$5 Gas Around the Corner: Take Action
Today we have reached a new record high in oil at over $138 a barrel, up $10.75 in a single day, on a bad job report and a declining dollar. Market analysts are now predicting oil to be at $150 by July the 4th. You think $4 a gallon gas is bad, just wait until $5 a gallon as some analysts are predicting.
What is contributing to this?
1) A declining dollar:
With an economy in slow down and interest rates being cut with the possibility of interest rate increases in Europe the US dollar is declining causing inflation on energy. Add to the the possibility of a windfall profit tax, higher income tax rates, and a 28% capital gains tax we can expect a dollar to continue a decline.
2) Decreasing supply:
Currently the world uses 85 million barrels of oil a day but we only produce 87 million barrels a day meaning that supplies barely meet demands. With increased demand and a decreasing or stagnant supply prices will remain high until either demand decreases or supply increases. The first is not likely but the second can be resolved.
3) Speculation and Congressional Inaction/Action:
Some of you may question this conjecture between these two elements but let me convince you.
Speculation is based off of current events (political and economic), current supply and demand, future political and economic events, and future supply and demand. Currently in the the US Senate is debating the Warner-Lieberman Climate Security Act, which will make energy production more difficult and more costly. Some analysts are predicting a decrease in domestic energy output by 9.5%.
With a decrease in supply expected because of Congressional negative action reducing supply, lack of Congressional actions on lifting regulations prohibiting drilling in the Continental US and offshore, the restrictions on building coal and nuclear plants, and Congressional over regulation on building new refineries the supply shows no indication of increasing. Congressional negative actions and inaction are have a negative impact on the future of supply for oil supplies.
Add to this a rapidly growing Third World, primarily India and China, and you have quite the problem because increased demand cannot be met by current supply forecasts.
This all leads to higher speculation on oil prices leading to dramatic increases in oil prices and consequentially the cost at the pump.
Take Action Now
This gives me another opportunity to tell you about AmericanSolutions.com Drill Here, Drill Now, Pay Less petition. As of 2:50 pm CDT the petition has collected over 397,000 signatures from Americans just like you who are fed up with the special interests pandering by the US government. This bill is designed to help stop the devastating effects of the Warner-Lieberman Climate Security Act.
If you want to know you want to know more about this bill check out some of my previous articles.
A Government of Special Interests, by Special Interests, and for Special Interests
The American Left: Just Not Getting It
It takes only 30 seconds to let your voice be heard and sign this petition to Drill Here, Drill Now, Pay Less. After you have signed the petition if you have another 10 minutes take the time to send a brief email to you Senator's and let them know of your distaste for this bill that will send over $1 trillion to special interests groups while increase the tax rate on the average American.
Make your declaration!
Post a Comment