This New York Investment Firm sent this letter to President Bush, advocating a change in US energy policy and taxes. Alger’s proposal makes sense:

“Beginning in 2008, any car or SUV that cannot meet a fuel efficiency standard of 30 miles per gallon will have to pay a tax of $1,000 per year.” And the tax could generate “as much as $200 billion in revenue” in its first year, and “may increase in subsequent years,” the letter says. The money management firm says that one of the biggest issues for Americans is the soaring price of gasoline and that the prospects for lower gas prices are not likely due to increasing demand from U.S. consumers, as well as soaring demand from nations such as China and soon from India. Alger asked President Bush to set a national goal of cutting gasoline consumption in half over the next 10 years. This, they say, needs to be adopted quickly in order to reduce America’s dependency on Middle Eastern oil, which “allows U.S. motives to be questioned, fairly or not. Reducing gasoline consumption and increasing our energy independence will enhance not only our economic and military security but also ensure that the legitimacy of our foreign policy is not undermined by our energy needs.”

Read the enter document [278K PDF]

Excellent article by Robert Collier on Wyoming’s natural gas boom, and the inherent environmental tradeoffs.

John Cassidy:

Although the Democratic and Republican energy plans differ widely, their underlying rationale is the same. In 2003, the United States consumed some twenty million barrels of oil a day, of which slightly more than half was imported from abroad, much of it from the Persian Gulf. By 2020, according to the Department of Energy, domestic oil producers will be meeting less than a third of United States needs, and the Gulf countries will be supplying up to two-thirds of the world?s oil. ?This imbalance, if allowed to continue, will inevitably undermine our economy, our standard of living, and our national security,? the Bush Administration?s National Energy Policy Development Group warned in a May, 2001, report. ?But it is not beyond our power to correct. America leads the world in scientific achievement, technical skill, and entrepreneurial drive. Within our country are abundant natural resources, unrivaled technology, and unlimited human creativity. With forward-looking leadership and sensible policies, we can meet our future energy demands and promote energy conservation, and do so in environmentally responsible ways that set a standard for the world.?

via Ed Cone
Read Daniel Yergin’s The Prize for an excellent “panoramic history of oil”.

The first statewide renewable energy referendum, which would require utilities in CO to purchase a percentage of their electricity from renewable sources, getting to 10 percent by 2015. Via Boing Boing.

T.R. Reid writes from Arizona:

“Some states have oil. Some have coal. Here in Arizona, we’ve got sun,” said Hansen, a vice president of Tucson Electric Power Co., as he squinted through heavy-duty sunglasses. “And now we’re using that resource to reduce our dependence on fossil fuels.”
On an utterly shadeless expanse of high desert plateau near the New Mexico border, Hansen manages America’s largest solar-powered electric generating station. It looks at first glance like a long, long row of windowpanes propped up to face the sun. In fact, each “window” is an array of photovoltaic cells that generate electric current when exposed to the light.

John Robb makes an excellent point:

The US is negotiating to launch a coastal security program for Nigeria. Wants access to bases for training and rapid deployment in case of a crisis. More “free” protection for oil companies. We need to find a way to allocate these costs so that they are incorporated into the price of oil. Currently, we spend $4-5 in naval protection for every barrel that is shipped from the Persian Gulf. Nobody pays for it but the American tax payer.

We’re also subsidizing the Europeans and all other net oil importers.