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Drill Baby Drill, but invest the proceeds in clean energy

Posted by keelynet on September 16, 2008

Well, we can dream can’t we?

“We hope this price crisis prompts the adoption of a strategic plan to use the remaining value of our federally owned oil and natural gas reserves to fund a clean, affordable and independent energy future for America, a goal worthy of short-term environmental concessions and risks. Virtually all general drilling bans should be lifted. We should permit drilling offshore and in the ANWR and require that it be done with appropriate care. Before granting additional drilling rights, however, we should fundamentally change the terms of future oil and gas lease agreements to ensure that taxpayers capture more of the revenue from our remaining reserves. Today’s agreements provide exceptional profits for leaseholders when prices rise, so much so that leaseholders have a significant financial incentive to delay production until prices rise. That must change. To achieve a huge net win for the environment, the federal revenue from future oil and gas production should be placed in a trust fund and used to foster a clean energy future for America. This must supplement, not replace, other environmental commitments we have made. Simply adopting a plausible U.S. strategic plan for energy independence would have a positive impact on world oil prices. And absent a significant supply disruption, oil’s economic stranglehold would be eliminated if domestic demand stayed flat or grew only slightly while U.S. consumption of alternatives to oil, including natural gas, increased by a few percentage points a year. With prompt federal action, we could quickly achieve these demand and growth rates and greatly reduce oil’s pressure on prices. The United States can be virtually free of fossil-fuel use within a few decades — if we pursue this goal aggressively.” – Source

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