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Wednesday, January 23, 2008

Foreign oil: Congress versus automakers

US Coast Guard protecting imported energy

It costs, minimally, tens of billions of dollars every year just to secure the oil that the US imports from the Middle East, not including war costs. Yet, this cost is NOT included in the cost of our gasoline?

Why? And, who pays for these costs (duh, right)?

More important, if Americans had been paying the real cost of gasoline over the last few decades, would America be so dependent upon foreign oil today?

While Congress scapegoats automakers with historically-ineffective CAFE legislation, isn't the real problem the cheap cost of gasoline kept artificially low by Congress?

Labels: Congress, Foreign Oil Dependency

posted by Dahcredyns at 6:59 AM

17 Comments:

Anonymous Anonymous said...

Jimmy Carter was about the only President to ever try to make this topic part of the National Conversation. Every President since has simply gone along, as has every session of Congress.

Foreign oil dependency has been a bi-partisan failure and it will continue to be a bi-partisan failure regardless of which hypocrite running for President wins.

9:23 AM  
Anonymous Anonymous said...

I'm surprised he wasn't assassinated.

11:31 AM  
Blogger Nozferatu said...

We're just paying for it in other ways...such as lack of healthcare, lack of public transportation. We pay less but spend ALOT more because we have to drive more...we have less options...oh but we have freedom to choose...yeah right.

The best form of slavery is the type you don't know you're enslaved.

11:33 AM  
Blogger Dahcredyns said...

Noz-

"The best form of slavery is the type you don't know you're enslaved."

Interesting way to put it. I've always thought of it as an addiction where Congress is the crack dealer feeding the addiction, but I suppose addiction is just a form of enslavement anyway.

11:48 AM  
Blogger Dahcredyns said...

Carter's character was definitely assassinated.

I don't really remember Carter's Presidency, but today's world has proven that he was right about America's addiction, or enslavement, to oil, especially foreign oil.

Sad how even mentioning something like a gas tax is an immediate death sentence for politicians, yet I assume that most politicians realize that something like a gas tax is at least worthy of a national conversion and debate.

It's even more sad, however, that we don't have any courageous politicians willing to sacrifice re-election to stand up for the right thing.

Thus, "regardless of which hypocrite running for President wins" becomes kind of a scary, hopeless thought.

11:55 AM  
Blogger kpdriscoll said...

If Americans want to do anything to address our environmental problems and foreign oil dependency, they will allow these expenses to be addressed via a gas tax. Anything other than that is making their children pay for the parents' luxuries.
In terms of politicians not facing the music, its consistent with hiding military spending in other budgets (nuclear weapons as an energy expense, ... see Chalmers Johnson http://www.tomdispatch.com/p/chalmers_video)

12:14 PM  
Blogger Dahcredyns said...

kp-

you and i are big fans of a gas tax
. unfortunately, most Americans think we're fruit loops for thinking such a thing.

other than peak oil or a horrible tragedy, do you believe there is any hope that the citizenry will ever mobilize around an issue like a gas tax?

or like high blood pressure, will we wait until we have a heart attack before we accept reality?

1:27 PM  
Anonymous atpcliff said...

Hi!

The Pentagon did a study, about 4? years ago, that stated the price of gasoline at THAT time was approximately $10/gallon.

The majority of the cost was for Military services that was either paid for out of the general budget, or was paid by adding to the deficit.

Additionally, we pay a federal tax on gas to pay for road/bridge reapair and for new construction. That tax does not come even CLOSE to paying for the cost of our roadways. It should be increased so we motorists pay the costs for out roads.

We DEFINITELY should pay for the full cost of our gasoline at the pump, phased in gradually, of course. This would help to wean us off of oil.

cliff
YIP

7:58 PM  
Blogger Dahcredyns said...

$10 per gallon, dang. I've seen a bunch of different studies and some have suggested the $10 per gallon mark, but I don't recall one by the Pentagon.

I gotta find that study. If you happen to see it again, please post a link. Thanks!

6:06 AM  
Blogger Paz said...

More people should learn about electric vehicles as a solution. "Zero emissions" is something that's going to be required by law one day (you know it will). Making the decision to go electric is far cheaper anyway, like 10 cents on the dollar vs. gas. (source: zapworld.com)

11:54 AM  
Blogger Paz said...

More people should learn about electric vehicles as a solution. "Zero emissions" is something that's going to be required by law one day (you know it will). Making the decision to go electric is far cheaper anyway, like 10 cents on the dollar vs. gas. (source: zapworld.com)

12:05 PM  
Anonymous Simon said...

Not only in Singapore are the petrol not subsidised it is been tax 100% more by our blood thirsty government. A litre cost more than S$2.077 while in the states it cost only $$1.45 per litre based on US$4 per gallon.

The only way is for the States to remove subsidy and encourage alternative source of fuel. Changing the mindset of Americans to use smaller cars with higher fuel efficiency. Hybrid or plug-in we all must stop this addiction to oil. I drove a small car with a decent fuel efficiency because owning a vehicle in Singapore is one of the most expensive in the world.

Only Americans change their habit and addiction for SAUDI oil will we start to see a decline in price for Crude. As for china, they are going to be a nation heavily polluted and becoming a fuel guzzler in everything they do. The chinese are not enviromentally friendly and economic progress is more important than anything else.

12:40 AM  
Anonymous Anonymous said...

How can "cheap" gas be both heavily taxed AND heavily subsidized? Get real.

Let's see some sources for that $10 oil number if you want to be taken seriously. Just because it fits your internal mythology does not make it accurate.

Carter was an unmitigated disaster. Bam looks like he might be even worse.

Our addiction to SAUDI oil is only due to drilling etc having been outlawed here. Reenable domestic production and make the Saudi's compete both on price and for workforce willing to relocate to their psychotic 3rd world hellhole for any wage premium.

7:30 AM  
Blogger Dahcredyns said...

The book ZOOM by Iain Carson and Vijay V. Vaitheeswaran, both correspondents for the The Economist.

There are similar numbers in the 'The Hydrogen Economy' by Jeremy Rifkin as well.

We didn't go to Saudi Arabia just because it became harder to drill here. We did it because it was far cheaper, and, following WWII, it was considered a strategic asset if war ever broke out between the US and Russia.

Yes, America could reduce a lot of dependence from foreign oil by drilling more, but we'd have to drill in harder and harder to reach places which would increase expenses, probably significantly. More important, unless you're talking shale, US oil would quickly become a decreasing asset. So, inevitably, we'd still need foreign oil.

If it was shale oil, this would significantly increase gas prices and CO2 emissions even far more drastically. I think we can do better.

11:54 AM  
Anonymous Anonymous said...

Does Young Republican Anonymous really believe that more U.S. drilling would even come CLOSE to Saudi output/supply?

12:24 PM  
Blogger Dahcredyns said...

I'd assume he means that it would increase supply at the margins, which some economists have claimed could take the volatility out of the market. Still, that's a short term band-aide at best that would probably only increase US demand and eventually wipe out this short term benefit, and leave Americans even more dependent on foreign oil.

The problems of US oil addiction are beginning to hurt other emerging countries as well. Oil is simply not a sustainable paradigm. Instead of struggling so hard, why not just accept reality and develop solutions as quickly as possible - solutions the rest of the world is going to need rather quickly.

It seems so obvious to me that this nostalgic longing for the gas-guzzling without a care days of yore are better left in the past. If we embrace the future now, there will be massive benefits for us in the future.

We can either more forward or backward - considering the obvious evidence, why would anyone want to move backwards?

1:01 PM  
Blogger Jaybird's Mommy said...

$10 a gallon? I see a whole lot of Americans getting healthier and more fit in the years to come if our gas prices get to that mark! We will all be walking and riding bikes! And not to mention most of us would rarely get to see our family members that live in the next county, or even another state. I may need to lose some weight, but I would still love to see my family sometime.

12:54 AM  

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