Wednesday, January 24, 2007

The best we can do?

Please read the House bill "Creating Long-Term Energy Alternatives for the Nation Act", and determine for yourself if this will actually help US get there! My take? The title conveys a spot-on message, however it seems the Act is being used to tell voters "We're doing something." - when in fact, it limits U.S. oil companies' ability to compete on the global playing field, and really does nothing to encourage investment in renewable energy sources! Net result? Same as the 1980's WPT: U.S. oil companies will be at a disadvantage relative to foreign oil companies. This provides us another unintended (i.e., bad) long-term consequence, while seemingly doing soemthing in the short term. Not only that, it will have the effect of lost jobs, due to less investment money! The exact opposite of the Democrats' desires.

A better approach might be to ensure that *all* producers are equally affected - by imposing a consumer-inducement to reduce fuel, while investing proceeds in alternatives... and define how the money will be spent. (i.e., a free-market-based, VC-type Energy Independence Fund, perhaps?)

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