Alamo

Why "Drill, Baby, Drill!" Does Not Translate Into Effective National Energy Policy

I own mineral rights in the Haynesville Shale play in East Texas.

So if there is a national reliance on natural gas by Americans for some, much, or virtually all of the nation's transportation needs, that increased demand will of course benefit me directly.

That said, I believe that any energy source that is American based will have a tremendously beneficial effect on our economy. Especially so if that primary energy source can be provided at a reduced cost to that of an increasingly less available source, ie, gasoline and diesel. Adding the significant benefits that natural gas brings to the environment should make it our number 1 transportation fuel of choice.

No matter how much additional oil is discovered, it is not going to be done cheaply so the massive capital costs involved will require that those costs be passed directly to the consumer. It's not a reach to look forward and see future pump prices at $5.00, $6.00 or more. Under the rosiest of scenarios, the OCS and ANWR exploraton might supply us with another 4 or 5 years' crude supplies at the present rates of consumption---that's 1500 to1800 days. What then? Can we have additional nuclear plants permitted and operational in this time frame? Hardly in this environmentally conscious atmosphere. 1000 MW power generating plants---under the best cases require 5 to 10 years' construction time without considering the permitting headaches involved. We can though, build up the re-fueling facilities that will support a compressed natural gas (CNG) transportation system in less that 5 years time if we embrace it on a national basis.

Boone Pickens said yesterday before the National Press Club that 10 strategically located re-fueling stations could enable a heavy truck to go coast to coast---3500 miles.

Its abundant, clean and 40 percent less expensive that gasoline but the thing that recommends it above all is the simple fact that it is 100 percent American. Keeping a significant portion of that annual $700 billion dollar cash flow out of OPEC's greedy hands and into American hands is the best aspect of it by far.