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Sic Semper Tyrannis

Thursday, February 23, 2006

Re Re Re Solar Energy

Chris,

I too once took that stand on energy. I said let the markets sort it out, but it is pretty apparent there are pressing externalities and national security considerations at work here.

We didn't let private industry run the Manhattan Project.

There are definite national security considerations. Right now, what happens if Iran decides to blockade traffic going in and out of the Persian Gulf? Sure, the USN would fix things up but you can be quite sure we will probably look back on $2.29/gallon gas as the good ole days when gas was cheap. Also, I am not quite certain it would be easy to put an end to a blockade, especially since we no longer are researching small yield nuclear bunker buster bombs. Iranian anti-ship missile sites are built into the mountains on the coast and I suppose ships would not be safe until they are into the Arabian Sea.

Only three nations have access to ports not on the Persian Gulf or in the Gulf of Oman. Oman, Yemen, and Saudia Arabia all the rest have to go through the Persian Gulf and Gulf of Oman. Saudi is the big oil producer so the impact is not complete shutdown but (plus Nigeria and Venezuela both becoming more and more unreliable) it would be painful.

If all these oil reserves were sitting up in Canada or Europe then the need wouldn't be so pressing and I would most likely be in full agreement with you.