Friday, March 4, 2011

Gas Prices and the True Story of Why it is High

or at the very least - why it is not Americans fault it is so high.


Of the 100% of the oil we use:
Approximately 15-20% of all our oil is produced domestically.
Approximately 35-40% of our oil comes from Canada
Approximately 30-45% comes from Saudi Arabia
Approximately 10-15% comes from Mexico.

Less than 5% comes from everywhere else, combined.  So - why is our gas $4.00 a gallon.

Approximately 70% could come from the US/Canada/Mexico.  So why not increase the amount from Mexico and Canada, compensate for the Saudi connection, increase our own production and cut out everyone else but Saudi Arabia and renegotiate our rates.

Saudi Arabia is not in a position to say no.

If need be, let them cut us off.  We would increase purchases from Mexico and Canada and our own drilling while forcing a cut-back of 10% in use - and then Saudi Arabia can sell its oil elsewhere, see how the Chinese negotiate.

So why aren't we.

Scientists estimate that billions of barrels of oil and trillions of cubic feet of natural gas lie beneath the oceans and in the mountain ranges of this country.  More oil and natural gas than exist currently and have been pumped and used since man began using oil. That is a lot of oil and natural gas.

More than all the Arab countries have combined, albeit in shale rock - it is and would be usable oil at $75 per barrel cost.  Oh, yes, oil is $100 at the moment.  So ... what is preventing them from doing this work for national security.















oil

Make Mine Freedom - 1948


American Form of Government

Who's on First? Certainly isn't the Euro.