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Which Energy Policy Will Help Your Bank Account?

By Erik Folgate

Okay, there are basically two different energy policies being proposed to help alleviate a possible energy crisis. Here is a synopsis of both:

Bush/McCain Proposal: They want to “drill here, and drill now”. Basically, they want to reverse a bill signed by Bill Clinton that took away the possibility of drilling for oil offshore of Florida and in Anwar, Alaska. They want to start drilling for oil in North America to take away the dependency on foreign oil, alleviate some of the high prices by increasing supply, and give companies and entrepreneurs a chance to continue development and research for alternative fuel resources.

Obama/Environmentalist Proposal: Continue to pump money into research and development for alternative fuel resources and drastically reduce the consumption of fuel and energy to reduce demand, rather than increase supply.

I think these are both legitimate proposals, but it is hard to tell which one would help in the short-run versus the long-run. My proposal would be a combination of both. Drill now to help alleviate the scarce supply which will cause speculators to back away from driving up the price of oil. But, do this only to give us enough time to develop alternative fuel resources. The alternative fuels is not happening any time soon. This stuff takes time. We need to stop depending so much on what Saudi Arabia and the UAB tells us what to do. We can drill and do it without destroying the environment, but only do it as a temporary solution while we perfect clean, efficient fuels.

What’s your take on this? Comment below.

Erik Folgate
Erik and his wife, Lindzee, live in Orlando, Florida with a baby boy on the way. Erik works as an account manager for a marketing company, and considers counseling friends, family and the readers of Money Crashers his personal ministry to others. Erik became passionate about personal finance and helping others make wise financial decisions after racking up over $20k in credit card and student loan debt within the first two years of college.

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  • Old Gimp

    There is a real issue here that you are ignoring. Oil is a fungible commodity sold on a global market and US oil production is only 10% of global supply, yet we consume 25% of global supply. So “energy independence” is simply a lie, a marketing slogan that means nothing. And increasing domestic oil production will not alter our dependency on the global market a single bit. In fact, if we doubled US production (which no one says is even possible), we would still need the global oil market to meet our needs. And other oil producers would simply reduce their production to keep the price per barrel the same. So the net effect is we would potentially expose sensitive areas to the risk of drilling and get absolutely nothing for it.

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