Posted on 08/05/2012 2:47:11 PM PDT by bayouranger
American gasoline is cheap at the pump because consumers pay only for the oil, refining, and transportation to market -- plus tax. What we don't calculate is what the United States spends to defend the oil in the ground or the sea lanes that allow it to be shipped from the Middle East. We don't calculate the perversion of American principles as we coddle dictators to ensure they don't turn off the taps. Factoring those in makes the use of imported oil for transportation fuel much more expensive and distasteful.
The Middle East accounts for about 30% of the world's oil supply (North Africa, mainly Libya and Algeria, is another 6%), with 20% of the supply passing through the Strait of Hormuz. The U.S. is the primary defender of the sea lanes, beginning with the Strait and extending through the Indian Ocean and the Pacific. Along this route, oil is delivered to India, Japan, China, and South Korea, among others. It is an enormous undertaking, costing the U.S. billions of dollars annually and having a heavy political and military impact.
Politically, it requires a potent relationship with Saudi Arabia. The Saudi government is discriminatory toward Jews, Christians, women, and foreigners. It was the original funder of al-Qaeda and continues to export an extremist ideology. But it pumps a reliable 9+ million barrels a day, which appears to balance the scales.
(Excerpt) Read more at americanthinker.com ...
KING FAUD SPEAKS "I summon my blue-eyed slaves anytime it pleases me. I command the Americans to send me their bravest soldiers to die for me. Anytime I clap my hands a stupid genie called the American ambassador appears to do my bidding. When the Americans die in my service their bodies are frozen in metal boxes by the US Embassy and American airplanes carry them away, as if they never existed. Truly, America is my favorite slave." King Fahd Bin Abdul-Aziz, Jeddeh 1993 
Lefties have often complained that we “don’t pay the full price of oil”, but they are never honest. Their complaint is only a means to an end.
But if we levied an import tariff on oil and refined products, and at the same time allowed development of domestic resources including coal-to-liquids and gas-to-liquids conversion facilities, we would greatly reduce the amount of money we are sending to our Muslim enemies and it would result in more domestic jobs. If this was done in an orderly manner, the price of fuels would not rise by very much if any. I make that statement because the world price of oil is already above the break-even price for coal-to-liquids conversion.
A moment’s reflection (without any documentation, but with a little knowledge of geology and geopolotics) indicates that the west has made an agreement with the Middle Easters governments that the West will put up with anything that they do, if they supply the oil needed by the West.
The West appears to be incapable of drilling for oil itself and reducing that dependency and great flow of money to hostile regimes. May God have mercy on our children.
American gasoline is cheap at the pump
***First few words of the article — WTF? Gasoline is cheap at the pump?
Time to investigate better sources of energy. How’s that search for hot fusion going? $250B spent so far, maybe 100MJoules of energy produced. Contrast that with the alternative.
These steps would IMMEDIATELY lower energy prices, create jobs and put America on the road to energy independence, at least from "conflict oil".
1. Green light the Keystone pipeline.
2. End "boutique blending" gasoline.
3. End ethanol subsides and import duties on imported ethanol. If the Brazilians want to burn their food, let them.
4. Develop a program to build at least 6 "coal to oil" plants. Build them on federal lands if need be.
5. Drill everywhere. Offshore, Alaska, the Gulf, everywhere.
6. End the war on coal mining, and electrical plants running on coal.
7. Start building nuclear plants.
8. Develop thorium generation technology with the aim of building hundreds of mini generating stations to create cheap local power that is not dependent on long range transmission.
It’s beyond oil. If foreign governments had to maintain their own navies to protect their shippers from pirates, costs would have to higher. Our NATO agreement allowed Europe to shirk its defense responsibilities and to redirect erstwhile defense spending toward socialist programs, knowing they would be protected by the US taxpayer. The US should consider making it plain to the world that our defense umbrella comes with monetary strings attached.
“Former Proud Canadian”
-
Great post.
Are you formerly proud; formally Canadian; or both?
Check your freepmail.
He’s a Canadian who was formerly proud at the time he signed up at FR, but he’s proud again now that the adults are back in charge.
OPEC Has Already Turned to the Euro...The source for the euro exchange rate is the Federal Reserve, and I have calculated the euro's average exchange rate to the dollar for each year based on daily data.
GoldMoney Alert
February 18, 2004
|
US Imports of Crude oil
|
|||||
|
(1)
|
(2)
|
(3)
|
(4)
|
(5)
|
(6)
|
|
Year
|
Quantity (thousands of barrels)
|
Value (thousands of US dollars)
|
Unit price (US dollars)
|
Average daily US$ per € exchange rate
|
Unit price (euros)
|
|
2001 |
3,471,066
|
74,292,894
|
21.40
|
0.8952
|
23.91
|
|
2002
|
3,418,021
|
77,283,329
|
22.61
|
0.9454
|
23.92
|
|
2003
|
3,673,596
|
99,094,675
|
26.97
|
1.1321
|
23.82
|
We can see from column (4) in the above table that in 2001, each barrel of imported crude oil cost $21.40 on average for that year. But by 2003 the average price of a barrel of crude oil had risen 26.0% to $26.97 per barrel. However, the important point is shown in column (6). Note that the price of crude oil in terms of euros is essentially unchanged throughout this 3-year period.
As the dollar has fallen, the dollar price of crude oil has risen. But the euro price of crude oil remains essentially unchanged throughout this 3-year period. It does not seem logical that this result is pure coincidence. It is more likely the result of purposeful design, namely, that OPEC is mindful of the dollar's decline and increases the dollar price of its crude oil by an amount that offsets the loss in purchasing power OPEC's members would otherwise incur. In short, OPEC is protecting its purchasing power as the dollar declines.
Thanks bayouranger.
Let's stop talking about it and just do it
Is that an example of controlled fusion for energy harnessing? Or are you just plain dense?
Another massive infrastructure program is stalled on the US side. The Canadian government is trying to build a new bridge over the Detroit River. Canada has agreed to lend the state of Michigan, which is broke, the money for their portion of the bridge. That loan will be paid back by tolls on the bridge. It will cost US taxpayers nothing.
How could there be any opposition, in economic times like these, to either of these projects? What the h*ll is going on in the US?
Thank you and, yes, the adults are firmly back in charge in the Great White North. Life is a lot easier when you don’t have to worry about thieving, lying, liberal politicians. Is that redundant?
Say what?
Text of a sticker I place on the pump every time I get gas:
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