Posted on 04/11/2011 7:46:04 AM PDT by John W
That’s true.
American oil is the most costly to drill in the World. The price to drill here is going up much faster than the price. Without foreign Oil to keep the price down, we would be paying far higher prices for Domestic Oil if we eliminated all imports.
Just like OPEC has done in the past to protect their share of the market; If and when American oil companies start to open domestic wells for production, OPEC will increase their own production to make it impossible for American oil companies to make a profit off the new wells, causing even more domestic wells to be shut down.
It is true that a vast majority of the price increase is due to the destructive influence of printing money and the QE II of the Fed. However, the stupidity of the other policies have had a huge detrimental effect on prices as well. IE: The price of corn due to the stupidity of Ethanol production. The only reason that inflation is not at rampant levels is because they take out the cost of fuel and food before they figure inflation.
Food is the commodity most effected by the fluctuation of fuel prices because hard goods are not perishable, whereby food and food products are constantly being rotated and restocked. remember, every time we bring up drilling the Democrats say it wouldn't help because it takes up to 10 years for that oil to enter the market. They have been singing the same old song for twenty years. Don't join their chorus.
Time for a new Civil War.
There’s only so far one can cut back.
We stil have to drive to work, for one thing... at least most of us.
We might cut off that visit to Grandma, but we still have to get to Wal-Mart.
Well the opposite of your scenario is happening here, we have OPEC cutting back production to milk the desperate times. If American producers can't stand the competion well then they don;t deserve to be in business. We need to cut all taxes and cut regulations to a minimum and then let the free market dictate who can win. I suspect America can compete with anyone, I mean we are doing it in Alaska. Oil being fungible, dumping supply always comes back to bite you. besides who cares, if we have 40 buck a barrel oil and 98% of ther US economy roars along, you want to protect that 2%? The 2% that has but* raped you for the last 75 years, talk about crony capitalist scumbags. I don't trust domestic oil companies as far as I can throw them.
Why would oil prices go lower? Oil production can be cut back.
By increasing domestic drilling you help the supply of OPEC. That allows them to produce less. Which, in turn helps their supply.
Sure, we can go ahead and create more oil sites so that we have a supply if the ME crashes. But, economically, there is no incentive to increase domestic fuel.
Can you see what the school bus contracts for fuel will look like this year? I checked the marina for the price of fuel. There will be lots of power boats sitting at the dock this season?
Not only economically is it a benefit to America to increase domestic drilling, it is also a benefit the country from a defense stand point.
A vast majority of our oil is imported. Most from this hemisphere, Canada, Mexico, and Venezuela are among the largest suppliers of our oil. Only Canada is a stable country. Mexico is soon to be a Narco-state, Chavez is a loose cannon and Saudi Arabia is close to the next Egypt. It would only be in our best interest to use our own resources.
Gas Tax Question: Do states get more money from higher gas prices or is it set rate according to some other formula?
I live in Wasgington state.
Oh....please site sources if possible. Thx.
Federal tax is 18.4 cents a gallon, states add their own. Hussein’s adopted state adds SALES TAX and an “underground storage” tax.
Here are a couple of links.
http://www.gaspricewatch.com/usgastaxes.asp
http://blogs.wpri.com/2011/04/11/chart-of-the-day-gasoline-taxes-state-by-state/
Regards.
I double dog dare you to start it..
Over the noon hour went to $3.99 here in NE Indiana.
I have always wanted a large boat like a Hatteras or a Chris-Craft of around 40’ or more just to live on, after some checking on Craigslist in FLA its a downright buyers market!
One guy was willing to pay anyone $100 just to remove a 24’ Bayliner that wasn’t in all of a bad shape.
I think more people will adjust and start working a 4 day workweek, more carpooling and more motorcycles. I have two myself that I have usually rode only on the weekends, now I will use one for commuting as much as possible.
Thanks to Obama&Co. it look like vacations are another thing of the past,and the list grows.
He came in on $4 gas and he’ll go out on $5 gas.
I’ll bet he goes out on $6.00 and rationing of gas.
And people won't be taking many trips, either. I've finally simultaneously got some cash to travel, and some time to travel. I have looked into several options for trips, but every time the travel cost (whether flying or driving) seems HUGE and SO MUCH MORE than it used to be. I have the cash, but I won't spend it on that because it's not worth it to me. I don't see that I'll get the value out of that much money.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.