Why are gas prices so high?
1.OPEC just CUT production for at least the second time this year, at least one of the cuts was for 5%
2.World demand is up (China)
3.We (USA) are adding to are national reserve of crude oil. (very good idea) the plan is to have over a years supply of oil on hand. This will give us (USA) more leverage when OPEC plays games. Let's be honest if the middle east wanted to F---k with us they could, just turn off the tap like in the 70's. And that's what they are doing now, just a little flexing.. to see if we twitch. OPEC is not happy about our reserves.. so when OPEC talks about the world Oil SURPLUS this is what they are talking about.
4. It's almost election time and this is called dirty politics.
About Alaska:
When you have a limited supply of a product (oil) use someone else's first. Then when you are the only person with oil left you can charge what you want.
Also the amount of oil in Alaska is not a lot when you look at the amount of oil we use. The more oil we produce the less oil OPEC produces (to keep prices high) so the net effect on gas prices it Zero. Except then we are importing less (trade imbalance), but lets save that for another rant.
If this country had a "Real" energy policy to make us independent of energy imports then I would so go for it! But until then I say keep the oil in the bank it's a good investment.
I do not know it this is true or not but I read that if all cars in the USA got 40Mpg then we would not have to import any oil or drill any more wells. I do not know if all car's can get 40Mpg and be viable transportation for there intended use???
And do not even get me started on SUV's Aaaaaaaaaargh.
..CT
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