U.S. Energy Policy

Much discussion has been generated as of late about U.S. energy policy. That policy can be summed up succinctly: what policy? The country doesn't have one. One would have thought, after the Arab Embargo in the early seventies, that immediate action would have been taken to reduce dependence on fossil fuels, particularly in the form of crude oil produced from the Middle East. Instead, the country is more dependent than ever on crude oil imports.

There are no meaningful mileage standards, no stiff requirements that American utilities source a considerable portion of their power from renewables and no nation-wide advances toward solar-powered or heated homes, etc. Only California has made a start in the latter direction.

Economists like to trot out studies evidencing that the nation's use of crude oil as a percentage of GDP has declined. That doesn't mean much when approximately one-fourth of all crude oil and/or refined products produced on the planet is consumed by the U.S., much of which is in unfriendly hands and can be turned off like a light switch.

The Gambit delves into the energy dilemma of the country by showing how a small, but determined, group of individuals can easily manipulate oil prices by merely orchestrating a few terrorist attacks striking at vital oil infrastructure. This effort can be undertaken for profit and/or political objectives. Overnight, oil prices surge, particularly when a little propaganda veneer is added on top of everything else. These attacks, while relatively minor, are leveraged exponentially, however, in terms of price impact. The vulnerability of the U.S., because it has done nothing in terms of energy policy, is laid bare.

Another theme of The Gambit is the unbelievable political acquiescence by U.S. leaders to the country's exposure to the type of price manipulation described. The President is completely coopted from taking countermeasures, particularly in an election year, bought and sold in the marketplace like a barrel of oil. What about the nation's leadership in general? Bought off by Middle Eastern "allies"; bought and paid for by energy company PAC's?

The situation worsens, as further depicted, when an oilman is bought and paid for as well. Now, as The Gambit details, the assets of an energy company are made available to the terrorists in this latest nuance of conspiracy theory. Then, there are the hedge funds, pouncing on oil futures as a gigantic momentum play, jacking up oil prices in the feeding frenzy resulting from the developments enumerated in the book. The Gambit ends on a note where one such hedge fund manager, having learned how the process works, is meeting with another terrorist to continue the party. The manager consoles himself over his greed via the rationale he is performing the work of a catalyst, i.e. forcing oil prices higher, to shock the country into adopting alternative energy plans.

This is what U.S. energy policy has produced; truly a sorry state of affairs. Perhaps the readership of The Gambit will be encouraged to do something about it.

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