Subject: Why don't we pump domestic oil?
I drove through Louisiana, Oklahoma and Texas last October (2007) when oil was only $70 a barrel.
Took the scenic route for a photo safari from
the east coast along a bunch of two lane roads parallel to I-40,
Coming back I drove across the Permian Basin Texas
from I-10 to I-20, east through Dallas and back down
Every one of those old oil wells I saw along the
way was either pumping already or had a crew working on it
Now that oil is almost twice what it was back in October 2007, you better believe we *ARE* opening those old wells.
And here's something I didn't know how it was broken down until a few days ago ...
The US uses something like 20 million barrels of oil per day.
We produce 5 million barrels a day - 25% Texas,
21% California, 24% Alaska, and 14% Louisiana
That means we produce 25% of the oil we use, and import the other 75%. BUT ...
One half the oil we import (38% of daily consumption)
comes from the western hemisphere;
One third of the oil we import comes from Canada and Mexico alone (25% of total daily consumption).
Canada is the largest exporter of oil to the US;
Saudi Arabia is second and Mexico is third,
We import almost as much from Africa - Nigeria,
Angola, Algeria & Chad - as we do from
Anyway, the point is this.
The world is at or past peak oil production, and
the oil companies are manipulating the price to gouge
Saudi Arabia is already pumping as fast as they
can. They're bluffing about additional capacity.
The price of oil is what it is because demand
is INELASTIC, i.e. the fall off in demand is less
If you were dumb enough to buy an SUV back when
gas was less than $1.50 a gallon,
And, unless you live in one of a very few large
cities, you MUST have a car if you want to go to work.
You don't have many choices - you want to work,
you gotta drive to get there, and that means you
I've managed to cut my vehicle use in 2008 by
about 25% compared to the same period in 2007,
Part of that is a kind of Catch-22; I'm driving
fewer miles by cutting out those long road trips,
I even got up around 36 mpg average on that long
road trip last October.
Read Krugman's latest essay on "Stranded