OPEC has been hinting $90 a barrel of oil for early next year, with the price of $75 later this year. With the current administration reluctant to drill in our oil reserves, and ignoring the full potential of coal, we are at the mercy of foreigners, and expensive alternatives to power ourselves. We have plenty of accessible resources that we possess that can give America economic and defensive advantages. High oil prices were a contributing factor why Chrysler and GM met their demise into Chapter 11 bankruptcy. It has made the recession worst, and threatens to cut even further our consumer freedom. Instead of encouraging private enterprise to explore for coal and oil, the present administration wants establish “cap and trade” that will further dismantle our ability to power our priorities.
Pump Prices
The average vehicle in America uses loosely 600 gallons of petroleum every year. This would make any additional dollar $600 more at the pump a year. (1) Expensive petroleum will curtail demand for it, and the purchase of vehicles. Even though it will be less purchasing of goods, the vehicles that will be purchased in this climate will consume a more liberal amount of foreign derived energy sources, and we will depend on subsidized alternatives.
Public Transportation
Lack in demand of vehicles and petroleum on an individual basis will result in the desire for public transportation from special interest groups. (2) Many of them are pleading for the federal government to invest highly in Trains, and buses. The way the Federal Government would invest in public transportation would be to raise taxes on petroleum itself. But if petroleum demand is down because of out of reach prices for the average consumer, then the only way to acquire much needed funds would be from other public products, services, and income.
Meeting Americas need for energy will always be an ever changing and evolving phenomenon. The price for oil is influenced highly from the world market, and we aren’t doing enough to impact the change in our favor. The opportunity for our private enterprise to power our energy needs is out there if only the government would do its best to encourage development. We need to understand that the freedom to buy, and travel the way we have is not ever going to be the same if we go this route.
1. http://www.epa.gov/oms/climate/420f05004.htm
2. http://www2.tbo.com/content/2008/nov/25/rep-mica-urges-area-queue-public-transit-funding/
Thank you funployee for your premiere post on The Conservative Universe. One of the main reasons the administration does not want to see a ramped up production of our own oil rests with their desire to push forward the green agenda. If they don't understand much about the economy they do understand that a fuel crisis is needed to convince Americans to unwillingly move towards cars and services they really don't want. They also understand that if we have the supply to meet the demand and the prices at the pump are low then we, rightfully so will not make the shift into Prius purgatory.
ReplyDeleteTCU