Dakota Beacon

Freedom from foreign oil has an intrinsic emotional appeal. Alternatively, there is something admirable about a skeptic who, with reasoned observations, challenges conventional wisdom and crowd mentality.

            As it was with Hans Christian Andersen’s fairy tale “The Emperor’s New Clothes,” so it is with author Robert Bryce’s 2008 book “Gusher of Lies: The Dangerous Delusions of Energy Independence.”

            In a word, Bryce maintains that energy independence is neither desirable nor doable. He debunks the notion that any energy consuming nation with self-imposed reduced oil supplies can ever achieve energy independence. To support his thesis he identifies some of the salient myths underlying the larger canard of energy independence and proceeds to demolish the misinformation using readily available statistics.

            One myth Bryce challenges holds that alternative and renewable energy sources will make us less dependent on foreign oil. Despite the hype and rhetoric, biofuels cannot lead the US to energy independence. Economic efficiencies from biofuels are like the tooth fairy. It’s something everyone believes in, but no one ever sees. The continued growth of all biofuel, coal-to-liquid and gas-to-liquid production combined will not make the US energy independent. The potential quantities produced are just too small even if it were possible to quadruple the Bush administration’s 35-billion-gallon target.

            Another myth maintains that energy independence will help stop the flow of dollars to those who wish us ill. Many politicians hold a persistent delusion that the US can influence the world oil market by withdrawing from that market.

            The demand for relatively inexpensive oil by the Indians and Chinese will increase. Every drop of oil produced by any nation goes on the world market and will be bought by someone somewhere. The Saudis, Iranians and Venezuelans will have no problem selling every barrel of oil they produce. And dollars flow.

            Yet another myth prevails. Energy independence will improve our energy security. Not true. Like it or not, energy dependence is a fact of life. Consider the growing global market for refined oil products including gasoline, diesel and jet fuel. Hurricane Katrina closed some refineries in the US. Demand for gasoline could not be met with US capabilities so the shortage was made up by importing gas from overseas refineries.

            Arguing against global trade in gasoline, diesel and jet fuel when we have increasing requirements with no substitutes makes no sense. We have no choice but to buy on the global market.

            Here is another myth debunked by Bryce. US energy independence will bring on a collapse in world oil prices triggered by a glut of oil on the world market and that will benefit the US. Not true. Low oil prices would hurt the long term interests of the US. Cheaper oil would increase consumption in India and China at a lower cost to them. Low oil prices would also produce instability in the Middle Eastern countries. Further, it would cripple America’s domestic oil production. We must be careful what we wish for.

            Bryce discredits still another myth. US energy independence will insulate the US in the event of another oil embargo. In 1973 Arab oil producers launched an oil embargo to force a change in US policy toward Israel. The embargo backfired. Arab states suffered an economic recession they don’t wish to repeat. US support for Israel grew and resentment toward Arab states increased. After the embargo, many countries built large crude oil stocks to thwart any future embargoes.

            President Obama is forcing the energy independence issue. In November 2009 he underwrote offshore oil drilling for Brazil to the tune of $2 billion and now imposes on the US a moratorium on offshore oil drilling. Concurrently, congress is about to impose climate change restrictions and taxes (formerly known as cap and trade) on Americans forcing, yes forcing, the public to conform to alternative energy mandates.

            Legislating a “green economy” is foolhardy. If there was an energy substitute for carbon fuels that didn’t need federal subsidies, entrepreneurs and venture capitalists would have jumped at the opportunity long ago.

            Bryce makes suggestions, but not for energy independence. He recommends embracing solar, nuclear and natural gas technologies. He proposes to increase domestic oil production. And, he strongly proposes getting the government out of the energy business.

            As a contrarian, I highly recommend Bryce’s book in an effort to push back the frontiers of ignorance.

Dennis M. Patrick can be contacted at P. O. Box 337, Stanley, ND 58784 or (JavaScript must be enabled to view this email address).