Re: Are BO & Dems Making Themselves Unpopular??
by
PhilfromCalifornia
09/07/2008, 4:15 PM #
You're in NYC - there are always sirens in the street.
I have been thinking about the oil thing and what comes to mind is that the little US oil left - in formerly closed wells, very deep sea, shale, etc. - has to be much costlier to extract than the oil remaining in a number of other countries. Because nominally US corporations are deeply involved in production everywhere in the world, They will, in the next few years, enjoy the relatively low prices of foreign oil as feedstock. That means they will be able to manufacture in competition with corporations associated with other nations. On the other hand, businesses in the US will be - more or less - forced to buy domestic oil at a much higher price, based on the cost of production. That will drive the price of US products up even more relative to products of other countries and reduce our capability to compete in the world market. US consumers will gain no advantage from this since, not only will they be buying higher priced US goods or more imported goods, but they will be paying more directly for oil products such as gasoline. Thus, it would seem that the best strategy the US has is to explore for, but not extract, domestic oil and buy, buy, buy from those foreigners who have much oil to sell but little else.