Category: I guess this comes as no surprise. Why should they? They’re reaping incredible financial rewards and this only stands to go ever higher. Well, hey it is capitalism at its best - or worst - depending on how you look at it. We pay what the market will bear, right?
"Saudi Arabian leaders made clear Friday they see no reason to increase oil production until their customers demand it, apparently rebuffing President Bush amid soaring U.S. gasoline prices." Quoted from an article by Jennifer Loven, at the Associated Press.
Meaning, Saudi Arabia is producing exactly the amount of oil necessary to supply what the demand is right now. Oil speculation is driving oil prices up from where it is predicted it should be at $80 per barrel (according to CNN) to the $127+ it is selling for on the market. This is legal energy price manipulation.
Oil right now is practically a monopoly with the way the world depends on it. When will the innovators break this monopoly?
Senate Democrats seems to think that pressure and threats will solve the problem. Right. Senate Democrats introduced a resolution that would block $1.4 billion in arms sales to Saudi Arabia unless Riyadh agrees to increase its oil production by 1 million barrels per day. The answer to this is go to China or Russia and buy arms from them. Threats won’t work and certainly won’t solve our oil dependency issue.
And forget about biodiesel folks. We’ve seen what that does; raise food and meat prices because land that is usually used for food production for human and animal consumption is being used to grow crops, like corn, that will be turned into biodiesel, which, mind you, is causing gasoline prices to go even higher due to demand and production costs. If you do the math, it’s not working.
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