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Iranian president Mahmoud Ahmadinejad won a controversial second term that sparked violent and deadly protests in Tehran.

Putting Energy Security On the Fast Track

Why and how America can accelerate its shift away from petroleum dependence

By Paul Werbos

WHY
The International Energy Agency (IEA) has predicted that oil will go back up to $150/barrel within a year or two of when the world economy recovers. If that happens, and if the US does not make a drastic reduction in its oil dependency soon enough, we will be looking at a $700 billion/year import bill – enough to put the US economic recovery in deep doubt.

On June 24, in the New York Times, Thomas Friedman has written: "There has been a lot of worthless chatter about what President Barack Obama should say about Iran's incipient 'Green Revolution'. Sorry, but Iranian reformers don't need our praise. They need the one thing we could do…. Oil is the magic potion that enables Iran's turbaned shahs -- 'Shah Khamenei' and 'Shah Ahmadinejad' -- to snub their noses at the world and at many of their own people as well. .. Trust me, at $25 a barrel, he won't be declaring that the Holocaust was a myth anymore."

The Waxman-Markey bill in the House does offer some useful steps to help break our dependence on oil – mainly through the provisions on recharge stations for plug-in hybrids and open fuel standards. But the Obama/Reid idea for low-carbon fuel standards was dropped from the bill, because of oil company opposition, and the bill may or may not pass the Senate anyway. We need strong independent, additional action to move as fast as we can. If we do not bite the bullet on import dependency, everyone in the US will suffer, from workers to Exxon.

HOW
Friedman has proposed that we simply add a $1/gallon tax on gasoline, to encourage more use of alternative fuels, electric transportation and conservation in general – like what we saw just a year ago. But there is a more efficient, revenue-neutral way to move much faster towards oil independence.

To pay for this, we would advocate an additional tax on gasoline, to be recalculated every year and raised (but not lowered) if necessary to cover the full cost of these two essential efforts and avert impending bankruptcy of the highway trust fund. We are not advocating more permission for conventional drilling for oil and gas, because of its limited potential output, but if that's part of the cost of getting this passed, it would be acceptable.

Paul Werbos is currently a Brookings Institution Legislative Fellow, as well as a National Science Foundation research program director. This paper does not reflect the official views of any of the organizations for which he works. .

Times Article Viewed: 3769
Published: 30-Jun-2009

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