Friday, December 18, 2009

Why does the US not go into our oil reserves?

If we trully went into our oil reserves, I mean, couldn't we drop prices by about a dollar or more a gallon?





I don't know, but I do know that if the answer is because we don't want to use all our oil, it seems to me like we're not going to be using it for too much longer so we may as well use it sooner.Why does the US not go into our oil reserves?
Theres no oil shortage., for starters half of the oil price is because we have allowed the dollar to fall in value and oil is traded in dollars so for the foreign producer to make the same amount of profit he has to charge double since we are now giving him dollars worth half as much.





other items influencing price is: much of the worlds oil flows out of the persian gulf so war in the north (Iraq, plus its diminished supply), and tension with Iran, makes the area more unstable which means higher shipping costs (higher insurance costs on the ships). Then expanding economies like in China, India ect. further add to the price,. But one of the US big problems is through the mergers of oil companies that mass amounts of refinery capacity has been shut down, so WE have a problem producing the products we need, ie Gasoline, oh and since its almost Summer this is when they choose to shut the refineries we do still have down for maintenance, and you can be sure that in June when they are suppose to be back on-line, to meet the summer demand, they will have a problem, delaying them getting back online so we will see a big spike in prices for the 4th of July.





Oh but back to oil prices: Todays News:


Strike in Scotland closes major North Sea oil pipeline





So wait to see what the oil market does on Monday!Why does the US not go into our oil reserves?
It is a matter of investment. Also if oil prices are cut off, it affects price of every other commodity and leads to Govt dysfunctions. But US can save the fuel underneath for future.
I hope you are not buying all the government lies ; common '';' theres no shortage of oil ; its just a gimmick for filling up the government coffers

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