Friday, May 2, 2008

Anwar oil: To consume or to export?

Now that gas prices (and energy consumption in general) are once again taking center stage in America, the calls for opening up Anwar's oil reserves are reaching a crescendo. Assuming a miracle turnaround occurs on the issue, and congress changes courses on Anwar, most folks would welcome the influx of the estimated 2 million barrels per day increase to the US oil market. However, rather than use the oil ourselves, we should do as Brazil and Norway are doing and EXPORT IT! Using the influx of cash to provide real relief for our energy woes by investing in our alternative energy industry.

By exporting the oil they produce, rather than consume it (as most pro-Anwar drilling proponents are calling for) Norway and Brazil have both demonstrated that they do in fact have a clue that we must invest in a future of clean energy.

How are they using the proceeds of their lucrative oil exports? Both Brazil and Norway are financing their already thriving alternative energy sectors. It's the equivalent of investing in an "alternative energy IRA" which they can use to make annual "clean energy" withdrawals; gaining huge dividends now and into the future. In Brazil's case, they are the world's leading consumer and exporter of cane based ethanol which they've nearly perfected through years of domestic production and a steadfast commitment to become energy independent.

Will America adopt such a well thought out and domestically beneficial long term strategy? I wouldn't bet a cup of Caribou coffee on it!

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