Tuesday, August 5, 2008

Latest Energy Plan Unveiled by Obama

I haven't had time to digest the energy plan from Barack Obama, though I must admit that I was concerned about the change in his position on offshore drilling. I know that he is the candidate of change, but I am starting to worry about some of the changes he has made on positions in recent months. Anyway, it appears based on this video that he is open to drilling on reserves that have already been allocated for drilling, but for some reason remain untapped (maybe to encourage limited supplies or it isn't even worth the upfront expense to tap). This is why you go directly to the source rather than rely on headlines. Many environmentalists are against drilling because of negative environmental impacts to the ocean floor and the need to reduce our dependency on oil derived energy. Others argue that it will take up to ten years to deliver the oil once drilling commences and the supply that will be available will hardly make a dent on our daily thirst for this black commodity. I would love to understand what the true financial incentive is among oilmen and politicians for offshore drilling based on this argument. Some say that the very mention of the possibility of drilling for more oil has a psychological impact on the markets and will at least temporarily reduce gas prices. In recent days, the price of oil has plummeted, in large part though because we have reduced demand via a reduction in driving and the threat of a weakened U.S. economy. Imagine, by reducing our consumption of oil through conservation, avoiding plastics and other petroleum based products, we can save money and save the earth. Less is actually more!

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