Americans in Denial About Energy Costs
Written by Glenn Pearston   
Wednesday, 17 June 2009 18:19
Politicians and business people do not always see eye-to-eye in regards to energy policies, politicians normally remain idealistic while the business folks are the realists. Tables were turned somewhat today, however when Christine Todd Whitman, who used to be the EPA administrator and now governor of New Jersey and T. Boone Pickens, a wind investor, both contended that the United States has to invest in renewable energy and expand production of domestic energy. It was also Whitman who cautioned that an American public hasn't yet come to appreciate involved costs. Their comments arose during economic discussions sponsored by Time Warner (TWX, Fortune 500), Fortune and CNNMoney.com's parent company.

Whitman made the point that if a cap is set on carbon, everything will be much more expensive. She does, however, support the cap-and-trade measure which is making its way through Congress as a means of cutting greenhouse-gas emissions. Whitman urged legislators to initiate an education drive to overcome public contention over newly designed infrastructure such as electricity-fed transmission lines, power plants and pipelines for natural gas. Finding sites for gas pipelines and getting natural gas all the way to the substructure presents a very big problem.

Pickens, who spent millions the past year promoting the "Pickens Plan" which would reduce United States dependence on foreign fuel by turning to natural gas and wind, appeared to be a bit flustered. He said that natural gas, being a widely distributed resource, is down every alley, up every street.

Whitman replied that she had seen the opposite side of the equation as governor. She is co-chair of CSEC (Clean and Safe Energy Coalition). They were attempting to find a pipeline, if you've ever seen "pushback... It's the same as nuclear. Nuclear material is transported all across the country, but because the public knows about nuclear because of The Simpsons, its scared.

Whitman added that Americans are inclined to say no to many options. There are a huge number of reasons why we are against importing foreign fuel. We don't like coal because it is a dirty fuel. We don't want natural gas near us as it may explode. We won't consider nuclear. Some environmentalists are even against wind power because it is visual pollution.

She said that we have to change our way of thinking and take into consideration that we are getting more knowledgeable as to how we go about it. We need more than one energy and we'll all have to step up and support it, said Whitman.

When cap-and-trade was mentioned, Whitman said she supported it, but asked that lawmakers give exclusive consideration to companies which have already taken a leadership role in the reduction of CO2 emissions. She said that if these companies do not get credit, we will be at an enormous disadvantage with many of the Fortune 500 businesses because they will suddenly need to reach new levels from their already immensely reduced base.

Pickens related that he is optimistic about Congress passing a version of Resolution 1835 after summer recess. That bill will give tax credits to natural gas-based fuels, also for production of the vehicles which run by natural gas. That legislation will require, by 2014, that all vehicles leased or bought by the United States government must be able to operate using natural gas.

The one resource in America which can reduce the dependence on fuel from foreign suppliers, said Pickens, is Natural gas. He believes there is going to be a bill on energy that's never been seen in the history of America.

When asked about what he thinks prices of oil and of natural gas are headed, he said higher.


Glenn Pearston
Written on Wednesday, 17 June 2009 18:19 by Glenn Pearston

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