Crude oil prices as we speak proceed to rise.
Will oil costs continue to rise, will not be the query, how a lot increased will they go, is the higher question. They’re over $a hundred a barrel and rising and some suppose they are going to go over $200 hundred barrel by the tip of the 12 months. Simply assume we may very well be paying 5 – 6 dollars a gallon by years finish. Will that put another crimp in your already battered household funds?
The actual scary assume about all that is that it’s happening with a glut available on the market and not a scarcity. If it was a shortage, like back in the seventies, when gas stations were out of gasoline, we may all perceive that, however this is occurring with the market so flooded with gasoline, that the oil producing international locations are slowing down their Petroleum Refinery oil production. My query is, how can a glut on the market elevate the price of oil?
It defies any advertising and marketing system that I’ve ever heard of. What about worth and demand? If a product is high in demand and there’s a shortage of that product, the worth goes up. If the product can be found each the place, and the demand is down, the worth will be pushed down. Current oil prices do not make sense to me right now.
Our nation sets on trillions of barrels of oil, and yet we continue to run our deficit up by borrowing trillions of dollars from international nations, and using that to purchase oil from yet different nations, our enemies.
Mr. President, and members of congress, begin drilling for oil in this country and constructing new refineries, in this country, and we will say good bye to our ball and chain that our foreign lenders have on us. We cannot be on the mercy of our enemies and people countries who’re associates of our enemies.
There isn’t a incentive for us to conserve and use less, when the value continues to rise no matter what we do. The rationale people attempt to conserve now is as a result of we can’t afford to pay seventy or eighty dollars for a tankful of gasoline, not as a result of we are trying to save our atmosphere, or make our planet inexperienced again.
I am going to offer you a fantastic example, natural gas. The value of natural gas has been just about stable for the past thirty years. It has had a couple of spikes up, nevertheless it has done nothing like the crude oil costs have accomplished. The rationale for that is that we now have our personal natural gas, we do not go out and get that from anyone. We drill for our own right here in our own backyard. That makes a huge difference in the worth of natural gas.
Why don’t we do that for crude oil, is the million dollar question, and that i do imply million or billion greenback question, in this county in the present day. Is it that the president, and different presidents previously, have intentionally kept our exploration and drilling on the back burner, to keep prices high?
High oil costs harm us each economically and defensively. It puts us in harms method in a myriad of different ways with our enemies and counties that might use it to make the most of us.
These excessive oil costs may very well be the straw that pushes president Obama’s reelection dreams right out the window. If he does not get a grip on this actual soon, he can kiss a reelection good-bye.
The only one who has ever executed effectively, and continues to do properly, weather crude oil is high in demand or there is a shortage, is the oil firms. You won’t ever go wrong when investing in stocks of those giant oil firms.
They all the time bounce back with resilience, after any disaster. Different firms would be bankrupt, however the rich deep pockets of the oil firms can whether or not any storm.
The gulf oil spill by a British Petroleum oil rig, was the most important oil disaster in history. Some 5 million barrels of oil spilled out into the Gulf of Mexico. Eleven men died, and the price continues to be being counted. But these corporations rack in file income.
Now I am all for the free enterprise system and it is one of the best system on this planet, and I am all for corporations rising to the highest, in the event that they go along the identical path as some other firm does, that’s what makes the free enterprise system so good. It’s free to anyone and makes it a degree taking part in floor for any entrepreneur, however when that system is being taken benefit of and makes use of means that are in opposition to the liberty of the system, it’ll fall, and the economic system will endure.
