A Re-Do on Why Oil Is So High

With the price of gasoline rising daily across the country as well as heating oil and other oil products I decided to dust off one of my old blog post from June of 2008.  It seems that the same question continues to be asked regardless of the year or years and that is, Why is oil so high?  In January of 2008 the cost was $84.70, the highest in history, with the record high of $126 a barrel coming in June and July of that year as shown in the post. You can see how the cost has risen from the early 70's here.  The answer remains the same as it has since the 70's.

My friend Mustang on his blog, Social Senses ,makes some astute observations as well on this same subject.Oil Prices Set to Escalate   Take time to read both articles then decide if anything has changed.

Thursday, June 5, 2008

Why Oil is So High

I received an e-mail from a friend yesterday about why the price of oil is so high and how this has been allowed to happen. (Regardless of the validity of the e-mail it remains food for thought.) I then ran across a headline this morning saying that the price of oil is now $126 a barrel, and the dollar grows weaker.

The Europeans are preparing to raise interest rates later this year, and this sends the dollar falling even more. Of course, the price of gasoline and oil are rising all over the world as the demand from China and India grows at unprecedented rates.

We were warned of this trend in the 70s, but our Congress has yet to act in a positive manner. They have postured and finger pointed while allowing the environmentalists to control our future through lawsuits to stop drilling; expansion of oil refineries; development of alternate fuels, especially nuclear, which is the cleanest and the most proven of all the other alternatives, including wind.

I know some will want to jump on wind being cleaner, and while that may be true, it is still unproven and requires more land resources and can be harmful to migratory birds. Alas, the enviro-nuts will not admit to this while touting wind as the wave of the future.

Some areas of the country are not suited to wind at all, as we are here in Texas and other parts of the west, but all areas are suited for nuclear power plants. Europe has proven their reliability for many years now, but our government drags their feet in allowing the expansion of this safe and clean source of power, all in the name of political expedience. Some will disagree, but I will be waiting for them to present a more proven alternative. We have wasted enough time. It is now time to build the reactors that will provide the power for America’s growth.

It is time to drill and to develop the shale resources into oil as well, instead of being held hostage by terrorists.(and now our Leadership in the WH) Terrorists held our Embassy people hostage beginning in November 1979, and America has been held hostage to their oil production since that era. It is time to break the hostage situation by declaring war on the lack of initiative by our government in development of alternative fuels other than the ridiculous grain-based Ethanol that is so loved by the enviro-terrorists, and demanding that drilling begin yesterday in areas where we have known oil deposits.

Now read the e-mail that I received and see if it does not speak volumes of truth.
Our country has all of the resources we need if we were smart enough to use them.

(HatTip to classmate and friend Chuck Jones for the e-mail)
Subject: Think about it
 
The OPEC minister will look you in the eyes and state: 

"We are at war with you infidels. Have been since

the embargo in the 1970s. You are so arrogant you

haven't even recognized it. You have more missiles,

bombs, and technology; so we are fighting with the

best weapon we have and extracting on a net basis

about $700 billion/year out of your economy. We will

destroy you! Death to the infidels!

While I am here I would like to thank you for the

following: Not developing your 250- to 300-year supply of oil

shale and tarsands. We know that if you did this, it

would create millions of jobs for US citizens,

expand your engineering capabilities, and keep the

wealth in the US instead of sending it to us to

finance our war against you bastards.
 
Thanks for limiting defense dept. purchases of

oilsands from your neighbors to the north. We love

it when you confuse your allies.
 
Thanks for over-regulating every segment of your

economy and thus delaying, by decades, the

development of alternate fuel technologies.
 
Thanks for limiting drilling off your coasts, in

Alaska, and anywhere there is a bug, bird, fish, or

plant that might be inconvenienced. Better that your

people suffer! Glad to see our lobbying efforts have

been so effective.
 
Corn-based Ethanol. Praise Allah for this sham

program! Perhaps you will destroy yourself from the

inside with these types of policies. This is a gift

from Allah, praise his name! We never would have

thought of this one! This is better than when you

pay your farmers NOT TO GROW FOOD. Have them use

more energy to create less energy, and

simultaneously drive food prices through the roof.

Thank you US Congress!!!!
 
And finally, we appreciate you letting us fleece

you without end. You will be glad to know we have

been accumulating shares in your banks, real estate,

and publicly-held companies. We also finance a good

portion of your debt and now manipulate your

markets, currency, and economies to our benefit.


THANK YOU AMERICA!"