Musings from George

A Modest Proposal
January 16, 2009, 11:58 pm
Filed under: Uncategorized

Several recent articles have noted the hardships being visited upon the petro-states because of the recent “collapse” of the price of oil. Budgets based on $100 / barrel oil don’t look quite as good when the price falls to $40 / barrel.

Herewith, a modest proposal. The US has a huge storage facility known as the strategic petroleum reserve, as well as many depleted wells that could be used to store oil. We should set a base price for a barrel of oil, high enough to motivate the development of alternative energy sources and supported by taxes on the consumption of oil in the US. We could effectively agree to pay $60 / barrel whenever it is available, and could sell (draw down the reserves) when it is sufficiently high (say $100 / barrel). Think of the benefits! We’d remain a net importer of petroleum, but would build up US reserves until some point in the future when we don’t need them, as we develop alternatives that can count on a stable market for usable energy. As soon as we reach self-sufficiency, we can effectively destroy the petro-states. And taxes earned along the way would help us reach that stage earlier than our current drift and short attention spans allow.

I know, I know. Nothing about eating babies here . A cheap theft of a classic title. Forgive me the breach, as I truly believe that energy self-sufficiency is one of the most important goals facing the US today. If we did not have to ship money to states that hate us and attack us, we would be a stronger country.



1 Comment so far
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Fabulous idea!

Comment by Aaron

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