Swift American Recovery Assurance Is In Oil…No Kidding
Posted: Thursday, September 08, 2011
by Joel Hendon
http://hebronics.org/index.html
The foolishness of allowing everyone in the world to drill and/or otherwise produce oil of which we are one of the most heavy consumers, but disallowing our own companies to drill or otherwise produce it from here is insanity, not just foolishness. Even if it is hazardous to the environment, it’s being done anyway. We reportedly consume 25% of the world’s production of crude.
Good Grief! Turn the oil companies loose, it will be a great opportunity to stop subsidizing them. Every part of allowing them to drill where there is abundant oil and to extract it from shale, is a win-win situation.
Plus the enormous quantity which we consume makes it such a huge industry, every thing about it is big…like everything about Texas. If we were producing all of our massive use of energy, our GDP would escalate out of sight. And, our government revenue intake soars with the rise of the GDP. With the already built in revenue from oil, we would be able to reduce the capital gains taxes to the point that domestic production could entice some of our factories to come back home.
The American Petroleum Institute says in a report being released Wednesday that proposals to expand offshore oil drilling, boost production of natural gas in New York and other states and build a Canada-to-Texas oil pipeline could boost the U.S. economy. I certainly believe that to be an understatement.
It is not just the increase in oil field workers jobs which would increase, but it would mean a massive build up of domestic manufacturing and transportation. Instead of wrangling over how to develop jobs, congress should create the opportunity to let them grow naturally, without spending billions on worthless stimulus efforts. If the American voters will vote in those who propose the massive expansion of our energy resources, a president and congressmen, enough to get the job done, you will see a complete reversal of our slide into oblivion.
The U.S. is known to have huge potentials of offshore oil plus huge areas in Alaska which can be extracted with minimum effect on the environment. Many of the fields we currently have in operation have dwindled to the point that it is no longer profitable to pump from them. In a good new oil field it is possible to extract 50 barrels and transport it for the expense of one barrel. But as the wells become lower and lower over the years, that expense is multiplied and when it becomes almost 1 for 1, instead of 50 for one, it becomes unfeasible to continue.
Large new fields could help greatly lower the costs of gasoline at the pump. So the answer to getting out of the financial crunch is oil. Lots of oil. All it needs is a little action from Washington.
Of course, even the oil industry is not large enough to support the needs of this nation. But the gigantic size of it can surely make a difference and when it supplies the benefits as shown above, the other industries will assuredly also expand. It is like lighting a field of dry broom sedge, a light breeze will sweep the fire across acres in short order.
And another factor, very strongly in the favor of our own energy production is the unrest and questionable ability for many of the major oil producing countries to remain reliable sources.
All it will take to ruin us is for one of our large suppliers to go under…for any reason. And there are a number of them who would be happy to see us go under. The only reason they remain with us is the dollars. We sit on the verge of disaster. Unnecessarily.
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Top-level comments on this article: (4 total)Doesn't make much sense to buy from our enemies and give money to possibly support their aggression against our country....
You have it right. This is the most foolish thing we are doing. I'm all for researching alternative energy sources, but all of them so far, are far too expensive. If people can't even afford gasoline to get to their work, we're in trouble. Thanks for the comment Marijo
Nicely stated, good logic, now if only the government would take heed. Thanks, Joel.
Joel,
Thanks for sharing your thoughts on the oil issue.
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