Posted on 01/28/2011 9:00:43 PM PST by unseen1
Via Eric Bolling of Fox News:
The Suez Canal and the Suez Canal pipeline transport about 4.5 million barrels of oil per day between the two, so when oil investors/traders see protesters on tanks in the Suez, it creates panic because they’re concerned about the delicate balance between supply and demand on the world’s oil.Any disruption in oil supply spikes prices, and these events are certainly cause for disruption.
Also very important is the geographic location — just across the canal is Saudi Arabia — the world’s largest producer of oil. If this unrest spills over into Saudi Arabia, prices could double to $200/barrel!
The effect on the U.S. economy would be disastrous and hamper the economic recovery.
I am not as pessimistic as Bolling (yet), but the situation in the Middle East is explosive, and the potential is certainly there for economic disaster. If the Mubarak regime is overthrown and replaced by a fundamentalist group like the Muslim Brotherhood, anything is possible up to and including a shutdown of the Suez Canal. If, as Bolling suggests, this unrest spreads into Saudi Arabia, all bets are off. There are already reports that the unrest in Egypt is spreading to Jordan and beyond. Some worry that the instability could spread further to other OPEC countries such as Libya and Algeria. And, if we throw a newly nuclear-armed Iran into the mix, Bolling’s prediction of $200 oil may be on the low side.
None of this is good news for the fledgling economic recovery struggling to gain steam in the U.S. If oil prices rise to even $125 and stay there, a double dip recession becomes more likely than not, and anything north of $150 virtually guarantees it. Meanwhile, our clueless president keeps his suicidal drilling ban in place while he dreamily muses about solar shingles and windmills. Fantasy is no substitute for an actual energy policy, yet that is all this administration offers.
What, precisely, is it going to take for the Obama Administration to wake up from their ideology-induced stupor and realize that we need to drill here and drill now? We need to be developing all of our domestic energy supplies (e.g. natural gas, oil, nuclear, coal, etc. ) with all deliberate haste. Is Team Obama so afraid to admit that Governor Palin is right about this (and has been right all along) that they’re willing to risk economic disaster? It certainly appears that way. And make no mistake, if we see sustained oil prices of $200 or higher, the recession from which we just emerged will seem like a walk in the park.
The only reason for optimism is that the 2012 election is only 21 months away. If, as appears increasingly likely, the Obama Administration does nothing in four years to develop a realistic energy policy, the voters will know who’s to blame. Indeed the only energy policy coming from this administration that I can discern is to do everything possible to prevent the development of those domestic energy resources that, you know, actually work. Presumably this is the approach Obama believes will help us “Win The Future”. In 2012 voters will have the opportunity to take a different approach.
And that exact sort of thinking ushered in the Mullahs in the late 70’s.
In 2006 or so, we all expected oil to go through the roof and it did. But it came back down?
So we’ll see it go to 200 or more. We’re already at $3 gallon, it’ll easily double.
Why?
Ammo could easily triple in price, though!
That’s the bad news
The good news is, it will show the Arabs that they can’t eat oil
Actually, he wanted the price increases to be caused by higher taxes, although I'm sure he finds it gratifying that his masters are sticking it to us.
Mark
Go back to the 1950’s and compare what is happening to Egypt then and now. Except now the Europeans would never act to secure the Suez but the Russians through their “islamic” surrrogates Iran and Syria certainly might- and hwy not? Who is to stop them? We don't exactly have an Eisenhower running the US these days, do we?
I wonder if we even have a viable contingency plan to send forces to the Middle East in the case of a radicalized anti-western hostile chaotic Egypt, a belligerent Islamist Turkey, and an intimidated Jordan. This really does even further isolate Israel, God help her, Barry Sutoro won't.
A solution is under our noses and the Bamster and the Watermelons don't want Shale Gas either. But look at this, The Transit Connect that can run on Gaseous fuels which are a $1 cheaper or more / gallon if myy research is correct. They are selling them to Taxi Fleets, I wonder if a Ford Dealer would sell them to you or me for a grocery getter. enough room for 3 kids. Their are home filling station to boot if you have Natural Gas @ home but they are pricey.
Just in time for the election of Madame Palin as President, on the slogan "barefoot, pregnant, and in the White House" (how's THAT for rubbing liberal noses in it?)
Cheers!
You assume this Regime wouldn't jump at the chance to enact it's "green jobs" energy (and social) revolution with $5+ gas? Never let a good crisis go to waste...
I thought this would be Carter's second term. The similarities are eerie.
Fleet of cars here...I feel your pain.
HAH!!!!!
No once the cold war got started the idea in foreign policy become “friends vs the communists” It no longer was to promote American ideals. Any dictator that was willing to side with us instead of the commies got a pass. Now its us vs the islamists with the same results.
American forgien policy should be to change these countries into constitutional republics.
$4 to $5 dollar gasoline doesn’t get you reelected.
Even Baraq understands that.
And I guarantee you after living like a potentate as POTUS all the Baraqqis want is another four years on the taxpayer’s dime.
6-8 dollar a gallon gas will kill most discretionary spending for at least 75% of the population
the doppler effect will be devastating
course mud people and libs will love it
Home filling stations are banned in many states and for good reason.
Natural gas was tried as a fuel back in the 1970s during the gas crises. After a number of people’s home filling stations exploded and took half the block with them, many states outlawed them or required onerous permitting. It wasn’t a solution then, it isn’t one now - especially since natural gas powered cars compete for fuel against power plants and home heating. You would only drive the price of fuel upwards and thereby increase your electric and home heating bills. One expert calculates that your total expenditure would actually be MORE than if gas hit $8/gallon.
Actually I wasnt really assuming that so much as I was assuming that we remove this administration, not necessarily through upcoming lecetions, and then we have an actual presidential adminsitration in place if and/or when the mid east crisis gets bad enough that we really do lose some access to oil there. I guess that is noit safe to assume. I am trying to asses things logically and not immediately go into falling sky mode but man, having real confidence in our country and its future is such a son of a bitch. Though we all remember what happened after the Carter adminsitration got us into such disasters, both economically and for our security. But then lo and behold, we got an actual adminsitration to lead us and the natural result was the 80s became largely a great time to be an American. uThat is what I am pining for to happen now, people are very strange that way.
I’m thinking about the same time frame, but $10. Just to drive home the lasting lesson that “Democrats = Pain at the pump and everywhere else.”
Not to mix the fuels, but a Volt or Ford with their new "Energi" plug in hybrid on Gaseous fuels would IMHO jump start us to tell the Saudis to pound sand. If we have as much Shale gas as I hear, I can't forsee a price spike. If you think I am crazy, so be it. I fear you could read this post a week from now if Egypt and the rest of the Middle East melt and we are looking for an alternative and it would be so crazy after all.
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