Can Private Industry Solve the Energy Crisis?

Is it wise for America to assume that private industry can solve the problem they created? No.

The function of a public corporation is to provide a return to shareholders. As the market has demonstrated, vertically integrated public corporations, like the petroleum industry, receive a higher return to shareholders when (a) commodity prices are high, (b) manufacturing is running at peak utilization rates, (c) orders are backlogged allowing efficient supply chain and inventory management, and (d) operations are not impeded by bureaucratic or environmental gridlock. All these factors fly in the face of the notion that American energy security can be managed by public corporations. These issues are a matter of national security and as we have seen demonstrated by China, Brazil, Singapore, Venezuela, Nigeria, Malaysia, Indonesia and others, these nations recognize that national survival requires a degree of national control as it relates to energy.

These points are addressed in JD's detailed Future of Energy position paper. Click here to read more.

Click here to listen to JD's radio program. This is part one of four parts. All are posted on his website.