Opportunity 08: Independent Ideas for America's Next President

Chapter 7: Ending Oil Dependence: Protecting National Security, the Environment, and the Economy

SUMMARY Plug-in hybrid engines, biofuels, and other technologies can help end the United States’ oil dependence in a generation. Doing so would provide important national security and environmental and economic benefits. A broad political consensus and game-changing technological advances create the conditions for dramatic change. Yet presidential leadership and robust policies will be needed. There are no simple or short-term solutions. The next president should —transform the auto fleet with federal purchases of plug-in hybrid vehicles, tax incentives for the purchase of plug-in hybrid vehicles, a fund to help automakers invest in fuel-saving technologies, and automatic annual increases in fuel economy standards; —transform the fuel supply by requiring oil companies to retrofit gas station pumps for ethanol, increasing support for cellulosic ethanol, adjusting the ethanol subsidy as oil prices rise and fall, phasing out the ethanol import tariff for producers that meet social and environmental standards, and establishing a low-carbon fuel standard; —improve traffic with measures to promote telecommuting and mass transit; 80 Ending Oil Dependence Protecting National Security, the Environment, and the Economy DAVID SANDALOW 7 This chapter is partly based upon David Sandalow, Freedom from Oil (McGrawHill , 2007). Ending Oil Dependence 81 —invest in research on advanced energy technologies; —transform oil diplomacy by focusing on fuel efficiency in consuming nations, not just on additional supply; —establish an “oil addiction index” to stimulate and track progress. Previous efforts to address oil dependence have failed for lack of ambition . The widespread focus on oil imports has obscured a more fundamental problem—the near-total reliance of our transportation sector on oil. To solve the problems created by oil dependence, we must give drivers a choice between oil and other fuels. CONTEXT Large majorities of Americans agree that oil dependence is a serious problem. National security hawks raise alarms about vast sums sent to the Persian Gulf. Environmentalists warn about global warming. Farmers see new fortunes in a transition to ethanol. Consumers cry out when oil prices rise. Politicians as different as President George W. Bush, Senator Richard Lugar (R-Ind.), Senator Tom Harkin (D-Iowa), and Democratic National Committee chair Howard Dean all call for an end to Americans’ oil addiction. Yet today, oil provides more than 96 percent of the fuel for our vehicles , barely different from a generation ago. Oil use continues to climb in the United States and around the world. Meanwhile game-changing technologies are moving closer to market, propelled by considerable investor interest. Plug-in hybrid engines and biofuels could reshape the transportation sector. In the years ahead, a confluence of factors—political, technological , and financial—will create an opportunity for transformational change. With sustained commitment, the next president can help end the United States’ debilitating dependence on oil. THE OIL PARADOX First, a question: How did a product so widely used become so widely resented? Oil is a high-energy-content, easily transportable fuel. Infrastructure worth trillions of dollars is already in place to convert it into services that people want around the world. Oddly perhaps, this extraordinary success lies at the heart of the problem. Oil’s dominance as a transportation fuel is so total; it shapes relations among nation-states. Oil’s reward is so rich; it shapes entire 82 DAVID SANDALOW economies. Oil’s emissions are growing so rapidly; they are warming the planet. Call it the “oil paradox.” Oil’s enormous success creates epic problems . Because we depend so completely on oil, we devote extraordinary political and military resources to securing it and at staggering costs. We empower oil-exporting nations that wish us ill. We pour vast quantities of heat-trapping gases into the atmosphere each year. The solution to these problems would appear straightforward— develop substitutes for oil and use less of it. Yet the challenge is immense. Oil’s near-total dominance as a transportation fuel is the result not only of its inherent properties but also of a century of favorable government policies, deeply ingrained cultural patterns, and huge infrastructure investments (in pipelines, service stations, and conventional vehicle manufacturing facilities). Three facts underscore the challenge: —Modern vehicles depend almost completely on oil. If you are thirsty and do not want a soda, you can drink water or orange juice. If you would like to relax and do not feel like watching a movie, you can watch television or read a book. But if you want to travel...