Debates about Government Oil Policy

Government Oil Policy

What should be done about government oil policy? That’s the question President Trump and former Vice-President Biden spoke about at the Presidential Debate on October 22 but it’s not really the question at all. We don’t have a Libertarian Candidate in the debates and therefore we only get to hear answers that amount to the same thing. Both Democrats and Republicans are making the same argument.

The problem is Trump and Biden want the same thing; they want a government oil policy that interferes in the natural capitalistic processes. I know, I know, you think your side is completely opposite of the other side but you’re badly mistaken.

Once you admit you want Trump to use the government to support the oil industry or you want Biden to give government aid to renewable energy; you’ve tacitly admitted the government gets a say in the matter at all. If Libertarian Jo Jorgensen had been included in the debate she would, I feel confident, say the only good government oil policy is to stay out of it.

The government; state, federal, and local, should not be giving subsidies to oil or renewables. Imagine if, back in the day, government officials felt the need to protect horses and the industries that support them by suppressing motor vehicles. What if the government poured millions of dollars into candle productions and put up road blocks to electric lights? Where would the United States be as a world power if it had acted in the interests of either?

I wrote a blog about why renewable energy is quickly overtaking coal and oil as the main source of power in the United States but that’s not what I’m writing about today. The message I’d like to convey is when you agree the government has the power to support a particular industry for the good of the nation, you are agreeing with both Trump and Biden. You are, for all practical purposes, making the same argument.

Once you say there can be a government oil policy to influence one of the base structures of modern society, energy, you give it the right to control everything. If you don’t like Trump then you must tell Biden to stop promoting renewable energy. If you fear Biden then you must tell Trump to stop supporting big oil and coal. If you support one, you support both, though you almost certainly imagine you do not.

The more power government has in our lives the more control someone you don’t like will have when they ascend to the highest offices. Do you fear Biden? Vote Libertarian. Do you fear Trump? Vote Libertarian. It’s the only way to be sure.

Tom Liberman

Natural Gas Production vs Reserves

Energy IndependenceThe United States is undergoing what some call a second energy boom although this time it is natural gas rather than oil. The process of Hydraulic Fracturing allows for the extraction of huge amounts of natural gas which can be used for energy. This boom is creating jobs and some controversy over the damage the process may do to the environment.

My topic of discussion today is not the potential danger or safety of the processes used to extract natural gas but the idea that the United States would be wise not to rely on this apparent boom as a means to end their energy dependence on foreign nations.

The United States currently is second in the world in production of natural gas pulling up 651 million cubic meters per year. This vast production has given many people the illusion that the United States has a limitless supply of natural gas with which to feed our massive energy demands. This is sadly, false. The United States is also the number one importer of natural gas in the world and the worse news is the names of the countries that have the most proven reserves of the gas circa 2008.

Here’s the list by rank: Iran, Russia, Qatar, Saudi Arabia, United Arab Emirates and then the United States. Do the names on that list look familiar?

Russia, like the United States, is searching for and exploiting their reserves which amount to five times those of the United States but Iran has barely touched theirs. Venezuela has almost as much proven reserves as the United States but, being oil rich, has largely not exploited these reserves.

Here’s the problem from my perspective. If we rely on this resource we will end up dependent on countries like Russia and Iran to provide for our energy needs. This is not a good plan for the security of our country. Energy independence is a vital step in assuring our safety and indeed the security of the world. One of the reasons for the terrorism we see from the Middle East is our meddling in their affairs to obtain oil and the fact that money flows to these countries in exchange for said oil.

We should exploit our natural gas reserves. I’m for using our own resources. This gas is extremely useful in lessening our dependence on foreign nations for our energy demands in the short-term but the distribution of the resource indicates this will not last long.

The long-term answer to our energy needs lies in renewable resources and/or nuclear power. The feed-in tariff system used by Germany to encourage the use of these renewable resources seems extremely viable and is working well. One has to be careful because the same sort of system in Spain has caused problems; largely because the Spanish government reduced the cost of producing the energy too much and didn’t gradually lower the tariff as did Germany.

The world is slowly moving towards an energy grid wherein power is both cheap and readily available. If the United States refuses to move in the same direction we will fall behind in many ways. A nation that has huge reserves of power sells it to other countries accumulating massive amounts of money. This money can be used to influence the rest of the world. Cheap power means cheap production, cheap transportation, and inexpensive goods. The country with these things gains a tremendous advantage over other nations.

If we count on local coal, oil, and natural gas to meet our energy demands while other nations continue to build their potentially limitless renewable and nuclear options we will steadily lose our influence in the world. And again, don’t get me wrong; we should continue to explore for and use coal, oil, and natural gas. The days of cheap and abundant energy are not yet here. But they are coming and it would be wise to be ready for that time.

It doesn’t have to be an either/or situation. It’s not “drill-baby-drill” at the expense of solar credits. It’s not an unsustainable renewable system with a moratorium on fossil-based energy. We are a great nation. We can and should do both.

A nation that has limitless energy has political power, military power, scientific power, influence. I’d like that nation to be the United States. Wouldn’t you?

Tom Liberman
Sword and Sorcery fantasy with a Libertarian Ideology
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