The world's economies depends on the price of oil. Personally thought it would be much higher with all the raging around in the oil producing countries. The powers at be have to try to keep the prices down or every country not possessing Middle East free oil will be raging. Theory is by some the US will use military in Libya to insure the oil supply out of there, for the present and long term.
If the Arabian oil producing nations were to plummet deeper into unrest and violence then the price of oil could go up further. There is a significant traffic of oil tankers that make their crucial trip to Europe and the United States using the Suez Canal to save time on their journey. If Egypt falls into the hands of a government that blockades the Suez Canal to oil tankers we could see the price of oil double to $200 dollars per barrel. The supply of petrol and gas in America and Europe is dependant on the trade of crude from Saudi Arabia, other Gulf States and Libya, Egypt, Tunisia, and Algeria also contribute to the market that supplies Europe and North America with oil. So far the political picture has been unsettled during the revolution in Egypt and Libya. But it things were to get worse in any of the countries mentioned here as in these countries collapsed into Civil war the knock on effect of this could double oil prices and prices at the petrol pump. $6.00 dollars for a gallon could become real so too could even higher domestic gas and electricity accounts. The future looks very unstable and very expensive. A serious war in Arabia could mean $200.00 for a barrel of crude. This is not exaggeration it is a real possibility.
Won't affect Russia or China since a big new oil pipeline has been completed from Russia to China. However both countries have been devastated by global-warming or not weather and China is importing wheat like no tomorrow, causing shortages and raising the price.
you are right, america has more oil than any middle eastern nation, why does what happen there effect the prices here? simply put it doesn't well not really, they just want us to think it does. As long as we keep bending to their will they are going to keep pushing us father, and why shouldn't they? Americans are weak and easily herded like cattle. IF we had half the guts of these people fighting their dictators in the middle east we could put an end to it here as well. we dont live in a free nation, we live in a nation with the illusion of freedom.
"Past time to drill baby drill..." Or there mantra of last summer, 'drill baby spill'. Actually it is reported that there is more oil under the rockies than the whole of the middle east combined. What's the hold-up?
The "holdup" is that it's mostly shale oil, not crude oil, which is slow to develop, and expensive and environmentally destructive to produce. Also, it has a much lower EROEI than crude oil, and I've even seen estimates that it may be as low as 0.7, which means that you'd use more energy extracting it than you'd get out of it.
Of course, negative EROEI hasn't stopped the idiots in Congress from kowtowing to agribusiness and shelling out billions in ethanol subsidies, but combined with shale oil's other faults, most of it is probably staying in the ground where it belongs.
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