|
THREE DOLLAR GAS:
Many Americans are frustrated, outraged, and anxious over rumors of potentially record high gas prices this spring and summer. Many Americans do not understand the reasons why $3.00 gas will be considered "cheap" in the not too distant future. Remember a few years ago when gas shot up past $2.00, and everyone was stunned? Today, gas stations would have lines to the street if gas was $2.00. In the not too distant future, $3.00 gas will be sought after. There are numerous reasons that oil prices have gone up and will continue to rise indeterminately, such as supply and demand, geo-political unrest, domestic politics, potential for natural disasters, and refinery shutdown. A decade or two ago, the billion plus people living in China, and the billion plus people living in India were riding bicycles and cars were not popular. During that same time, both India and China (especially China) have begun to dominate global manufacturing. Flash forward to 2007, China has gone from a strict Communist nation and has leaned towards a more capitalist economic policy. What drives (pun intended) the industrial revolution for China and India as they continue to grow economically, as well as in population? Oil. During the past two decades or so, the global demand for oil has grown exponentially faster than supply. The end result of the most basic and rudimentary economic theory of supply and demand is that as demand outgrows supply, the cost for the product in demand grows. Geo-political unrest has grown exponentially as well over the past two decades. Think about it, two decades ago, President Reagan was
Domestic politics have a huge effect on gas prices. California is always fifty-cents or so higher than the rest of the country, because they have insane environmental restrictions that force the costs of oil through the roof. State and local taxes have a huge effect on the price you pay for the price of gas. We have a huge oil supply in Alaska in what is known as ANWAR (Arctic National Wildlife Refuge). We could begin the process to drill in Alaska, which would produce thousands of jobs, and greatly reduce the country's dependence on foreign oil today, but liberal politicians would rather protect a fish than protect Americans. As a matter of fact, regions throughout the world where pipelines were build amid environmental concern, wildlife not only survived, but it flourished. I am an avid outdoorsman, I love our beautiful national parks, but not at the expense of our safety, and not when it could greatly lower the gas prices. Liberal politicians love to point the finger at "big oil" as the sole purpose for high gas prices. The liberals' marriage to phony environmental causes and the fallacy of global warming will end up costing America billions of dollars and the loss of innocent American lives, as they refuse to allow domestic oil exploration to reduce the dependency on foreign oil. Every year, the domestic oil production is threatened by natural disasters. We all know the toll that Hurricane Katrina took on domestic oil supply. A great deal of domestic oil production and exploration is found in the Gulf Coast region, from Houston to Florida. We cannot prevent natural disasters, despite what Al Gore, Sheryl Crow, Laurie David, and the rest of the Hollyweird, liberal, media and "entertainment" establishment may tell you. In a matter of days and/or weeks, America could be faced with a "perfect storm" of a domestic natural disaster (Hurricane that shuts down/destroys oil production on the gulf), and foreign oil production halted by a rogue foreign leader (such as Ahmadinejad) which could easily double, if not triple, short term fuel prices, resulting in $6.00+ gas, and possible fuel shortages throughout the coast. I do not want to sound doom and gloom, but I would like to prove to you that we MUST drill domestically (Alaska), and that the gas prices are not simply a result of greedy CEOs. |
|
Archive | Home
|
