It's time to invest in wind energy.
Here we go again. Appropriately enough, an Associated Press article on April Fools' Day reported that another congressional committee just called in another bunch of oil executives this week and chewed them out, this time about $100-a-barrel oil. They do it every year or two and nothing changes. Instead of outrage, we need political courage.
If we want oil companies to do something, Congress has to do something. Tweak the Internal Revenue code, provide tax incentives and loan guarantee funds for sustainable energy. Wind energy is so efficient right now that it's cheaper than coal.
But we've got to get the energy producers over the hump to profitability. And, by the way, if you think wind energy can't possibly work because the wind doesn't blow all of the time, think again. There are existing technologies that efficiently and effectively address this issue.
Incredible impact
We're all focused on the pain at the gas pump. But there are bigger numbers to worry about as well. Every day about $1.3 billion goes out of our economy to buy foreign oil. Yes, some of it comes back when other countries buy our assets and government debt. Still, we're sending about $500 billion a year out of the country for oil. That's twice the annual defense budget during the Clinton years.
I'm a bank owner and tax attorney. Economists tell me if we could keep that money at home and recycle it in our economy — six or seven times a year wouldn't be an unreasonable number — that's a $3.5 trillion impact. Keeping even a percentage of that money in our economy would let us get serious about health care for every citizen and other critical issues.
For example, we should be manufacturing wind towers and turbines in Minnesota's 6th Congressional District.
Wind turbines and towers cost about $3 million apiece. Towers are being built in the United States, but the turbines, the huge generators that sit on top of the towers, are built in Denmark, Spain and India and shipped here for $150,000 shipping cost.
The 6th District can be the Silicon Valley of sustainable energy. We have everything we need. The Dakotas and Wyoming have the wind, but not the infrastructure. We're close to the resources and have the skilled work force, infrastructure and energy needs.
Republican Sen. Norm Coleman promoted a $900 million federal loan guarantee for a $2 billion coal-burning electrical plant on the Iron Range that would have produced 100 permanent jobs. Wind energy is cheaper than coal. And for only $25 million we could have a wind turbine manufacturing plant in the 6th District, creating 100 permanent, good jobs — economic energy from wind energy.
Political will
Wind energy in the United States grew last year at a rate of 47 percent. That's partly because, for the first time since the 1990s, we had a Democratic Congress. Republican congresses have consistently let what little tax benefits existed for wind energy lapse. Because we've elected Democrats, it's renewed, but not at a nearly high enough level.
In World War II, we challenged American industry to solve incredibly difficult energy and manufacturing problems, then helped them get it done. And they did. We're smart enough. We're creative enough. The time for political posturing is over.
This is the opinion of Bob Olson, a bank owner, tax attorney and candidate for Congress in Minnesota's 6th District.