Does cheap gas reduce the threat of foreign oil dependency?
Gas prices are dropping, and they are dropping fast. By Thanksgiving, barring any hurricanes, wars, etc., gas prices could hit $2.00 across the Nation.
So, does foreign oil dependency even matter anymore?
I say no. It won't matter enough to the average American, at least not enough to act.
Yet the oil issue will never go away. Even though oil experts claim we have only tapped 18% of the world's oil reserves, it seems we will never tap those supplies fast enough to keep up with demand. Oil companies, it seems, have mastered the art of supply and demand.
Forget E85. Forget hybrid cars.
If gas hits $2.00 per gallon, those alternatives simply make no economic sense to most Americans. Sure, maybe Democrats could take the House, Senate and Presidency and raise taxes significantly enough to subsidize E85 and hybrids, but such a move would end their leadership tenure almost instantly - the average American wants cheap gas and few taxes.
Once again, Big Oil and OPEC will have the last laugh, at least until the next spike.
After 9/11, Katrina, and Iraq, little has really changed. As soon as gas hits $2.00 per gallon, the words 'foreign oil dependency' will again mean nothing to the majority of Americans.
How can this be prevented?
So, does foreign oil dependency even matter anymore?
I say no. It won't matter enough to the average American, at least not enough to act.
Yet the oil issue will never go away. Even though oil experts claim we have only tapped 18% of the world's oil reserves, it seems we will never tap those supplies fast enough to keep up with demand. Oil companies, it seems, have mastered the art of supply and demand.
Forget E85. Forget hybrid cars.
If gas hits $2.00 per gallon, those alternatives simply make no economic sense to most Americans. Sure, maybe Democrats could take the House, Senate and Presidency and raise taxes significantly enough to subsidize E85 and hybrids, but such a move would end their leadership tenure almost instantly - the average American wants cheap gas and few taxes.
Once again, Big Oil and OPEC will have the last laugh, at least until the next spike.
After 9/11, Katrina, and Iraq, little has really changed. As soon as gas hits $2.00 per gallon, the words 'foreign oil dependency' will again mean nothing to the majority of Americans.
How can this be prevented?
Labels: E85, Foreign Oil Dependency, Hybrid Vehicles
posted by Dahcredyns at
11:58 AM
3 Comments:
Question:
1. Have we begun to store oil in the strategic national reserve again?
2. Have we begun to use ethanol in all gas sold as regulated in the new energy bill?
I know Bush suspended both of these measures as gas prices began to soar. I imagine that he won't start either until after the election if we aren't doing them now. Americans partially blame Bush for the high gas prices so it would only make sense to keep prices lower until after the election. I doubt gas would really go to $2/gal for any substantial amount of time.
I don't have a definite answer to either of those questions, but I do know that overall, stored gas is near all time highs. Additionally, the winter blend of gasoline is supposedly cheaper.
For at least a year now many economists have been claiming that high oil prices didn't reflect reality, and that speculators - worried about Iran, the hurricane season, etc, - had traded the price of gas too high.
Consequently, I do not really think Bush is doing anything that has really affected prices recently. It's just less demand, high storage levels, and no hurricanes.
Still, I also agree that $2.00 gas will almost certainly be short-lived. The Israeli-situation seems to be reaching dangerous levels, such that something major has to happen - a legitimate Palestinian state or War.
Unfortunately, in my opinion, the later seems more realistic which will mean much higher gas prices.
I don't see the price of gas as the real issue with regard to our dependency on foreign oil. The real issue is the fact that $1/2 billion in oil revenues ends up in the hands of countries that are avowed enemies of the US or that are run by Wahabist or Jihadist who secretly funnel money to terrorists through sham charities. You can't very well fight a war and fund your enemies side of it at the same time. It defies logic yet that's what we do. History will look back on it and say "that was the stupidist nation ever. They drove their SUVs right into oblivion."
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