Saturday, November 10, 2007

The High Cost of Energy

by Joe Sinagra

In 2006 when I ran for Congress I had stated regarding fuel that we must find other fuel alternatives to preserve our future. Natural gas reserves are about equal or slightly less than oil reserves. Oil production peaked in the 1970's and has been declining since.

Thirty-five years ago, the United States produced 9.4 million bpd of crude; today, it produces only about 4.7 million, importing over 55% today. World reserves are declining also, as supplies diminish, prices will continue to rise.

We can no longer afford to ignore the issue, this will dramatically influence the economy in the US and abroad, we are heading for a major and financial crisis if we do not act responsibly now. Oil production will remain the same but due to population growth, demand will outpace the production. This will cause prices to skyrocket and oil-dependant economies to deteriorate.

Here it is 2007 and nothing has changed other than the price of fuel costs increasing. In my congressional debates I had said although I am for the environment, at some point we must start looking into domestic drilling if we are not to become dependent of foreign oil entities. My opponent a “rocket scientist” said that he was against drilling but offered no viable alternative, nor an immediate solution. My suggestion was that we continue to look for alternative renewable sources, but until we find that alternative, drilling would give us the time to pursue alternative research.

Oil prices have risen more than 27 percent since Labor Day, while gasoline prices are up 10 percent.

Democrats are not as indignant over the high costs of energy now as their party controls congress and it is harder to point the finger at anyone. To date the Democrats, who had blamed the policies of a GOP-led Congress for helping fuel record oil-industry profits, now control the House and Senate. The silence is deafening.

The rapid economic growth in Asia is fanning the flames of higher energy prices, and is not showing any signs of letting up anytime soon.

Federal Reserve Chairman Ben Bernanke stated that oil near $100 a barrel is a serious economic threat.

We must address this issue as more and more of our working class continues to suffer financially and economically. Both parties must work together to find a solution and not let this become a political football.

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