Dick A wrote:
I agree with the majority of Fezziwig's above comments. Additionally, If we do manage to achieve some fiscal responsibility and the government ends its quantitative easing easing policy we may see the dollar strengthen again.
The current shale drilling may also apply market price pressure in both oil and natural gas markets.
Apologize for this post, as I swore off further posts on this topic earlier on. Just couldn't resist commenting once more.
While the shale oil reserves are incredibly enormous, and we should pursue them with vigor, currently, oil from shale is a work in progress. Although Shell, today's big actor, sees it as doable at $30/barrel, it's not sure its in situ process is going to work and, even if it does, max production is decades away. We desperately need to get to the black stuff that can be extracted using proven technology. And the world economic impact of an energy self-sufficient America would be something to behold.
But we continue to prostrate ourselves at the feet of the OPEC countries, several of whom attack us politically and militarily using our own dollars to do so. Certainly, the value of the dollar has some impact on per barrel cost, but realize that its value today is almost identical to its value in January of 2009. Perhaps the Saudis cutting back production by over 25% last year had an impact. And perhaps the enormous Washington oil lobby is successfully preventing us from putting up any resistance to OPEC.
Energy Sec. Chu would like European $7 gasoline. Interior Sec. Salazar canceled dozens of oil and gas leases in Utah, and Congress and the EPA have seen to great increases in production of that ridiculously expensive ethanol through trade protections and mandates.
This is about more than the price at the pump. This is about what your kids' and grandkids' lives will be like.
In the meantime, we may have to do our RVing in the back yard.
'11 Eagle 320RLDS '02 Ford F350 DRW 7.3 PSD
"The world will not be destroyed by those who do evil, but by those who watch and do nothing" - Albert Einstein."