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Drowning Ourselves in Black Gold

By Amos C. Kenigsberg

Nothing seems to dominate modern American politics like our economic interests, and among our most important is our energy policy. It was largely concern over the flow of Middle Eastern oil which prompted the United States to stand up to Saddam Hussein in the Gulf War and has guided our policy with regard to Iraq ever since. Our efforts have kept gas prices in the US phenomenally low. But, while all may appear well for the country, our laissez-faire energy policy continues to lead to problems domestically and abroad which should be addressed.

Since World War II, much of the U.S.'s foreign policy has centered on maintaining access to cheap and plentiful oil. This has led us to have greater dependence on nations which we would otherwise have little dealing with. For example, the Organization of Petroleum Exporting Countries (OPEC) has been able to exercise some degree of control over the U.S. and its economy by setting the price of oil, as evidenced by the shortage in the 70s.

In the past few years, however, the economic upper hand has shifted more toward oil-consuming countries. Asian economies have slowed, decreasing demand, forcing oil-producing nations to vie for market share by exporting more oil at lower prices. One significant effect of the falling prices is the decline of the U.S. oil industry, which is unable to produce oil so cheaply. According to the New York Times, the U.S. now produces 6.4 million barrels of oil daily, as opposed to 9.2 million in 1973.

The oil industry isn't the only one adjusting to the era of plentiful petroleum. As the price of crude oil falls, the prices of lightly taxed American gasoline (and other petrochemicals) follow suit. Car buyers, with the incentive of bottom-dollar gasoline, snatch up large, gasoline-inefficient automobiles-particularly sport utility vehicles-in increasing numbers. John Schutz, Nissan's director of research and development, said on CNN Interactive, "As long as gasoline is cheap, there will be demand for gas guzzlers." This, of course, encourages auto makers to produce SUVs, which they've done in ever-increasing numbers.

These two factors--unquenchable domestic demand for gasoline and access to foreign oil--work synergistically together and, unchecked, have become inordinately important in the U.S. agenda. As gasoline prices fall and the sale of inefficient autos increases, demand for cheaper gasoline increases and so the government not only allows, but must support importation and exploration abroad.

Our reliance on foreign oil spawns problems abroad like the morass the nation has been drawn into in the Middle East. In addition to our economic vulnerability to OPEC policy and our morally questionable military entanglements, we contribute heftily to the economies of some quite un-democratic nations in the region with our oil purchases. Oil exploration has also led to other (underpublicized) foreign affairs debacles like the virtual plunder of Ecuador by Texaco and Shell's appalling exploitation of Nigerian oil in cooperation with the despotic government.

Here in the U.S., we are starting to come to grips with the pollution problem associated with our oil-powered economy. American legislators have taken notice in recent years of the massive pollution caused by our automobiles and imposed increasingly strict restrictions on emissions. However, many of these regulations pay lip service to protecting the environment from American vehicles' pollution but don't make a serious impact on auto manufacturers or consumers.

For instance, state and federal emissions standards do not cover SUVs and light trucks, which are enormous contributors to the problem on account of their popularity and inefficiency. Additionally, these emissions standards can never address the problem of carbon dioxide production; every gasoline combustion engine generates this greenhouse gas which has proliferated in the industrial age because of human activity.

Blind submission to the doctrine of finding the cheapest oil possible has led, quite directly, to the auto industry's unfortunate adherence to the traditional internal combustion engine even in an era when major auto makers are making significant progress in higher efficiency automobiles.

Toyota recently introduced its first hybrid car, the Prius, in Japan. It runs on both gasoline combustion and an electric battery, and can attain about double the gas mileage of an ordinary auto. General Motors recently finished its first good electric car, the EV1, although it requires frequent recharging due to its limited range. DaimlerChrysler, taking advantage of research of both its German and American branches, leads the way in developing fuel cell engines--engines which use hydrogen gas as fuel and could produce little more than water as waste. These projects, although showing far more promise than ever before, remain on the fringe of the notoriously conservative auto industry because of the low demand that coincides with low gas prices.

U.S. energy policy has been governed largely by free market forces which have guided us in a shortsighted and amoral direction. We should decrease the amount of oil we import, and try to import from nations with agreeable governments and fair labor laws. This would encourage foreign democratization, reduce our economic dependence on volatile nations and invigorate the U.S. oil industry. Increasing gasoline taxes--currently, our prices are far below those of other industrial nations--would prod the auto industry and consumers towards the nascent inevitable revolution of efficient vehicles. It's time for the US to abandon its dirty policies which have marked the 20th century: polluting the planet and supporting oppression abroad.

Amos C. Kenigsberg '99 is a chemistry and physics concentrator in Lowell House.

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