KJ Taz wrote:
The US sits on top of tons of oil............................we really don't need to be exporting any...........but we don't use it and we aren't allowing refineries to be built (except one now, in the last 20+ years)..........hummmmmmm can you say we dug our own grave? Or is all just a part of a conspiracy to get the other countries to run out then they will have to depend on us? Hummmmmm lmao.
And yet our existing domestic refineries run at only 80% of capacity. Unless we are going to pass laws banning the sale of domestically produced oil to countries oversees, we are always going to be stuck in a global market. And US demand is decreasing, yet US prices are increasing.
Oil prices have skyrocketed because of exploding demand in India and China (only going to get worse), speculation in the US and globally (investors parking their money in oil futures rather than real estate, bonds, etc... because it is the next "sure thing" for high dividends), instability in the Middle East (regardless of what anyone thinks, thats still where most of the oil we can get at cheaply resides), and new oil sources increasingly expensive to develop. The nasty fine print of all those "major new find!" stories is that they are all in places that are very, very expensive to develop. With oil nearing $150 a barrel, all sorts of projects become feasible. And if oil drops back below $80 a barrel, they won't be profitable and folks won't develop them.
I posted the cartoon (from the magazine "The Economist") because I think it pretty accurately sums up where America is right now. We need leadership to start moving us out of this mess and away from oil in the long term, and in the short term working to cushion the economic blow and encourage conservation. Banking on new finds 3.5 miles under the Atlantic off Brazil, oil shale in Canada, etc... is no different than a heroin addict trying to find a new dealer. The solution is to stop using.