Oil Is Still King
By: Ken Hughes
American politicians are leading the charge discrediting petroleum products from being one of the necessities for mans existence on this planet.
Politicians can set all the timetables they like but oil will still be around and still be King long after theyâ€™re gone.
The things God gave us for our survival man canâ€™t take away. Man didnâ€™t invent the wheel God gave him a willow then showed him how to bend it in a circle. Man is not an inventor, with the help of God man is an innovator.
The Arab oil producing nations have gone from dominance to a completive position as oil producers. There was a time when OPEC could hold the world hostage this is no longer the case. OPEC is facing a critical period theyâ€™re being told theyâ€™ll be put out of business either by legislation or by excessive taxation. Itâ€™s understandable the oil suppliers are out for all they can get while they can get it. Thatâ€™s an understandable position for them to take considering the losses they face in the future. Oil may be a gift from God but itâ€™s no more a free gift than religion is. Everything man touches has a price attached itâ€™s the nature of the beast.
Oil is an element incorporated in every phase of our lives. Oil is far more than just gas for our cars, heat for our houses and generating electricity. Oil is involved one way of another in 90 % of all consumer products. Oil is as essential for mans existence on earth as water, sun and air. Oil [petro chemicals] is the core to synthetic fibers, pellets for molded products, lubricants to the wheels of manufacturing. Oils uses are to numerous to list them all. Soybeans and Corn products are second to oil. Farmable acreage vs. intermittent small holds in the ground are an even greater consideration.
The answer to pollution of the planet is not to bar oil the answer is to continue to advance the technologies of oil. A barrel [42 gallons] of crud oil produces 19 to 22 gallons of gasoline the rest is used for other products. This of course varies by the areas of the world the oil comes from. Venezuelan oil produces less than half the gasoline US extracted oil produces. The amount of gasoline from a gallon of oil depends of the geology of the fields itâ€™s coming from. In the ground oil is just one more of earths elements, it only becomes valuable when itâ€™s extracted and converted into products essential for mans existence.
Oil first became a political issue during the Jimmy Carter administration in the 1970s. Politicians jumped on oil like vultures on road kill. It became a cash cow for governments who saw a way of additional taxing without repercussions. After all gasoline was an essential in the American economy.
With all the complaining oil is a product people canâ€™t do without. Over half of the worldâ€™s consumer products are made from oil. It would take years of research to replace what oil provides us from organic materials.
Oil is not the culprit there are many things other than oil that pollute the atmosphere. Given time and the right incentives science will isolate and capture the pollutants and turn them to positive uses. This is being done all over America. This country is the least polluted industrialized country in the world. In most of the large cities in China and India one canâ€™t see the tops of tall buildings. In Hong Kong, Taipei, Soul Korea, Tokyo, San Palo Brazil and Mexico City you canâ€™t see a quarter of a mile clearly. There are few American cities other than Los Angeles and perhaps Denver where pollution comes anywhere close to other cities of the world.
As long as oil is used as a political tool oil prices will rise. In order to reduce the price of oil America needs to develop it own production fields. It needs to increase refining capacities and above all it needs to get politics out of the business of refining oil and producing gasoline.
Oil is a commodity traded on world markets itâ€™s the producing countries and the financial speculators not the refiners who contribute to the price of oil and oil related products. Another significant factor is America competes with a world market for its oil. As long as the public isnâ€™t willing to tell congress to rescind laws making America dependent on imported oil and allows the few domestic produces to use our oil reserves we will be paying higher and higher prices far into the future.
Environmentalists are putting their eggs in the corn / soybean basket, the problem with that is corn and soybeans are stretched to their limits now. The worldâ€™s consumption is beginning to exceed its ability to produce. The time has come to chose between food fuel and environmental hysteria. The time has come to allow technology over politics to lead the way.
Iâ€™ve been above the Artic Circle and I can assure you there will never be a Club Med or a Ski Resort built in ANWAR. Oil production doesnâ€™t destroy the environment anymore than public recreational areas do. The time has come to lock up the loonies and listen to reason.