Obama Campaign Seeks to Make Oil Prices Irrelevant
Watching the news is a dangerous enterprise for those of us trying to maintain a clear picture of this election season’s most important issues. Despite all the chatter, it seems relatively obvious that our most fundamental problem is American energy policy, or more specifically: oil prices and our dependence on cheap energy.
If you buy that premise, which I’m prepared to debate elsewhere, then this election should really only be decided by one evaluation criterion: which candidate has a better plan to reduce our oil consumption, replace it with viable alternatives, and spur innovation and commercial development of new technologies (and a new green-collar economy)?
A quick survey of both candidate’s websites makes it fairly obvious (see the official stance of Obama and McCain). I’ll be comparing each candidate’s plan in more detail later on, but for now I’ve republished some of the main points from Obama’s campaign website, in order to highlight how he intends on dealing with oil prices and our dependence on them.
To assist in this evaluation, here are three important criteria. If we’re serious about transitioning away from petroleum as our primary transportation fuel, we’re going to have to hit it from multiple angles. It doesn’t seem totally unreasonable to estimate that each of these could account for 1/3 of our total fuel usage:
- Decrease consumption and improve efficiency (#8 & 9).
- Develop and rapidly commercialize alternative fuels and infrastructure (#1, 4, 5, 6, 7).
- Develop and rapidly implement new technology (#1, 2, 3).
Key elements of Obama’s plan:
1. Invest $150 Billion over 10 Years in Clean Energy with a focus on technology developed in the US:
This includes next generation biofuels and fuel infrastructure, commercialization of plug-in hybrids, development of commercial-scale renewable energy, low-emissions coal plants, and beginning the transition to a new digital electricity grid.
2. Double Energy Research and Development Funding:
Obama will double science and research funding for clean energy projects including those that make use of our biomass, solar power and wind resources.
3. Require 25 Percent of Renewable Electricity by 2025:
Establishing a 25 percent federal Renewable Portfolio Standard (RPS) to require that 25 percent of electricity consumed in the U.S. is derived from clean, sustainable energy sources, like solar, wind and geothermal by 2025.
4. Deploy Cellulosic Ethanol:
Obama will invest federal resources, including tax incentives, cash prizes and government contracts into developing the most promising technologies with the goal of getting the first two billion gallons of cellulosic ethanol into the system by 2013.
5. Expand Locally-Owned Biofuel Refineries:
Less than 10 percent of new ethanol production today is from farmer-owned refineries. New ethanol refineries help jumpstart rural economies. Obama will create a number of incentives for local communities to invest in their biofuels refineries.
6. Establish a National Low Carbon Fuel Standard:
Obama will establish a National Low Carbon Fuel Standard to speed the introduction of low-carbon non-petroleum fuels. The standard requires fuels suppliers to reduce the carbon their fuel emits by ten percent by 2020.
7. Increase Renewable Fuel Standard:
Obama will require 36 billion gallons of renewable fuels to be included in the fuel supply by 2022 and will increase that to at least 60 billion gallons of advanced biofuels like cellulosic ethanol by 2030.
8. Set America on Path to Oil Independence:
Obama’s plan will reduce oil consumption by at least 35 percent, or 10 million barrels per day, by 2030. This will more than offset the equivalent of the oil we would import from OPEC nations in 2030.
9. Increase Fuel Economy Standards:
Obama will double fuel economy standards within 18 years. His plan will provide retooling tax credits and loan guarantees for domestic auto plants and parts manufacturers, so that they can build new fuel-efficient cars rather than overseas companies. Obama will also invest in advanced vehicle technology such as advanced lightweight materials and new engines.
For more on Obama’s plan, see the Obama ‘08 campaign website.
More on Obama and Oil Prices:
- Poll: Americans Don’t Think More Drilling Will Lower Gas Prices
- McCain Credits Bush for Drop in Crude Oil Prices, White House Replies: ‘It wasn’t us.’
- Obama’s Plan to Reduce Foreign Oil Dependence : CleanTechnica
- Obama and Ethanol: Is it Just About Winning Votes?
- Price of Oil Has Department of Defense Looking to Save Fuel
- Popping the Oil Price Bubble : Red, Green, and Blue
- OPEC and Friends Want Oil Prices to Behave Like a Hot Air Balloon
- The Big Oil Company Scam : Red, Green, and Blue
Photo Credit: Obama ‘08
He’ll try and make prices irrelevant, alright…by trashing the free market and using the federal government to do something for which it was not designed to do. The idiot is only going to make it worse.
Is the free market defined by BILLIONS in corporate subsidies to corn growers, Monsanto and ADM, and the Oil Comapnies? If you want free markets, cut all subsidies to the OIL companies who are making record profits (as opposed to the ridiculous windfall tax. why are we punishing profits?)
I don’t know either candidates position but I see no mention a carbon tax or carbon trading system. That seems to be working in Europe and has worked with other forms of pollution in this country. Furthermore, why does the government need to subsidize some centralized solution. Wouldn’t it be better to use significant tax cuts to individuals who choose a green alternative? If you cut the price, people will opt for something that lowers their bills.
Clayton,
All of these plans are just platitudes. They’ve already been debunked as unrealistic at many sites around the web. Seriously, don’t buy the hype. We are screwed with regard to energy. Google peak oil sometime or visit The Energy Bulletin/The Oil Drum. You might learn something instead of listening to a parrot.
Ech
@Thomas:
Examples? I just listed 9 specific things he say’s he’s going to do to reduce our dependence on petroleum.
Worse? Define worse please…
@Echelon,
I have a few things to say to that:
First, I’ve come to terms with gloom and doom scenarios, having been bombarded by them in the past. If we’re really screwed and it doesn’t matter than we either have to a) give up or b) try to fix it.
I’d rather choose b), but I’m not going to judge anyone that chooses a).
Second, I’m well-versed in peak oil theory and I’ve already visited both those sites many times. That’s the whole point here: as oil creeps (or surges, who knows?) towards economic depletion (translation = get’s more expensive), our whole system is going to falter.
Third, if all we’ve got to go on are platitudes, than I’m going to choose the platitudes that
are the most reasonable and come from the candidate that seems the most trustworthy, because apparently I have nothing else to go on?
Fourth, you do have something else to go on. I didn’t want to list it all here, but this is a
sample of news in the last 6 months that shows how much potential we have to move away from petroleum:
http://gas2.org/2008/03/14/switchgrass-could-displace-30-of-us-petroleum-usage-with-94-ghg-reduction/
http://gas2.org/2008/03/25/how-solar-panels-could-power-90-of-us-transportation/
http://gas2.org/2008/03/29/first-algae-biodiesel-plant-goes-online-april-1-2008/
http://gas2.org/2008/07/28/aptera-electric-car-closer-to-production-after-cash-infusion/
“9. Increase Fuel Economy Standards:
Obama will double fuel economy standards within 18 years. His plan will provide retooling tax credits and loan guarantees for domestic auto plants and parts manufacturers, so that they can build new fuel-efficient cars rather than overseas companies. Obama will also invest in advanced vehicle technology such as advanced lightweight materials and new engines.”
Ha, according to T Boone Pickens, GM currently makes 19 alternative fuel vehicles that they sell overseas. Why haven’t they offered American comsumers that option? Why should they when they can get more of our tax dollars if they just wait?
As far as ethanol is concerned, do you know how much water it takes to produce it? Water is our most precious commodity. Ethanol is not the answer.
@Di:
I’m not sure I would cite T Boone Pickens as a source for specific numbers, but he may be right. In any case, 50% of GM’s US fleet will be Flex-Fuel by 2012, meaning able to run on an 85% ethanol/15% gasoline blend (http://gas2.org/2008/01/16/gms-grand-plan-for-solving-americas-oil-dependence/).
Ethanol from corn is not the answer, that’s why there’s such an enormous focus on moving to non-food cellulosic sources of the fuel.
I really like Obama’s plan of increased ethanol. It’s a clean, renewable, American source of energy. Clayton — I saw a comment about switchgrass ethanol on your blog. That’s pretty cool that GM is embracing the wave of the future for energy.
… by the way it is the free market economy approach that has got the world into this pickle in the first place by NOT factoring in externalities like future generations and the other species we share the planet with. Try reading about the Tragedy of the Commons to see where narrow minded profiteering and corporate greed get you: http://en.wikipedia.org/wiki/Tragedy_of_the_commons
The time has come for government to intervene on the worst economic failure in mankind’s history…. because the free market has screwed the whole shebang up. We need a paradigm shift. So I support any candidate that recognises that things need to be done a little differently!
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