Thursday, 23 June 2011
Eating OPEC's CAKE
A huge flare has just been shot into the air. Thirty million barrels of oil from the strategic petroleum reserves are going to be released over the next 30 days. America consumes 21 million barrels of oil a day. The last significant release was after hurricaneKatrina in 2005, and that was only 9.8 million barrels. Releasing oil is a big deal, never taken lightly. So why now and why so much? Has Obama come around to the correct conclusion that the SPR is a “buggy whip”. An estimate of $200 Billion to transform America from an oil based economy to a hydrogen based economy is not a pipedream. At current prices the SPR is worth $73 Billion. That is a pretty good down payment on the future. Furthermore when the world witnessed Obama abandoning his way back to oil, just like Cortez burning his ships the world would understood the US was serious, and the price of oil would drop dramatically. If the G20 agreed to keep the price to consumers at levels that currently exist in Europe and Japan, ie gas tax of $2 per gallon, the world could have its cake and eat it as well. The tax could pay down the US debt, it would provide funds for modern infrastructure and the world economy would boom due to oil priced at going out of business prices. I sure hope this is Obama’s secret agenda. If you know him please ask him if it’s true?