Idiocy: We are dependent on foreign oil. That's bad. We buy oil from countries that will do us harm. That's bad. They use the money to fund terrorism. That's bad. To stabilize these hostile regions of the world we send troops in harm way. That's bad. In order to do that we are fighting two wars in the middle east or one war on two fronts. That's bad. This costs tons of money and weakens our economy. That's bad. So what are we do? We don't have any oil here...right?
Truth: We do have oil...tons...literally. In Alaska, we have enough oil to supplant 15 years of foreign oil. Off of the Gulf Coast we have even more. Look west and you'll find oil off of that coast as well. So what's the problem? Oh, it will harm the environment if we drill there? Hmmm, so will a nuclear attack from the middle east. And yet, there is no proof that it will harm the environment. Drilling is currently going on off of the Gulf anyway, but not by us. They stay in International waters and drill at an angle toward the coast...nice. But WE can't! Why? Because of politics. The environmental lobby groups pound Capitol Hill into submission (because they are weak...like the Ukraine) and they acquiesce (I spelled that correctly on the fist try). We haven't even built an oil refinery in over 30 years due to government regulations. Dumb. Yeah, you'll get that kind of sharp linguistic jujitsu here. I say it again, dumb.
Common Sense: I'm all for the environment...just not for environmental anti capitalist pro socialist front groups. Let's drill, aggressively. While we drill, we build nuclear plants. Yes, that nuclear energy that was so dangerous and forgotten about in the 90's that has yet to ever cause loss of life here in the United States (Chernobyl was outdated, under and mismanaged and not possible here). Create huge incentives for research into new fuel technologies by freeing the tax burden on companies that fund said research (in other words, get the government out of the way of companies that want to create). Ahhhhhhhhh, that feels good. I fixed our foreign oil problem all the while taking a break to help Rachel and the kids make whole grain applesauce muffins (with flaxseed meal, be very afraid).
And Another Thing: Do not talk to me about ethanol. Our present love affair with corn as fuel is as befuddling as young girls looking up to Paris Hilton. Food prices are through the roof due to government incentives to raise corn for fuel, leaving less for consumption. We have less to feed the world (which we do more than you'd ever realize), less for us at home, and less space (and farmers willing) to grow other crops. Beyond that, it actually has a larger carbon footprint (I can't believe I used that term) than fossil fuels because of the energy it takes to create and that it has to be delivered by truck instead of pipelines (too caustic). Harrumph!
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I'm totally with you on this Jay. I worked at the NYMEX last summer under one of the best crude oil traders there. I was trading crude oil contracts the whole time, while he was teaching us about how the whole commodities market works. It's interesting to note that we (the US) get as much crude oil from Canada as we do from Saudi Arabia. However, crude oil prices are subject to supply and demand. There are a lot of factors that go into determining the price of oil. Every Tuesday at 10:30, a report comes out telling people on the market how crude inventories are doing, and the prices fluctuate depending on how the numbers come out compared to how they're expected to be. It's usually quiet in the hours before that. Whenever the numbers come out, the trading floor can either go on the same as it usually does or it goes absolutely nuts. I've seen it go both ways. The crude markets also go crazy whenever news of instability comes out in places where there are huge refineries, like Nigeria. A couple times, rebels sabotaged refineries and cut into supply, sending prices skyrocketing for the day. That being said, it always seemed as though demand was high. The demand is driven by us...from people driving as much as they do or using heating oil during cold winters. Any disruption in that supply makes traders bet on high prices. They ride those high prices until demand drops or supply increases. They're waiting for the point that consumers can't deal with the high prices anymore. And that point hasn't happened yet, but it might soon. The only way to put a dent in the demand is for people here to stop driving as much and starting to conserve gas by doing things like using mass transit.
On the issue of oil dependency, relief might be on the way. It's not gonna come from corn ethanol. Corn ethanol takes more energy to produce and it's highly corrosive. It doesn't even make a big difference when it comes to emissions. It just makes the uninformed feel better about themselves for not using as much gas. We should be importing sugar ethanol from Brazil, because it works a lot better than corn ethanol and its cheaper. However, our Congress would rather subsidize corn ethanol for American farmers than lower tariffs on sugar ethanol from Brazil. It's mind boggling.
But, getting back to my point, the solution to our foreign dependency is oil shale. Oil shale is deposited deep down in rock and it's incredibly hard to extract. There are tons and tons of oil shale deposits underground in Western Canada that we haven't found a way to get to yet. Companies are developing ways to get to it and once they do, it's gonna completely change the way we do business with the rest of the world. There is enough oil in those rocks in Canada that we'll be independent from OPEC for a long time. Believe me, it's gonna be HUGE whenever we figure this out.
Sorry for being so long winded, but this is something I know a lot about. Not a lot of people truly know about this stuff, so I thought I'd let you know what I know.
-Jim
Thanks Jim. It makes me glad to know that there are well spoken, intelligent people out there. Not just because you agree with me, but because you have knowledge and communicate it clearly. I agree 100% about the shale oil. I believe the largest shale coal reserve in the world is in Utah or North Dakota. The problem there is that a former President (well...Bill Clinton) named it a national park. Why (there is nothing else there)? Common belief is that the worlds second largest is in Indonesia (or somewhere like that) that perhaps made a huge contribution to some library in Arkansas.
What? What the crap - why are we not digging up all this oil in Alaska? You're telling me that if we dug up all that oil, I wouldn't have to pay over 3 bucks for a gallon of gas? I've been pretty proud of myself for not being so angry about gas being so expensive and just shutting up and paying it, but now I'm pissed.
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