Energy Choices and Public Policy

Abstract

The subject of energy choices and public policy is one that has interested me at a professional level. The outlook for energy supply for Americans is uncertain. Will the OPEC crank the per barrel price of world oil up again this fall by three or four dollars? We don’t know. Will the cost of finding and developing new domestic oil reserves continue to rise, and will the domestic production continue to fall as it has been doing since 1970? We don’t know. Would regulating the price of old oil and natural gas entering into interstate commerce bring forth significantly increased supplies? We don’t know. The chances for reducing oil consumption—or at least checking the rate of increase—are equally uncertain. Will still higher prices, brought on by whatever means, cause people and industries to use less oil? We don’t know. Will demand shift away from oil and natural gas to cheaper, more plentiful energy sources? We don’t know. Will penalties, taxes, or exhortations get the motor vehicle industry to produce more gasoline efficient cars and trucks? We don’t know. We may not even get a chance to try. Will new, less energy intensive lifestyles take over? We don’t know.