This Labor Day saw record gas prices (1) with an average of $3.80 per gallon, up 14 cents from last Labor Day. After a few weeks of relief from rising gas prices, consumers once again face the prospect of having to spend more of their hard-earned money at the pump and in their electric bill. In this election year, we must ask the logical question, which candidate for President has the best program for reducing gas and energy prices?
Obama’s energy policy focuses on development of alternative fuels to get the nation off its dependence on carbon based fuels. I have to admit that reducing our dependence on petroleum in the best long-term interests of the country, but we have yet to develop a market ready replacement for crude oil. However, this did not prevent the Obama administration from attempting to force alternative green energy on the public.
The Obama administration invested taxpayer money in numerous green energy ventures but these companies are beginning to collapse. First Solyndra a manufacturer of solar panels and then Evergreen Energy a developer of alternative fuel products and Beacon Power Corporation an energy storage company have filed for bankruptcy. The reason for their bankruptcy is that there is not a sufficient market for their products to operate profitably. If we apply the economic law of supply and demand, the government invested taxpayer money to create a supply of green energy products without waiting for there to be sufficient demand for the products (2)
In addition, GM has halted production of the Chevy Volt for the second time this year. The first time was in March, due to dismal sales of only 1,626 cars in two months. Even though sales have increased, they still lag behind the goal of 60,000. Part of the reason for dismal sales is the sticker price of $39,995, which is a high price for a small hatchback (3) . The Chevy Volt also has safety problems with the battery catching fire in collisions. It is a fact that cars can catch fire in collisions but the National Highway Traffic Safety Association (NHTSA) launched its investigation of the volt when a Chevy Volt it tested caught fire several weeks after a crash (3) . It appears GM may have rushed the Volt into production before it was safe and marketable.
Romney’s energy plan calls for more drilling of our nation’s petroleum reserves to increase the supply of crude oil and thus reduce prices. Opponents of this strategy cite that simply increasing supply of a product does not necessarily equate to lower prices. I believe they may be looking at their own failed attempts to increase supplies of green energy. The difference with Romney’s plan is that there already is a solid demand for petroleum. So applying the law of supply and demand, an increase in supply in this case will result in lower prices due to the existing solid demand for the product.
However, Romney’s plan does not ignore research and development into alternative energy sources but it also allows for the drilling for more domestic crude oil. This will allow time for these alternative sources to be fully tested and marketable before introducing them to the public (4) .
Another four years of an Obama Presidency will result in more risky investment of taxpayer money in unproven green energy technology while failing to utilize domestic petroleum and coal. This will result in our nation having to buy more foreign oil from the Middle East where the threat of war disrupting supplies is becoming more and more of a possibility. Therefore, we will continue to see soaring energy prices.
The Romney plan addresses the immediate problem of soaring prices by increasing domestic supplies of petroleum, a product that already has solid demand. These domestic supplies are not threatened by a possible war in the Middle East resulting in more stable energy prices. Romney’s plan does not ignore the need for research and development of alternative energy sources but allows time for these products to be tested and marketable.
If rising energy prices are a concern of yours, Romney’s plan is the best plan. Unless, higher gas prices do not concern you then you are free to vote for four more years of Obama’s risky green energy programs.
1. Fox News Corporation. U.S. gas prices at highest ever for Labor Day weekend. www.foxnews.com. [Online] Fox News Corp., September 3, 2012. [Cited: September 4, 2012.] http://www.foxnews.com/us/2012/09/03/us-gas-prices-at-highest-ever-for-labor-day-weekend/#ixzz25SgEBv3k.
2. Paugh, Dr. LLeana Johnson. Green Energy Not Ready for Prime Time. www.canadafreepress.com. [Online] Canada Free Press, January 30, 2012. [Cited: September 4, 2012.] http://www.canadafreepress.com/index.php/article/44277.
3. Edelstein, Stephen. GM may halt Chevy Volt production for the second time in September. www.digitaltrends.com. [Online] Digital Trends, August 28, 2012. [Cited: September 4, 2012.] http://www.digitaltrends.com/cars/gm-may-halt-volt-production-again-next-month/.
4. Mitt Romney for President. Energy Pro-Jobs, Pro-Market, Pro-American. www.mittromney.com. [Online] Mitt Romney for President. [Cited: September 4, 2012.] http://www.mittromney.com/issues/energy.
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