There are a lot of factors that go into the final price of anything, and oil is no different. The old formula of supply and demand is still the preeminent factor, be we also have to deal with the value of currency on the world market, things that effect the supply, as well as the demand, and politics as well. Even thought he cry has been for people to conserve consumption of fuels, the demand keeps climbing. And while demand keeps climbing, events keep happening to curb supplies. Reuters reported today that Nigerian oil workers began a strike today at a Chevron plant in Nigeria. With output already crippled by recent militant attacks, production is expected to be further reduced.
This one event, half a world away is just another reason why we need to begin easing our dependence on foreign supplies of all of our energy needs. When we depend on others, we survive or perish based upon their whims, no ours. And in today’s world, our friends are becoming fewer and further between. The war in Iraq has been suggested as the main cause of the increase by others. I don’t buy that as a total reason either. Some say the growing Chinese demand is the reason. The list is much longer, but none of the reasons alone have provided me with enough justification to place blame on any single factor for our rising petroleum prices.
But instead of trying to play the he did it game, we should be concentrating on a solution to the problem. Alleviating symptoms won’t cure the disease. And we need to bear in mind that the cost of energy affects more than just the gas in your car, or the oil you buy to heat your home with. The Washington Times has an article discussing this very issue, and no matter how you look at it, it isn’t pretty. Everything costs more, from the cost of pizza delivered to your door to getting your house painted and shipping a package. The entire spectrum needs to be examined, not just one part of it.
But here we are, up in cold New England, fretting over the impending doom of the heating season. And what exactly are we doing about it. The best thing possible, of course. The most sensible action. We’re doing the smart thing about the price of oil. We’re sitting around and fretting about it. What else would you expect? As we grow more and more comfortable with the idea that the government will take care of us, we learn to expect big brother to solve the problem.
Ain’t happening folks! It’s too late to do anything meaningful for this coming season, but maybe we can do something for next year. But what? Let’s look at the entire problem for a moment, and see if there’s anything worth tackling. Of course, the number one issue is the supply and demand factor to consider. On the demand factor, we can lesson that by conserving energy and consuming less. That scenario is unlikely to play out. For one thing, China and India are increasing their needs at an incomparable rate. The only thing that’s going to dampen that fever is for this entire country to stop shopping at the Blue Mecca Malls. You know what I’m talking about.
As long as we have an insatiable appetite for cheap products, china’s industrial base will continue to grow, and along with it, their need for oil. Same thing for India and any other country you want to talk about. Industry needs energy, and the cheapest, most efficient, and most reliable energy comes from oil based fuels. We like to brag about conserving, but frankly, the US is no longer the main player in the energy game. We won’t be able to affect a change simply by conserving.
There are some good reasons for that fact. For one, the UN’s campaign to impose a worldwide Carbon Tax has taken a solid hold. Everyone is under the global warming spell. We have to reduce our emissions if we’re going to save the world. Horse puckey! We can’t do a single thing to save the world from a disaster that isn’t going to happen. A handful of scientists in the employ of certain firms and organizations decide to help the UN impose their brand of Socialism, a good PR program to get some of these Left Wing Hornywood Liberals to climb on board and voila! You have a bona fide disaster in the wings. But that’s a whole ‘nother discussion.
Then there is the speculator hater. Speculation makes the money go ‘round. If you are going to attack the oil speculators, why not the bio-fuel speculators, and the corn speculators, and so on. it’s not fair to single out one group of traders, and I kind of doubt as any action of that sort would really hold up in court, anyways. Don’t forget about the Iraq war, and those who put the blame on that issue. Bush and Cheney and their oil buddies. And the list goes on. but there is no single thing that is causing this increase. Only a combination of many.
But two things in particular are, in my opinion, responsible for having a major impact upon the price of oil. Neither of which anyone in the country can control. Number one is the value of the US dollar, and that declining value against world currencies. Number two is the fact that Iran developed its own oil trading board, and the oil traded there is no longer done so with the US dollar. Up until the opening of that trading board, all oil was trades were based on US currency. We held the reins to the wagon, and could pretty much make them horsies pulling it go where we wanted ‘em to. But no longer. We are now at the mercy of a society that really doesn’t like us very well. Most of the worldwide polls tell us that the majority of the world thinks that Barak Obama will be the victor of the electoral race this fall.
Comments have been made, anonymously of course, that seem hard to pin down claiming that the world will return to a 1930’s economy if Obama is elected. The reasoning behind this, presumably, is that with a weak willed Socialist dominated Congress, and an equally weak Socialist President, the US will push forward with public welfare in the way of mortgage protection, socialized health care, subsidized industries and more economy killing programs under the polite name of entitlements.
The only way we, as a nation, can quickly avert an unprecedented rise in the price of our energy this coming winter is to turn Congress around, and stop locking lips onto the left wings left cheek. Stand up for the right to be free and tell your elected representatives to stop playing games. We have the technology to safely drill for oil on our own lands. Even if we just drill off the coastal areas, we can procure enough oil to drive prices back down to reasonable levels.
I’ve seen a few bumper stickers decorating some Subaru’s that claim oil has risen by 150% and other such figures, since Bush assumed the Presidency. It is true that the price of gas has risen an incredible amount in nearly eight years, but do you realize that a tad over 40% of the increase has occurred in the two years since Nancy Pelosi’s assumed her office? How much sense does that make?
Northeast Home Heating Oil Reserve to get 3 million in reserves for this winter…