“The Stuff You Won’t Hear Anywhere Else”
OPEC is at it again! They want to implement oil supply cuts to boost the price of oil per barrel. …But…theres a problem, other big oil producers cannot agree on how much to cut production, and some oil producing nations do not want to reduce production at all, such as Iran and Iraq because simply they need the revenue. If for nothing else the main reason our Country needs to be energy independent is not to be at the mercy of this Cartel. And yes it is a Cartel invoking collusion, price fixing, scare tactics an intimidation as their main way of doing business
Will we ever run out of oil?
As a student go Geology I can tell you Crude Oil is made over millions of years from tiny plants and animals known as Plankton. The Plankton under pressure from compaction would form oil in about a hundred fifty million years time if the sea bed is not disturbed. As Geologic time goes a hundred fifty million years compared to our life cycle is just a blink of Geology’s eye. The crude oil we use now was from Plankton that lived in the Jurassic Period.
There is an enormous amount of Crude Oil in the crust of the Earth and the worldwide reserves are estimated by Rystad Energy out of Norway are about 2.1 TRILLION Barrels. Thats Trillion with a T. The United states alone has more oil reserves than Saudi Arabia and Russia, two of the worlds leading oil producers, and we have not tapped into the oil under Federal Lands due to over regulations by our Federal Government. With so much oil in reserves and in production why is crude oil at 44 dollars a barrel? Think about it!
OPEC’s internal dissagreements over how to implement oil supply cuts prevented a deal to secure cooperation of other non-OPEC suppliers. Non-OPEC nations ended talks on Saturday without making any commitments. The real problem for OPEC is the role of Iraq and Iran, who both nations want to be exempt from any cut’s in production because they are in desperate need of money.
OPEC wants to push the price of Crude Oil to over fifty dollars a barrel. I guess Saudi Arabia is not satisfied with making a measly billion dollars a day. Talk about greed! Brazil who was in attendance only as an observer because they are not officially part of the Cartel are saying they will boost production output by 290,000 barrels a day by next year totaling 2.9 million barrels a day in production. Russia reiterated that it is willing to freeze production, rather than cut it, and is pumping out 11.1 million barrels a day which is a post-Soviet Record for production. These countries want to seize the moment.
Ok so everyone these days are talking about alternative energy, it’s the politically correct conversation to have. Could Electric cars be the answer? They are politically correct! Let me give you some facts and you can decide. Tesla Motors makes an all electric car, the cost for one of their cars is about 75,000 dollars. In my opinion thats a lot of money for a car, but lets look at what you get for the money. the car has a range of about 284 miles on a full charge. With that kind of range i could barely make it from Tucson to Phoenix and back on a full charge, and it will take me about 10 days to drive from Tucson to New York City…not good. What about charging stations along the way? Well there aren’t any! While the concept is good the engineering is inept. But politically OH MY the Government loves Tesla and keeps giving them hundreds of millions of dollars for development and production, and Tesla loses hundreds of millions of dollars a year, great investment huh. where can i sign up for that? Hey Congress i have the Brooklyn Bridge to sell…cheap
So what do you think of my analogy? There are no good answers. Like everything in Government and big business, they only take care of their own, they all drink out of the same trough, and we’re not invited! Just maybe the answer is out of this world Hey Scotty…Beam me up..