America is addicted to oil: now he tells us

Finally, Bush, in his SOTU speech, recognized that "America is addicted to oil."  Specifically, he said:

America is addicted to oil, which is often imported from unstable parts of the world. The best way to break this addiction is through technology. Since 2001, we have spent nearly $10 billion to develop cleaner, cheaper and more reliable alternative energy sources. And we are on the threshold of incredible advances. So tonight, I announce the Advanced Energy Initiative, a 22 percent increase in clean-energy research at the Department of Energy to push for breakthroughs in two vital areas. To change how we power our homes and offices, we will invest more in zero-emission coal-fired plants, revolutionary solar and wind technologies and clean, safe nuclear energy.  We must also change how we power our automobiles. We will increase our research in better batteries for hybrid and electric cars and in pollution-free cars that run on hydrogen. We will also fund additional research in cutting-edge methods of producing ethanol, not just from corn but from wood chips and stalks or switch grass. Our goal is to make this new kind of ethanol practical and competitive within six years. Breakthroughs on this and other new technologies will help us reach another great goal, to replace more than 75 percent of our oil imports from the Middle East by 2025. By applying the talent and technology of America, this country can dramatically improve our environment, move beyond a petroleum-based economy and make our dependence on Middle Eastern oil a thing of the past.

Bush's recognition of the problem here is a real step forward.  But two problems with this approach exist.  The first is that Bush does not focus sufficient attention on trying to actually reduce demand for energy consumption by carpooling or driving less, or for that matter, insisting on increasing fuel-efficiency standards for SUV's and cars.   It's true that hybrid cars can reduce the demand for oil, but so can better planning-- ie., Wendi and I have taken to driving to work together.  Isn't Bush's approach here leaving the addiction -- more or less --untreated? 

The second problem is that Bush's speech repeats the trope that our challenge is overcoming dependence on Middle Eastern oil.  But the danger of our addiction to oil is not its provenance.  Rather it is its high price and our utter reliance on it.  Oil is a global commodity and the price for it will be determined by markets, regardless of whether the oil comes from Alberta or Iraq.  To be sure, the availability of plentiful oil in the Middle East can drive down the price, but it is ultimately the price of oil that matters to our security, not its source.  That's why my friend Robbie Diamond's organization (www.secureenergy.org) is devoted to enhancing America's economic and national security by reducing America's oil dependence--full stop. 

Parenthetically, you may recall that I posted about Robbie's organization last June, and the excellent crisis simulation he organized in DC.  Well, last week, Robbie organized another Oil Shockwave simulation at the World Economic Forum in Davos.   It's nice to see that at least part of the message he's been pushing has been getting wider traction, and with many of the people who can influence policy.  (If you're interested in learning more about these issues, check out this radio program entitled "Running on Empty: America's Energy Security," produced by America Abroad Media.)