John McCain's $300 million energy challenge

John McCain has offered a $300 million cash prize to anyone who can invent a more efficient battery for electric and hybrid cars, as part of a package of proposals to help wean America off foreign oil.

Both he and Democratic rival Barack Obama have spent the past week focusing almost exclusively on energy, battling for domination of the headlines as fuel prices spike and the economy sputters.

The prize, which would be paid by the government and represents $1 for every American, was proposed during a speech in Fresno yesterday as the Republican nominee tried to wrest the initiative back from Obama, who had spent the weekend pushing his energy plans.

Over the weekend, Obama said he would impose a tax penalty on Big Oil for sales at or above $80 a barrel. It closed on Monday at $137.15, edging close to its record high of $137.69 on June 6 and nearly double the price just one year ago.

Obama said he would use the tax proceeds to help Americans make their homes more energy efficient and assist consumers with utility bills.

But  McCain argues that Democrat President Jimmy Carter tried a similar tactic 30 years ago and only succeeded in deepening an oil shortage in the midst of the Arab oil embargo. It is an erroneous and rather revisionist argument, given that the embargo was over in 1974 - years before Carter took office - shortages during his presidency being largely a consequence of the Iranian Revolution and Iran-Iraq war rather than of his largely symbolic effort to improve efficiency.

In McCain's view, the answer lies with exploiting domestic reserves - he last week joined President Bush in urging an end to the ban on offshore drilling. But critics say such oil supplies would do nothing to ease the pain of consumers for several years and even then would have a negligible impact on prices.

McCain has the more difficult sales job to do, given the perception that his presidency would be a third term of George W. Bush, whose popularity has fallen through the floor amid a weakening economy, soaring oil prices and a war which has failed to deliver the energy security envisioned by its architects.

The two men do agree on one proposal, however. They both support closing the so-called “Enron loophole,” a 2000 congressional exemption on energy trading regulations which is thought to contribute to price surges through unfettered speculation on electronic markets.

McCain's $300 million offer is part of an attempt to bolster his reputation as a green Republican, put at risk by his call to allow offshore drilling. He argues that a battery more efficient than current models would decrease fuel consumption and consequentially reduce carbon emissions that contribute to global warming.

“In the quest for alternatives to oil, our government has thrown around enough money subsidising special interests and excusing failure. From now on, we will encourage heroicefforts in engineering, and we will reward the greatest success,” he said in announcing the proposal.

It is certainly an eye-catching offer, and one that will appeal to the American entrepreneurial spirit. And there is no doubt that a more efficient battery would have the desired effect, attracting more Americans into electric and hybrid cars and away from gas guzzlers. But there are some key questions that are as yet unanswered, such as who will own the patent to the new improved battery. Because if I was the inventor, I'd be charging all the other car manufacturers a hefty price - and there'd have to be a whole new package of regulation to force them to use it.

Still, I'm starting to wish I'd paid more attention in my physics class...

Comments

[JOHN CHUCKMAN, TORONTO]

It is a good idea, which absolutely convinces me it wasn't Mccain's own.

The prize would be large enough to spark real interest.

[DanielSalaman]

John McCains offer of $ 300 million is a rediculous desperate, stupid, cheap offer to any new inventor of battery electric hybrid cars. Good God the old man is seriously lacking or running out of political imagination, as to how, to fight best Barack Obama. In my personal opinion i think that Mr. McCain brains are developing the old age symptoms. He should have known better that the are hundreds of Billionaires on this planet who would offer billions let alone millions to any new inventor of electric hybrid cars. I find quite difficult to understand the Republican party as to why they have not changed in time, their Candidate, when they had an inside full knowledge of Mr John McCains serious health condition. This kind of secrecy is a fault play by any respectable party against its own supporters. In my opinion it is best for the country and the Republican party to let go of Mr McCain for a good retirement, there still some-time left to come up with a new replacement. If they do that, by any chance i will then call it a respectable political fair play. In the eventuality that the Republicans carry on with Mr McCain it will be only a sure, and an easy Victory for B. Obama ,all the way to the White House..