Welcome to the July Agribusines issue of NorthBay biz magazine. California’s economy has been linked to the boom and bust cycles of the high-tech industry over the past few decades. If you’re like most people, you quickly tire of this volatility. But, if you’re a fan of stability and dependable growth instead of high-risk glitz, you’ll find it’s rooted in California’s agricultural heritage. In 2006, California’s ag revenues approached $40 billion. Here in the North Bay, the Ag community not only contributes significantly to the local economy, it’s largely responsible for the pleasing rhythm of local life. So sit back and enjoy the stories in this issue as we attempt to capture that ineffable, insouciant spirit that personifies the bucolic lifestyle that is the North Bay.
“I’m mad as hell, and I’m not going to take it anymore!” proclaims Howard Beale in the 1976 movie “Network.” I now know how he felt. And before I start imploring all of you to begin screaming that sentiment out the nearest window, perhaps I should explain what has me so riled up. I just spent $75 to fill my Honda’s gas tank! That’s crazy. An average driver puts about 1,200 miles a month on his or her car. That roughly equates to $300 a month—or $3,600 a year—at present gas prices. A simple question: Why the hell don’t we have an effective energy policy in this country?
It’s easy to be overcome with ennui when the media reports on yet another purported national crisis every other day. However, our current energy crisis has been a long time in the making, and the major perpetrators of this “real” crisis are our very own politicians. Their policies have created the crisis. For decades, “progressive” politicians have advocated higher prices and less energy—saving the planet by attempting to coerce Americans into driving less and driving smaller cars.
How, you may ask, did they accomplish this? Simple really: Just enact legislation that either outright prohibits or makes it economically infeasible to drill for oil and gas here at home. Not content with that prohibition, they also threw in no use of coal and no development of nuclear power plants. To top it off, as they impeded development of traditional energy sources, hurting every American, they didn’t bother to enact policies to incent the development of new, clean energy sources. Now that we’re paying more than $4 per gallon for gas, they’re looking frantically for someone else to blame. They want scapegoats, because they know the American people are on the cusp of waking up to the realities they created. All the people want are policies that will lead to plentiful energy at reasonable prices. And they know that the energy resources are right under our feet and can be recovered safely with absolutely no negative consequences to the environment. However, I’m not optimistic. We’re dealing with politicians whose hubris knows no bounds and whose very ideology is often opposite of the best interests of the American people. Here’s a perfect example of what I mean: These are the same people with the temerity to now demand that OPEC nations pump more oil in the hopes of lowering our prices (to alleviate scrutiny of their wrong-headed policies) while still adamantly refusing to turn on the pump at home.
There’s really no reason we can’t have a greater supply of safe, less expensive energy. Believe it or not, America has the world’s largest supply of fossil fuels—more coal, abundant oil and gas reserves—and wind, hydro, solar and biofuels in great quantities. All that’s lacking is the resolve to develop them. If we were to begin building nuclear power plants and employ our vast technological might to developing next generation electric cars and other breakthrough technologies, like hydrogen power, our energy needs would be met and dependence on foreign sources ended. Without a realistic energy policy, our current situation will only continue to deteriorate. The global demand for energy is increasing rapidly. For the first time ever, Asia purchased more cars than we did. China and India and their billions of people are becoming bigger consumers, and, as they improve their lives, they’ll certainly demand more energy.
We need an immediate about-face from present energy policy. Instead, we’re getting much, much more of the same. Congress is debating the merits of the Warner-Lieberman “cap and trade” global warming bill, which would turn into a trillion dollar burden on the overall economy and, incidentally, raise the price of gas to more than $6 per gallon almost overnight. Exactly at the moment Congress should be finding ways to increase energy supplies to lower costs, they’re actually proposing to increase the cost of gasoline, jet fuel, diesel fuel, natural gas and coal. Truckers can’t afford to drive their trucks, airlines are going out of business—it’s infuriatingly mind-boggling. What Congress should be doing is repealing the laws that make it illegal to explore for oil and gas in the Pacific, the Atlantic, Alaska and the Eastern Gulf of Mexico.
A recent poll conducted by the Platform of the American People, a collection of 91 planks supported by Democrats, Republicans and Independents, shows that the majority support energy independence, innovation, incentives and nuclear power as solutions to the energy crisis. They overwhelmingly agree we should use and develop new resources and technologies to become independent from foreign oil. The poll went on to show that the people also strongly believe, “we can solve our environmental problems faster and cheaper with innovation and new technology than with more litigation and more government regulation.” Insightfully, they also believe, “if we use technology, innovation and incentives, we don’t need to raise taxes to clean up our environment.” And finally, the poll showed that Americans believe in the safety and reliability of nuclear energy and support building more nuclear power plants to cut carbon emissions.
So much of this is just plain old-fashioned common sense that it’s a wonder we all haven’t shouted ourselves hoarse screaming out the window by now.
That’s it. Enjoy this month’s magazine.
