Are we doomed to repeat the mistakes of the past?

Living in California, I can't help but be amazed at the direction the debate over the US energy crisis is taking.

Hey America! WAKE UP!!! Have we learned nothing from the past? Is what occurred 8 years ago, completely forgotten now? Are we doomed to repeat the same mistakes again.

For me, the debate surrounding the reasons for high energy prices in the US, including blaming environmentalists for blocking off shore drilling, and drilling in environmentally sensitive areas, sounds all too reminiscent of the debate waged during the California energy crisis, of 2000 and 2001.

And what did we learn from that mess?

We learned the crisis had nothing to do with a lack of electrical generating capacity, as many tried to make us believe, but rather was a deliberate manipulation of the energy market, by speculators and energy producers, principally Enron and Reliant energy.

[NOTE: While there is no evidence to date, supporting the theory of market manipulation by the big oil companies or other speculators, as the reason for the huge spike in energy prices, that theory should not be discounted just yet.]

We also know it was the electrical generating companies that were instrumental in blocking the development of new power generating facilities, not the environmentalists.

It is true that no major power plants were built in California from 1986 to 1998. But this was the result of the investment decisions of California’s utilities and independent power generators, not environmental restrictions.

Environmentalists were actually promoting the development of new, more fuel efficient, natural gas fired plants.

If there is any blame to placed, it should be directed towards the citizens of the US, and our elected representatives in congress.

While the other major powers of the world were encouraging conservation, and greater use of alternative energy sources, the US has been doing exactly the opposite. As a result, Europe produces cars getting nearly twice the gas mileage of cars produced and sold in the US, and they have made significantly greater use of alternative energy sources, e.g. France produces 80% of its electricity from nuclear energy.

Instead of trying to place blame, where none exists, offering nothing more than politically expedient solutions, and doing the bidding of those who have a vested interest in our continued dependence on oil, we need to start adopting policies that will reduce our dependency on oil, by encouraging conservation, and the development of clean, environmentally friendly, alternative energy sources, i.e. wind, solar, electric and yes, even nuclear. That's our only true path to energy independence.

Drilling for more oil in the US, won't reduce prices. Any benefits that may result from drilling for more oil, won't be derived for at least 5 years [and more like 10], and in the mean time, prices will continue to rise.

The fact remains, the world is running out of oil, and there are no quick and painless fixes. All the easy oil has been found, and with the costs for drilling and finding new fields increasing as fast as the price of oil, the only sound policy is one that will wean ourselves off our dependency on oil altogether.

Windfall profits taxes won't do anything either to reduce our dependency on oil, except maybe to make matters worse, as it will likely increase prices further, and discourage investment in alternative energy sources. It's not the oil companies, or the refiners that are benefiting from high energy prices, it's mainly the Arab countries, along with Russia, Venezuela and a few others.

[NOTE: Has anyone ever considered this as an attack on America by terrorists? The terrorists don't have to hit us physically, they can destroy us through our pocketbooks?]

Elimination of the $0.184 federal gasoline tax (which incidentally I support, since I own a number of shares of Tesoro, which I'm currently in the hole on), will do even less, except to increase the profits of the oil refiners, who are currently losing money at these prices.

The last thing we need in the US are lower energy prices. What we really need are higher energy prices!

But if I still haven't convinced you where the true blame lies, and what we should be doing to solve the problem, then fine, drill for more oil.



I have no objection to drilling for more oil off the gulf coast. I have no objection to drilling for more oil in Texas, Oklahoma, Louisiana, or other midwest states. And I have no objection to the production of oil from the vast resources of shale deposits in Colorado, Wyoming, and Nevada.

Just don't be drilling in my backyard.