Oil prices drop - hmmmm
Last month I suggested that perhaps the rise in the spot oil price just might be related to the fact that there has been an increase in world demand coupled with our refusal to develop new sources. I urged Senator McCain to call for offshore drilling and opening up new sources along with the development of new refineries. I suggested that this is a national security issue.
Well since that time President Bush has rescinded the 199o ban on offshore drilling and called on Congress to allow for drilling to address the current crisis.
And guess what happens on the speculative futures market? The price dropped. In fact over the last three days the price has tumbled $16. Now analysts argue that reduced demand is part of the reason along with the drop in natural gas prices.
But I think this is where speculation is raised to a higher art. After all we have seen this rapid rise in price which the Democrats are loving because it slows the economy and depresses people. And when people are unhappy, they vote Democrat. Raise the price of gas and Al Gore is ecstatic. His latest speech begs to have someone ask what is going on with that fellow.
But the minute the speculators factor in the possibility that the United States just might get serious in the energy business, the price drops. They know what we all know. America has the resources to fuel this economy and reduce our dependence on foreign oil. Just a reduction would lesson the outward flow of the dollar , keep the dollar in this country, provide for jobs, and strengthen the auto industry which must get serious about two things, finding a successful and cost efficient way to fuel the next generation of automobiles, and retooling the U.S. side of their multi-national corporations. You see is a little confusing to find the U.S. Automakers building factories outside the U.S. and then see foreign auto manufacturers building plants IN the U.S. But that is another story for another day.
The point of this article is that merely suggest that the U.S. is going to frill at home and the futires market reacts.
Imagine if we could move Congress to rescind the ban on offshore drilling and allow the refineries to be built. Add a few nuclear plants in the mix and we just may find ourselves exercising some common sense.
Now if this could translate to some real relief for consumers at the pump....
Well since that time President Bush has rescinded the 199o ban on offshore drilling and called on Congress to allow for drilling to address the current crisis.
And guess what happens on the speculative futures market? The price dropped. In fact over the last three days the price has tumbled $16. Now analysts argue that reduced demand is part of the reason along with the drop in natural gas prices.
But I think this is where speculation is raised to a higher art. After all we have seen this rapid rise in price which the Democrats are loving because it slows the economy and depresses people. And when people are unhappy, they vote Democrat. Raise the price of gas and Al Gore is ecstatic. His latest speech begs to have someone ask what is going on with that fellow.
But the minute the speculators factor in the possibility that the United States just might get serious in the energy business, the price drops. They know what we all know. America has the resources to fuel this economy and reduce our dependence on foreign oil. Just a reduction would lesson the outward flow of the dollar , keep the dollar in this country, provide for jobs, and strengthen the auto industry which must get serious about two things, finding a successful and cost efficient way to fuel the next generation of automobiles, and retooling the U.S. side of their multi-national corporations. You see is a little confusing to find the U.S. Automakers building factories outside the U.S. and then see foreign auto manufacturers building plants IN the U.S. But that is another story for another day.
The point of this article is that merely suggest that the U.S. is going to frill at home and the futires market reacts.
Imagine if we could move Congress to rescind the ban on offshore drilling and allow the refineries to be built. Add a few nuclear plants in the mix and we just may find ourselves exercising some common sense.
Now if this could translate to some real relief for consumers at the pump....
posted by Jakubczyk on Life | 6:49 PM
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