Oil Addiction: America’s story of loss and cost

Supposedly, it’s over; the worst oil spill in American history has slowly been drifting out of headlines and into distant memory.

But as the crisis ends, I feel it’s an opportune time to learn from mistakes made.  It seems I’m not alone in my conclusion.

Americans from both sides of the aisle have come together in agreement on one of the nation’s worst environmental disasters.

Oil is causing America problems.

These problems are numerous and include environmental concerns such as global warming, national security concerns such as foreign oil dependency and economic concerns such as the cost of gas at the pump. 

Historically, Americans have reached the same conclusion but haven’t done anything about it. Perhaps now with the devastation inflicted on the Gulf, America will come to terms with its addiction.

Kicking addiction isn’t easy, but I can promise you it’s necessary.

America, if we go through rehabilitation we could conserve oil, reduce dependency on foreign imports, lower greenhouse emissions and promote future green energy sources.

The simplest solution for achieving all of these goals is a corrective tax on oil.

Before you move back to your Facebook page, give me a chance to explain. Let’s just remember what happened when gas prices went up to $4.00 a gallon. For the first and last time I can remember, my family discussed how to reduce energy usage and reduce driving mileage.

My friends and I carpooled. Nightly news programs discussed possible innovation in green energy. At that time, oil was the enemy and America was trying everything it could to get away from it. The only disturbing thing was oil companies continued to turn huge profits.

But let’s think about this. Instead of big oil turning record profits, we could put that money toward researching green energy, building renewable energy plants and updating old energy systems to conserve more energy.

Instead of high prices going to big profits, it could be a tax on oil.

This tax would generate huge funds for the government who would directly spend all of this money on new green technology development: wind, solar and hydroelectric subsides, direct investment in new technologies or research or government subsidies on electric automobiles.

This money could even be put toward a climate change legislation bill, which hasn’t been able to get through Congress because of funding issues.  But the tax wouldn’t just generate funds; it would encourage Americans to save.

Economics majors know well enough that a higher price from a tax will decrease the quantity demanded. Americans will search for alternatives to get around, begin carpooling and maybe think of getting a more fuel-efficient car.

With economic times like these, it’s hard to advocate for more taxes. But with all the proactive things this tax can do for America, I feel the benefits greatly outweigh the costs.

Simply put, Americans will spur energy innovation, end strict foreign oil dependency, limit environmental risks, conserve energy and in the end develop money and energy saving habits that will benefit future generations.

E-mail: mdshowal@indiana.edu