Tuesday, January 17, 2006

Iran, Iraq, Nigeria, and Oil

The price of Oil is over $65 per barrel, and Some expect it to set a new record over $73 per barrel of sweet Crude. Iran claims the right of retaliation with restraint of Oil exports if sanctions are imposed. Nigerian militants threaten attacks upon offshore Oil platforms, the IEA claims Oil demand is increasing in China and the U.S., and that OPEC countries have little capacity to expand Oil supples in the Short-term. The United States military is concentrated on occupation of Iraq, where Oil production will not return to normal pre-War levels without major concentration of economic capital. China may not present as great a Demand threat as thought, but development of the rest of the World will substitute in Demand. The United States must enter into a Energy Conservation program.

The Oil Executive administration of George W. Bush does not present creditability in the promotion of a Energy conservation program. Neither does the mouthings of a Liberal establishment which has did little on Energy conservation of the previous thirty years. The only element which might provide a creduleous statement would be the addition of taxation. The later ability holding the only restrictive power believed by American or Foreigner.

Suggested Taxes:

1) the previous Gas Tax outlined by this Author
2) a Flight Tax of $25 per individual and $7 per item of Cargo for all Air Transport.
3) a graduated Cargo tonnage Tax based on amount of tonnage shipped: Railroads being the lowest level of taxation, Road transport next highest, with Air Transport highest. The amount of tonnage in each Class will determine if your pay a 0.25% Tax, a 0.75% Tax, or a 2.0% Tax.
4) Business will be legally entailed with paying the Labor Transport Costs of Employees (this Author envisions a Bus system development similar to the School Bus system).
5) Federal law which will allow Law Enforcement to ticket with a $100 Fine any Single-Occupant vehicle over 250 miles from their listed Residence.

This heavy Taxation will seem too excessive, and to some degree, misapplied. The fact stands that American Business and Consumers will pay these funds as Oil expenses, if Energy consumption is not curtailed. lgl


tryingtolearn said...

I'm not to crazy about using tax policy to manipulate national energy strategy, but I think your head is in the right place regarding the need for drastic measures to reduce our nation's oil dependency.
I have faith the free market will create more energy efficient products, but only when the market dictates those products will be profitable. For all the troubles with oil producing parts of the world, oil is still prohibitively inexpensive when it comes to motivating the market to come up with any alternatives.
Unfortunately oil is not cheap enough to change the internal behavior of oil producing states. The $65+ price of oil gives more oppressive oil producing regimes plenty of revenue to buy off their populations and support a security infrastructure necessary to remain in power.
Like I said, I'm not wild about the tax idea, but I don't know if there are too many other options...
I've taken the opportunity to read some of your previous postings and I have to say I enjoy how you write and the points you make. Keep up the good work! And if you have a few minutes, take a look at my blog if you get the chance.

Be well

tryingtolearn said...

By the way...My blog is