Current Solutions

A comprehensive energy policy should protect the environment, and decrease our dependence on foreign oil. It should do these things without hurting the economy and it would be helpful if it cost as few tax dollars as possible.

Proposed solutions are generally multi-faceted and have elements that either increase the domestic supply of energy or decrease demand.

Solutions that increase supply include.

1. Relaxing restrictions on domestic energy drilling.
2. Subsidizing domestic energy producers.
3. Sudsidizing/supporting research in alternative energy sources.

Solutions that are aimed at decreasing demand include:

4. Subsidizing/supporting research in greater fuel efficiency.
5. Compulsory increases in fuel efficiency standards for the nations cars and light trucks.

The first four policies are part of the most recent energy bill to pass congress. The fifth solution is something that has been promoted by the environmental community for the last decade. Unfortunately, these solutions collectively or individually do not offer much hope of solving our addiction to oil. In order to understand this one needs to understand the economics of oil.