Friday, August 08, 2008

Taking Aim At Your Pocketbook

The Law of Supply and Demand assumes more of the aspect of a demon in the revival scenario being recreated in the House to keep the press from any real news. That the problem the wingers are trying to distract the press from is growing worse while they posture doesn't seem to concern the actors. You will suffer, but they will most likely blame it on the Dems for not locking the doors and keeping them out.

The oil crisis, of course, is only growing closer. A report out today points out that without any investment of its trillions in profit, the oil industry insures that prices will continue to bankrupt U.S. families.

A serious oil supply crisis is looming, which could push prices above $200 a barrel, a think tank has warned.

A "supply crunch" will affect the world market within the next five to 10 years, the Chatham House report said.
Prof Stevens warned that investment in new oil supplies has been inadequate as oil firms prefer to return profits to shareholders rather than reinvest it.

Furthermore, oil producing cartel Opec has failed to meet plans to expand its capacity since 2005.

He also argued that a "resurgence of resource nationalism" means that governments are "starving" their national oil companies of investment by excluding international oil firms from helping to develop capacity.

"While the forecast is controversial and extremely bullish, even allowing for some increase in capacity over the next few years, a supply crunch appears likely around 2013," he added.

"The implication is that it will quickly translate into a price spike although there is a question over how strategic stocks might be used to alleviate this."

Unpopular measures

However, Prof Stevens does conclude that only "extreme policy measures could achieve a speedy response" in boosting supplies and lowering oil prices - a move that is likely to be "politically unpopular".

The fact that posturing wingers are confident their base will not notice they are bringing on disaster indicates that they are counting on the 20% that refuses to accept facts. It isn't likely that they will accept the blame when disaster happens, when the only action they are taking now is histrionics. Hopefully, some of the U.S. press may report on the facts, even though they will be liberal.

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Anonymous Anonymous said...

The statement I find most disturbing is, ""extreme policy measures could achieve a speedy response" in boosting supplies and lowering oil prices - a move that is likely to be "politically unpopular".".

This reads like something straight out of Naomi Klein's "The Shock Doctrine", a book I am about half way through and in awe of. Of all the political material I have read over the last eight years (spending 3-4 hours a say), this book has done more to open my eyes than anything else. Finally, all the pieces of information I have absorbed fall into place. It should be required reading for all Americans.

And no, I am not affiliated in any way with Ms. Klein...

3:05 PM  
Blogger Ruth said...

While I don't think everything Ms Klein has written is a total explanation for the criminals' in high places trashing of America, I do think she has great points. And enjoyed a chat with her at Crooks & Liars not too long ago.

6:53 AM  

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