Wednesday, June 11, 2008

More Action ... Less Politics (and Politicians)

Well.  Crude oil prices certainly have risen, haven't they?  There are a number of factors involved, the speculators, lack of investment, the industrial revolution in China and India.

How many reading this have heard of Hubbert's Peak?  Marion King Hubbert was a geophysicist who worked for Shell Oil Company.  In 1956 he predicted correctly that US production of oil would peak in around 1965-1970.  He also predicted a world wide peak "sometime around 50 years after publication", which would put it around 2006.  Oops.

As I've written before, according to Dr. Michio Kaku, we'd have to discover a new Saudi Arabia every 10 years to keep up with the rising demand for oil.  Even IF we did drill in ANWR, even IF we did drill off the coast of the US (both east and west) even IF we did open up the Gulf of Mexico and drilled right here in the US, that would give us only another 25-30 years of oil...tops.  And then we'd be right back where we are now.

Drilling for oil is just a stop-gap, we have to get off of oil.  It really is that simple. 

The Democrats are also using this problem to their advantage, trying to make us believe that they care, they feel our pain, and they have a plan.  They've got hot air (Sorry, Ms. Malkin) is what they've got.

To understand why their idea of taxing the oil companies won't work, you need to have a basic understanding of economics. 

When businesses (companies) set the price for their product(s) they need to keep several things in mind ... how much the public would be willing to spend, how much they have invested in the product, how much it cost to make the product, the likely tax on the product, and other factors.

Yes, I said tax on the product.  Because we do pay a tax.  So, they set the price.  Now the Democrats are trying to raise taxes on oil and gasoline.  That's NOT a good idea.  Why?  It'll add $1.50 per gallon is why.  Also, as happened in BHO's home state, the oil company simply raised their price to offset the cost of the tax.  YIKES.

I'll post more later, but for now just remember that the politicians couldn't care less about you.  All they care about is themselves.

 

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