Energy Ideas, Good and Bad - New York Times
Energy Ideas, Good and Bad - New York Times
Published: September 11, 2005
Congress has bounded back into post-Katrina Washington full of ideas about controlling gasoline prices and improving the energy picture generally. Some make sense and some are colossally bad.
In the latter category is the notion that consumers would be better off if the government acted by fiat, imposing price controls on gasoline or suspending gas taxes. A lot of otherwise level-headed people have spoken sympathetically about one or the other, including Senators Carl Levin, Maria Cantwell, Jon Corzine and Charles Schumer.
They might not like what might well happen: a sudden and unhealthy spike in consumption, gas lines and, in effect, rationing. Artificially low prices caused by caps or tax relief would encourage people to buy more gas when they should be curbing demand, as the market is telling them to do. The gas stays affordable, but there is less of it.
Sure, everyone wants to make things better. But it is hard to see how to do that in the long run by doing the wrong things now. And as a matter of leadership, pandering to consumers squanders an opportunity to educate people on the need for sacrifice, just when a major crisis has presumably made them more open to change.
Speaking of change, a growing number of senators now seem open to requiring better fuel economy standards for automobiles. Chief among the converts is Pete Domenici, the Senate's most influential Republican on energy matters. Mr. Domenici seems a bit remorseful that the energy bill he helped steer through Congress this summer did nothing to improve fuel economy, the swiftest way to reduce oil demand and, in time, prices.
Mr. Domenici would also ask the oil companies to increase refinery capacity. This is a good idea. A completely new refinery has not been built in this country for nearly 40 years, which means supplies are tight and prices high.
More controversially, Mr. Domenici will press to open the outer continental shelf off America's coast to oil and gas drilling. Katrina has given new life generally to those who operate on the mistaken assumption that we can drill our way out of oil dependency and high prices. The only sure relief will come through improved fuel efficiency.
Published: September 11, 2005
Congress has bounded back into post-Katrina Washington full of ideas about controlling gasoline prices and improving the energy picture generally. Some make sense and some are colossally bad.
In the latter category is the notion that consumers would be better off if the government acted by fiat, imposing price controls on gasoline or suspending gas taxes. A lot of otherwise level-headed people have spoken sympathetically about one or the other, including Senators Carl Levin, Maria Cantwell, Jon Corzine and Charles Schumer.
They might not like what might well happen: a sudden and unhealthy spike in consumption, gas lines and, in effect, rationing. Artificially low prices caused by caps or tax relief would encourage people to buy more gas when they should be curbing demand, as the market is telling them to do. The gas stays affordable, but there is less of it.
Sure, everyone wants to make things better. But it is hard to see how to do that in the long run by doing the wrong things now. And as a matter of leadership, pandering to consumers squanders an opportunity to educate people on the need for sacrifice, just when a major crisis has presumably made them more open to change.
Speaking of change, a growing number of senators now seem open to requiring better fuel economy standards for automobiles. Chief among the converts is Pete Domenici, the Senate's most influential Republican on energy matters. Mr. Domenici seems a bit remorseful that the energy bill he helped steer through Congress this summer did nothing to improve fuel economy, the swiftest way to reduce oil demand and, in time, prices.
Mr. Domenici would also ask the oil companies to increase refinery capacity. This is a good idea. A completely new refinery has not been built in this country for nearly 40 years, which means supplies are tight and prices high.
More controversially, Mr. Domenici will press to open the outer continental shelf off America's coast to oil and gas drilling. Katrina has given new life generally to those who operate on the mistaken assumption that we can drill our way out of oil dependency and high prices. The only sure relief will come through improved fuel efficiency.
posted by Marcel at 7:24 AM
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