My next car will be a hybrid. Not only am I tired of paying more than $2 a gallon for gasoline, but I’m also determined to do my part in cutting American dependence on foreign oil. Given the growing political instability of the Middle East, China’s huge demand for oil, and our rocky relations with Venezuela (one of our major suppliers), I just don’t see a bright future for gas prices.
But that’s only my tiny part of our energy crisis. This administration isn’t doing much about the rest of it. An energy bill focused on drilling in a pristine part of Alaska, which, if successful, would add only minimally to our oil supplies, won’t solve our reliance on potentially unreliable sources of energy. President Bush has finally started talking about conserving energy but without any solid plan for making that happen.
Let’s look at where we stand in the world energy markets today. China is growing very rapidly, and it is vigorously pursuing global sources of petroleum and will pay top dollar in order to ensure its energy security. It has agreements with Sudan, Australia, Iran and Canada and is working on deals with Russia. These are key world suppliers of oil, suppliers whom the United States needs for our own economic future.
India is another emerging giant, with 1 billion people, that needs large energy supplies. The reality is that the best oil and gas sources have already been spoken for. If China and India bid up the remaining reserves, global energy supplies will become extraordinarily expensive, bumping up the cost of filling our gas tanks even more.
Add to that our sticky relations with Venezuela and we have a scary problem on our hands. If Venezuela decides to cut oil sales to the United States, which it could do if it can sell its oil elsewhere – to China, for example – we have an even shorter supply of gasoline at the pumps. Japan is another economic giant constantly in search of energy sources, since it has no oil and gas resources of its own. The world demand for energy is rising at a rapid rate, but the supplies of fossil fuels are not.
That brings us back to our own profligate use of this ever-scarcer natural resource. Without better efforts to conserve energy, and to move to alternative sources, we are increasingly beholden to countries whose policies we dislike or who may dislike us and know they can use oil as a weapon against us.
Colorado and 18 other states have taken a step towards becoming more energy self-sufficient by requiring utilities to get specific percentages of their energy supplies from renewable sources.
But, we need more than this. The federal government must provide the leadership to manage our energy needs. We can start with requiring more energy-efficient automobiles, something Congress and the president have been afraid to do. Our elected leaders may be timid, but high oil and gas prices are about to force American consumers to change our buying habits nonetheless as gas-gobbling SUVs become too expensive for our budgets.
In addition, while a higher gas tax is anathema politically, the markets are providing us with a virtual gas tax. Given our high energy consumption in a very tight world energy marketplace, simple supply and demand is forcing higher prices on us. While that will make us change our habits, it may be too little and too slow to relieve the very real danger of a global squeeze on our energy sources.
It would be far better for the Bush administration to provide real leadership now in managing our energy resources and in preparing for an energy crisis that could tank our economy. That includes tough mileage standards for new cars, more incentives for alternative energy sources and a focus on energy efficiency across the board. Colorado has pointed the way. Let’s hope that helps stiffen backbones in Washington. Our national security depends on it.
Gail Schoettler is a former U.S. ambassador, Colorado lieutenant governor and treasurer, Democratic nominee for governor and Douglas County school board member.
