Dependence on Foreign Oil

From: Small Business & Entrepreneurship Council.

Dependence on Foreign Energy

by Raymond J. Keating

"Politicians love to talk about ending U.S. dependence on foreign sources of energy. In fact, it's a bipartisan mantra.

That most certainly is the case out on the presidential campaign trail. In Iowa this week, for example, Republican candidate Rudy Giuliani took the pledge, if you will.

The Associated Press reported, "Republican presidential hopeful Rudy Giuliani argued he can lead the country away from reliance on foreign oil with increases in ethanol production and nuclear power. On a visit to Iowa, the leading ethanol-producing state, Giuliani called for more ethanol plants and new nuclear reactors, oil refineries and transmission lines. Presidents going back to Richard Nixon have promised energy independence, ‘and we haven't made much of a real dent in getting there.'"

The AP account also noted: "Giuliani said he supports the 51-cent-a-gallon tax credit created by Congress to encourage growth of the ethanol industry: ‘I agree with subsidies for energy independence,' he said. The tax credit expires in 2010. Besides expanding nuclear power and renewable fuels like ethanol, Giuliani also called for more clean coal technologies, more clean-burning natural gas, environmentally safe drilling for oil and natural gas in North America and new technologies like hybrid cars and hydrogen fuel cells."

Does any of this make economic sense? And do or would such measures actually reduce U.S. dependence on foreign energy sources in any substantive way?" Continue reading.