Make oil companies utility companies?

OPINION:

The high gas prices should make Americans ask the fundamental question: What is the difference between what a public, nonprofit utility company provides and what a private, for-profit oil company provides? After all, they both sell energy to people.

The difference is that natural gas and electricity are sold in the form of a public good, whereas oil is sold in the form of a private good. Accordingly, on the grounds of promoting national security, Congress should convert all oil companies to utility companies. This would eliminate the windfall profits and force the oil industry to earn just enough income to cover operating expenses. (Natural gas and electric utility companies are required to do this.) The resulting drop in gasoline prices would further stimulate the economy and lighten the energy stranglehold the Middle East has on the U.S. It would also eliminate the influence of the oil lobby. Desperate times call for deliberate measures. But as pathetic as U.S. energy policy is, the effort to develop alternative sources of energy won’t really be accelerated until the oil dries up and the Saudis place solar cells across their desert, then sell us the electricity.

JOE BIALEK

Cleveland, Ohio