Pump Up the Price

by Dan Jacoby

Years ago, my sister graduated from college with a major in environmental studies. She wanted to save the planet, and couldn't understand why telling people about the problem wouldn't get the job done. After two years in Morocco with the Peace Corps, she returned with a new focus on finding ways to show how people can make more money through environmentally friendly technologies. I'm betting she can save the planet now.

Recently, the price of oil and natural gas has skyrocketed even faster than the cost of health care. Things were bad enough In the summer and fall, when the major oil purchases were for gasoline. But as winter approaches and we'll have to pay more to heat our homes, these higher prices will really hit us where we live.

And that's a good thing.

Some facts are clear to anyone who bothers to look. World oil production is peaking, as old wells are drying up faster than new ones can be found. Natural gas production in North America has peaked, and it is extremely difficult to transport this commodity. Demand for these and other fossil fuels is rising, as the two largest countries in the world develop their economies.

In addition to the supply vs. demand problem, we also have global warming. Despite the naysayers in the Bush administration, the evidence is overwhelming. The Arctic ice cap is melting at a record rate. Temperatures around the world are showing a marked increase. Tropical storms are becoming stronger and more numerous, with no end in sight.

It is increasingly obvious that we need to switch from burning fossil fuels to using renewable sources of energy and using our energy sources more efficiently. But very few people are going to give up their current conveniences and their established ways just because we need to. The only way to get large groups of people to change their ways is through their wallets.

In other words, when solar power and micro-hydro are cheaper than coal, oil or natural gas, people will switch.

We can complain that the "big oil" companies are manipulating the market to gain excessive windfall profits. We can hold all the Congressional hearings we want, and write op-ed pieces to any publication who will listen. We can hold press events, stage demonstrations, even sue somebody if we want. Those things won't really help.

Instead, we need to invest in research to make ethanol easier and cheaper to produce. We need to push ahead with pilot programs to see just how efficient small, underwater turbines can be. We need to develop methods for converting biomass to electricity without the added expense. These are just three specific areas where we can reduce our dependence on fossil fuels; there are many others.

Meanwhile, we should let the price of oil and natural gas continue to rise. Only then will people be willing to do what is necessary.

 

Copyright 2005, Dan Jacoby

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