Green Energy
Higher prices prod consumers toward green energies of the future By Michael E. Kraft GREEN BAY, Wis. — Gasoline prices rose sharply
This is because ramping up production takes
in 2008 and again in 2011, largely as a consequence
time, and also because the U.S. uses too much oil for
of rising global demand and limited supply.
increased production to make more than a small dent
People’s reactions were mixed. Some called for immediate relief in the form of gas tax rebates or
in what we now import. Higher levels of production, of course, means
increased oil drilling, both onshore and offshore.
increased risks of oil spills, as we learned from the
Others welcomed higher gas prices because they
catastrophic BP spill in 2010. In addition, importing
motivate auto companies to design and market more
more Canadian tar sands oil is unlikely to lower gas
fuel-efficient vehicles, and consumers to buy them.
prices in part because much of it is likely to be
Even with gas prices now lower than their peak last year, what should the federal government do? The oil companies and their supporters want the
shipped abroad. The U.S. uses about 20 percent of the world’s oil production and we have 2 percent to 3 percent of its
Obama administration to remove some or all of the
proven oil reserves. So even with a strong push for
remaining restrictions on onshore and offshore oil
more drilling offshore, onshore, and in Alaska, the
drilling. Doing so should lead to more domestically
reality is that the United States cannot drill its way
produced oil and possibly lower prices, but the
to domestic oil abundance and lower gas prices. We
connection is not that simple.
will still need to import at least half of the oil we use
Many of the same people also have pressed for a quick decision to allow construction of the Keystone XL pipeline to bring Canadian tar sands oil to
from other nations, and that means that gas prices will reflect global demand and supply. Without a lot of fanfare, the administration has
refineries in Texas. The administration says such
done something far more likely to help consumers
a decision cannot be rushed because studies of the
than removing restrictions on oil drilling.
pipeline’s environmental impacts will take longer. But will increased oil drilling or importation of tar
That is its historic agreement with auto companies in 2009 and again in 2011 to raise fuel
sands oil from Canada help consumers by reducing
efficiency standards to 34.5 miles per gallon by 2016
the price of gasoline? And should keeping gas prices
and to 54.5 miles per gallon by 2025.
low be the main objective of federal policy? I believe the answer in both cases is no. Experts at the Department of Energy have stated
We are seeing the results already, with great leaps in fuel economy in the 2012 models, and much more to come as the recent Detroit Auto Show
repeatedly over the last few years that increased
demonstrated. A new Ford Fusion plug-in hybrid,
domestic oil drilling will have no effect on gas prices
for example, is expected to get the equivalent of
in the short term and will reduce gas prices by only
100 miles per gallon.
a few pennies a gallon by 2030.
By sipping gasoline more efficiently, U.S.
Higher prices prod consumers toward green energies of the future By Michael E. Kraft (continued) ________________________________________________
demand for imported oil should drop, but even so this will not likely have much impact on gasoline prices. Rising global demand for gasoline in India, China, and other rapidly developing nations will easily overwhelm reduced consumption here. So we may as well get used to higher gasoline prices. We can limit their economic impact, however, by buying more efficient vehicles and driving only as much as necessary. We also can support a necessary transition over time to renewable energy sources to power our vehicles. ——— ABOUT THE WRITER Michael E. Kraft is a professor of environmental studies at the University of Wisconsin-Green Bay. Readers may write to him at 2420 Nicolet Drive, MAC B310, Green Bay, Wis. 54311; email: [email protected]. ——— ©2012, McClatchy-Tribune Information Services 2-2-12. Distributed by MCT Information Services
This is because ramping up production takes
in 2008 and again in 2011, largely as a consequence
time, and also because the U.S. uses too much oil for
of rising global demand and limited supply.
increased production to make more than a small dent
People’s reactions were mixed. Some called for immediate relief in the form of gas tax rebates or
in what we now import. Higher levels of production, of course, means
increased oil drilling, both onshore and offshore.
increased risks of oil spills, as we learned from the
Others welcomed higher gas prices because they
catastrophic BP spill in 2010. In addition, importing
motivate auto companies to design and market more
more Canadian tar sands oil is unlikely to lower gas
fuel-efficient vehicles, and consumers to buy them.
prices in part because much of it is likely to be
Even with gas prices now lower than their peak last year, what should the federal government do? The oil companies and their supporters want the
shipped abroad. The U.S. uses about 20 percent of the world’s oil production and we have 2 percent to 3 percent of its
Obama administration to remove some or all of the
proven oil reserves. So even with a strong push for
remaining restrictions on onshore and offshore oil
more drilling offshore, onshore, and in Alaska, the
drilling. Doing so should lead to more domestically
reality is that the United States cannot drill its way
produced oil and possibly lower prices, but the
to domestic oil abundance and lower gas prices. We
connection is not that simple.
will still need to import at least half of the oil we use
Many of the same people also have pressed for a quick decision to allow construction of the Keystone XL pipeline to bring Canadian tar sands oil to
from other nations, and that means that gas prices will reflect global demand and supply. Without a lot of fanfare, the administration has
refineries in Texas. The administration says such
done something far more likely to help consumers
a decision cannot be rushed because studies of the
than removing restrictions on oil drilling.
pipeline’s environmental impacts will take longer. But will increased oil drilling or importation of tar
That is its historic agreement with auto companies in 2009 and again in 2011 to raise fuel
sands oil from Canada help consumers by reducing
efficiency standards to 34.5 miles per gallon by 2016
the price of gasoline? And should keeping gas prices
and to 54.5 miles per gallon by 2025.
low be the main objective of federal policy? I believe the answer in both cases is no. Experts at the Department of Energy have stated
We are seeing the results already, with great leaps in fuel economy in the 2012 models, and much more to come as the recent Detroit Auto Show
repeatedly over the last few years that increased
demonstrated. A new Ford Fusion plug-in hybrid,
domestic oil drilling will have no effect on gas prices
for example, is expected to get the equivalent of
in the short term and will reduce gas prices by only
100 miles per gallon.
a few pennies a gallon by 2030.
By sipping gasoline more efficiently, U.S.
Higher prices prod consumers toward green energies of the future By Michael E. Kraft (continued) ________________________________________________
demand for imported oil should drop, but even so this will not likely have much impact on gasoline prices. Rising global demand for gasoline in India, China, and other rapidly developing nations will easily overwhelm reduced consumption here. So we may as well get used to higher gasoline prices. We can limit their economic impact, however, by buying more efficient vehicles and driving only as much as necessary. We also can support a necessary transition over time to renewable energy sources to power our vehicles. ——— ABOUT THE WRITER Michael E. Kraft is a professor of environmental studies at the University of Wisconsin-Green Bay. Readers may write to him at 2420 Nicolet Drive, MAC B310, Green Bay, Wis. 54311; email: [email protected]. ——— ©2012, McClatchy-Tribune Information Services 2-2-12. Distributed by MCT Information Services
