Sunday, July 6, 2008

Drill here, drill now and pay less

I am amazed with the liberal arguments against drilling in our own country for oil. How can one argue that bringing more oil online will not decrease the price of a barrel of crude. I will admit that currently the price of oil is not priced in line with supply and demand and is being traded and valued like the 1990’s dotcoms instead of the true value of the product.

There are many theories being offered as to why oil is past $140.00 bbl and most have merit to some degree. Some experts claim that the speculators are the cause and others cite the value of the Dollar. The liberal leadership in congress likes to label “big oil” as the bogey-man to shield them against well deserved criticism.

Big oil has a profit margin of about 8-10% whereas Google has a 25% margin. I do not see liberals claiming that Google is gouging the American people and threatening a windfall profit tax on them. The U.S. government makes 18% of the price of every gallon of gas that you pump into your car and they claim oil companies are to blame.

The United States has more known oil deposits than the whole Middle-East combined. Some of our deposits are contained in shale, which used to be cost prohibited to produce. With new in situ retorting, oil shale can be transformed into a gallon of gasoline and help the United States become more self reliant.

The liberals would like you to think that biofuels can replace fossil fuels and help the environment in the process. In reality, these biofuels are starving the third world countries poor and raising the price of goods here at home. The average price of corn has increased by some 60 percent, soybeans by 76 percent, wheat by 54 percent, and rice by 104 percent. When these food staples rise in such manner, the rest is a domino effect on our economy.

Although controversy remains over how much of the food price increase since 2006 can be attributed to biofuels, their effects cannot be overlooked. In 2008, 30 percent of the U.S. corn crop will be used for ethanol. It is time that Americans rely on our own oil reserves instead of the Mullahs and dictators of the world. Tell our liberals in congress that it is time to “drill here, drill now and pay less”.

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1 comment:

  1. Why is it that the whining leberal's never protest China for drilling 80 miles from Florida?