More on Oil Company Subsidies

I wrote recently that the US government should eliminate oil company subsidies as suggested by Pres. Obama, but not for the same expressed reasons.
   

    I have received a comment from one of my associates as follows:
        

"I almost agree.

       

 We need an energy plan that:

            1. guarantees and puts us in an immediate position of complete energy independence, and does not continue to send all of our money to our enemies.

            2. provides a long-term solution to continue that independence (with alternative energy sources) for the long-term foreseeable future, at least 50-100 years ahead (sufficient lead-time for new energy technology to develop)

            3. is directed and controlled by big-picture and multi-source interests and wisdom (a republic); rather than by a small, closed, small thinking, self-absorbed aristocracy (presidential dictatorship); or by a selfish, short and small-thinking big group (pure democracy, like the one that voted Obama into power)".

    I replied as follows:
        

" We will accomplish your objectives by removing subsidies and restrictions from oil companies, which will force them to maintain profits and high stock values by increased production.
    

There is a potential end to the supply of oil and gas, but that is unknown and it is many years down the road. We should not be looking at it as an emergency that needs immediate action. The last phases of oil and gas availability will eventually be obvious, with an associated increase in prices. This will occur over several years, which will be ample time for increased development of the most economically favorable renewable energy sources.
    

Oil and gas companies are in the energy business. When they see that supplies of gas and oil are terminable, they will switch to supplying other forms of energy. Some have already started this, but unfortunately have been artificially encouraged to do so by government taxpayer grants. Government should not be meddling in this area. Free-market needs will take care of product availability, pricing and competition. The only function that government should have is to restrict the formation of monopolies, which would work to the disadvantage of the American public. We have antitrust laws to do this, and the Justice Department has a requirement to follow this and prosecute where necessary".