Friday, June 24, 2011

BloggeRhythms 6/24/2011

According to the Associated Press, yesterday the administration said it's selling off 30 million barrels of oil from the country’s emergency reserves. This is part of an international reaction to lost oil supplies caused particularly by the turmoil in Libya. The release from the U.S. Strategic Petroleum Reserve will be the largest ever, half of a 60 million-barrel international infusion of oil planned for the world market over the next month. However, the 30 million U.S. barrels represent less than two days’ worth of domestic oil consumption and about three days of oil imports.

Even before the announcement U.S. oil prices had been declining since late April, down nearly 20 percent since their $113 a barrel peak. However, Thursday's announcement drove oil prices down almost 5 percent, to below $91 per barrel.

According to the U.S. Department of the Interior, proven U.S. oil reserves are 21 billion barrels, excluding the Strategic Petroleum Reserve. This covers the total volume of undiscovered, technically recoverable prospective resources in all areas of the United States, including the Federal Outer Continental Shelf, the 1002 area of the Arctic National Wildlife Refuge, the National Petroleum Reserve–Alaska, and the Bakken Formation. That totals 134 billion barrels of crude oil and excludes oil shale reserves, since there's no significant commercial production of oil from oil shale in the United States.

So, my question for today is, if 30 million barrels of our own oil can reduce the price by almost 5%, how much would a barrel of oil cost if we drilled for a few billion barrels. It seems to me that pretty soon oil would be almost free.

That naturally leads to my next question, which is: If leftists and environmentalists have forced the president to virtually cut off oil production in the U.S., how much have they actually cost the country in dollars, and every one of us? Because when you look at the numbers, which are pretty simple to understand, it's practically incredible that this situation has been allowed to take place. Our money's being taken from us, hand over fist, by foreign nations while our economy's reducing to shreds.

That's why today's Densa Award goes to anyone who continues to support the current administration, regardless of politics. Because these folks are starving themselves out of existence every day that goes by simply through acquiescence. And maybe, their beliefs are worth that to them. But, I wonder how they'll feel a little further along in time, when those in the administration have taken their last nickel and smiled all the way to the bank.

That's it for today folks.

Adios

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