We are all so relieved that the price of oil is dropping a bit. And ever so thankful that gasoline is getting a bit less expensive too. But no one is asking the big question: WHY?
The news is saying that U.S. demand has dropped. That's true, but demand has been dropping significantly since May. And oil & gas are just now dropping in response??? Bull!
T. Boone Pickens' ad was running, encouraging support of alternative energy, less dependence on oil, especially foreign oil. And a few politicians were trying to get approval through for significantly increased oil exploration and drilling off the coasts of the US mainland. But all of that has fallen by the wayside since we've experienced a few dollars off the price of a barrel of oil. Wake up America!!! We are being manipulated again.
Big oil, especially OPEC, is afraid that we actually might develop alternative energy sources and make a huge dent in their flow of US dollars. The best way to cut that off at the knees is to lower the price of oil. All of a sudden, we as a nation are being swayed to drive again, use lots of gas and oil now that it's cheap again.
We need to keep up the pressure to develop those other energy sources. If we don't, this will happen again, oil will rise again, this time to well over $200 per barrel.
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3 comments:
The price of oil is falling because the market perceives the possibility of a direct military confrontation between the U.S. and Iran as becoming less likely.
I agree the likelihood of a direct military confrontation is becoming less likely, but only because Bush recognizes his lame duck status hampers his desire to attack Iran. That wil be up to the new president. I also agree that violence and terror in Iraq has decreased, allowing more Iraqi oil to be exported. But even considering all that, oil has flowed throughout the world all during the darkest days of the conflicts in Iraq and Afghanistan. Threats of war and worries of supply are countered by increased military presence in the Straights of Hormuz to insure those tankers keep gliding out of the gulf. To my perception, that means something else is at work. Namely, price manipulation by OPEC and the oil companies to maximize profits.
I agree that the prices are a result of political rather than economic forces. I can't envision an alternative to oil. Ican see reductions, but no real replacement. Wind, solar, etc. just ain't gonna make it. We have to become more fuel efficient and less dependant. Off shore drilling, ANWAR, higher gas milage.
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