Ok. Let's start off with a big reminder that this is NMC and NPC. If you are not interested in the subject or if you are interested but see this as a political prestige thing, then just delete this now and go on to the next item. The following is already probably boring enough to most. and I will try to save any of the usual political rhetoric until the end.
There is SO much that speaks against the fact that more drilling on or off shore will lower the prices of petrol for American consumers. For the sake of argument let us assume that there is enough oil out there on American soil to satisfy domestic needs and that it is economically feasible to exploit. While both of these assumptions are debatable, let us accept them for the time being. In the USA both political parties and the majority of citizens have an extreme belief in the dynamic of free markets, that the Law of Supply and Demand eventually solves everything. There is also widespread acceptance of the rights of a person or business to act and trade freely and basically to charge what the market will bear for any commodity. It is "The American Way". Oil is priced high for several reasons. Increasing demand internationally, the weakness of the US dollar now effectively devalued by 50% against the Euro and many other currencies, the control of production levels by OPEC and others, as well as the dynamic of Greed among speculators as well as the primary and secondary actors in the international petroleum industry are some of the issues which speak for a continued high oil price. Will higher production of domestic sources lower the price? Most probably not - and for the following reasons: Demand: Increasing demand increases prices. Even if increased production in the USA would be able to keep up with domestic demand , much point to the fact that prices would at best remain at today's levels in that International demand would eat up the increased production.. The only way prices will go down is if demand goes lower than supply. While one might hope for decreasing demand in the USA, it seems to be accepted that China and India are the up and coming consumer markets for consumption of oil. Can US oil fields produce enough petroleum to counter these growing international markets? No one seems to think that, not even the proponents for lowering U.S. restrictions and opening up Alaskan oil fields at any cost. OPEC: If domestic production increased to the point of having any effect, the OPEC nations would certainly lower production levels in order to maintain profitability. They have in the past and will continue to do so. They learned that in the 1970s and have been doing it ever since. Other oil producing nations - Norway, Venezuela for example, are part of this. It is not only the Arab producers.. Greed: American petroleum is today produced in the USA and costs for production are paid for in deflated Dollars. In spite of this American oil corporations sell petroleum to American consumers at the International rate. USA does not have a nationalized industry which like Venezuela or certain Arab nations will kindly supply their domestic population with cheaper oil products. Nope. Doesn't work like that in the USA. Any increase in US production will be sold to the highest bidder internationally. With the deflated US dollar, it this will mean that Americans will simply have to continue to buy their petrol at International rates. If you accept the premise of a market economy you will simply have to accept a high price on petroleum products. The US Dollar: While today everyone seems to know about the weakness of the Dollar, I am not sure that the true implications of this have really sunk in for most Americans. While the US is increasing exports due to the low value of the dollar, the trade deficit is STILL increasing as is the National debt. The US dollar will certainly strengthen in the future, especially in the post-Bush economy, but if it will fully regain its value against the Euro as well as other up and coming currencies is questionable. And we will probably soon see the price of Oil based upon a basket of currencies rather than exclusively the US dollar. I will grant that even this simplified analysis of this dynamic is difficult to follow. Americans must, of course, continue the now begun awareness of wasteful oil consumption. The fact is that in spite of previous warnings and common sense, it is only with the shocking increase of gasoline prices that American behavior is beginning to change. The Law of Supply and Demand does NOT always lower prices. So, get over it! Get used to paying at least as much for gasoline as everyone else in the world. At best Americans can adjust their driving habits to compensate and work to rebuild the value of the US Dollar. Because continuing on the same path as today - well, in the words of Dr Phil "How's that workin' for you?" So - yes, USA will probably relax restrictions and drill for more domestic production - but it will NOT have an effect upon anyone's pocketbooks other than those who will be selling and producing. While I pay more for gasoline in Sweden or in Germany than I do in the USA, we must realize that European prices for petrol are due to high taxation implemented in order to influence consumer behavior. This has worked fairly well. My GUESS is that after taxes and fees are removed from the price of petrol, that Americans are probably paying more per gallon for their gasoline than Europeans - where the petrol taxes directly or indirectly go towards building out an infrastructure for an alternative and more economic transport be it rail systems or even the Autobahn. The sad thing about it for Americans is that there are no alternatives - the profits go into the pockets of the very few or into your mutual funds which don't seem to be doing a very good job of guaranteeing a decent retirement for all. But THAT is another story altogether! And now, back to Miata talk.. /Robban From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Robert McElwee Sent: den 20 juni 2008 10:00 To: miatapower List; Miata List Subject: Re: [Miata] NPC: NMC: Drill Here. Drill Now. Pay Less - Petition Hey Nazi scum! A message from Newt (yep, just your typical spam email): I have some exciting news to share with you. Because of your hard work and support we reached one million signatures on the "Drill Here, Drill Now, Pay Less" petition. Your voice and the voice of one million Americans is truly making a difference in shaping the national debate. Just this week, President George Bush, Senator John McCain, and Florida Governor Charlie Crist all called for lifting the federal ban on offshore drilling. And U.S. Representative Lynn Westmoreland has started a pledge in the U.S. House in support of American oil production that has been signed by 126 members of Congress. On Fri, May 30, 2008 at 9:34 PM, Robert McElwee < <mailto:[EMAIL PROTECTED]> [EMAIL PROTECTED]> wrote: Sign the petition or you sir, are worse than Hitler. FWIW, I don't normally sign these things but Newt started it and I believe he will push for real action. Looks like 1/4 million people have signed so far. Petition: <http://www.americansolutions.com/actioncenter/petitions/?Guid=54ec6e43-75a8-445b-aa7b-346a1e096659> http://www.americansolutions.com/actioncenter/petitions/?Guid=54ec6e43-75a8-445b-aa7b-346a1e096659 Youtube video: <http://www.youtube.com/watch?v=WIjyT5_2N_I> http://www.youtube.com/watch?v=WIjyT5_2N_I -- Robert McElwee and Blue Flash "The 40 MPG Miata" <http://www.lightweightmiata.com/mpg> www.lightweightmiata.com/mpg Lightweight Miata Forum: <http://www.lightweightmiata.com/forum> www.lightweightmiata.com/forum The Miata Trailer Project: <http://www.lightweightmiata.com/trailer> www.lightweightmiata.com/trailer
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