The Perilous Fantasy of Pursuing Energy Independence

Advance public announcements on research plans can lead to market manipulation. Leaders of developed nations – weary of instability in nations that supply oil and high prices – openly seek energy alternatives. But oil markets respond to the chatter about alternative energy in two ways: Some producers might reduce investment in infrastructure or additional capacity, and others might increase production to thwart development of alternative-energy sources. As markets respond to speculation rather than actual supply, economic crisis could ensue. “Isolationist policies, by contrast, always lead to shortages and discontent,” write A.F. Al Hajj and Gavin Longmuir for Project Syndicate, in an essay published by “The Daily Star.” The two oil analysts argue that any quest for alternative-energy sources cannot create “independence” – isolated havens capable of avoiding disruptions of major markets. In other words, alternative-energy sources won’t reverse the process of globalization. – YaleGlobal