Conservatives push energy independence through more energy production including drilling and nuclear. Liberals push alternative fuels such as biomass, solar and wind. While carbon reduction is the primary goal, energy independence is a close secondary goal.
While such noble objectives have unintended consequences this is not the same as unforeseen consequences. I question how the success of these objectives would impact foreign oil producers.
Many of the Middle East oil producing countries produce nothing else. Little farm production is exported and practically no manufactured goods are produced for export. If the market for their only export is obliterated they would fall into financial catastrophe.
Japan was devastated by the Smoot- Hawley Tarriff of 1933 which effectively destroyed its export markets. The global depression of the 1930’s coupled with the crushing burden of the WWI Armistice crippled Germany’s economy.
Given the intent to inflict pain on the American economy that motivated the oil embargo in the 1970’s, and the enormous wealth transfer of the oil price spike in 2008, energy independence is a worthy goal. We should not overlook the incredible destabilizing effect that success in this objective would have.
Recent Comments