Like so many crucial, stubborn American resource problems - access to capital, energy management, pollution control, consumer debt - the issue with energy starts with the math.
With less than 2% of the world's oil reserves and 20% of the world's energy consumption - there is no way to drill away our dependence on foreign oil. The 1.58% of the world’s reserves are not all safely available ( some hazardous, with likely pollution events ) using current technology. US oil is getting harder to harvest.
That problem is supposed to be resolved by the free-market principle of production efficiency and competition for efficiency in markets. It hasn't been what the energy market has been doing. Research and Development for safety technologies within the oil industry have stalled because of non-regulation and a wink from industry insiders who've been given oversight roles. Drilling safety, blowout prevention, containment and cleanup technologies have not been substantially improved in the 30 years since the last Gulf catastrophe in '79.
In short - the government regulation has been taken over by the oil profit insiders and not made to work at solving production / pollution problems for more than 30 years. Time to catch up!!!
The suppliers have no incentive to be safer when they are not in the safety business - that is the business of the government on behalf of the common good. So the shock and dismay about how BP is behaving is wasted on the math problems that surround this and other oil industry problems.
The government role, as proven in recent reports about the Minerals and Management Service, has been to not intervene, and to promote profit first - safety last behavior. This is the free-market - non-regulation paradise the oil industry concocted with the help of Dick Cheney. Multiple generations will have him to thank.
There is a lot more math surrounding this problem - oil consumption management / conservation, the cost of introducing new fuels to the industrial, transportation and private markets, the regulation of standards in efficiency AND incentives to transition to alternatives. The proper way to create efficiency through a blend of taxes on fuels (more than gasoline, which is less than 50% of US consumption of oil) and use of multiple fuels together in a safe and efficient manner.
The Shorthand is - the drilling side is NOT a problem solver - and by extension, neither is onshore drilling in sensitive areas. When non-pollution technologies are required, sought and developed by the oil industry - maybe then, but for now they don't have the infrastructure to drill safely.
BP, according to Foodconsumer Publications, " . . . is no stranger to environmental crime. Over the past two decades, BP subsidiaries have been convicted of three crimes in Alaska and Texas, including two felonies. BP also holds the dubious honor of receiving the stiffest fine in history for work safety violations."
So looking to this industry to work out this American problem is not going to help come close to meeting our long term energy needs.
close down oil burning power plants replace them with coal plants and invest in new nuclear facilities eventually phasing out everything but nuclear.
ReplyDeleteget our cars over to alternative fuels look at brazil they were able to do it. we should be able to at least get our cars over to it.
We should leave the arabs drowning in thier oil rather then paying them and allowing them to get fat and become a threat to us with our own money.
There is no doubt in my mind that more regulation is needed for these companies but I really believe the laws are all ready there it is just a matter of managment and accountability for those that have the jobs to oversee and hold these companies accountable.