Time for a bit of a rant, hold on tight...
#1 United States: 20,730,000 bbl/day
#2 China: 6,534,000 bbl/day
#3 Japan: 5,578,000 bbl/day
#4 Germany: 2,650,000 bbl/day
#5 Russia: 2,500,000 bbl/day
http://www.nationmaster.com/graph/en...il-consumption

This is what we have in reserves.

STRATEGIC PETROLEUM RESERVE INVENTORY

CURRENT SPR INVENTORY AS OF June 06, 2008
SWEET SOUR TOTAL
281.1 million bbls 423.1 million bbls * 704.2

http://www.spr.doe.gov/dir/dir.html

704.2/20.7=34 days worth of Oil. Now we don't want to tap all of it and the US doesn't want to change anything, so how about tapping 1/2. Thus, building up the supply and drive prices down. I know this thought is a pipe dream seeing that China has 1.3 billion people and
According to the U.S. Bureau of the Census, the resident population of the United States, projected to 06/06/08 at 19:32 GMT (EST+5) is
304,269,221. So, how can we be using almost 3 times the amount of Petro.
Nonetheless, something needs to be done to prevent all of us from getting canned.

 

I remember about 2 years ago when oil was at $60 a barrel and most everyone was singing the same old tune (oil is too expensive, this is simple supply and demand, the oil bubble will burst, blah blah blah…..). Here we are just 2 years later and oil is at $140/barrel. Yet most people still can’t see that oil is a very different monster. It is the life blood of the western economy. It is able to defy the laws of supply and demand. The ultimate law is something is only worth what you pay for it. If you bought gas today, you bought oil for $140/barrel. Therefore, you believe oil is definitely worth $140/barrel. Otherwise you would not purchase it. I think oil is worth much more (maybe $200/barrel, that is gas at $6.50-$7/gallon) I think at $200/barrel oil, you will start to see people changing their ways. Over the long term, the price of oil is only going to go up and up and up. Rather than arguing about it, I think everyone should think about how they are going to adapt to this environment of super high energy prices.

 

I don't think you can say by buying gas today I support oil at 140 a barrel. What is water worth? What is air worth? Face it, in 98 percent of the US, people need to drive. Maybe in ten years they'll replace the street cars that were torn up in Ft. Worth 50 years ago but today, next week and next year, folks have to drive. So they cut back on other stuff.

I think drawing out of the SPR is the same as the gas tax holiday. Seventeen days later you're in the same situation with only half the emergency reserve. We can't just postpone the problem, we have to change the way we've lived since the end of World War 2.

 

Need to increase supply, even though the supply/demand fundamentals do not support the current oil levels (Weak USD, and speculation is driving current pricing levels).

Drill off the coasts, every coast (CA and FL are not immune. . .), Drill in the mid-west, and drill anywhere else we can - including going into ANWR.

 

Opening up the strategic oil will not lower the price of oil. As you mentioned, the US consumes 20 million barrels of oil a day. There are only 700 million barrels in the strategic reserves. And the world consumes about 80 million barrels a day. Say we were to release 1 million barrels of oil per day for 90 days. We increase the world supply by 1%. The price of gas will probably go down by a nickel. After 90 days, the price of gas will still be high and we will have lost 90 million barrels (15%) of our strategic reserve. It would be like putting a bandaid on a gushing wound. It is a short term solution (is it even a solution if it only lowers gas 5 cents per gallon??). It is a short term solution to a long term problem. I kind of would not mind seeing this happen because it would show people that drilling in ANWR will not solve our energy crisis (ANWR could produce 1 million barrels a day for 10 years) Thankfully, both presidential candidates (yes, even McCain) are against drilling in ANWR.

The strategic oil reserves are there for a purpose. They should not be used unless absolutely necessary. We are not even close to that point yet. Over the long term, the price of oil is only going to go up and up and up.


If you really want to know how to reduce the price of oil, I just need to quote you one fact. Out of the 20 million barrels of oil the US consumes, 11 million barrels are used for car gasoline. We have the technology TODAY to drive cars that use NO gasoline at all.

Most cars are the road are entirely gas powered. Why is this? Everyone knows that with gas prices as high as they are today (just wait until they are $6-$7/gallon in 1 or 2 years), hybrid cars are cheaper than gas powered cars. Why is there not a hybrid model of every car produced? Why isn't every car purchased a hybrid? How about a plug in hybrid where electricity from the grid can charge the battery in addition to the gas engine? If you could buy gas for 60 cents per gallon, would you? Well that is about how much electricity for a plug in hybrid or all electric car costs to go the equivalent distance of 1 gallon of gas. If we have all electric cars that can go 100mph, 200 miles on a charge, recharge in 10 minutes, and electricity that is 1/7 to 1/10 the price of gasoline, why doesn't everyone buy an all electric car? The cost of gasoline will more than make up for the slightly higher purchase price in just a few years. The only market segment where it does not make as much sense to have a hybrid/plug in hybrid/all electric car is used cars. And that will change as soon as there are more used hybrid/plug in hybrid/all electric cars on the used market.

The technology is there to make the US energy independent tomorrow. And we can do it with the 5 million barrels of oil we produce today. That would really lower the price of oil.

 

Yes its an option but FAR from being realized on a scale where we are down to 5 million barrels per day. Let us not forget that the electricity used to recharge these batteries come from plugs that are supplied by coal or nuclear powered electric plants. The environmentalists would have a fit if they saw more coal being burned or more nuke stacks being erected. Its definitely an option WAY down the road but right now its limited. There is no one fix-all for the oil problem in this country. Too many variables to pin your hopes on one idea.

 

Anwar is part of the key to ending the high prices, however the Chicago Board of Trade(CBOT) needs over sight!!!! In the past when investors ran to CBOT to avoid losses at NYSE the buy was Bonds and commodities. But you tell me that in the last year that OIL is this much better an investment? The speculation is way overboard and the cry wolf is criminal at this point. Bush can declare by presidential privalige to drill. Why not more refinery capacity?
ANd finally where do you think the environmentalists are keeping their money?
They are laughing all the way to the bank!

 

Just remember a gallon of gas is still cheaper than a bottle water!!!! (And, studies show most of that water comes from a tap, and not a "spring").

1 US fluid ounce = 0.0078125 US gallons

So a 16 ounce of bottled water = $1.25
Roughly (8) 16-ounce bottles of water = 1 gallon
1 Gallon of bottle water = $10.00/gallon

Now just figure out how much your coffee from Starbucks would cost on a per gallon figure!!!!!!

 

Or good whiskey on a per gallon basis!!!! Oh wait, I do........

 

I'll tell you what, it's them speculators, they're driving up the price of water too!