Give It A Rest…

The Gristmill blog had an interesting post today about how oil companies are resorting to “extortion” to keep renewable energy bills from going through Congress by warning that government mandates reducing gasoline consumption by 20% may force them to re-evaluate planned refinery expansions.

Does David Roberts really think that oil industry executive is going to sit there and say “Oh gee, let me invest billions of dollars in projects that you are actively making less profitable for me so you can continue to pander to your constituents who don’t understand basic economics. Sure thing! I’ll even smile at you from the unemployment line when the board and shareholders fire me for being such a bonehead!”?

This isn’t extortion; it’s business. If a project becomes less profitable because of government action companies will have to look at whether or not it’s still a good idea. Cheap gasoline is not a right in this country no matter how much people want it to be or how much politicians imply that it is. Oil companies should not be vilified for making smart business decisions in the face of legislation directly aimed at reducing its sales by one fifth.

Besides, who said high gas prices were such a bad thing? High gas prices force people to re-prioritize, hopefully cut back on their consumption, and give alternatives a second look. When prices got really high in the wake of Katrina I traded in my gas-guzzling SUV for a station wagon and started riding the bus 20 miles to school instead of driving. Now that I live in Seattle I ride my bike to work most days and will mostly take to bus to work starting next week when I start my new job. I just don’t want to have to pay that much to drive. We need to start weening ourself off gasoline and focusing on alternatives and high gas prices are a great way to start.