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USANews版 - “That conclusion — drilling makes no difference — is meant to give cover”
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“That conclusion — drilling makes no difference — is meant to give cover”
March 24, 2012 Posted by Rick Rice
Charles Lehardy is reacting to yet another mainstream media piece shilling
for the Obama administration:
Oil-rigA new study by the Associated Press finds that during the past 36
years, US oil production increases did not correlate to lower US gasoline
prices at the pump. When we produced more oil, the prices we paid for a
gallon of gasoline did not drop. (see article here)
The dishonest spin put on this study is that drilling makes no
difference: Oil is that rare, magical commodity not subject to the normal
laws of supply and demand. As CBS and other news outlets put it:
It’s the political cure-all for high gas prices: Drill here, drill now.
But more U.S. drilling has not changed how deeply the gas pump drills into
your wallet, math and history show.
That conclusion — drilling makes no difference — is meant to give
cover to the Obama administration’s active program to close off or sharply
curtail US oil exploration and production on most federal lands, including
off shore. As the President keeps saying, US oil production is up on his
watch. What he hasn’t said is that most of those increases have occurred on
state and private lands where the Obama administration has been unable to
block exploration.
But the AP study only tells part of the story.
Oil prices are in fact kept artificially high by the Saudis and other
members of the oil producing states. They constantly adjust their outputs
higher or lower to maximize the cost of a barrel of oil, something they are
able to do because they control such a large percentage of the world supply.
They operate exactly like the De Beers family does in controlling the
prices of diamonds. Gem grade diamonds are not particularly rare, but retail
prices are kept high because De Beers and its many confederates tightly
control how many diamonds are on the market at any given time.
But if the US were to suddenly discover a wealth of gem grade diamonds
here in this country, that discovery, and those diamonds once they were put
on the market, would shift the balance of power. The same is true for oil.
As long as our government refuses to permit the vigorous development of
US oil resources — and with new technologies that can extract oil from oil
sands, oil shales and deep off shore wells, our theoretical share of the
total world oil supply keeps increasing every day — the US has no power to
shift world oil prices, except by reducing consumption. Developing our
domestic oil supply would gradually shift the balance of power in what is
now a very one-sided game.
What’s needed is a national mandate to develop known US oil resources
and to explore for more, a mandate that could not be held hostage to every
political whim in Washington. Such a program would have a stabilizing effect
on the world oil markets.
But more importantly, a serious program to develop our own oil resources
would gradually reduce the amount of oil we purchase from the Gulf states,
making us less dependent on their unstable regimes.
Charlie’s got more and it all makes good sense. If someone can counter his
arguments, then please, by all means, do so in the comments.
What this does for me is confirm Obama’s radicalness, confirm why it is
that he must not be elected again.
There’s so much at stake.
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话题: oil话题: us话题: drilling话题: prices话题: makes