ANSWER TO RUSSIA: DRILL HERE; DRILL NOW!
No, I am not employed by oil companies. No, I have not changed my mind about the need to end the era of oil. Indeed, the reason I want us to drill here and now is because I do believe that the era of King Oil, like that of King cotton is over and I am not the only one. Saudi insistence on keeping the oil price high is in part the consequence of their belief that their time is up and they might as well make the most of it. It made sense for us to conserve our oil while the price was low, it no longer does. The new reality is: Use it or lose it and with it American power.
Russia is back and Putin is the reason? Nonsense. Russia is back because the price of oil is high and it has oil. The Soviet Union used to be the largest oil exporter for decades. Indeed, one of the reasons for the collapse of the Soviet Union was the decline of it's oil production coupled with the sharp drop in oil prices orchestrated by the Saudis as part of the Afghani war. Now, as then, low Russian domestic demand enables Russia to export it's oil and gas. In other words, Russians remain poor but their government is plenty rich.
But the drilling will take years to make a difference. Not really. A message that the US is serious will have an immediate effect on the price of oil. Every dollar we are not shipping to Russia or the Middle East is a dollar not used to fight democracy. For do not kid yourselves. This is not only a geopolitical battle but an ideological one and our intellectuals are losing faith in democracy in the same manner they have lost faith in it during the 30's. You do not believe me? Read David Brook's Ode to Chinese Collectivist autocracy and remember he is usually not a fellow traveler.
In the meantime, let us not forget that the strategic oil reserve is designed to prevent us from being held completely hostage by oil producers. Any reduction in the amount of oil in it is a reduction in the American freedom of action. Sorry to sound so dramatic but the times they are troubling.
None of this means that we should not do everything we can to develop alternative energy sources. Americans get it now and ultimately they will force their politicians to act accordingly. That is the reason democracy works. The consensus has been achieved. Even Obama pays lip service to it. But in the meantime, we simply cannot afford to continue to finance our enemies in the same manner we have done up to this point. Our resources are dwindling too fast.
So, yes, the Russian bear announced that it is back at a time we have our hands full with the Islamists. Luckily, the answer to both is the same:"Drill here; drill now!"
Good news: NYT reports:
American natural gas production is rising at a clip not seen in half a century, pushing down prices of the fuel and reversing conventional wisdom that domestic gas fields were in irreversible decline.
For a good analysis of the current Russia/Georgia/US relations, click here.