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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (184934)	3/23/2004 11:46:19 PM
From: TimF	Read Replies (1) \| Respond to of 1575146

re: "Only a relatively minor, and simple point that for some reason has resulted in so much back and forth verbiage. That the cost of the oil we are extracting from offshore wells is much less then the current world price for oil." So that's why we are dependant on ME oil, the oil companies like to pay more! Or maybe it's the Bush family relationships in the ME? No. The reason we depend on ME oil is that all other sources put together (including off shore oil) don't produce enough oil to meet the demand. But if we suddenly found a new deposit of offshore oil that cost $15 per barrel to extract but had enough oil to replace all the oil supplied from the ME we would probably continue to use ME oil. The extra supply would bring the price down. That lower price would increase consumption and would limit investment in the new source until the price eventually goes back up. As long as we are dependent on oil at all changes in the ME oil supply will effect us. Even if the US produced all the oil it needed it would not be totally unaffected by what happens in the ME or to ME oil producers. There are two solutions. Either we figure a way to lower oil consumption with alternate fuels, or we have oil wars. Bush has chosen oil wars (he's an oil guy). We already know how to produce alternative fuels. We just need oil to go up to $40 to $60 per barrel to make the alternatives cost effective. Tim