Oil #2

I should have been more clear in yesterday's idea: the money would come from us in the form of tax dollars, not at the pump.

This spawns into another idea: tax imported oil and use the money to subsidize domestic oil production.

These are, of course, variations on a theme, as is today's more complex idea:

Yesterday’s idea too radical? Let’s try this on for size:

The US Government will form a corporation, initially government controlled and sponsored. Call it Patriot Gas. This company will only be allowed to purchase gas made from domestic oil production (including non-conventional oil). It will be allowed to produce, refine, distribute, and sell gasoline and related products.

During the setup period (call it two years) Patriot Gas will build or buy gas stations from other companies, set up their distribution network, etc. During this period, the US government will subsidize them to the point where their price per gallon is the same as the average for the region the individual stations are in (use AAA data). It will also guarantee startup loans so they can purchase and build their infrastructure.

After the setup period, a weaning-off period will start (call it two more years). The subsidy will slowly be reduced to zero. This will, presumably, cause the price per gallon to be greater than that of competitors. An add campaign will emphasize that Patriot Gas is made in the USA and point out where foreign oil is coming from, and what its paying for. People like me will still buy gas there, since we’re willing to pay the extra money to know where its going. Others, of course, won’t.

However, one long-term guarantee will be in place: the US Strategic Petroleum Reserve will only buy oil from Patriot Gas (i.e., only domestic production will go into the SPR).

At the end of the weaning-off period, we’ll see if this country really wants to get off foreign oil.

Tell me what you think!