When the Secretary of State speaks in such an alarming manner, we should ask ourselves what is behind these words. Should we be expecting $100 oil by midsummer? Fortune says it might be worse. Has there been an agreement between Iran and Venezuela? Which are the states she is talking about?
... We do have to do something about the energy problem. I can tell you that nothing has really taken me aback more as secretary of State than the way that the politics of energy is -- I will use the word warping -- diplomacy around the world. It has given extraordinary power to some states that are using that power in not very good ways for the international system, states that would otherwise have very little power. It is sending some states that are growing very rapidly in an all-out search for energy -- states like China, states like India -- that is really sending them into parts of the world where they've not been seen before, and challenging, I think, for our diplomacy. It is, of course, an energy supply that is still heavily dependent on hydrocarbons, which makes more difficult our desire to have growth, environmental protection and reliable energy supply all in a package.
... on the energy side, we have simply got to do something about the warping now of diplomatic effort by the all-out rush for energy supply.
I am completely behind the India nuclear development initiative. Safe reactors in India, built in numbers and built cheaply with US/UN oversight, will cut down on world-wide pollution, divert some of the oil grab mentality, reduce the chance for resource wars, give India an energy parachute, provide a democratic model and a military balance for China. Rice says that India is producing 1% of their electric power with nuclear, as opposed to 20% for the US and 78% for France. So the marginal benefit should be huge for India.
I am, however, a little unsettled by the Secretary's directness.
We apparently can't build nukes here, so it will be almost as good to build them in India. It might even be better in some ways. The nimbys can take comfort in the distance and still reap the economic benefits. Australia is apparently reading from the same playbook and is presently negotiating with China on a uranium contract. Oz nimbys are equally problematic.
My suggestion to you is to buy that Prius now and also a couple shares of oil stock. I'm hoping Rice was just trying to wake up the sleeping Senators and forgot that people might be listening.
4/13/2006 11:51 AM