Global Oil Problem Not Just About Oil

The US is the largest user of oil by far, but it won't always be. Nations like China and India will soon pass the US up. Why is this happening now?

I believe the root, in addition to the ignorant policy of the US government to import versus drill, is founded in a series of governmental and private sector failures. Two of the most key are a poor public education system and corporate greed. Schools in the US are not competitive in a local economy, much less a global one. Jobs at the tail end of last century and from here on out require brains and skills. The economy is global. Kids coming out of public schools in the US must compete with the smartest that a number of other nations have to offer. They are competing for a finite number of jobs. Who will win? The smartest, most skilled kids will win.  This is dangerous for the US economy in that it must import knowledge (in addition to oil) from other countries.

This is where lack of education and greed have come together to form the perfect storm. At least 10 years ago, Corporate America (and large companies from other developed nations) began experimenting with shipping high technology jobs to less developed nations. Why pay an American $150hr when you can pay someone from India $20hr? Many would argue that companies now pay 5 times to get the job done, but this really does not matter. The fact is the money is being spent in another country - one where $20/hr goes as far or further than $150/hr in the US. What does any of this have to do with oil?

When a person has money, he or she spends it. In a country where a person does not have a car, what is the first or second thing he will buy? That's right. A car. Cars take fuel and this is where the problem starts to take shape. A number of "developing nations" are now "developed enough" to ignite an expansion which is driving global demand for oil to levels never before seen. It will get worse. It will not stop.  Advanced jobs are now being exported into Eastern European countries like Poland.  It's great for the local economies but will continue to strain the global situation.

Let's get back to the topic of oil. For the past 1/2 century, the US has imported more and more oil. The US does not have the infrastructure to utilize its own resources. The real shame is that the US government will try to pressure Saudi Arabia to release more of its oil to drive prices down, but the US will not drill for its own oil!!! This is a sad state of affairs effecting the world economy.

The solution: take steps to improve the school system by hiring qualified teachers, paying them middle class wages, implementing testing to validate teachers have knowledge in their brains to share, and fire those who don't perform. Provide large tax incentives for companies that utilize American resources. Drill now in Alaska but continue to invest in alternative energy sources and drive down the use of oil.  Educate Americans about the importance of energy conservation and provide rewards to those who do it.  The solution is complex and involves multiple areas - not just oil.