Wednesday, June 11, 2008

McCain Predicts Continued High Gas Prices

http://news.yahoo.com/s/ap/20080611/ap_on_el_pr/mccain_gas_prices

Gas prices will remain high and probably will even rise, predicted presidential contender John McCain in an interview on NBC's Today Show.
"I don't think it's going much lower, and it could go higher," McCain said during the interview ."I don't think so, not when you've got a finite supply, basically, and a cartel controlling it.
McCain explored some interesting ideas during the interview, such as making the oil companies share some of their windfall profits with consumers. He also suggested that oil companies participate in research and development on reducing our dependency on foreign oil.
"The point is, oil companies have got to be more participatory in alternate energy, in sharing their profits in a variety of ways, and there is very strong and justifiable emotion about their profits," McCain said during the Today Show interview.
Although it was the Republicans in the Senate who shot down a tax on the windfall profits of the oil companies, McCain himself has shown a flexibility of thinking that should serve him well in the general election. He suggested a summer holiday on federal gasoline taxes to provide needed relief from skyrocketing gas prices. Although this might provide temporary relief, it would not likely address the root causes of volatile gasoline prices.
A multifaceted attack on America's energy dependency problems should include finding new sources of fossil fuel within our borders. It should also include developing new combustible energy sources from agricultural waste to urban garbage. Wind and solar power are renewable resources that can and should be developed .
Although the oil companies should participate in solving our country's dependency problems, it is probably wise that research and development should be independent of the oil companies . For example, an electric car with solar paneling and a plug recharger could be expected to cut into gas sales. It is reasonable to anticipate that a gas company would be loathe to compete against itself by designing cars that are largely or completely gas free. We do not want a situation to arise where oil companies buy up patents for energy saving inventions and then end up locking the blueprints in a safe. For this reason, a financial base should be organised for an energy revolution in which oil companies and gas refineries do not have a controlling interest.
The government can not itself come up with the long term solutions to these problems, but it can create the tax and regulatory climate in which progress is likely to occur.
There are a lot of people who stand to profit from the current spike in crude oil prices. Oil companies, and governments abroad who would like to tilt the American election elections have an interest in promoting high gas prices. The oil companies do not need to be punished, but they should be watched.
If we treat the current rise in gas prices as a wake up call, our country can emerge stronger from our current difficulties. The solutions to our difficulties are readily apparent. Allowing the profit motive to spark human initiative can accomplish a great deal. A presidential campaign year is a good time to push a lot of constructive ideas. The best candidate will not have all the right answers. But he should have the right questions. Sphere: Related Content

1 comment:

avrahamsonenthal said...

I think that McCain does not have a clue as to how the market works. Moreover, didn't he just get through criticizing the Democrats for calling for a gas tax holiday?