Here we are again, suffering through high gas prices because oil is above $100 per barrel. This happened in 1973, 1978, and several times since. Every time this happens, we conserve more, we buy cars getting better mileage (or today, electric cars), and our oil companies frantically drill for more oil. Over several years, demand goes down, supply goes up, and the price falls. Then people buy gas-guzzlers again, electric car companies go out of business, and oil companies quit pumping from high-cost wells. Demand goes up, supply goes down, and we are back where we started. This yo-yo of prices harms everyone—car companies, oil companies, alternative energy companies, and consumers.
Here is a way out. When prices are low, establish a tariff on imported oil, other than from Canada and Mexico. Through this, we can keep the domestic price above a certain price, say $60 per barrel. The lower the international market price of oil, the higher the tariff. This encourages our own production of energy, a continuation of conservation, and continuing development of alternative energy sources. When the market price goes above $60 per barrel, the tariff goes away. This way the tariff does not contribute to unnecessary pain at the pump. The whip-saw stops.
With domestic production, continued conservation, and continued development of alternative sources, we will be self-sufficient and no longer be hostage to Middle Eastern monarchs or Russian dictators. And the environment will benefit as well.
Allen Pritzlaff
San Luis Obispo
This article appears in Aug 4-14, 2022.
Here’s the real issue, we’re looking at the end of oil. Actually, all the easy oil is already tapped so now the producers are doing crazy stuff like fracking and tar sands to get it. Perhaps short term your ideas have merit but the reality is that either electric, hydrogen or solar powered vehicles are the future and we can support those independently as a nation. Some will say “oh but lithium and rare metals requires us to import” Well that’s a. Issue but I understand that we have a great deal of it here in CA and recycling has recently become affordable. Also, if you follow battery tech new materials are being successfully explored. Actually, while I thought hydrogen to be too onerous a change over, this too is changing rapidly and for fleet use it’s really a strong possibility right now and could compete with the Tesla style 18 wheeler.
The real story is that our dependence on fossil fuels must end. In the short term I love my new hybrid but can hardly wait to see whether I’ll simply make the jump all the way to a solar car similar to Aptera. The days of only expensive electric cars is actually over already and even expensive electrics are running at better cost per mile values than internal combustion, especially at $6.50 a gallon!
For those that need pick ups take a look at the Ford F-150 or new Chevy Silverado, talk about specs!!
One issue with that proposal is that our domestic supply isn’t anywhere near robust enough to satisfy demand. A huge contribution to high barrel prices is that a lot of domestic suppliers are not returning to pre pandemic levels of production (or hiring the 100000 workers they laid off) because, not surprisingly, oil companies really like when the price per barrel is high. When demand plummeted during the start of covid19 (remember that day the price per barrel invented to -37?) They pulled production back, laid off capacity and have never bothered to return. A steep tariff would empower them to continue to restrict supply and easily manipulate the price above your suggested $60 a barrel. For now international oil purchasing is a fact of life, and until more dramatic shifts in electric vehicle use and power generation (luckily everyone is scared of nuclear, one of the safest and most efficient producers of electricity).