The low cost of energy is fast coming to an end and that means much more than the real possibility of $4.00 a gallon gasoline.
There are many reasons for this, pick one. Political instability in the middle east, global oil production that seems to have peaked while demand continues to rise, no new refineries coming online, hurricanes and more. All of these reasons conspire to drive up not only the price of a gallon of gasoline or diesel fuel, but also the price of natural gas.
As the price of these important energy sources climbs so will virtually the cost of all goods that are dependent on transport, and/or that are made from petroleum, or manufactured in facilities that use natural gas or oil to heat or manufacture products.
If you have concluded that means the price of everything from lettuce to jock straps will be impacted, you are right.
Yet, things seem to roll on as usual on capital hill. This is despite the fact that in the already seriously squeezed American Middle Class, families are going to take some serious hits in their budgets. But why should congress worry about what Middle America thinks when mom and dad are working to hard to have time to express their opinions.
The irony is that during the Arab Oil Embargo we had a taste of how drastically the soaring cost of energy impacted almost everything. Those who are old enough can recall interests rates climbing to 17 percent or greater, high unemployment, no economic growth, and inflation were the consequences. All of these nasty economic jolts were created by a relatively short blip to oil stream.
Now, more than thirty years later, even though we use less imported energy, the price of our oil and natural gas is set at a global price. That means America is at the mercy of all the factors that can and do increase oil and natural gas prices.
There is a ground swell of technological development of alternative energy resources as well as more traditional sources. However, changing from our current energy diet to a diet of alternative energy sources will mean setting priorities, the allocation of resources, and the processing and transportation of energy.
Congress is beginning to slowly awaken to the oncoming problem. As usual our representatives are quick to blame everyone but themselves and are going through their finger pointing exercises. Next will come the patronizing sound bites meant to assure voters that our leaders are concerned. Both parties have already made their inane suggestions about what to do, and cynics believe there will be many more lethargic energy gestures to come.
Soon, hastily conceived bills that are mostly sizzle and of little substance will be debated and voted upon. Lastly, our leaders will assure us all will be good and the nasty energy problem will go away.
Don’t let Congress lead us down the road of flim and flam. Let them know you want and expect a USA Declaration of Energy Independence policy to be forged. A policy that provides both short term and long term solutions to a problem that is as sure as taxes to affect our way of life and disposable income.
Tell your congressperson how you feel. Cast your vote and let your voice be heard favoring the development of a USA Energy Declaration of Independence.
Wednesday, August 02, 2006
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