The
cost of gasoline is
rising again. The
average price reached
$1.72 a gallon last
week, just a couple
pennies below the
all-time record. Without
a turnaround in the
price of oil, which has
roared to a one-year
high of $38 a barrel, or
a magical increase in
refining capacity,
prices are likely to
rise higher still. This
means discomfort for
motorists and real pain
for truckers and
airlines. It also means,
this being an election
year, a certain amount
of political
grandstanding. If the
Senate's initial
response is any guide,
Washington will choose
short-term fixes over
the tougher long-term
solutions required.
The
Senate's response to
inflation at the pump
was an unenthusiastic
vote — 52 to 43 — to
divert millions of
barrels of oil earmarked
for the Strategic
Petroleum Reserve for
sale on the open market.
The House has yet to
concur while the
administration opposes
the idea, arguing that
it is more important to
fulfill
President Bush's
post-9/11 pledge to fill
the reserve to its 700
million-barrel capacity.
There's
nothing inherently wrong
with using the reserve
to help relieve market
pressures on a temporary
basis — President
Clinton tapped the
reserve for about 30
million barrels in 2000
to ease a shortage of
home heating oil in the
Northeast. But it should
be done sparingly. The
main purpose of the
reserve, after all, is
to provide backup supply
in a genuine national
emergency, and a price
spike is not a national
emergency. If we did,
for some reason, decide
to use the reserve to
drive down prices, it
would only work at the
margins and for a short
time. The reserves are
no match for the pricing
power of oil-producing
countries like Saudi
Arabia. The Persian Gulf
nations alone produce
900 million barrels a
year, half again of what
lies in the salt domes
of Texas and Louisiana.
A much
better way to strengthen
America's leverage, as
this page has suggested
before, is for the
United States to limit
its own consumption of
energy. There are many
ways to do that, but the
most straightforward is
to raise fuel economy
standards by significant
amounts. This is exactly
what the country did
after the oil shocks of
the 1970's, resulting in
huge savings in imported
oil.
Unfortunately,
memories are short in
the United States
Congress. The energy
bills that have passed
the House and await
action in the Senate not
only ignore fuel
economy. They also
encourage the unhealthy
fiction that a country
that uses about
one-quarter of the
world's oil but owns
just over 2 percent of
the world's reserves can
somehow drill its way
out of dependency. It
can't be done. Until the
nation faces up to that
fact, it will remain
dependent on a few
important producers, and
its economic and
strategic vulnerability
will continue.