"Independence of energy" is an idea that has been kicked for a long time. In 1973, Richard Nixon first brought up an American idea that did not rely on energy during the Arab oil embargo, which brought about price increases, gas line extension, and speed limitation declines. It seemed reasonable at the time. The Arab world punished us for their loss during the Yom Kipl war with Israel. It was logical to rule out our domination of energy production. Eventually I imported about 35% of the oil from the Middle East.
Since then, all presidents have offered lip service to the concept of energy independence, have you noticed that it has not been improved further? In fact, from Nixon 's first hypothesis, we have increased dependence on foreign oil. We currently import more than 60% of oil every year, pump price goes much higher than going down. In other words, we have a kind of "energy crisis" for 35 years because of diplomacy, environmentalism, real politics, negligence of industry, inertia of consumers and so on. problem.
True alternative fuels are promising like ethanol and we are making better use of wind and solar power. Hybrids, electricity, fuel cells and bio-diesel vehicles are gradually evolving to the market, and the president is initiating an initiative to increase the CAFÉ standard by 20 miles per gallon over the next decade. We are improving the way we use recycling and energy efficient equipment. All of it is wonderful, but most of these efforts rely on emerging technologies, and none are dealing with existing problems. Energy price can not be controlled, it is the most vulnerable sector of the economy, this is a small business.
In 2006, the former US $ 76 per barrel, the US House Small and Medium Business Committee, Impact of rising energy costs on small and medium enterprises . It is an interesting reading for small businessmen. The conclusion of the report is as follows:
The influence from the perceived state and the actual state of energy supply is important. [July, 2006] The Federal Reserve Chairman (FRB) chairman predicted that higher energy charges will cause some inflation in the economy. He cites the cumulative impact that rising energy prices will limit consumption by consumers and businesses and deliver costs to others. Industry in the U.S. also shows signs of deflation due to energy problems. Last month the manufacturing index of growth was the lowest month-on-month. Industry experts believe that energy costs are also affected by inflation such as rising interest rates as obstacles to expansion.
Under the influence of the energy crisis such as inflation and slowing economic growth, these companies restrict their businesses while limiting their investment and expansion plans to curb rising production costs. In the face of increasingly inequitable competition, extreme fluctuations in energy prices only lead to greater financial burden and business confusion for small and medium-sized enterprises, compared to corporate counterparts.
The current energy crisis is one of a series of challenges recently attacked by small and medium enterprises. These companies are rising in cost from various aspects of the enterprise, especially from health care, pension, regulatory requirements, etc., and the main resources are exhausted. In addition to these demands, energy influences the entrepreneurs' human beings, capital and raw materials. As these circumstances continue, the economic environment will become increasingly severe for SMEs and entrepreneurs in this country . ( Impact of rising energy costs on small and medium enterprises, SME Committee, US House of Representatives, August 2006)
Is this sound familiar to everyone? Given the fact that SMEs have the lowest ability to absorb high energy costs and dominate many energy intensive industries, The energy crisis is exploiting the profit margins of SMEs from various sources. Therefore, for companies of large enterprises that can provide facilities and technology to reduce energy use through economies of scale, they are in a competitive disadvantage. Companies with more capital and production resources negotiate favorable prices for input from suppliers and maintain a greater capacity to manage the price of products sold. In other words, large enterprises can escape this storm more easily than small business. There is no surprise there. Sometimes size is important. Still, the pinch you and your business felt today is bought to raise the predicted hackle two years ago! What is the number of SMEs that had to be trapped behind the energy policy (or lack thereof) we had?
Since business closure is usually the result of many factors, this can not be easily judged. However, it is not certain that energy cost will become noticeable if such number of closures is high. It is obvious that the presidential candidate 's current crop seems to have no real plans for doing something stupid about this problem.
With him Plan for clean energy future Barack Obama is more interested in climate change than energy independence and gas price decline. Looking at his campaign website BarackObama.com, his platform needs to reduce carbon emissions by 80% by 2050. A $ 150 billion research and development effort for 10 years to find an alternative to "clean energy" including biofuels, renewable energy, clean coal technology. Next-generation biofuels, low carbon fuel standards, support the increase of renewable fuels by 2030. We will reduce fuel consumption by at least 35% by 2030, further improve fuel efficiency standards and double in the next 18 years. Finally, he hopes to improve energy efficiency by 50% by 2030 and return the issue of climate change to leadership position.
There is nothing in this plan that we can not agree with, but that is all good ideas and we need to proceed in the future. Is this technology and new technology being tried? If the plan is dependent on things that have not yet been completed, the plan has serious flaws. Of course, the main obstacle is that there is nothing to deal with the problem we are facing now. Perhaps his opponent will do better:
According to her campaign website (HillaryClinton.com) Hillary has a bold and comprehensive plan to tackle American energy and environmental challenges, establishing a green and efficient economy and creating 5 million new jobs . How nice! What would she do? Here is an overview:
- A new cap and trade program that auctions 100% of the permit alongside the investment to move us in a direction that is independent of energy.
- Reduce the power level by 20% from the predicted level by 2020, such as changing business method of electric power company, catalyzing green building industry, establishing efficiency standard of strict home electric appliances, gradually abolishing incandescent light bulb, etc. by 2020 Aggressive comprehensive energy saving agenda to.
- A $ 50 billion Strategic Energy Fund, an oil company pays to partially invest in alternative energy. The SEF plans to cover one-third of the $ 1 billion investment in the future of new energy included in the plan.
- Doubling Federal investment in basic energy research including funding for a new research institution ARPA-E modeled on the success of the Department of Defense Advanced Research Planning Organization
- Renewable energy that generates 25% of electricity by 2025 and aggressive action to shift the economy towards renewable energy, which makes 60 billion gallons of biofuels for private use by 2030.
- 10 "Smart Grid City" partnership to prove the advanced capabilities of smart grid and advanced demand reduction technology, new investment in plug-in hybrid vehicle technology.
- To help US automakers remodel the factory to meet the standards, by 2030 an increase in fuel efficiency to 55 mpg and a $ 20 billion "Green Vehicle Bond"
- Plan to catalyze the prosperous green building industry by investing in green collar work, modernizing 20 million low-income households, and helping to increase energy efficiency.
- A new "Connie Mae" program that low- and medium-income Americans can purchase green houses and make it easy to invest in green house improvement.
- The requirement that all listed companies report financial risks due to climate change in the annual report submitted to the Securities and Exchange Commission. And
- Establish "National Energy Council" in the White House to ensure implementation of the plan at the executive branch.
- All federal buildings designed after January 20, 2009 are required to become a zero emissions building.
OK, more emphasis is placed on new technology and economic environment. Again, none of these are mistakes Itself , High mileage standards and renewable resources are wonderful, is something on this list addressing the problem at hand? Do you deal with the core issues facing the United States as energy laws are incorporated using existing technologies? Will they lower the huge pump price we are all paying today? No they will not. Perhaps, we will have to see what the other end of the political spectrum of America can offer across the aisles.
John McCain has a net but offers a comprehensive energy plan. But his remarks, statements, proposals have some insight into Senator's views on energy and the environment. Here are some of what he mentioned:
- A cap-and-trade system to reduce carbon dioxide emissions by 30% from the 2004 level by 2050.
- Economic incentives for the construction of new nuclear power plants and communities that operate nuclear waste reservoirs;
- Research and development of new energy technology
- Cooperate with China to share clean coal technology.
- Development of a method for decomposing carbon dioxide into useful components.
- Exploration and extraction of new fossil fuels;
- Plug-in and battery-powered electric, hybrid fuel - development of electric and hydrogen fuel cell vehicles.
- Support for alternative fuels such as biodiesel from ethanol and waste from various crop sources.
- Promoting the development of energy products that can compete in free markets Support for government expenditure on research and development, pilot projects and other initiatives
- We support improvement of fuel economy. At one point McCain backed up driving the vehicle's fuel economy to 36 mpg by 2016.
- Permanent tax deductions that companies can use for research and development.
I think this is good and there are long-term prospects and solutions for shooter terms, but this is gathered from a number of statements, statements, and positions that McCain made as both senator and presidential candidate So, how does his final energy plan work? Although it is certain that the cap and trade system will lead to higher costs (the Environmental Protection Agency estimates that McCain's proposal will add $ 0.68 per gallon by 2050) McCain's proposal, It can be thought of as working with today's resources and technology. Unlike other candidates in the Okay office, McCain is looking at energy as a security issue. Much of the money we spend on foreign oil is sent to the terrorist organization. In a sense, we are funding both sides of the Iraq war! McCain understands that this must at least stop and must stop immediately. Building a nuclear reactor using domestic oil fields while engaged in research and development provides a reasonably short-term solution to the current problem and is truly realized for long-term energy problems It is a wise way to be able to find possible answers. We are facing.
Will one of these positions become a law? One of the three will have to convince Congress that their plan is correct. Stakeholders, vested interests, lobbyists, and other obstacles are on the way for good and evil, but that is the nature of our government system. But it is not there yet. We still have nomination candidates and elections. How these candidates approach energy issues will have an impact over the next few years. This is as important as tax, defense, gun control, or other hot political issues we face this year.
In this blog you can tell me who will vote, but please consider how your position affects your life before casting your support behind a single candidate . As an owner of a small business, there is no voter of a regular ticket anymore. You must see someone who creates the best climate for the business. Can you afford to pay more of the promise of new technology pies and so on to solve all our problems? Or do you want a solution to the problem you are facing today? Please think carefully. There is much riding in your decision.
