… so send in the entrepreneurs.
Annually, commuting for Americans is now costing the average citizen over $2,000 dollars, according to the US Department of Energy. The world forecast for energy consumption over the next 20-25 years will double. With negative news regarding energy production flooding daily headlines and prices at the pump steadily climbing, Americans want to know what is being done to reverse this course? This story is off the beaten path but nevertheless will address domestic production in a way never thought of before.
This kind of entrepreneurship is needed and that kind of entrepreneurship will eventually lead us out of our current energy crisis.
LS9’s idea may not be the golden goose. But enough cases of trial-and-error will provide substantial results and most importantly, increased domestic energy production that is needed to lower prices. Some American’s want Uncle Sam to step in and artificially deflate energy prices. A minority of voters want windfall profit taxes on oil producing companies. Neither option leads to increased supply and actually both may be dis-incentives for oil companies to invest in exploration and drilling.
Many argue that if ANWR or off shore drilling were suddenly allowed tomorrow, it would take 10 or more years to realize any increased production (and when oil did start to flow it would only lower prices by a few pennies). Should LS9 give up now even if their possible solution is not completed in the next 5 -10 years? What if the prices that are ‘a few pennies lower’ are in terms of $2.29 versus $2.27 a gallon? (Not saying they will be). If in the next decade domestic oil production is not increased, what will the future look like without the additional supply? Would the price per gallon go up by dollars instead of going down by cents?
(Note: LS9 was a private start-up company, where investors in our free-market saw the increasing value for alternative energy sources and decided after weighing risk and potential reward to invest at their free will. Absent were government planners and bureaucracy; Present were incentives and ideas.)