Energy Plans and Waving Hands

By Keith Heyde

What is in an energy plan? We hear all of this mumbo-jumbo as soon as election season rolls around. It seems as though every candidate has their own idea of what constitutes an energy plan. Romney wants this, Obama wants that, and lets not even start to think of what Ron Paul wants.

But what does an energy plan actually do? Can it really change the course of the market or the price of gasoline at the pump?

The short answer, is no. Energy plans that are intent on manipulating and harnessing oil commodities either from a price perspective or a trade perspective are simply doomed to fail. We hear a lot lately of how Romney wishes to establish “North American” energy independence. The idea is that if we rely on imports from Canada and Mexico more than imports across the globe, we will have a far more stable energy price.

However, this simply isn’t true. When we talk about importing oil from Canada, prices are not simply set on a U.S.-Canada exchange market. Of course there are discounts due to NAFTA and proximity agreements, but the oil prices from Canada are subject to global price fluxuations. This means that issues in Iran are still just as likely to cause oil price spikes as if we were to import oil directly. Sometimes, globalization has its downsides.

So what can plans actually do? Well, the government has invested a great deal of money into the development of renewable technology across the country lately. These investments not only help nurture a growing industry, but also appease public sentiment and provide a deal of energy stability.

I came across an interesting fact when I was watching a film called Carbon Nation last weekend. Essentially what it said was that despite the U.S.’s split opinions on anthropogenic global warming, close to 90% of people LIKE solar energy. I mean, I can’t blame them. Even if you don’t believe that we are causing the ice caps to melt, it makes sense to LIKE an energy source that (at least seems) free. I think part of the romance is the thought of liberating oneself from the grid and living out the American frontiersman dream, but with that said, it is astounding how much people like solar.

Interestingly, the numbers for wind energy are even higher.

Go figure.

So, in a country that genuinely “likes” renewable energy sources, why would we have an energy plan that is set on eliminating (or at least withdrawing crucial funding) from them. Sometimes it costs more to do the right thing. Perhaps that’s a lesson for a profit hungry businessman out there. After all, a couple of Cadillac’s cost more than a Ford Taurus. Clearly you understand that paying more for a better product has its perks.

But alas, what energy plans really entail is whether or not you can drill here, pipeline there, and fund there. Unfortunately, no president in recent history has truly had the gusto to overhaul the U.S. grid woes (or for that matter infrastructure in general). I would not be surprised if partisan bickering and government ineffectuality led us all to a grid collapse not too dissimilar to that of India. Let us hope we can rally together before then.

As always, for all your energy thoughts and news check into www.energygridiq.com today!