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Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth -- Ignore unavailable to you. Want to Upgrade?

To: d[-_-]b who wrote (128694)	7/14/2008 4:25:03 PM
From: SeachRE	Read Replies (2) \| Respond to of 173976

Win some lose some...it's best to drill in Africa or the MidEast where property values are NOTHING. Remember, drilling in North America does have its drawbacks...

To: d[-_-]b who wrote (128694)	7/14/2008 4:34:26 PM
From: Kevin Rose	Read Replies (1) \| Respond to of 173976

When you went to business school, did you skip the day they covered the elasticity of supply and demand? The world market would currently need a whole bunch of supply dumped on it to make a significant dent in prices. The ability of China and India to absorb more and more supply - given their tradeoff of price versus demand - would require the US to produce add significant percentage of world production before we'd see a good drop at the pump. There is simply not the reserve available to us for that kind of action. Given the reality of our limited reserves and current demand, I will reiterate my opinion that we cannot drill our way out of the problem. I would even contend that drilling will have no impact (given protectionism of reserves, and might even have a negative impact), but alternatives and conservation could (and should). The only way drilling would work is if we had reserves that matched Saudi Arabia (say, 250b bbl), and were willing to run them dry to force the market down. We could then aggressively pursue alternatives, including nuclear, while removing the power from the oil producers. Unfortunately, this is just not the reality. I opposed to pie-in-the-sky 'solutions' that either have no impact on the problem or actively make it worse. Given our lack of reserves, we may need to play the same game of conserving those reserves that other countries are playing.