The NEED Act (National Environment and Energy Development Act) is formally known as House Resolution 6709.  Co-sponsored by Hawaii Democrat Neil Abercrombie and Pennsylvania Republican John Peterson, it is summarized here.  In a nutshell, the act would repeal the moratoria and limitations on exploration and development of energy resources both offshore and on federal lands.  It is estimated that the development of these resources would funnel nearly $2.6 trillion dollars into the federal treasury over the lifetime of use.    The NEED Act would then require a substantial investment of this windfall into the development of alternative energy technologies.  Further, the law as written estimates a contribution of $780 billion to the US Treasury – more than the combined totals for the recent bailout of the auto industry and the proposed financial bailout.

The next 25 years are going to be very tough on the American economy, with the costs of this bailout, the contraction in global economic activity with or without it, and the approaching peak of cheap oil supply.  The NEED Act provides a bridge during that period.  One of the most important and little commented upon effects of an economic contraction is that one of the first luxuries to be cut is spending on Research and Development.  That means the research needed for the next wave of fuels will be slowed and, in some cases, ended – precisely at the time we need them most.  The NEED Act will pump enormous monies into those efforts, and will help the Treasury to fund the financial bailout without putting a large bite on the average taxpayer.

I will have more to say about this in coming weeks, but for now, EnerGeoPolitics strongly endorses the NEED Act and encourages all of our readers to contact their Representatives and Senators to get behind it.  Remember, it is H.R. 6709.