This was inevitable
I'm not going to say "I told you so" because there is no pleasure in what's happening. Over the past few weeks, we have seen oil prices, and in turn, prices at the pumps, fall dramatically. Today, December 17th, oil closed at just over $40 a barrel. A few short months ago, when T. Boone Pickens started his visionary energy plan, gasoline was north of $4 a gallon (almost $5 in some areas) because oil had reached a record $147 a barrel.
As prices began to slide, many of the naysayers and critics of the Pickens Plan quickly proclaimed the effort DOA. Well, as I have said, reports of the demise of the Pickens Plan were greatly exaggerated. From a recent TV appearance, when he was asked if the plan was losing momentum because gasoline prices dropped, Mr. Pickens calmly and assuredly said that we still import 70% of our oil, but for the moment, we are paying less. He went on to say that we would see prices rise again, and he predicted that it would get to nearly $100 a barrel by next year.
It's not bad enough that we import so much of something that we should be able to get from our own sources, but most of it comes from countries that don't like us very much. We are in a situation where OPEC countries will take actions that are meant to increase their own profits, while hurting us. They recently reduced their daily production in an attempt to curb the slide in oil prices, and fortunately, it had no effect. Today, they announced another decrease, bringing the recent reductions to an alarming 4.5 million barrels per day off their production.
Attached is an article that appeared today on FoxNews.com, with a simple description of the overall problem that we face. I discovered some statistics while putting together a white paper, that were shocking even to those of us that are somewhat jaded! The figures showed that if we continue at our current global consumption rate of slightly more than 84 million barrels per day, and using the quantity of known reserves (those that are not explored, but actual deposits), we will run out of oil in 43 years. That means that if we don't immediately begin to drill in the OCS or ANWR, or to begin our processing of oil shale, AND we don't start to take advantage of CNG in transportation, we are only hurting ourselves. We can no longer sit back and accept the tired old excuses about how long it will take to start the offshore drilling. Some say 10 years, but other experts tell us that we can have platforms in position in the eastern portion of the Gulf of Mexico within a matter of months.
Energy independence is the most important issue that we face today. It touches on our national security, our environment, and even our financial well-being. Going green is important, but we also have to be concerned with our severe addiction to foreign oil, and the immense impact that it has on our country. No need to rehash that debate, but I simply want us to remember why we are involved with this energy program - ENERGY INDEPENDENCE.
Just a thought...
OPEC Slashes Output.pdf
As prices began to slide, many of the naysayers and critics of the Pickens Plan quickly proclaimed the effort DOA. Well, as I have said, reports of the demise of the Pickens Plan were greatly exaggerated. From a recent TV appearance, when he was asked if the plan was losing momentum because gasoline prices dropped, Mr. Pickens calmly and assuredly said that we still import 70% of our oil, but for the moment, we are paying less. He went on to say that we would see prices rise again, and he predicted that it would get to nearly $100 a barrel by next year.
It's not bad enough that we import so much of something that we should be able to get from our own sources, but most of it comes from countries that don't like us very much. We are in a situation where OPEC countries will take actions that are meant to increase their own profits, while hurting us. They recently reduced their daily production in an attempt to curb the slide in oil prices, and fortunately, it had no effect. Today, they announced another decrease, bringing the recent reductions to an alarming 4.5 million barrels per day off their production.
Attached is an article that appeared today on FoxNews.com, with a simple description of the overall problem that we face. I discovered some statistics while putting together a white paper, that were shocking even to those of us that are somewhat jaded! The figures showed that if we continue at our current global consumption rate of slightly more than 84 million barrels per day, and using the quantity of known reserves (those that are not explored, but actual deposits), we will run out of oil in 43 years. That means that if we don't immediately begin to drill in the OCS or ANWR, or to begin our processing of oil shale, AND we don't start to take advantage of CNG in transportation, we are only hurting ourselves. We can no longer sit back and accept the tired old excuses about how long it will take to start the offshore drilling. Some say 10 years, but other experts tell us that we can have platforms in position in the eastern portion of the Gulf of Mexico within a matter of months.
Energy independence is the most important issue that we face today. It touches on our national security, our environment, and even our financial well-being. Going green is important, but we also have to be concerned with our severe addiction to foreign oil, and the immense impact that it has on our country. No need to rehash that debate, but I simply want us to remember why we are involved with this energy program - ENERGY INDEPENDENCE.
Just a thought...
OPEC Slashes Output.pdf
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