The Solution to Oil

Since everyone from John McCain and Barak Obama to T Boone Pickens and Newt Gingrich has their solution to the energy security and gas price "crisis," I feel it is only fair to put in my two cents worth. My plan would fundamentally transform the way we produce and consume energy and end our dependence on foreign oil once and for all.

First let's be clear about how we produce and consume energy. Essentially we consume energy in two forms electricity and fossil fuel products (coal, natural gas, gasoline, diesel fuel and heating oil). We produce electricity from coal (50%), natural gas (20%), and nuclear (20%), with all other sources including hydro, geothermal, solar and wind making up the other 10%. The key point here is that at least in the US we do not - repeat do not - produce any significant amount of electricity by burning oil or oil distillates. The only exception being emergency power generators.

So where do we use oil. Aside from home heating oil used primarily in the northeast, almost all our oil consumption is for transportation - cars, trucks, trains, buses, airplanes, ships. The key point here is that the use of solar and wind for electrical production, while good ideas and should be developed where they make economic sense, will NOT help our dependence on oil for the simple reason that we do not use oil for electricity. One more stake in the heart of T Boone's plan to wean us off of oil. As Charles Krauthammer, one of my favorite columnists, has aptly said that the only way wind energy can help reduce our dependence on oil is if we we put sails on cars.

The other key point to understand is that the US reserves of coal make us the Saudi Arabia of coal so it is a resource that we must continue to use.

So my plan is based on three major initiatives all of which are achievable by the middle of this century and if realized will end our dependence on foreign oil once and for all.

First is to invest in developing carbon sequestration technologies that will allow us to take advantage of our enormous coal reserves for the production of electricity. Now I am not a believer in anthropogenic global warming, but it does make sense that we should avoid pumping more CO2 into the air if we can avoid it. Also from a public acceptance perspective in order to take full advantage of coal, clear evidence that we can capture the CO2 will be a practical and political requirement.

Second we need a NRA style program to build more nuclear plants so that the percentage of electricity from nuclear power at least doubles from its current 20% to 40% or more. Sorry but T Boone's idea for a phalanx of wind turbines from Mexico to Canada just won't do the job. If France can generate 75% of its electricity from nuclear then so can we. It is also worthy of note that >45% of the world's supply of uranium comes from Canada, Australia and the USA so we are unlikely to be held hostage by unfriendly countries.

Thirdly we need to shift from the internal combustion engine to an all electric transportation system. This will require new batteries that can drive cars and trucks for at least 400 miles at highway speeds and then be fully recharged in 20-30 minutes. These batteries do not exist today but with the right incentives and R&D there is no question in my mind that they can be developed by 2030. That would give us 20 years to shift the corner gas station infrastructure to recharging stations.

It is true that planes and ships will still be powered by fossil fuels, but converting our ground based transportation system to an all electric fleet will fundamentally change the supply and demand equation.

This is a very simple and effective plan that can be implemented today. All we need is the political will to do so. If we are really concerned with oil prices, energy security and minimizing our carbon footprint this is the only plan that makes sense.