I'd like to begin by attacking the PetroTyrants like Hugo Chavez that sell us oil. (Venezuela is America's second largest supplier of oil) As with so many things, consumption is our fault, not his.
The economic recovery will lead to more consumption of petroleum. That consumption will lead to higher prices. We'll all blame the Saudis, but the US is behaving irresponsibly in the face of a new oil price increase.
The value of the dollar drops as the Obama Administration borrows with reckless abandon and spends money we do-not-have. With the decreasing value of the dollar (the price of international oil is pegged to the US Dollar) we will pay more for the wide range of products made from oil.
At the same time, the Obama Administration banned domestic off-shore drilling for oil. In Barack Obama's utopian socialist fantasy, unproven alternative fuels will fill the void. The US Government will control our domestic fantasy fuel production (the socialist part) and all will be right with the country. Did I mention the word "fantasy"? The Obama Administration removed the ability for companies to build new nuclear energy plants by its refusal to allow fuel storage at Yucca Mountain, Nevada. So there will be no new nuclear energy generation in America until Obama is voted form office in 2012.
The US refuses to build more oil refineries. We had 324 in 1981. We have 141 now. We are not able to refine the oil we need to meet the demand so we import refined products. This creates a GREATER reliance on foreign oil sources.
Many of the countries we supply with our purchases -- Iran comes to mind -- hate us every bit as much as Venezuela. We fund our enemies. Am I the only one who thinks this whole situation is absurd?
4 comments:
Why people pick some wonk like Hugo Chavez to run their country. The guy is obviously whacky, and nothing but trouble. Then I think of what we picked.
They hate us. We send them money. Yup. It don't make sense.
LL is right, it's our fault. We need to A) begin more self-sufficient with our resources, and B) find something besides oil.
Makes total sense. I am a Canadian, and saw this coming down in Obamas campain. People here are still worried (alberta) because we sell oil to the US but can't possibly be the only supplier for that demand, and cant afford to shut down because the US decides to go with the one who will hand them more.
each time an oil refinery shuts there, we feel the echo here.
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