Economics of energy: Oil independence in America

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By Jon Parton

The rising price of crude oil is a growing concern for students. With local gas prices approaching $4 a gallon, increased domestic drilling and alternative fuel sources are once again gaining interest.

America currently imports about 50 percent of the oil it consumes. Jerry Magliano, professor, Personal Computer Applications, said that more domestic drilling should be done in order to lessen our reliance on foreign sources.

“It’s the old supply and demand equation,” Magliano said. “The more supply to meet demand or exceed demand, then prices go down.”

Although oil is a commodity bought and sold on an open global market, Magliano said he believes America can decrease the amount of foreign oil needed by increasing domestic oil production.

“There’s nothing we can do to really control the price of oil except increase our own independence in regard to the acquisition of oil,” Magliano said.

Domestic drilling has increased within the past few years, overshooting expected numbers of oil production. Magliano said that this was due to the efforts of private companies rather than the government. He said he believes this is partly due to the political activism of environmental groups.

“Environmental activism has been a very good thing for the country,” Magliano said. “Environmental radicalism has been a very bad thing. And environmental radicalism is what’s standing in the way of us becoming more energy indepen­dent.”

Not everyone shares the same opinion regarding the matter. Kim Criner, Sustainability Student Affairs coordinator, said she believes that in­dependence from foreign sources of energy is an important goal. How­ever, she is less sure of whether more domestic drilling is the answer.

“We’re continuing the dependence on a finite resource which is eventu­ally going to become so hard to get to,” Criner said.

Although Criner said an increase in domestic oil production can lessen our dependence on foreign sources, she is concerned about its effects on the environment and people.

“How are we really serving our citizens when we’re not taking into account those externalities from the extraction of those fossil fuels?” she said.

Criner said that Americans should look to alternative sources of energy rather than increase domestic drill­ing. She points out the increased use of wind farms and hydropower help produce energy that is not detrimental to the environment.

“That’s not only going to bring us energy independence, but it’s going to bring us a cleaner environment,” Criner said.

Michael Humphreys, stu­dent, said he likes the idea of more domestic drilling but also has concerns over environ­mental issues such as the BP oil spill two years ago.

“It’s got to be safe and not destroy the environ­ment,” Humphreys said. “I’m for it, but it has to be safe.”

Contact Jon Parton, news editor, at jparton@jccc.edu.

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