Our energy "crisis"--same old problem-no plan

The last major energy "crisis" manifested itself in long gasoline lines during the Carter presidency. That was actually a supply problem caused by a lack of crude oil coming from the Middle East. It was "solved" when the Saudis decided to increase production because they were losing cash flow. Today's energy "crisis" is manifested by higher gasoline prices. Unlike before, there is gasoline available, it just costs more. Why? Forget what the politicians and broadcast journalists say (it's an election year--besides, they don't have a clue anyway). Simply put, three things are causing higher prices. (1)Oil is a finite global resource. Demand is growing globally due in large part to the rapidly increasing middle class in previously underdeveloped countries such as China and India. The United States' demand is also increasing, but we have not replaced our own petroleum reserves with new production in over three decades--thus we have been and continue to be increasingly reliant on oil imports. Bottom line--demand is increasing faster than supply. (2) The greatest impact on current gasoline prices in the U.S., however, is due to a lack of new refining capacity, which has not been added to any degree in decades (primarily because of costs associated with EPA clean air requirements--that's not all bad, just a fact). Finally, (3) there has been some impact (though limited) on gas prices because of investor speculation that oil prices would continue to increase(You can see evidence of this in the recent decline in gas prices following President Bush's repeal of a prior executive order prohibiting oil exploration in certain areas of the U.S. As a result, speculators were concerned that this might result in increased production in the U.S. and thus increase supply and put downward pressure on global oil prices, so they have backed off somewhat on investing in crude oil futures).

The rise in gas prices over recent months simply reflects supply and demand for crude oil and refined petroleum products (gasoline). It is not a conspiracy by the oil companies. Rather, it is simply the global marketplace at work. What can you do about it? In the short term, drive less and be sure your investments (401-K, IRA, mutual funds, etc ) include energy stocks--this will help offset some of the pain from higher gas prices.

The real issue is much bigger than gasoline prices--it is a lack of a legitimate and complete national energy policy designed to reduce the U.S.'s dependence on foreign oil as our primary energy source and increase our development and use of renewable sources, such as wind, etc., as well as new oil and natural gas exploration. No one source by itself will solve the problem.

My old boss, T. Boone Pickens, has such a plan. Ding it up --The Pickens Plan.com. Urge your Congressman to support Boone's plan or something similar. Most importantly, we must all hold the White House and Congress accountable for passing a viable energy policy that will put aside political gamesmanship and irrational finger pointing at others, such as the oil companies.

Our energy crisis is much bigger than the current "hub bub" about gasoline prices. Our nation's and children's future is at stake. There has been nothing but lies, ignorance and silence by our Congress since our first energy "wakeup" call during the Carter administration. Americans should deliver a strong message this election year to candidates and incumbents alike--cut the partisan BS and give us a viable energy policy or we'll vote your a_ _ out!