The fall in oil prices is good for the economy short term and long term. Would we be happier if the price per barrel went back up to $150?
With the presidential campaign riveting national attention, both parties should commit to a twin strategy:
1) Substitute domestic oil for foreign sources to the fullest extent possible. That means, of course, we must drill drill off-shore without delay. It is still profitable to drill at the suddenly lower prices and doing so will reduce our dependence on foreign oil. It would be folly to drop the subject now as we have in the past when prices fell. Oil exploration is not something you can start and stop according to the vagaries of politics.
2) Link the exploration policy with a concurrent policy of conservation, including hybrid cars, tax credits for heating insulation, a serious national passenger rail program and other realistic measures, including alternative fuels. Push hard on new, safe nuclear energy and stop the costly and environmentally counter-productive emphasis on ethanol (except for promising new technologies such as algae.)
Combining these strategies makes good sense economically, politically and militarily. There is no good reason why conservatives and liberals should not be able to join together on this. Can we please have some leadership from our "leaders"?
