| Re: Drill here, drill now pay less........
It's amazing that even Newt seems to have forgotten economics 101.
What happens when demand for a product increases?
What happens when production of conventional oil can only just match demand increases?
Secondly, everyone seems to be blaming the oil speculators, it just seems to me that politicians are finding someone to blame.... Some other poster has produced data showing that oil speculators are not increasing oil prices. I'll leave it at that.......
Thirdly even if the U.S has huge amounts of shale oil, that may be total reserves, you need to take into account the actual amount that is recoverable..... And even if America starts drilling for oil of the Atlantic and Pacific, and starts utilizing non-conventional sources of oil, will that in itself reduce oil prices?
Everyone seems to be forgetting that both China and India are aiming to become as developed as the West. In thirty years time how much oil will those nations be consuming? How much will the U.S be consuming in that time?
Has anyone also considered that oil prices must not slip below a certain price, as non-conventional sources of oil are not economically viable below $30 a barrel.
I'm sorry but there is no real answer for oil prices, we are dealing with peak oil end of, a huge amount of people in Asia reaping the rewards of globalization. Whether you are American, British, Canadian, German, French, Japanese or Australian, us westerners are now competing for oil against the rest of the world. Now short of socialism, subsidies or war, this means that we'll just have to pay for the price of oil. And if you don't like it I suggest that you get on your bike, start walking to work, or talk the dreaded socialist public transport.....
__________________ I like liberals because they believe in moral freedoms. I like fiscal conservatives because they believe in financial freedoms. The problem is; I just don't like the rest of their policies! 
Libertarian all the way!  |