, it never has been. But through a series of subsidies and a failure to capture the life-cycle costs of oil’s use, we Americans have lived this fairy tale existence suggesting that our fossil fuels are cheap.

There are and always have been huge costs to fossil-fuel exploitation. It starts with the immense health costs for coal miners and oil roughnecks. It continues with the environmental degradation associated with acid-mine drainage and oil spills. It also includes costs paid by the hearts and lungs of everyone forced to breathe air polluted by liquid-hydrocarbon and coal-burning emissions. And it ends with the global costs paid by people and wildlife affected as their climate is altered by rising greenhouse-gas concentrations.

None of these costs are captured by prices at the pump or by the electricity bill paid by consumers of coal-fired electricity. And it’s because we’re not seeing these costs that we pretend they don’t exist. Or that it’s somebody else’s responsibility to cover them.

And that’s why I subscribe more to the assessment of Senate Majority Leader Harry Reid (D-Nev.) than to the Gang of 10’s new proposal. “Drilling is not the answer,” Reid said in response to hearing of the new bill. “The answer to the problem of America’s dependence on foreign oil is to lessen our dependence on foreign oil. And I think that can only be done by having a ‘we’re going to get to the moon’ approach to renewable energy.”

Now I realize why that’s not a particularly popular concept for the Gang of 10. They largely represent rural areas where high energy costs can’t be ducked. There are no hybrid combines to harvest field grains. No bus from the farm door to the grocery in town or light rail to the feed store 20 miles down the road.

And with farm roots myself, I’m quite sympathetic to this and the financial hardship of blue-collar workers who can’t afford to live within a short drive of the good-paying jobs. That’s why I’d argue that a better way to survive the nation’s near-term transition to higher-mileage and/or lower-carbon vehicles is to find a way to help those who must drive get some temporary tax break. Uncle Sam should also be looking long and hard at offering carrots to encourage the purchase of gas-sipping vehicles.

We’ve got to drop this mindset that anyone should be entitled to cheap gasoline, diesel fuel, or coal. The only reason our fossil-fuel resources ever appeared cheap was because users got away without having to pay the health and environmental costs associated with their exploitation.

We’re now smart enough to know not only that there are high and tangible costs, but also what those costs are. And as such, it’s time we started budgeting to pay those costs. And investing in substitute energy technologies ones that will substantially reduce cradle-to-grave costs associated with future energy use.

By the way, if you want to praise or criticize the Gang of 10’s proposal, here’s who you should contact: Saxby Chambliss (R-Ga.), Kent Conrad (D-N.D.), Bob Corker (R-Tenn.), Lindsey Graham (R-S.C.), Johnny Isakson (R-Ga), Mary Landrieu (D-La.), Blanche Lincoln (D-Ark.), Ben Nelson (D-Neb.), Mark Pryor (D-Ark.) and John Thune (R-S.D.).



Found in: Climate Change, Earth, Environment and Science & Society
Comments 4
  • While it is easy for many to ignore the costs of hydrocarbon energy, it is easy for others to ignore its benefits. Everything points to the fact that without a good deal of energy, most of which we currently get through hydrocarbon fuels, life as we know it will not be able to continue. The amount of energy required to transport people and goods in this country is enormous, and there is no reasonable substitute. Everything from battery-powered vehicles to hydrogen to ethanol depends on hydrocarbon fuels, and unless we pull off a nuclear miracle it always will.We can reduce demand by enforcing mileage standards, requiring energy efficiency in everyday life, etc, but even if we do that we will only reduce our energy needs from enormous down to vast. Eventually all hydrocarbon fuels will peak and we will be forced to reduce energy use, hopefully technology will come along fast enough to keep the population from crashing.
    Chris Hill Chris Hill
    Aug. 2, 2008 at 8:44pm
  • I believe that our energies -- and our dollars -- ought to be focused on finding substitutes for fossil fuels, both in the near term and long term. After all, even if more could be found through off-shore drilling we know, repeat KNOW, that the end is coming. These fuels are strictly limited and we are quickly coming to the end of them. We simply must find alternatives, whether solar power, wind power, electric cars, the fabled car that runs on alcohol of some sort, or, more likely, a combination of these and many other sources. Quick and apparently easier methods, such as the Gang of 10 propose are bandaids on the Titanic!
    Diana Gainer Diana Gainer
    Aug. 3, 2008 at 3:48am
  • Great blog entry! You do not mention the proposals of Al Gore and T. Boone Pickens, both of whom set out plans for drastically reducing fossil fuel use in the next ten years. And neither new drilling nor nuclear will come on line in less than 10 years. This is a tough one, and it requires a few paradigm shifts, But it's possible even without the Gang of Ten. But I cheer them for their resolve to do something about it.
    Chas Chas
    Aug. 3, 2008 at 3:01pm
  • Maybe a larger issue is that a critical mass of individuals in the public has yet to emerge, having faced up to their own personal complicity in all aspects of their energy footprint. How do we engage the populace when its individuals live in a constant state of denial over personal complicity over the impacts of even direct emissions of their purchases, not to mention denial of their responsibility for the impacts of the externalities?

    For some reason, neither society nor Politicians seem to be willing to stand up with simple and obvious actions that individuals can take: Perhaps we can find a Governor to lead the way by standing up and saying he was reducing his State's gasoline consumption by at least 10% - just by having everyone drive within the speed limit.

    Perhaps the age old solution of education is still the answer, but this time, can we make it in an age of energy awareness - and lifelong personal responsibility for one's footprint?
    Jim Disbrow Jim Disbrow
    Aug. 4, 2008 at 8:14am
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Citations & References:
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  • Welna, D. 2008. Senators' Plan Would Allow Some Offshore Drilling. All Things Considered: National Public Radio (Aug. 1).
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