entsoltech

This article is an example of the folly of persons with viewpoints that are captured by only singular considerations. If on the one hand, there is concern about encouraging industrial projects that are relatively more 'dirtier' than normal; these considerations must be weighed against, not only energy security and thereby economic security, but issues of war and peace.

Though America is not as significantly beholden to the unstable Middle East potentates as it once was, the interests of the West, to which America's economic interests are deeply invested, is. By discouraging non-Middle East sources of oil production, it is allowing that part of the world continue to be too important in the competition between nations; thereby making it a greater powder keg than it otherwise would be.

In 1986, I got furious with the Reagan administration for not exploiting the large price reductions caused by drops in world demand (below $10/bbl) by taxing oil with offsetting tax reductions in other areas of taxation to make it revenue neutral. It was also a foolhardy decision to eliminate the gas efficiency mandates that Carter imposed several years prior. The idea was to continue to put pressure on demand so as to keep the supply / demand balance in the consumers' favour. It was my belief that by paying with 'treasure' then, it would save on the amount of blood, time, talent and treasure that America would have to pay later. I believe consequent history has proven my argument correct. Making the Middle East less important reduces the overhanging threat of war in the area; an area which has the same potential for producting wider war as the Balkans did prior to the First World War.

It would be nice if we could eliminate carbon based sources of energy. However, we are not practicably there yet. The alternatives are not yet economic (if they ever will be). It is not merely an issue of unpalatable price increases. It is that those increased prices would make America less competitive than it is now, if competitor countries do not follow suit. Besides, with historical irony, the alternatives have been found to create their own problems. (i.e. Wide scale ethanol production causes food shortages and price hikes for third world countries while not significantly reducing oil use.) 

We are not there yet. And I am irritated with simple-minded and single-issued persons who do not understand that political decisions must reflect several counterbalancing considerations. The more deleterious effect of tar sand oil should have been weighed against these other considerations.