Capital and Jobs Require Carbon-Based Energy

Suppose that I want to start a business. I will need to buy land for my widget factory, get permits and pay fees, pay for the construction, buy the machines to make widgets and hire competent workers and train them to make the widgets. I will need to advertize my widgets for sale. All of this takes capital – generally money – to accomplish. I can provide the capital myself if I am wealthy, or I can get capital from others – by borrowing, partnering or by incorporating and selling stock. This process creates jobs for myself and others.

Our government has turned its back on carbon-based fuel – which we have in abundance – and has used our money (capital) to stimulate “alternative energy.” These energy sources have been around for many decades and sometimes centuries. The high energy content of carbon-based fuel and relative cost has made it the vast majority source for energy use.

It is wood and coal that heated early homes. It is coal that provided energy for our steel industry. It is natural gas that heats and cools our homes, makes our electricity – along with coal, water and nuclear – and powers a growing number of vehicles. Natural gas is also used to make fertilizer and plastics. Gasoline and diesel fuel still power 95% of our vehicles.

We have been importing about 9 million barrels of oil each day at about $100/barrel. This is capital that has been producing jobs for other countries instead of Americans. This is great for OPEC, but bad for us. Fortunately we have reduced our imported fuels, and the price of oil has decreased. However massive tax increases face us in 2013 if the government's fiscal policy is not changed. Inflation is inevitable because the Federal Reserve has been printing more dollars than necessary (in order to buy debt – Treasury IOUs – that few want).

What about pollution? The most prevalent greenhouse gas – by far – is water vapor. This is produced when our Sun heats water (oceans, lakes, rivers, etc.). This is part of the “water cycle” that we studied in Physical Science. Carbon dioxide is produced by exhaling. Plants take in the carbon dioxide and “exhale” oxygen. If this cycle didn't work, then mankind would have died out long ago. Our ancestors had little regard for conservation and cut trees for log cabins and fuel. Our atmosphere is much cleaner – even with a much larger population - now that we have realized the consequences. We still harvest trees, but we replant 100 for each 1 that we use.

If we will continue as the planet's greatest nation, then we will have to use the great natural resources that we have been given. Placing moratoriums on oil production while loaning $2 billion to Petrobras through the Export/Import Bank, lengthening the permitting process for drilling and placing our land off-limits for developing and production helps OPEC – not us! Placing unreasonable regulations on carbon-based fuel producers helps OPEC – not us!

If creating jobs for Americans is really important, then stop subsidizing OPEC and keep the capital we send them each day and use it to create American businesses that provide Americans with jobs!