Experts Say High Oil Prices Here To Stay

ROCKLAND (NEWS CENTER) -- Oil prices can't stay this high, can they? Oh yes they can, say two of the country's experts in energy. In fact, they will go higher.

That's the somewhat gloomy prediction of Mathew Simmons and Paul Anderson. Simmons is an energy investment banker, who divides his time between Texas and Maine. Paul Anderson is the retired CEO of Duke Energy and he lives in Maine full time. Both men are routinely consulted by business and government leaders in the U.S. and other countries. And both agree there is no short-term fix for our energy price crisis.

They tell NEWS CENTER that the high prices really are the result of the rapid growth in world demand for oil. Says Anderson: "The most important number I think is to realize that the US has four percent of the population and uses 25 percent of the world's oil." He says that in contrast, China, with 20 percent of the world's population, currently uses just eight percent of the oil. America's 25 percent share, he says is unsustainable.

Both men say the only way to control prices in the short term is through energy conservation. Simmons says the Federal government needs to adopt policies that will move more freight by rail - or better still, by ship. Both he says would use much less energy than trucks. He also says the government needs to repeal the Jones Act, which restricts ship traffic between American ports. And they say America needs to start building nuclear power plants, although that will take years.

As for Maine, they say our dependence on home heating oil is a real problem. Government will need to help poor people pay for their heating costs, they say. Those who can afford it should consider switching to less costly propane. And Simmons is a big booster of geo-thermal energy for home heating. He believes the state should look for ways to encourage more homeowners to make that investment, and eliminate the need for oil.

Simmons is also a big supporter of the proposed Offshore Wind project that's being discussed by former Governor Angus King. He says projects like that could make a major difference in Maine's ability to cope with the energy future. And he predicts that if Maine can take the steps it needs to; there will still be some hard years, but the state will emerge with a stronger economy, and a place where people will again be able to afford to live.