Quote:
Originally Posted by sniper
Not to blame a party but Since Pelosi promised to reduce the cost of fuel in and around the 06' election, oil prices have risen nearly 70%.
While there are many mitigating factors for the cost of oil and fuel, American politics are screwing us over royally, from oil prices and a lack of refineries to being abstinent on nuclear power.
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On the other hand, a recent article in The Economist points out that crude oil prices, when corrected for various inflationary factors, still has a long way to go to reach the previous high set in 1980. According to a study conducted by Deutsche Bank, crude prices will need to be somewhere between $134 to $150 per barrel to beat the 1980 High.
The biggest culprit in the US lack of reasonable growth in energy production, those who have so vigorously pushed the scare of "uncontrolled man-made global warming" have probably done the most harm. With recent policy discussions, as well as actual policy, centering on our reduction of fossil fuel dependence, you can hardly blame industry for their lack of enthusiasm for increased investment in production capability.
Radical environmental groups continue to block nearly every form of energy production, including so-called "green" energy such as wind and solar. Add to this their previous failures at policy influence regarding the previous CAFE standards that led to the SUV craze, as well as the standards for low-sulfur diesel and its impact on the US diesel market and it is not hard to see why we should marginalize these voices rather than cling to their rhetoric. Even today, much of the rise in food prices can be attributed to the push for bio-fuels and the conversion of too-large a percentage of world food production sources to bio-fuel crops.
In the end of course, we need to take a balanced approach. However to do so will require complex policies that encourage existing industries to diversify their energy production processes. Oil is and will continue to be a vital raw material in the US economy as it is not only a nearly irreplaceable energy source, but also the source of many other products from plastics and solvents to medicines, the price of which is dependent upon the oil futures market.
Shiny Side Up!
Bill