Sen. Hutchinson discusses energy...

Could someone explain this to me? I just don't see how using our oil, instead of their oil, makes us less dependent on their oil, in the long term. Is it just another instance of making things cheaper for us now, while totally ruining things for later? Seriously, does anyone think that oil prices from foreign countries will go down, once we have sucked our country dry?

If we expect to be using oil for the foreseeable future we ought to be buying as much foreign oil as we can (now, when it is as cheap as it ever will be) and not pumping any of ours, or even pumping their oil into our old wells.

To repeat the numbers (for anyone to dispute):
Known US reserves: 21 Billion barrels.
Current US consumption 21 Million barrels per day.
Therefore, Time until dry: 1000 days.
(so 'long term' is 1000 days)

 

Price is really funny one, as most of oil is sold and delivered under long term contract. There is only a small percentage of oil sold for $100/$150 per barrel you hear about.. not sure what now used to be less then 10%. Oil companies only buying at street price as a stop gap, to cover small shortages. So in reality prices at pump should not be affected more then by 10%, if not for price fixing.

Conventional wisdom says more production + less consumption should lead to lower prices, in real world more production will do nothing as price fixed. The only thing you can do as a consumer is to cut your losses and reduce impact of higher prices is to consume less: get more efficient vehicle, drive less, combine trips, carpool, telecommute, etc.