>alternative energy sources and conserving: "We need to
>wean away from OPEC oil for the economy and for
>national security reasons," Sohn said.
I agree with almost everything that was written although I do feel that the
policies that will be implemented if Kerry were President would be more
effective. I'm largely basing that statement that the Republican Congress
would control/balance a Democratic President, something they were unwilling
or unable to do while Bush was in the White House.
The part that I disagree with is the paragraph I copied. Weaning away from
OPEC oil wouldn't substantially have a major price impact. We have to get
that oil from some place. And even if we got that oil from a non-OPEC
contry like Russia; supply and demand would dictate that oil prices are
going to go up.
Imagine this scenario. The US purchases a 100% of foreign oil from
Russa. OPEC countries have a supply disruption. Other countries like
China that depend on OPEC oil are going to drive up the price of oil in the
open market. They will turn to Russia and other OPEC countries and offer
more money for said oil. Now China is buying more Russian oil which
increases the price for oil for the US. And this price increase doesn't
even factor in the larger quantity that OPEC outputs.
OPEC, despite their many blunders and cartel like regime, is a very very
powerful institution. This highlights the importance of crude oil. I used
to live in London and Asia but have spent the last 13 years in America. I
visited Asia last winter and even though I knew gas prices were ridicules
in the rest of the world, I was still shocked. I was shocked how expensive
it was. I was shocked that they sold it in liters. I buy Diet Coke in
liters, not gas.
The god damn stock market has been moving lock in step with crude oil
prices. This is driving me mad.
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