A Letter To My Representatives On Oil Prices
Dear Senators Burr and Dole and Representative Jones,
Last week I listened on C-SPAN to the testimony of oil executives from the big five oil companies. As a father of five who is forced to drive a large van, this issue is of great concern to me. I recognize that there are things that I as a consumer can do, and I have been trying to do them. I combine trips, make as few trips as possible, and use one of our more fuel-efficient vehicles when I can.
However, you know there is very little consumers can do when they have to get to their jobs and they have long commutes. America is not laid out like Europe. We often have long drives to church, grocery stores, jobs, and extended family. This is especially true of rural Americans of whom I am one.
There also seems to be very little that citizens can do. The political process has become so layered and policy issues so complex that many Americans feel the best they can do is to get through their day-to-day lives and hope that their leaders are wise enough, diligent enough, and courageous enough to do something about national and global issues that lie way outside the average citizen’s grasp or control.
It seems the only thing that we can do as citizens is write the occasional letter to our elected representatives and give them our input. Here’s mine.
I do not now remember if the hearings were held before the House or the Senate, but one of the Congressional questioners said that we need short-term, medium-term, and long-term approaches to this very difficult problem. Score 1 for wisdom.
I am a Republican and an evangelical Christian, and I am also a student of history. Capitalism was built on a foundation of integrity, frugality, and standards. Large corporations often provide a lot of jobs, a lot of economic growth, and a lot of innovation, and free trade is not the bugaboo it’s often made out to be. (Auto mechanics, teachers, doctors, lawyers, grocers, dentists, and a host of other jobs are quite safe from the threat of being moved to India.) However, a corporation’s final loyalty is to the shareholder, and the shareholder thinks short-term.
In the early days of capitalism, religious and cultural standards and personal integrity helped offset the desires of personal gain at all cost. Early corporations understood that they had obligations to their employees, their community, and their nation. Today, unfortunately, large multinational corporations need incentives to do what it would have been unthinkable not to do in the past.
With that in mind, Congress needs to realize that while the free market ultimately brings increased prosperity, innovation, and opportunity there is a place for judicious political oversight on behalf of the citizenry.
It seems clear that America must lead the way in searching for, developing, and utilizing alternative energy sources. It also seems clear that a much needed short-term solution to the current rising cost of gas is an increase in supply. How can that be accomplished while encouraging the oil companies to not merely focus on short-term profit? I think Congress needs to immediately pass legislation to allow greater access to American oil sources such as those in the Gulf of Mexico, Alaska, and in the Pacific Ocean.
If you do that, however, what is to stop the oil companies from just exploiting those resources for the short-term gain of their shareholders? I suggest that in the legislation that opens those resources it be mandated that any corporation that develops those resources be required to put 20% of the profits made on those resources into developing alternative energy sources and the infrastructure to accommodate them. (more…)
