2007-12-14

Oil

We're never going to "run out" of oil - it may get more expensive over time, but as it does we'll find other suitable fuels. It's insane to switch to more expensive and less desirable fuels out of spite.

If we use less, we may depress the world price slightly -- and the Chinese and Indians and Europeans will use even more. It's not like our switching to more expensive, more polluting, more corrosive, move volatile, less desirable alternatives (e.g. ethanol) will cost the Saudis any money or keep the oil in the ground.

Whether we use oil or not, our economy is tighly coupled to the world price of oil. Any large-scale switch to more costly fuels will put a large number of Americans out of work - the computers, airplanes, and machine tools we export to other countries will be at a significant cost disadvantage to those Chinese and Indians who are using cheaper fuel. And higher US transportation costs will increase the cost of all goods and services in this country, further reducing our standard of living.

What's more, if we stop buying their oil, we'll lose what influence we have over Saudi politics, finance, and justice. And weaning ourselves from oil won't end our involvement in Mideast politics, or in the security of Europe, Japan, South Korea, or Israel.

"Energy independence" is a pathetic and foolish notion, perhaps harkening back to a pre-industrial eden that never was. The United States and its citizens are all part of a large, complex world; our everyday lives -- and the lives of the rest of the planet -- depend on, and are enriched by, global interdependence.

Until a cheaper fuel comes along, we should burn all the oil we can.

All the suggested government interventions, by the way, will make things worse! For one example, higher-mileage vehicles inevitably burn _more_ fuel! Think about it - would you be more likely to consider taking a train or bus to get from Sacramento to San Francisco if you own a Hummer or a Prius? Owning a Prius makes driving more attractive, so you do it more. The mileage of the US automobile fleet has been continuously improving for a century - and our consumption of fuel for personal automobiles has increased every single year (except 2006, when sharply higher fuel prices caused a brief reduction in miles driven).

If you believe that burning fossil carbon damages the planet (something I do not believe to be true), then campaign for nuclear electricity generation - most of the CO2 we produce comes from burning coal to make electricity. If you're worried about Mideast politics, well, opinions vary but I personally think the president has the best answer - and I expect his successor will hold the same course.

If you want to read more on this subject, see especially The Bottomless Well by Peter Huber and Mark Mills.

For the record: I am a bicycle and train commuter. I burned 175 gallons of gasoline in the past year. But I do that because I'm cheap, not because I think it makes any difference to the environment.

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