We Need To Solve The Oil Crisis–Now

I am writing this column against the advice and wishes of my editor [at Forbes], because I believe that America is in danger and we must do whatever it takes to save the country. My recommendations about keeping oil prices under control may not be great ideas–or even good ideas.

My point: As a nation, we need to start thinking about the problem and preparing ourselves to take drastic steps if necessary.
I have not heard any of the presidential candidates get serious about rising oil prices, and I was disappointed in Sen. Hillary Clinton, who made fun of President Bush because he could not convince the Saudis to pump more oil. She implied that she could. How? Frankly, I think it is a bit foolish to push others to step up drilling when we will not drill for oil in new fields in icy Alaska.

Maybe we will be back to $80 a barrel or even cheaper by next week. On the other hand, I am deeply concerned about what would happen to our economy if oil goes to $200 a barrel.

Think of it for a moment. Not only would American motorists be paying much more at the pump, but bills for home heating, air conditioning and electricity would double. Oil at $200 a barrel would push up the price of every good and service–from food, airfares and shipping costs to plastic containers, apparel and asphalt. Under such circumstances, I would expect to see the government embark on a massive program of energy subsidies.

Our currency is another problem, as countries currently pay for oil in dollars. When the dollar declines, sellers want more dollars to make up for the loss in its value. We are already hearing rumblings from oil-producing countries about accepting payment in another currency, such as the euro.

All I can do is throw out some thoughts and ask everyone–especially those aspiring to be president–to start thinking about this problem.

Forbes