Sunday, August 31, 2008

Reduce Dependence on Foreign Oil

"Reduce dependence on foreign oil."
"We have to reduce dependence on foreign oil."
"How are we going to reduce dependence on foreign oil?"

Have you heard this phrase? I've heard it. I've said it. McCain says it. Obama says it. I think George W. Bush has said it. There are not too many people in this country who don't agree it is something we need to do. But why? Why do we want to reduce dependence on foreign oil? What are our reasons for doing so? In a healthy world economy, we don't necessarily care about the source of our goods. If your country can provide us cheaper oil than we can provide it ourselves, we will buy it with the money you pay us for our vast food resources. In a healthy world economy, this is not a bad thing. It's called comparative advantage.

Where it's no longer an advantage is when one side of the trade balance decides they've got the other by the balls and so they put the squeeze on. This is prevalent with oil-rich countries. Countries that control the flow of oil include a sizeable list of America's rivals and enemies, including Russia, Venezuela, Iran, Iraq and Libya. So when we buy their oil, we put money in their pockets, and they use this money to propagandize against us and directly or indirectly fund terrorism against America and our allies. So, yes, by reducing our dependence on foreign oil, we stop the money flow to our enemies.

But we know this and it isn't why I'm writing this. The reason I'm writing this is because of the emphasis being taken off of foreign by the Obama camp. They don't want to just reduce our dependence on foreign oil, they want to reduce our dependence on oil, because they are focused on global warming and not at all on external threats from our rivals and enemies. That's why they don't want to drill here and take advantage of our own natural resources. The argument that it won't help us tomorrow or next week is specious. Just the fact that we are prepared to drill for our own oil would put a shock to the oil market. Countries and companies make long-term plans. When they see long-term moves, they realize that it changes the landscape. If we want a sure way to deal with a friendlier Russia, Iran and Venezuela, we can't just go there and talk. We need to show that we have plans to reduce our dependence on them, that they will at some point not be able to get their way around the world by playing the oil card, as Russia is doing now in Georgia, as Iran is doing with its nuclear program, as Venezuela is doing by nationalizing its fuel distribution network, as OPEC did in 1973. Sound foreign policy must include sound economic policies that favor us in the long and short terms. That will prevent more wars than talking to and appeasing tyrants. Now, if we want to add to this the development of cleaner energy, I'm not going to complain about it.

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