We have been here before, and we will undoubtedly be here again. But don't expect that to have any effect on the political rhetoric around the issue of rising gasoline prices.
If politicians can make political hay out of a painful economic reality, they will. President Barack Obama did it in 2008, blaming then-President George W. Bush for rising prices; now, it's the Republicans' turn. They are using the current rising tide to bash Obama. Meanwhile, some Democrats are urging the president to open up the Strategic Petroleum Reserve and provide more supply.
In reality, the reason for the rise is complex and multifaceted, and include Iran's effort to develop nuclear weapons, pipeline disputes in Africa, tribal disputes in the Middle East, demand in China and India, speculation and even the health of the president of Venezuela, as the Milwaukee Journal Sentinel's Joe Taschler explained in an article on Sunday.
In reality, there is very little Obama or Congress (or Bush in '08) can do to affect prices in the short-term. Allowing more domestic drilling will do nothing to increase the current supply, for example. And selling surplus oil from the strategic reserve would not have a significant effect on prices while it could narrow the nation's options in case of a national security emergency. While there may come a time to tap the reserve if supplies dwindle drastically as a result of developments in the Middle East, now is not that time.
There is something consumers can do to lessen the pain to their pocketbooks: They can drive less. Take the bus or the train; bike to work or carpool; be more efficient about running errands or shopping. As trite as that may sound, it's the only realistic way to affect how much you're spending on gasoline. And conservation will become all the more critical as prices continue to rise above $4 per gallon, as many expect them to do.
In the longer term, demand better transit and bicycle lanes from government; demand more — and cheaper — fuel-efficient vehicles. Demand that the country become less reliant on foreign sources of oil and on fossil fuels.
In the longer term, there are some things government can do, at least to affect supply in the future. Approve more domestic drilling where it makes sense to do so. The BP Gulf disaster showed the risks that accompany deep-water drilling, but the disaster also brought a new awareness of what needs to be done to do it safely. Where domestic drilling can be done safely — onshore or offshore — do it.
New infrastructure such as the Keystone pipeline could also help move oil from Canada, the largest U.S. supplier, and reduce our reliance on places such as Iran and Venezuela. And developing reliable alternative fuels also should be part of the national agenda, although not too much stock should be put in the president's recent touting of algae as one option, at least not yet, and ethanol still has issues.
There is no easy answer. Obama did get it right when he said last spring, "So here's the bottom line: There are no quick fixes. Anybody who tells you otherwise isn't telling you the truth."
So let's start working on a national strategy that puts everything on the table and provides a variety of energy tools. And let's stop crowing that politicians are either to blame — or have the answers. They aren't — and for the most part don't. In the meantime, to protect your personal pocketbook, drive less.
REPRINTED FROM THE MILWAUKEE JOURNAL SENTINEL
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