Supply and demand have set the price of goods ever since the first cities were developed.
But, right now we have a situation similar to the De Beers Diamond Company. We have a few countries that have a MONOPOLY on one item, OIL. Now in the USA monopolies are against the law. OPEC is a Oil monopoly just like De Beers was a monopoly on diamonds. Today others can make diamonds and they also found diamonds in Canada. So the De Beers diamond monopoly is broken somewhat these days.
OPEC artificially makes oil scarce and manipulates the supply to raise the price of this commodity. If OPEC would open the pumps and put more Oil into the market the price of oil would come down. But, if we are really running out of oil that's a totally different story. We were told thirty years ago that oil was going to run out. We were warned that the price of oil would skyrocket when we reached the "tipping point". The tipping point is the point in time where we have used 1/2 or more of all the known oil reserves. The last amount of oil is harder to get out of the ground and it's going to cost a fortune. This is what the X perts have been saying to us for the last 30 years. Now if that point in time is really here then we are all in big trouble right now. We have not heeded the warming. In fact we have built more SUV than before in the past 5 years. Instead of conserving we have ramped up our consumption. A few people have tried to conserve and have purchased a small cars and such but the vast majority of Americans are still driving big V8's and that's not conserving.
On the news last night they were talking about the prices of large and small vehicles. Smaller more fuel efficient vehicles are costing more these days and it's hard to see the big old gas guzzling SUV.
OK lets say that you drill in all the areas of the USA that have not been explored first. And we can save ANWAR ,the wildlife sanctuary for later.
I was glad that you said "Carefully". Not many are thoughtful enough to even say something like that. In fact if the Oil companies have been drilling carefully all along they could probably drill anywhere they wanted today. But their track record is not the best. Even if we drilled and found some oil in ANWAR it would take ten years to get it out of the ground and it would not last very long. It would barely make a dent in our our supply. That's the economics of trying to drill in ANWAR.
Our best best is Conservation. In fact with a increase in the amount of mileage that new cars get we could save more oil than we could drill in ANWAR for the next 50 years (if there was oil there in the first place which we really don't know) This ,conservation, is being forced on us today through the higher gasoline prices.
Conservation is our quickest and least expensive option.
Making more fuel efficient vehicles that get 40 to 50 mpg would save us billions of gallons of oil in the long run and send an important message to OPEC. I just read where Honda (Japanese Firm) is coming out next year with a new hybrid.
Another Option that the USA looked at back in the Late 1970's was Synfuel Plants. These plants take Coal and extract hydrocarbons from the coal to make high grade synthetic coal. They could be made and the pollution controlled and give us an option to OPEC oil. When the USA looked into this technology the Saudis blinked and they dropped the price of OIL and opened up the taps back in the 1970's after the OPEC oil embargo. Most of you guys that are older will remember having to wait in line to get gasoline. Basically gasoline was being rationed.
I personally hope to see us go with the Fuel Cell Powered Cars that run on Hydrogen. They can be built powerful and fast and stylish. Right now major countries are running their submarines using Fuel Cell Power. We have plenty of water on Earth. And with sunlight being used to make electricity we can spit the water atom into and get Hydrogen gas and Oxygen. The fuel cell gets it power by combining Oxygen and Hydrogen back together which gives energy and water as the end result. There is no pollution what so ever.
This is what's needed .
Dream on if you think you can continue to drive that V8 and pull that Big boat when gas prices hit $7.00/gallon.
I thought that they were just barking into the wind when the talking heads on TV said three months ago that we would have $4 gal gas by Memorial Day but yesterday they put the price up on the sign and it reads $3.999/gallon. Folks 4 dollar per gallon gas is here now. And the rate of increase is INCREASING.
[QUOTE=thebassman30;327539]



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