Comments on: 15 billion gallons of oil in the Gulf of Mexico http://politics.moonagewebdream.com/2006/09/05/15-billion-gallons-of-oil-in-the-gulf-of-mexico/ Think Fri, 09 Jan 2009 04:30:02 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Moonage http://politics.moonagewebdream.com/2006/09/05/15-billion-gallons-of-oil-in-the-gulf-of-mexico/comment-page-1/#comment-1207 Moonage Wed, 06 Sep 2006 12:37:23 +0000 http://politics.moonagewebdream.com/2006/09/05/15-billion-gallons-of-oil-in-the-gulf-of-mexico/#comment-1207 Although I didn't get into the percentages, when you're running at maximum demand, even the little players have a disproportionate amount of impact on the price. That, let's say 20%, that comes from the Middle East is not a real figure in regards to price because even the non-OPEC countries usually allow the OPEC countries to set the price. If we get nothing from the Middle East countries, that allows us to shop at will as opposed to relying on the OPEC countries. I know that doesn't really make a lot of sense at first read, but look at it this way, if we get nothing from OPEC at all, and beef up our supply a little from Canada, Russia, and Mexico, then we are negotiating individually with non-organized countries and I think that would do more to undermine the OPEC strategy than anything else. And yeah, what it does is sap a source of income for tyrants we'd prefer not to deal with, which leaves the only means for negotiating being a common need for something else ( military defense systems, economic incentives, etc.. ). The perception of the US being sold to oil interests would change the US political dynamics as well as SOME people won't have that as a strawman to toss out regarding almost any international policy debate as well. The only downside, and it's a big one, is I hope it doesn't scuttle the rush to alternative energy sources. Even if they find two or three more of these wells, oil is still most likely a finite resource and with the growing economies of China and India, becomes more finite a lot more quickly than it was in the past. We still need to focus on getting away from oil. But, cheaper gas prices would still be a good thing till it happens. It's a lot easier to adjust when you can afford it. Although I didn’t get into the percentages, when you’re running at maximum demand, even the little players have a disproportionate amount of impact on the price. That, let’s say 20%, that comes from the Middle East is not a real figure in regards to price because even the non-OPEC countries usually allow the OPEC countries to set the price. If we get nothing from the Middle East countries, that allows us to shop at will as opposed to relying on the OPEC countries. I know that doesn’t really make a lot of sense at first read, but look at it this way, if we get nothing from OPEC at all, and beef up our supply a little from Canada, Russia, and Mexico, then we are negotiating individually with non-organized countries and I think that would do more to undermine the OPEC strategy than anything else.

And yeah, what it does is sap a source of income for tyrants we’d prefer not to deal with, which leaves the only means for negotiating being a common need for something else ( military defense systems, economic incentives, etc.. ).

The perception of the US being sold to oil interests would change the US political dynamics as well as SOME people won’t have that as a strawman to toss out regarding almost any international policy debate as well.

The only downside, and it’s a big one, is I hope it doesn’t scuttle the rush to alternative energy sources. Even if they find two or three more of these wells, oil is still most likely a finite resource and with the growing economies of China and India, becomes more finite a lot more quickly than it was in the past. We still need to focus on getting away from oil.

But, cheaper gas prices would still be a good thing till it happens. It’s a lot easier to adjust when you can afford it.

]]> By: American Phoenix http://politics.moonagewebdream.com/2006/09/05/15-billion-gallons-of-oil-in-the-gulf-of-mexico/comment-page-1/#comment-1206 American Phoenix Wed, 06 Sep 2006 04:54:10 +0000 http://politics.moonagewebdream.com/2006/09/05/15-billion-gallons-of-oil-in-the-gulf-of-mexico/#comment-1206 One boo boo in your article. The United States only buys about 25% of its oil from OPEC Countries (not all of which are in the Middle East, so the percentage is even lower for countries from the Middle East). We produce about half of what we use and import another approximately 25% from Non-OPEC countries. The problem isn't the U.S. as much as it is the rest of the world, which buys much larger quantities of oil from the Middle East. The best thing about this is that tapping such a huge reserve will bring the price down, sapping a source of income to dictatorships such as Iran. One more thing... You can get the statistics at: http://www.eia.doe.gov/oil_gas/petroleum/info_glance/petroleum.html One boo boo in your article. The United States only buys about 25% of its oil from OPEC Countries (not all of which are in the Middle East, so the percentage is even lower for countries from the Middle East). We produce about half of what we use and import another approximately 25% from Non-OPEC countries. The problem isn’t the U.S. as much as it is the rest of the world, which buys much larger quantities of oil from the Middle East.

The best thing about this is that tapping such a huge reserve will bring the price down, sapping a source of income to dictatorships such as Iran.

One more thing… You can get the statistics at: http://www.eia.doe.gov/oil_gas/petroleum/info_glance/petroleum.html

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