Oil hit $100 today. High energy prices in WINTER during a recession with rising food and commodities as well as inflation in the currency. This will double dip this nation a plunge too far.
This will devastate the US on all levels, starting with the poor.
High energy prices impact the economy more than most other influences..
Three main forces are to blame: Environmental law (which is not really about the environment), mortoriums, and the tax rate Congress sets.
The oil industry is a very expensive and difficult system to run. Research, development, currency rate, refinery ability, and logistics all influence the real cost of oil.
First you have to have profit to explore and build the wells. You must hire good and safe people with experience.
You have to match the correct refinery with the correct weight oil and due to over-regulation, no one makes money in the refining business anymore.
If the currency is inflating, the price of everything goes higher so you have that going against you.
Bottom line is if the companies cannot make enough profit to continue to develop new sources of fuel, they will not and the price will rise.
Even if the US does not meet demand for this resource, the rest of the world WILL.
The point is there is absolutely no reason to not exploit this resource anywhere we can. Not even environmental reasons.
04/27 -Here is the Congressional research whitepaper. Shows we have plenty.
04/29 – Shale reserves are larger than thought.
P.S. What sense does it make to starve the Oil Industry here in the US, approve only one Nuke plant, Subsidize corn as oil, and buy a car company that will produce electric cars with a grid that is on it’s last legs as it is? Subsidize Brazilian oil company while denying it here because Soros wanted it? WTF – this is really too stupid for me to even comprehend.
Fuel prices necessarily skyrocket? Who said that? the imbecile you elected to be President – thats who.