Copyright © 2001 The International
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U.S. Needs Reality
Check on Energy
Reginald Dale International Herald Tribune
Tuesday, May 8, 2001
WASHINGTON
- With gasoline costing over $2 a gallon in
Chicago, and California bracing for waves of
rolling blackouts this summer, the polls show
that energy policy has shot to the top of
Americans' concerns. It is also a high priority
for the Bush administration, which is due to
publish a comprehensive, long-term energy plan,
drawn up by a task force headed by Vice
President Dick Cheney, in the coming days.
But while administration officials constantly
stress the need to tackle the country's
"energy crisis," Mr. Cheney's plan
will not provide instant relief. "Our
short-term energy problems are likely to get
worse before they get better," says
Lawrence Lindsey, President George W. Bush's
chief economic adviser.
What many government and private energy
specialists hope is that the plan will start a
lengthy process of educating the American public
in the stark realities of energy supply that
have been forgotten or ignored during the policy
vacuum of recent years.
Too many Americans seem to think that
electricity "comes out of a plug in the
wall," with no need for power stations or
transmission cables, Mr. Lindsey says. Changing
public attitudes will be a slow and hugely
difficult task. Mr. Bush's critics are already
attacking him for seeking to destroy a vast,
pristine wilderness by drilling in the Arctic
National Wildife Refuge and for favoring
increased fuel supplies over conservation.
These attacks are often ideological. In fact,
the administration says, drilling operations in
the Arctic reserve would leave a minute
"footprint" in a huge area.
Ideological divisions are likely to grow even
greater as the administration's longer-term
plans become clearer. Many Democrats and
environmentalists want to increase the
government's role in setting energy policy
through regulation, mandatory conservation and
higher public spending to promote energy
efficiency.
Mr. Bush's advisers, on the contrary, believe in
markets. They argue that economic growth will
lead to technological advance and thus to more
energy efficiency and innovative ways of curbing
pollution. If people are made to pay the full
economic cost of fuel, they will want to
conserve energy voluntarily - which is already
happening as high gasoline prices prompt many
Americans to drive less.
The coming clashes will be even more virulent in
that a more assertive energy policy will
inevitably lead to a head-on confrontation with
environmentalists, who have largely succeeded in
blocking the expansion of the U.S. energy
infrastructure over the past decade and more -
in itself one of the main causes of the energy
crisis.
Without necessarily spelling out all the
implications, the Cheney report will mark the
beginning of the most radical changes in U.S.
energy policy since the oil shocks of the 1970s,
according to people both inside and outside the
administration.
A prime objective will be to help relieve supply
bottlenecks by building power stations at a rate
of more than one a week for the next 20 years,
as well as thousands of miles of pipelines and
high-tension wires.
But, with the United States now dependent on
imported oil for well over 50 percent of its
needs, the aim is also to enhance energy
independence by increasing domestic production
and ensuring that imports come from friendly
countries.
One probable outcome, says Paul Michael Wihbey
of the Institute for Advanced Strategic and
Political Studies, is the creation of a North
American energy grid including Canada and
Mexico, to be followed by greater energy
integration with South America and more imports
from western Africa.
"We may be seeing a restructuring of the
global oil market as a result of which, for the
foreseeable future, the United States could rely
for foreign sources of oil on friendly suppliers
with no history of anti-Americanism or
terrorism," Mr. Wihbey said.
Behind all this lies an even more controversial
"sleeper," the revival of nuclear
power, according to Daniel Yergin of Cambridge
Energy Research Associates. "If you are
serious about global warming you have to look at
nuclear power, even if nobody has said so very
loudly in the United States," he said.
That view is shared by Mr. Bush's advisers. It
makes obvious sense. Funnily enough, by helping
to push up energy prices with their demands for
excessive regulation, environmentalists may have
paved the way for nuclear power's return.
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