For weeks now, The HEAT Zone has been applauding falling oil prices, as they mean immediate savings for heating oil consumers.  Everyone enjoys paying less for their heating oil and gasoline, especially during tough financial times like Americans are facing today.

But there is a downside to falling oil prices.  As the price of oil drops, people and companies become less and less interested in reducing our dependence on foreign oil and increasing energy efficiency.  Without high fuel prices cutting into profit margins and pocketbooks, driving less and using less electricity become decreasingly urgent goals.  And the worst part is, while oil is cheap now, it will certainly go back up in the next year or two and will eventually reach new record-high prices.  Unless we change our consumption habits and find cleaner, domestically-available energy sources before then, the same economic, environmental, and national security problems associated with oil dependence will return with greater intensity.

President-Elect Obama spoke about this issue in his 60 Minutes interview last night (fast forward to the 9:40 mark to hear the question and answer):

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So how exactly can we as a nation re-ignite the urgency of increasing energy efficiency and reducing our dependence on foreign oil?  The Wall Street Journal posted a story today that asks precisely that question and collects responses from six high-profile thinkers in the energy sector.  Highlights are below.  Read the full story here.

Representative Roscoe G. Bartlett (R) of Maryland: Cut back the work week.  Employers should cut back to a four-day work week, and expand telecommuting.  This will reduce traffic and auto pollution, decrease employer overhead, and increase employee fuel and time savings.

James Woolsey, former CIA director: Mandate the manufacture of alternative-fuel vehicles.  The federal government should use the leverage provided by the possible bailout of the U.S. auto industry to demand the manufacture of more vehicles that are capable or running on electricity, biodiesel, or ethanol.  More “flex-fuel” cars on the road soon means U.S. oil consumption could drop off quickly.

Amy Myers, Educator and Director of Rice University’s Energy Program: Increase federal taxes on gasoline.  If the federal government raises gasoline taxes to create a “price floor” for gas, the economic pressures to curb energy consumption re-appear, and the private sector has a strong incentive to increase efficiency and develop new non-petroleum-based energy technologies.

Amory Lovins, Chairman and Chief Scientist at Rocky Mountain Institute: Force increased vehicle efficiency with a “feebate” system.  Charge additional fees on cars and trucks that are the least fuel-efficient in their size class, and use the collected fees to provide rebates for the most fuel-efficient vehicles in their size class.  This will give consumers extra financial incentive to purchase fuel-efficient vehicles, increasing demand for those vehicles with auto manufacturers.

Phil Sharp, President, Resources of the Future: Institute a cap-and-trade system.  The government should assign negative monetary values to carbon emissions, allowing companies to trade or sell their emissions credits or debits and giving the biggest polluters unprecedented economic incentive to clean up their acts.

Tags: 60 Minutes, crude oil, energy, energy efficiency, foreign oil, green energy, Obama, oil addiction, oil dependence, oil imports, Wall Street Journal

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