Tale of Two Energy Policies

This summer we will have a tale of two energy policies, one from the Democrats and the other from the Republicans. Here is a synopsis of each:

Democrats

--Enact a windfall profits tax on oil companies.

--Create a law against energy price gouging and new rules to stem energy market speculation.

--Take on the OPEC oil cartel.


Republicans

--Pump oil from Alaska's Arctic National Wildlife Refuge, now off limits.

--Develop vast amounts of oil and natural gas in offshore waters now off limits.

--Ease permitting for new refineries.

--Allow coal-based diesel be used as motor fuel.

Evaluation

The Democratic proposals are to punish the oil companies for making money, fix prices and demagogue OPEC. The upside is this will appeal to the socialist tree-hugger, business-hating base. The downside is that it will do absolutely nothing to improve the situation and will probably worsen it.

The Republican proposals are to increase supply of oil, refined product and coal-based alternatives. The upside is these will actually increase supply over time, and so should have a positive effect on prices eventually. The downside is it will take ten years to make an appreciable difference and the tree-huggers/socialists will lobby this to death anyway.

Both sides are, of course, ignoring the fastest way to improve the situation, which is to cut consumption by changing our behavior. But that is like telling an obese person that they need to eat less, a very unpopular move.

So, don't expect to see much actual improvement in the cost of fuel anytime soon. In the meantime, the price at the pump just keeps going up.