It has been almost 40 years since the first major energy crisis of our time. Ironically, this is the same period it took wandering in the desert to find the “Promised Land.” Over these past 40 years, have we reached the “promised land” of energy self-sufficiency to avoid jarring shock waves to our economy? You do not need a crystal ball to predict events of the this Spring and Summer as unrest spreads in the Middle East.
The unrest in Libya will continue into the Spring. Eventually, the oil fields will be shut down either by the anti-government forces or by Qaddafi himself in his final act of defiance. The shutdown of the Libyan wells will result in the price of oil jumping to $150 a barrel and gasoline prices approaching $4.00 a gallon. Congress will pass a new law that limits highway speed to 55 mph to conserve the fuel in our tanks. Expect the President to announce the formation of a bi-partisan panel to examine ways to reach 100% energy independence by the year 2080. The Republicans will announce that they will refuse to participate.
By late Spring and early Summer the unrest that is traveling through the Middle should hit to Saudi Arabia and Iran. As the people take to the streets in these countries, the price of oil should leap to $200 a barrel and gasoline will approach $5.00 a gallon. Expect Congress to pass a new law stating that there must be at least three individuals in any car traveling in the left lane on the Interstates. Congress will pass legislation offering tax credits for those purchasing insulation for their homes. The President will then announce that he will ask Congress to increase CAFE standards to 30 mpg by the year 2040 and 32 mpg by the year 2050. Republican leadership will let it be known that they cannot support such measures.
The unrest in both these countries will move to the oil fields and many of the oil wells will be destroyed and oil prices will skyrocket to $250/barrel and gasoline prices going over $5.50 per gallon. Congress will pass a new law in which “even” license plates can fill-up on Monday, Wednesday and Friday with “odd” license plates filling up Tuesday, Thursday and Saturday. Gas Stations must remain closed on Sunday. The President will address the American people asking us to use our heat and air conditioning sparingly. Schools will now commence in late October to avoid air conditioning costs of late summer and will close from December through February to avoid heating cost in the middle of the winter. The school day will start an hour later and end hour earlier to further save energy.
By the middle of the summer, the hurricane season will be upon us. The warmer ocean temperatures will give rise to more ferocious and devastating hurricanes. The first Level 5 hurricane should hit the Gulf in the end of July wiping out 35% of the oil and gas production in the region. A second Level 5 hurricane is expected to land in early August destroying another 25% of the regional oil driving oil prices to $400 a barrel and gas prices hit $7.00 a gallon where gasoline can be found. The economy then will come to a standstill as fuel is too scarce and too expensive for our usual business practices.
Congress will recess this Summer and the President will vacation on Martha’s Vineyard.. The Republican leadership in the House will announce that it will propose new legislation in the fall prohibiting gays from the teaching profession and new legislation expanding prayer in the schools. It is very satisfying that after almost 40 years from our country’s first energy crisis, we have attained an energy independence that will not allow energy shortfalls worldwide to negatively impact the American way of life.
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