RV Fuel Issues & Prices - Post 'Em Here!
All other fuel threads will be automatically deleted. :)
Forum Discussion
"We are buying over 60 % of our foreign oil from overseas when we have huge supplies of oil, natural gas, shale oil, and coal in the USA. Now why is this a good ideal?"
Because, although you may not think so, foreign oil is cheap right now. the long-term secular trend in oil prices is up: our oil will be worth much more in 20 years than it is now. It's better than money in the bank.
If the oil situation gets worse with time, as the chinese and others escalate their demand, our underground oil increases in value. Any oil leases we let under current international trade agreements will result in 2/3 of the pumped oil from US resources going to other coutries. But if we hoard the oil until later we will be able to change the terms of sales then to secure a higher percentage for ourselves.
Letting leases now will shortchange us for the future when prices will be higher. It is penny-wise and pound foolish.
Because, although you may not think so, foreign oil is cheap right now. the long-term secular trend in oil prices is up: our oil will be worth much more in 20 years than it is now. It's better than money in the bank.
If the oil situation gets worse with time, as the chinese and others escalate their demand, our underground oil increases in value. Any oil leases we let under current international trade agreements will result in 2/3 of the pumped oil from US resources going to other coutries. But if we hoard the oil until later we will be able to change the terms of sales then to secure a higher percentage for ourselves.
Letting leases now will shortchange us for the future when prices will be higher. It is penny-wise and pound foolish.
