Oil, oil everywhere
Too few drills in sight
Consumers choke on what they pay
Rising prices win the fight
Last year we exported energy
Oil and gas to east and west
Now we are oil dependent
On oligarchs and terrorists
What happened to our energy independence? Seems a simple question but there are many facets to the answer. It is too easy to say it is because President Biden stopped the Keystone pipeline. That line was not going to be operational for a few years. No . . . one canceled pipeline does not a crisis make.
The agenda of the current administration is to reduce our dependence on fossil fuels. A noble goal and one we should strive towards for the health of the planet. The issues arising today are not because of the goal. It is the execution. An apt word for what is happening to the energy industry in the U.S.
It is not just a pipeline. Oil prices are driven by future supply and demand. A future pipeline is a positive for supply. Canceling it is a negative. The administration did not stop there. They banned drilling on federal land and imposed new regulations.
It is not just the government. BlackRock, once a major lender to energy companies, announced they will no longer finance oil exploration and development. This means there are no loans to companies who wish to explore and develop oil or gas wells. No money, no wells, no oil, no gas. Others feel the same. The theory is...if oil is expensive enough, everyone will buy an electric car. Unfortunately, not everyone can afford an electric car.
Electric cars aren’t pollution-free; they have to get
their energy from somewhere. —Alexandra Paul
And where are the electric trucks we need to replace the diesel semis? According to the 2017 Commodity Flow Survey,1 76% of all goods shipped were by truck. Still, if you can get gas-powered cars off the road, I guess it is a win.
China is building new coal-fired power plants, and their pollution will flow to our west coast. Interesting, since we buy our solar panels from them. They could use the panels to replace coal, but they know that is not economically feasible.
Three things cannot be long hidden:
the sun, the moon, and the truth. —Buddha
So if we are able to be energy independent, why aren’t we? Does oil from Russia, Iran, or Venezuela pollute less than American oil? NO! In fact, the U.S. has the cleanest energy production facilities in the world. Paying over $100 per barrel to terror states only allows them to continue their terror.
As I grow older, I pay less attention to what men say.
I just watch what they do. —Andrew Carnegie
The war in Ukraine is paid for with Russian oil money. The Russian economy makes its money through oil sales. So why do we buy oil from Russia and elsewhere instead of using our own? The administration wishes to transition to a green economy. High energy costs and inflation make green energy relatively more affordable, but no less expensive. They say this out loud. The people who are most in favor of reducing our use of fossil fuels are the least affected. They can afford high prices.
So what are we to do? We must wait for the administration to see the problem. Unfortunately I believe they see an opportunity.
If you are ready to take action in your personal life, give me a call. We can at least solve some of our problems.