It’s in our nature as a people to know what we’re talking about and be able to tell others what we know. We like to brandish our knowledge the way our ancestor Caveman Bob paraded a freshly killed boar before his friends and neighbors.
We are also, as a rule, lazy. Don’t get me wrong – this isn’t our fault, exactly. Do you think Caveman Bob travelled one foot farther than necessary to snuff his quarry? Doubtful.
So what are our options? Politicians, especially during campaign season, are especially available. They are omnipresent on TV and the internets, not to mention print. And they are so darn smart. Really, Senator McCain? Drilling offshore and in ANWR will bring gas prices back down? Immediately? You’re my guy. Oh, hang on. Senator Obama? McCain’s full of shit? Oil exploration will have no effect for 10-20 years? I knew it. You’re my guy. I think.
You can also listen to the pundits – pick one. Right-leaning? Drill! Left? Save the Arctic Wolf!
What about the dot orgs? Surely they answer to no one. But try to find one that doesn’t drip with parsimony and it’s own fundamentalist agenda. Seriously. Try to find one. Then send it to me.
As Winston Churchill said, “When we don’t travel very far for our knowledge, we gets us some shitty knowledge.”  He didn’t really say that, but he should have. Bob the Caveman could probably walk 10 feet out of his cave and kill a rodent for a meager supper. But if he wanted to sustain himself, he would have to travel farther afield. And so we must.
A few months ago, I tore through a book called Freakonomics: A Rogue Economist Explores The Hidden Side of Everything. It got me thinking. Would an economist be able to help us understand this? Check out this bit of light reading to help bring your blood pressure down. Steven Levitt, Freakonomics co-author, also has some interesting thoughts on gas prices (grain of salt, please).
(Sidenote: Don’t let the above paragraph convince you for a second that I don’t believe there’s a problem. In fact, I read a great article in the Star Trib a couple weeks ago that I heartily agree with, and to which my best friend Jake was kind enough to provide a link.)
The most recent culprit implicated in rising oil prices has been the Speculator. A speculator is just an investor who essentially bets on whether oil prices will rise or fall. In our case, these investors have been betting that the price will go higher. But they never buy a drop of real oil. The idea is that prices go up when speculators bet on high prices because oil producers are more likely to hoard their supplies in anticipation of higher future prices. However, there isn’t evidence that this is happening. Paul Krugman, in a NY Times opinion piece, compares the rise in oil price to that of iron ore:
… iron ore isn’t traded on a global exchange; its price is set in direct deals between producers and consumers. So there’s no easy way to speculate on ore prices. Yet the price of iron ore, like that of oil, has surged over the past year… the price that Chinese steel makers pay to Australian mines has jumped 96 percent.
The free market has a lot to do with the price of oil. I agree that oil producing nations control the flow of oil, and price is a function of supply and demand. That being said, it’s hard to argue against the idea that conservation is needed in order to guarantee our continued high standard of living. Do we really believe that the U.S. could control itself if gas dropped back to $2 a gallon? Within a week we would all be road-tripping to the opposite end of the country in our brand new Hummers, amnesia of our recent pain promptly and reliably kicking in.
So, what’s the point? The point is, both our Still-President and LifeAfterTheOilCrash are probably oversimplifying things.  Fundamentalist ideas are low-hanging fruit; easy answers for a time-starved populous. A Star Trib editorial today summarizes the debate neatly. The last paragraph is a cool clear glass of common sense.
Rice University expert Kenneth Medlock has it right when he states that the nation needs a “portfolio” of solutions as it shifts to renewables. Nuclear energy and what may be the most potent tool of all — conservation by consumers — should all be part of a countrywide conversation on energy as the presidential election draws near. Offshore drilling isn’t a panacea, but its potential role in the nation’s transitional energy portfolio deserves thoughtful deliberation.
Discuss.