It aint drill drill drill nor conserve conserve conserve. Not that more drilling and more conserving aren't important:
Unlike America, Denmark, which was so badly hammered by the 1973 Arab oil embargo that it banned all Sunday driving for a while, responded to that crisis in such a sustained, focused and systematic way that today it is energy independent. (And it didn’t happen by Danish politicians making their people stupid by telling them the solution was simply more offshore drilling.)
What was the trick? To be sure, Denmark is much smaller than us and was lucky to discover some oil in the North Sea. But despite that, Danes imposed on themselves a set of gasoline taxes, CO2 taxes and building-and-appliance efficiency standards that allowed them to grow their economy — while barely growing their energy consumption — and gave birth to a Danish clean-power industry that is one of the most competitive in the world today. Denmark today gets nearly 20 percent of its electricity from wind. America? About 1 percent.
And did Danes suffer from their government shaping the market with energy taxes to stimulate innovations in clean power? In one word, said Denmark’s minister of climate and energy: “No.” It just forced them to innovate more — like the way Danes recycle waste heat from their coal-fired power plants and use it for home heating and hot water, or the way they incinerate their trash in central stations to provide home heating. (There are virtually no landfills here.)
There is little whining here about Denmark having $10-a-gallon gasoline because of high energy taxes. The shaping of the market with high energy standards and taxes on fossil fuels by the Danish government has actually had “a positive impact on job creation,” added Hedegaard. “For example, the wind industry — it was nothing in the 1970s. Today, one-third of all terrestrial wind turbines in the world come from Denmark.” In the last 10 years, Denmark’s exports of energy efficiency products have tripled. Energy technology exports rose 8 percent in 2007 to more than $10.5 billion in 2006, compared with a 2 percent rise in 2007 for Danish exports as a whole.
“It is one of our fastest-growing export areas,” said Hedegaard. It is one reason that unemployment in Denmark today is 1.6 percent. In 1973, said Hedegaard, “we got 99 percent of our energy from the Middle East. Today it is zero.”
Frankly, when you compare how America has responded to the 1973 oil shock and how Denmark has responded, we look pathetic.
“I have observed that in all other countries, including in America, people are complaining about how prices of [gasoline] are going up,” Denmark’s prime minister, Anders Fogh Rasmussen, told me. “The cure is not to reduce the price, but, on the contrary, to raise it even higher to break our addiction to oil. We are going to introduce a new tax reform in the direction of even higher taxation on energy and the revenue generated on that will be used to cut taxes on personal income — so we will improve incentives to work and improve incentives to save energy and develop renewable energy.”
Because it was smart taxes and incentives that spurred Danish energy companies to innovate, Ditlev Engel, the president of Vestas — Denmark’s and the world’s biggest wind turbine company — told me that he simply can’t understand how the U.S. Congress could have just failed to extend the production tax credits for wind development in America.
“We’ve had 35 new competitors coming out of China in the last 18 months,” said Engel, “and not one out of the U.S.” >
If you are looking for solutions from Denmark, study their architecture, their societal support and enjoy their baby back ribs along the way. The worst thing to do is adopt a one shot solution (America's way of solving long term policy problems).
Well... there's all sorts of difference between Denmark and us. Including social policy. We missed the boat in the '80s and '90s, big time, to achieve what Denmark achieved. Instead of following Denmark, we allowed our car fleet mileage standards to regress from 27mpg to 24. We continued to build homes that don't use energy efficiently. We waste water in the desert to build lawns and have individual swimming pools. The list goes on and on. I suggest Alpha get involved in his desert community. Nothing better than to look at one's backyard, and correct it, before telling others to do so.