Energy independence does not protect a country from price shocks or disruptions in world markets.
Nuclear power's adoption is hindered by high capital costs, concerns over accidents, and the need for technological advancements and a significant carbon tax.
Deep dives
Lack of Understanding of the First Oil Shock
There is a lack of understanding and historical memory about the first oil shock of 1972-1975. Young people need to know what happened during that era and its impact on oil and energy.
Energy Independence is Meaningless
The concept of energy independence is flawed and meaningless. Being energy independent does not insulate a country from price shocks or disruptions in world markets. Free trade and the interconnectedness of the global market mean that imports or production levels do not affect the price paid for energy.
Misconceptions About Oil Embargoes
The common belief that the 1973 oil embargo was the cause of gas shortages and high prices in the United States is inaccurate. The actual cause was President Nixon's price controls on petroleum imports, which led to reduced imports and disruptions in supply. Embargoes do not have the intended impact due to diversion and the interconnected nature of world markets.
Challenges and Considerations of Nuclear Power
Nuclear power offers carbon-free electricity, but high capital costs and concerns over accidents have hindered its widespread adoption. The economics of nuclear power need to be competitive with natural gas and coal-fired generation, which requires significantly lower capital costs and higher natural gas prices. Achieving a lower price for clean energy like nuclear power would require technological advancements and potentially a significant carbon tax.
Peter Van Doren is the editor of the quarterly journal Regulation and is a senior fellow at the Cato Institute, where he specializes in housing, land, energy, and more. Today, he talks to us about what energy independence is, whether America is energy independent, and if that is a good thing. He also talks to us about energy more generally, including nuclear and green energy.
