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Mark Caserta: Both parties must compromise to lower gas prices

Jul 16, 2008 @ 12:00 AM

The Herald-Dispatch

Any one with any problem-solving skills whatsoever will agree that no solution can be implemented until the source of the problem is identified. The problem is obvious; oil prices are steadily climbing out of control. That component of the problem is tangible and definable. We can apply resources in setting specific, measurable, attainable, realistic, time-based goals toward achieving energy independence for the future.

It's the intangible component of the problem that is stifling action.

Until the Democrats and Republicans begin to come to terms with "why" the oil prices are so high, Americans will continue to pay the price, in more ways than one.

On the left, the Democrats are sold on building a "cleaner, greener and stronger America" and reducing our dependence on foreign oil by applying pressure on oil and gas companies through eliminating billions of dollars in subsidies and using the savings to provide consumer relief, develop energy alternatives and invest in energy independent technology. They want to clear pathways to innovation and keep the environment healthy.

On the right, the Republicans want to increase domestic supplies of coal, oil and natural gas; provide tax incentives for production; promote environmentally responsible exploration and development of oil and gas reserves on federally-owned land, including Arctic National Wildlife Refuge; and expand the tax credit for renewable energy sources.

In the middle, Americans are fielding the punches from two parties that can't see beyond their political ambitions long enough to realize there is plenty of room for compromise on this issue. However, until they begin to put the interests of their constituencies ahead of leveraging for the White House, we may see prices skyrocket to the point we begin to see "real famine in the land."

The endless chatter before action is tiring. New Mexico Gov. Bill Richardson, a Democrat and a former energy secretary, while recently discussing John McCain's energy plan told CBS that "what we have here is Sen. McCain basically following the policies of George Bush -- drill, drill, drill."

Texas Sen. Kay Bailey Hutchison, a Democrat and McCain backer, said recently, "The Republicans' call for offshore drilling was one way for the United States to help itself and stop speculators, along with new nuclear reactors and renewable energy. ... This is a supply and demand issue," she told ABC. "And yet, anything that says production is killed by the Democrats."

Let's take ingredients of both plans and do it all! Quickly!

High oil prices are a result of the basic law of supply and demand. The world's demand for oil has increased exponentially in recent years and we have done little to nothing to prepare our nation for the impact we are now feeling at the gasoline pump.

According to John Felmy, chief economist for the American Petroleum Institute, the last new refinery built in the United States was the Marathon Oil plant in Garyville, La., built in 1976 -- 32 years ago!

Our two major political parties are engaged in a ruthless game of chess. And while they are at a stalemate, Americans are losing.

Mark Caserta travels the country as a business consultant. He is a native West Virginian and resides in Cabell County.