Posted by
Andrews on Sunday, September 14, 2008 5:06:40 PM
I just saw the Pickens advertisement, trying to prop up his "alternative energy" companies by pushing "energy independence". One line he has is particularly misleading. He says "Iran is converting their cars to run on natural gas to sell oil for $120 a barrel". While technically true, it is misleading int he extreme, as it suggests that Iran is making so much on oil, they will import natural gas.
The truth is a little different. First, Iran has the third largest reserves of natural gas in the world, so natural gas is incredibly cheap in Iran. Second, Iran lacks almost all refining capacity for petroleum. This means that Iran, while able to produce its own natural gas, cannot produce its own gasoline. In fact, for Iran, gasoline is an import, not something they produce. In other words, they are in the same boat as the US when it comes to gasoline, as they are the consumer, not the producer. Which means they are shipping THEIR money "overseas" as well when buying refined petroleum products.
I wonder if there is some demagogue in Iran whining about "shipping our money overseas for gasoline" and pushing for still more LNG cars?
Can we please drop the populist rhetoric about "shipping money overseas"? I wrote enough about this before, so I will spare you the lecture on the benefits of trade, but can we please agree that these self-serving ads from Mr. Pickens are truly disgusting? The man is arguing against foreign trade not from any belief, but simply because it will line his pockets. And while I am all for people getting rich, his efforts are aimed at generating government action in order to make himself rich, and THAT I finding disgusting.
POSTSCRIPT
Even if he is sincere, I would still be disgusted. Again, the choice of energy source is a matter for citizens to make,t hrough the action fo the market. It is not a question for the government. The only government concern should be that the government itself, especailyl the military, has sufficient energy to carry out operations. Other than that, the question should be left to individuals to decide.