Way back in 1973, we knew that relying on foreign oil was a bad idea. But did we do anything about it? Then gas prices stabilized a little and we went on down the road.
We talked about energy independence. Seems like every Presidential campaign talked about it, but not much got down.
Here we are roughly 40 years and several gasoline price spikes later, and we are no closer to a solution than we were then.
In many ways we are further away. We have some drilling, but not near what we are capable of pulling out of the ground - oli and natural gas. Offshore drilling may never become a realty after we intentionally and negligently let all the rigs go to other locations. If we see the rigs again anywhere close to our shore it will be because another country has brought them them to take what should be ours.
It has been 35 years since we have approved a new refinery and nearly as long for a nuclear plant. Planning for new refineries has all but been abandoned. Florida and Texas are planning nuclear facilities, but additional permitting and review is required before construction could begin.
We have the world's largest reserve of coal, but regulation has stifled mining.
This gets us to today. Not only are we paying for the lack of action to bolster our energy production, we are now paying exorbitant prices for gas - by our standards not those of other countries - and the top isn't in sight yet.
Every penny that gas goes up takes a penny from disposable income that might be spent going out to eat or shopping. Every penny that gas goes up causes the truckers to increase their prices to the distributors who then increase their prices to the retailers. It's called inflation, and it's about to take off. I'm seeing one dollar and higher increases in grocery items - even $2 items going to $3. No nickel and dime - we're seeing full dollar and more increases.
This is going to impact spending choices that people have, how far they are willing to drive, for non-essential activity, how far and how often we are willing to drive people around to look at homes, how much people have to spend for new housing, and everyone's general disposition. It is going to affect the housing recovery.
We're all in this together, but the folks in Washington for decades have been acting like this is what they want to have - for us to be dependent on foreign oil, for us to lack the infrastructure to create energy independence, and for gas prices to rise as high as they have to with no regard for the impact on inflation or other areas of our economy. It wouldn't have taken much to have avoided the mess we are in. It will take a bit more to get us out now, but the first thing it will take is leadership.
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For more information on my coaching and educational programs and services, visit my website stevehoffacker.com, or go to my other blog homesalesinsights.com for additional sales tips, insights, and commentary. Listen to my free podcast messages at Steve Hoffacker's Happenings.
Steve Hoffacker - Consultant, Coach, Author, Blogger, Photographer, Motivator, Teacher, & Strategist - for Realtors, Real Estate Sales Professionals, Home Builders, New Home Salespeople, Entrepreneurs, Small Business Owners, and Independent Sales Representatives.
© Steve Hoffacker, 2011. All Rights Reserved.
Steve, you say it exactly the way you think it, and I respect that! Michele
We need to get busy and innovate/invent an alternative the world can use.
Good post.
cheers
Nor
Michele,
Thank you. Appreciate it. :)
Steve
Nor,
We have the supplies and the technology to get oil. Then we can work on the other technologies. First its going to take new heads in government. :)
Steve
Steve....we had the ability all along. The big 3 were so against alternative energy that it's increased pressure into squashing it! Now, like you said, it's time to pay the reaper! Horrible Steve!
Insightful blog post Steve. Thank you for sharing your thoughts!
As always we take our thoughts off of viable solutions. We need to search out our own reserves and pump them while developing new technology...
I remember the ODD/EVEN gas lines....I had sold my VW square back to my sister and was driving a Audi 100LS * I was fortunate that our local gas station had serviced our parents' cars for years and they had gas for me when I needed it.
It is to late too begin digging a well when you are thirsty. We have the reserves. We have the technology. We lack leadership and persistence!
For years libs have told us we need to develop alternative energy at the cost of letting our oil resources fall apart. So far we have higher oil costs and still no viable alternative energy. Once again, talk is cheap and gas is not.
Congratulations - This post is now featured in Silent Majority of The Active Rain Network!
This is really about a contest of wills. One side wants clean energy and doesn't care how much it costs to get there. The other just likes the profits and is willing to wait the other side out.
The Tea Party needs to continue to throw Washington politicians out on their arses until they do something about the mess that has been created. It is really sad to see what these liberal wackos have done to this country.
Larry,
So many forces at play to get their own agendas. Meanwhile we lose. :)
Steve
SaraMana,
Thank you. Appreciate the support. :)
Steve
Paul,
Agreed. If we are eventually going to replace oil - because we want to or have to - why leave it in the ground? :)
Steve
Nick,
Agreed, but this issue goes back to Nixon. :)
Steve
Wallace,
Ah yes, the odd/even. We're facing that again odd ($3) and even ($4). :)
Steve
Wayne,
It's only too late when we are devastated without the ability to use what we extract. :)
Steve
Kevin,
Right you are. Wind and solar have been big disappointments. :)
Steve
Nick,
Thanks for the feature. :)
Steve
Dale,
It is a matter of regulation at this point. Competition will solve a lot of issues. :)
Steve
Rob,
It's despicable! :)
Steve
A lot of this is something that we can still thank Mr. Carter for! That guy did some real damage, extending to even now. Imagine the future damage the Architect of the New Normal will leave for our kids (and grand kids).