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Thursday, June 12, 2008
Terry Jeffrey :: Townhall.com Columnist
The Threat to the Car
by Terry Jeffrey
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Was the Copenhagen Global Warming Summit Walk-Out a Win for the U.S.?


Artificially suppressing the oil supply is the most significant method government is using today to move people from a free market transportation system into a socialized transportation system.

In May, the Department of Interior estimated that U.S. territory contains about 139 billion barrels of undiscovered oil resources, much of it (85.9 billion barrels) off our coasts on the Outer Continental Shelf. Development of most of this oil is either forbidden or effectively prevented by federal laws and regulations.

Also in May, when the Federal Highway Administration released its monthly report on "Traffic Volume Trends," it revealed that Americans had driven 4.3 percent fewer miles in March 2008 than they had in March 2007. This was the fifth month in a row that Americans had driven fewer miles than they had in the same month the previous year.

"The March 2008 data," Federal Highway Administration spokesman Doug Hecox told me, "represent the sharpest single-month drop in vehicle miles of travel in the 66-year history that such data have been collected."

Are we at the beginning of a fundamental shift in the way Americans use cars? The lead article in Tuesday's Washington Post suggested this might be so. It was headlined, "Fuel Prices Challenge Cars' Reign," and relied partly on a survey of 43,000 American drivers released on June 9 by The NPD Group, which does market research for private industries.

The NPD survey showed that some Americans have indeed made changes in their lives because of historically high inflation-adjusted gasoline prices. According to a statement released by the company, 12 percent said they have cancelled a vacation because of the gas prices; 12 percent have carpooled; 8 percent have taken public transportation; 8 percent have vacationed closer to home; 6 percent have purchased a more fuel efficient vehicle, 6 percent have worked from home; 6 percent have worked closer to home; 4 percent have worked less; 3 percent have sold a less-fuel-efficient vehicle; 2 percent have moved closer to where they work; and 1 percent have purchased an electric or hybrid vehicle.

Hopefully, the 8 percent who have taken to socialized transportation represents a trend that can be reversed.

We should drill our own oil -- now. And, when the supply naturally diminishes to where prices drive the market elsewhere, American entrepreneurs must create another fuel whose production the government cannot readily curtail, and that keeps Americans driving where they want to, when they want to, in privately owned cars.

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About The Author

Terence P. Jeffrey is the editor-in-chief of CNSNews

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my point
Chip, I see your point in your 5:11 post from yesterday.


My first - and certainly debatable - point is that I do think that a little extra production domestically would greatly help the price of oil to come down due to being on the steep part of the price curve on the supply/demand chart and all that.


I think the reason I react strongly to posts like that, though, is that they proceed from a premise that the government can and should control prices.

I'm thinking of statements like the following:

-"Extra US produced oil would have to be reserved mainly for US consumption"

-"if the US seperated it's oil from the global market"


Every time government attempts to control price, it just messes things up. This is true whether it tries to prop up prices (like with food) or hold them down (like with fuel in the late 1970s).

So even if the U.S. threw off the tyranny of wacko environmentalists and developed enough oil production to meet all our demand (which is entirely possible), I think we would create more problems than we fix by isolating ourselves from the global market.

Chris
You seem to disagree with me, but I don't see your point.

Whatever the global market is,
assuming enough additional US coastal sites were made open to drilling to exceed US demand , exactly why don't you think the price of gas would not
always stay close to the drilling costs if the US seperated it's oil from the global market?

Wouldn't duties/taxes on US oil sold abroad whenever domestic oil is too high, say, a lot more than a typical defense contractor's profit margin, above extraction costs.


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