The solution to America's energy problems is a National Energy Policy that not only reduces our dependence on foreign oil, but on all oil products, imported or otherwise. This plan must account for the economic costs of CO2 emissions.

The long-term rise in oil prices in America certainly has to do with supply and demand and our inability to reduce demand. Normal market mechanisms that would reduce price do not function for essential commodities that the buyer cannot do without. Because countries with high growth economies need to provide jobs and guarantee economic growth (most importantly China), futures contracts in oil can be bid up by investors who have no intention of holding or using the oil and then sold to those governments that must provide growth to ensure political stability. This speculation, combined with a weak dollar, has lead to large spikes in the price of oil.

Therefore, in the long-term, increased drilling will not help. America needs to reduce demand. Significant segments of our economy must be able to "walk away" from oil for the real price of that commodity to fall. America has tens of thousands of existing permits to drill and is issuing new permits every day. Congress is currently trying to pass a "use it or lose it" law for existing permits, which I support. In any case, the oil companies do not have the equipment to increase the rate of drilling at this time. Opening up new tracts to potential permitting does nothing to solve the underlying problems of the cost of oil. The solution to America's energy needs lies in the development of new energy technologies.