REPUBLICANS MISSED THE BOAT ON SYNTHETIC FUELS
USA Today’s article Our view on energy prices: Soaring fuel costs spawn clamor for quick fixes failed to mention a program killed by the Republicans years ago that would have made us less dependent on the Middle East for oil.
The Synthetic Fuels Corporation was a U.S. government-funded corporation founded in 1980 to create alternatives to imported fuels (e.g. coal gasification). President Carter's program would have produced 2 million bbl. of oil per day, 40% of current petroleum imports in 1981, from plentiful American supplies of shale and coal The corporation was eliminated in 1985 by the Republican administration of Ronald Reagan.
In the early 1980s the price per barrel of oil was 35 dollars. When OPEC heard of America’s interest in developing synthetic fuel, the price per barrel of oil dropped to under $10, thus encouraging Reagan to kill the Synthetic Fuel program. Reagan was thinking short term and not long term and consequently made a naive, tragic mistake.
If Reagan had not killed the Synthetic Fuel Corporation, America, today, would not be as dependent upon the turbulent Middle East for oil, and the price per barrel of synthetic oil would be about $50 or about 55 per cent cheaper then the current price per barrel of Middle Eastern oil.
G. W. Bush should have immediately launched a similar program to that of Carter’s and challenged industry experts to create alternative fuel. Kennedy challenged America to place a man on the moon in a decade, achieving it in just over 8 yrs. Likewise, America should be contested to eliminate our dependency on foreign oils in less than a decade.
By Christian Gatsby
