Oil!

Filed under: Front Page — Koliver at 10:28 am on Friday, April 11, 2008

I have been told that peace in the Middle East is vital to our oil supply, but I came by some interesting information yesterday thanks to the USDOE. About 21.2 percent of our imported oil is from that region, and it accounts for only 11.66 percent of our total oil consumption. We could cut our consumption by 12 percent and forget that region ever existed. Before we meddled in the quagmire that is Iraq, and it was not to fight terror, regular unleaded sold for less than $1.40 per gallon. Imagine a sensible method to “fight” terror. We could limit our presence in the Middle East, and stop purchasing their oil. Someone else undoubtedly would, but we would not be directly financing the next generation of terrorists. Logic would demand an embargo on Saudi Arabia, origin of: 17.9 percent of our crude oil imports (9.8% of total consumption), as well as 19 of the 9/11 hijackers. An embargo may have increased the cost of fuel, though I would argue not by more than the ratio of the crude Saudi Arabia supplied to that of others. Conversely, maintaining demand in response to our embargo, OPEC would reduce prices to maintain production, resulting in decreased oil prices around the world. This is only an exercise in hypotheticals, an impossibility due to our ties with the Saudis as well as US oil companies, who would have undoubtedly cried foul. However, I would counter with another injustice. The Saudi’s provide stipends to the families of “martyrs of the intifada,” yet are not state sponsors of terror like Syria and Iran. Why do we have different rules for them? Because they are our friends? No. Because they are the good guys? No. Would an embargo against their nation be so unfair? We will not trade with Cuba because of their oppressive regime, but at least they allow women to drive and do not execute rape victims who cannot produce 4 Muslim men as witnesses. Which is worse?

3 Comments »

9

Comment by black_gold

June 21, 2008 @ 6:58 am

More off-shore drilling and in Alaska is required period! We want to be oil independent…well Liberals, relax the environmental BS and let’s do some drill’in.

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Comment by Koliver

June 23, 2008 @ 6:00 pm

Right, in ten years, mind you we are at peak oil right now, ANWR and off-shore rigs will start to produce some oil. I really could care less about ANWR, but the fact is, it won’t help. Besides, 84% of the leases for oil and LNG drilling aren’t being drilled. More leases won’t really help. Drilling won’t reduce the cost of fuel for a decade, and meanwhile our economic problems due mostly to disastrous foreign policy, and out of control national debt, are exponentially worsened by rising fuel costs NOW. In ten years, if we haven’t kicked oil, you’re going to have to start learning some Mandarin. The US cannot drill our way out of this mess. We need, wind, nuclear, solar, hydroelectric, and clean coal technology to be truly independent, not hand out more leases to our Exxon overlords. If we spent half as much money on green technologies as we do on tax breaks for the oil companies we might get somewhere. With the amount of energy they’ve extracted in this country alone, we should all have oil pensions to rival the Kuwaiti’s, but the freemarketers would rather hand it all over to corporations. Gas is still under the equivalent of $1.00 US in Saudi Arabia. You want to pay less for gas? We are at peak refining capacity right now, and maintenance on refineries is manipulated to coincide with the summer driving season. We need to look into market manipulation by the oil companies, and commodities traders, and we need to decrease demand. You supply-siders never look at demand. Econ 101 taught me there are two sides to the free market. Trade your Hummer in and move closer to work, because unless we kick the habit, your gas costs each month will rival your mortgage payment.

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Comment by Koliver

June 23, 2008 @ 9:39 pm

Backing up my assertion is This article

The U.S. Energy Information Administration predicted last year that if the moratorium were lifted, it would take until 2012 to start leasing the areas and until 2017 before oil began to flow. The agency estimated that U.S. oil production would increase by 7 percent — about 200,000 barrels a day — by 2030, which it said would have an “insignificant” impact on oil prices.

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