Free Market Energy Policy

From Rob Salkowitz over at Emphasis Added:

There’s one policy of the Bush Administration that I have enthusiastically supported, and that’s their refusal to release any of the strategic oil reserve to help lower energy prices for US consumers. Now, as crude prices soar into uncharted territory and analysts are suggesting that the “peak oil” scenario is in sight if not here already, it’s even more important to hold the line, despite the short-term disruptions to the economy.

And

It is only market forces which can make alternative energy a reality. Most alternative energy sources – wind, solar, fuel cell, geothermal, liquid coal, even safe nuclear fission – are technologically viable but not price-competitive with cheaper fossil fuels.

I know a lot of lefties argue that alternative energy is being scuttled by industry conspiracies and requires government support. I think it’s simpler than that. Right now, fuel cells cost about 40-45 cents per kilowatt hour, compared to 25 or 30 cents for reasonably-priced fossil fuel. But fuel cells are getting cheaper by the minute and oil is getting more expensive. Once those lines cross, you can be sure we will see fuel cells coming on the market in a big way. No one understands this better than OPEC, which has in the past acted hastily to bring oil prices down if they rose to a point where serious capital investments started moving into exploration of alternatives, or exploitation of new fossil fuel areas. This is the first time they are letting prices rise to a “natural” market level in the United States – perhaps because there is nothing they can do to bring prices down any further.

Kicking a drug habit often involves days or weeks of painful withdrawal symptoms. Kicking our oil habit will be the same.

Click here for the rest.

This makes good sense. I’ve spoken with Greenpeace activists who seem to be shooting for a strategy of causing a change in American consciousness in order to facilitate the end of fossil fuels and other pollutants. But I don’t think that’s going to happen: our culture is heavily propagandized into the zombie pleasures of consumerism by a constant barrage of advertising—I don’t believe that all the zealous environmentalists in the world can effectively fight such forces. Indeed, I just read last night a really cool Ibsen play, An Enemy of the People, which illustrates well how difficult it is for a minority to try to change the thinking of the majority. I support their efforts, but I’m afraid that environmentalists are not going to succeed. Salkowitz is probably right. We’re not going to get off the fossil fuels until the economic powers that be decide that we must. Consequently, expensive gasoline is a good sign.

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$