Thursday, August 6, 2009

Solution to Energy Issues

The current issues such as Cap and Trade and the many other efforts by Govt to Tax our current energy sources in the belief this will generate some sort of demand for alternative energies is an ineffective effort. All it will do is open the door to back door, black market or boot leg energy products, similar to what happened with cigarettes, drugs and booze.
The best solution to this is to create an "Energy Portfolio" where all of our energy sources are used to deliver as much energy as our country needs where it is needed. At the same time, the older energies will continue to supply today's needs while the newer energies continue to develop. When an older energy starts losing ground to a newer energy the percentage balance of the portfolio will be modified... the newer energy will gain portfolio share while the older energy source will lose portfolio share. A flexible and all inclusive "energy portfolio" policy is the solution to the efficient delivery of energy to every economy. I'm encouraged by the fact that a similar version of this idea has shown up in the Wall Street Journal and in a couple of publications that are considered Global Warming and environmental advocate journals. Lets use Nuclear, Oil, Coal, Gas, Bio-Fuel, Hydro power, Kinetic, and Solar power as part of our "energy portfolio" but the only way to make this truly effective is to use them all and not "subsidize" or penalize any of these during the process. If each of these energy sources are on equal footing.. the market will drive each of them as they are needed and our economy will be able respond to efficiently utilize them as the market drives them through the up and downs of the supply and demand curve.