only a fool would tap into it's country's strategic reserve during times of peace
Then what the hell are the reserves for if we're not willing to use them when OPEC threatens our economy?
Let's face some facts here... The oil shortage is not due (yet) to overconsumption, but to underproduction by suppliers. They cut back production to reduce a previous oil GLUT, but decided to take it a step further (because they think they can).
Let's also get something straight here about the nature of OPEC.
What OPEC represents is a cartel, something that US LAW considers illegal for US corporations to participate in (MSFT, Standard Oil). A cartel is formed in order to conduct economic warfare, excercise monopoly power, and stifle competition.
OPEC makes absolutely no bones about their desire to extort the most money from the industrialized nations. The only limiting factor is setting that price at such a high price that industrialized countries increase their exploration, use alternative fuels, or conserve.
I have no problem with conservation, but I also have no problem distorting an already distorted market that is economically vital to the US.
Open up the reserves and put a little fear in them. They don't need the US competing in their oil markets with oil that we purchased at $10-15/barrel, and get to sell for $30/barrel.
Remember that energy prices hurt foreign nations more than here in the US since oil is denominated in dollars. They suffer worse than we do. And the OPEC nations profit even more taking in those strong US dollars.
Regards,
Ron |
