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Dec. 3, 2008
Steven Emerson: Yes, the terrorists are winning
Don Terry: Lifetime, no see
Dec. 2, 2008
Melanie Phillips: The Mumbai atrocity is a wake-up call for a frighteningly unprepared world
Stratfor Geopolitical Intelligence Report: Strategic Motivations for the Mumbai Attack
Dec. 1, 2008
Max Freidlander, as told to Jacklyn C. Wadler: India Inkings
Mark Steyn: Whodunit!?
Nov. 28, 2008
Rabbi Ahron Rapps: An evil seed that didn't have to be
Melanie Phillips: Carpe diem --- or can we all relax now?
Nov. 26, 2008
Michael Feldberg: Meet the Orthodox Jew who laid groundwork for scientific development of ordnance that undergirds America's current world leadership
Andrea Simantov:
Shades of life
Nov. 25, 2008
The Jewish Ethicist
by Rabbi Dr. Asher Meir : Getting Emotional For Influence
The Kosher Gourmet
by Ethel G. Hofman : Thanksiving feast!
Nov. 24, 2008
Rabbi S. Binyomin Ginsberg: 'I just Became a grandchild!'
Barry Rubin: Don't flatter your enemies, protect your friends
Nov. 21, 2008
Rabbi A. Henach Leibowitz: Money matters?
Caroline B. Glick:
Civilization walks the plank
Nov. 20, 2008
Rabbi Avi Shafran: Bronfman's blindness
The Kosher Gourmet
By Linda Gassenheimer: Portobellos add a hearty flavor to pasta with pesto
Nov, 19, 2008
The Jewish Ethicist
by Rabbi Dr. Asher Meir : Spread the wealth? Jewish tradition and income equality
Elliot B. Gertel:
'Mad Men': Tackling prejudices or reinforcing them?
Nov, 18, 2008
Dr. Debby Schwarz Hirschhorn: The End of the Age of Reason
Jonathan Tobin: Does Barack + Bibi = Disaster?
Nov, 17, 2008
Rabbi Yonason Goldson: The End of the Age of Reason
Diana West: Gulling Americans into making terror legit?
Nov, 14, 2008
Rabbi A. Henach Leibowitz: The Power of Spiritual Inertia
Caroline B. Glick: The perils ahead
Nov, 13, 2008
Stratfor Intelligence Briefing: How Bush and Obama together could change the Middle East dynamic
The Kosher Gourmet
by JeanMarie Brownson: Sweet and savory, crispy and meltingly tender bestilla
Nov, 12, 2008
The Jewish Ethicist
by Rabbi Dr. Asher Meir : Tyrannical Co-Workers
Michael Doyle: High Court to consider today donated monuments that may have religious messages in public parks
Nov, 11, 2008
Frank J. Gaffney, Jr.: Will Obama stop government officials considering institutionalizing financial jihad?
Jonathan Tobin: They Will Decide Their Own Fate
Nov, 10, 2008
Rabbi Avi Shafran: $8 billion, modern-day Tower of Babel being built?
Barry Rubin: A letter to the president-elect from a Middle East realist
Nov, 7, 2008
Rabbi Francis Nataf: Of Children and Immortality
Caroline B. Glick: Livni's Obama strategy
Nov, 6, 2008
Rabbi Yonason Goldson: How I tricked a classroom of apathetic students into grasping the fallacy of moral relativism
The Kosher Gourmet
By Gina Kim: Tips for making the perfect soup --- includes recipes
Nov, 5, 2008
The Jewish Ethicist
By Rabbi Dr. Asher Meir: Destitute Debtors
Bruce Weinstein: 'Religulos': Bad title,even worse movie
Nov, 4, 2008
Frank J. Gaffney, Jr.: Treasury Dept. submits to Shariah law
Frida Ghitis: A surprise for Obama in the Middle East
Nov, 3, 2008
Jonathan Rosenblum: Who says Jews are Smart?
Jonathan Tobin:
Was He Wrong About Everything?
March 22, 2007
J-Rhythms with Avraham Rosenblum: JWR's cutting-edge music program showcasing performers -- singers, song writers, musicians, and bands -- who learn and live the Torah lifestyle (OUR NEWEST IGODCAST !)
Oct. 29, 2003
Mortimer B. Zuckerman: Graffiti On History's Walls (MUST-READ!)
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Jewish World Review
April 29, 2005
/ 20 Nisan, 5765
Bush's energy outage
By
Rich Lowry
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http://www.JewishWorldReview.com |
President Bush said the other day that he wishes he could wave a magic wand and make gas prices go down. That sounds like a plan that would almost be as effective as his misbegotten, long-languishing energy bill. Bush relentlessly touts the legislation as a potential salve for high gas prices, but it won't be, because it runs afoul of a force with which Bush should be familiar the free market.
Bush's latest proposal is to allow oil refineries to be built on former military bases. This is clever, since the bases are isolated away from immediate neighbors who might object to refineries and no one knows what to do with them otherwise. Why hadn't anyone thought of this before? Because no one wants to build refineries on military bases.
Bush argues that regulations and community opposition have kept any new refineries from being built since 1976. But the refinery industry has been upgrading existing refineries that are conveniently located near oil terminals and pipelines (and, notably, not on military bases). In contrast, the expense of building a new refinery is a risk in a highly competitive business with narrow profit margins. In other words, it doesn't make economic sense. Ain't the market inconvenient, especially for a politician trying to "solve" high gas prices?
Take nuclear energy. Bush is touting incentives for energy companies to build more nuclear power plants, something that hasn't happened since the 1970s. He cites bureaucratic roadblocks to building plants, but the main obstacles have been economic. Financing a new nuclear power plant is a massive, risky investment. It's much safer to build relatively cheap, smaller oil-fired plants, which technology through the years has made as efficient as large-scale plants.
Then, there's the Alaska National Wildlife Refuge (ANWR). Allowing drilling there is the most controversial part of Bush's energy plan. Overheated environmentalists claim it will despoil pristine wilderness. Actually, ANWR is a vast, desolate bog. But put that aside. ChevronTexaco, ExxonMobil, BP and ConocoPhillips all have backed off their support for drilling.
Let it never be said the administration is slavishly beholden to Big Oil. The proceedings of Vice President Dick Cheney's notorious energy task force might have gone something like this. Cheney: "We want to drill in ANWR." Cigar-chomping oil executive: "Mr. Vice President, there might not be as much oil there as first thought, and when you consider the costs of drilling through permafrost and the long distances involved, it probably makes no economic sense." Cheney: "Well, tough."
The main backers of drilling are the state of Alaska, which will get oil royalties; unions, which will get jobs; and conservatives for whom sticking it to hyperventilating enviros is a matter of principle. But oil companies aren't in the mix. "If the government gave them the leases for free they wouldn't take them," an administration official recently told The New York Times.
The rest of Bush's energy bill is a grab-bag of subsidies for new technologies for "clean" coal, fusion energy, hydrogen-powered fuel cells, etc. that are likely dead-ends, or the people interested in developing them wouldn't be so needful of the federal teat. The reason that gas prices are up now is supply and demand. Economic growth around the world, especially in China, is creating more demand. Eventually, the market will adjust. High prices will force people into more fuel-efficient cars, thus relieving demand and the upward pressure on prices.
That's how the market works. As energy expert Jerry Taylor of the Cato Institute points out, the Bush administration first came up with its energy bill in 2001, when the California energy crisis prompted predictions of electricity shortages and skyrocketing prices everywhere. The energy bill never passed, but investors moved to capitalize on the high prices by building more generating capacity, creating a current glut in electricity supply. Bush can either wait for the market to take hold again, or try waving that magic wand.
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Rich Lowry Archives
© 2005 King Features Syndicate
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