Bell Curve The Law Talking Guy Raised by Republicans U.S. West
Well, he's kind of had it in for me ever since I accidentally ran over his dog. Actually, replace "accidentally" with "repeatedly," and replace "dog" with "son."

Tuesday, October 05, 2004

Oil Troubles

Here we are going into the VP debates tonight and the BBC is reporting that crude oil prices have hit $51/barrel, a new record!

Why? According to the article, it is because the hurricanes in the Gulf of Mexico disrupted US oil production and because of unrest in Nigeria. This is interesting because many conservatives argue that the best way to get out of being dependent on Middle Eastern oil is to drill more here in the US and to shift our reliance more heavily to African oil. But we see now that this approach has its problems too. I wonder if Edwards will bring this up today.


Prof. Werner von Brawn said...

Republicans want to open more drilling in the ANWR, not the Gulf of Mexico, so that is a non-issue for them. While Nigeria has been off and on for the past little while and has not produced to their full capacity--due to lack of funds to repair facilites, as well as the ongoing dispute in the delta region--for the last few years, Venezuela is probably the biggest problem the US currently faces. With Chavez laying off half of PDVSA, the national oil company, and the rest of the company and society in relative chaos, the largest US source of foreign oil has dropped precipitiously in the past year or so.

Raised By Republicans said...

Actually, I think they want more drilling and mining everywhere. Anwar is just the most controversial.

The Law Talking Guy said...

Oil is now at $53/barrel. These prices have driven up gas by more than 10% in the last 2 weeks near me ($2.05 to $2.29 this afternoon). This is, of course, a millstone around the economy, as the price of energy is a component of the price of virtually everything. It either causes inflation or cuts into profits, i.e., cuts into potential investment/hiring. Why is GWB not doing anything to combat this? Because his friends are getting loaded off of this. Texas oil doesn't cost any more to produce, they just get more money for it!