http://www.ft.com/intl/cms/s/0/b707d4d4-31b8-11e3-a16d-00144feab7de.html#axzz2jSGduSkw
For many decades, the United States has been dependent upon foreign oil from regions like the middle east to meet its energy needs. But in recent years, the United States' energy production output has been steadily increasing as a result of new developments in natural gas drilling techniques and technology, and more oil production within our borders. This increase in energy production is likely to have a large impact on America, and worldwide energy markets, as the balance of power in these markets is slowly changing. In another ten years, the United States is set to dethrone OPEC as its influence over energy markets continues to grow.
In 1973, OPEC placed an oil embargo on America for supporting Israel in the Yom Kippur War, and the United States suffered from high oil prices as a result of this decision. OPEC has been known to use oil as a "policy instrument," often keeping oil supplies underground in order to drive prices up, while countries like the U.S. had no way to counter their actions. According to the author of this article, if the U.S. should overtake OPEC nations like Saudi Arabia and Qatar in oil production within the next decade, then the U.S. would no longer be subject to the price gouging methods of OPEC, and would become energy independent. The U.S. economy would benefit greatly from this change in regime, as American citizens would not have to endure the endless "pain at the pump" caused by OPEC nations' demands, and the economy would be much more stable if investors could have more certainty about the nation's energy supply.
Another great benefit from the United States' "energy revolution" will be a decrease in the U.S. trade deficit. As domestic oil production rises, the U.S. will export more and more oil to foreign countries, ultimately helping to cut back the trade deficit. This may help add value to the dollar, and aid the U.S. become more competitive in global markets, as more and more oil exports flow out of the country, and more wealth flows into the U.S. as a result.
Yay! If the U.S. stops importing oil from OPEC nations, U.S. can save tax money on oil (if there is tax on oil). People can save money on oil because there will be more supply so the price of oil would likely decrease.
ReplyDeleteIt would so nice to pay less for gas! Our nation is pretty strong and I think trying to move away from foreign oil dependency shows that. This would also be good for the economy, it would make us more money supplying our own oil. W just have to be careful not to use up all our resources but other then that sounds good to me.
ReplyDeleteI like the sound of lower gas prices! I agree with Thao and Kirsten. The U.S. can save tax money on foreign oil and it would benefit our economy. If these prices came down, life would be good and everybody in the U.S. would be happy.
ReplyDeleteMaybe its just me but I feel like this has more implications than just lower gas prices. Think of all of the fighting we are doing in the middle east and nobody can say that one of our reasons for going in was the oil reserves. We desperately need that oil and so we went to war in order to keep our oil flowing. Having our own oil reserves in my mind would mean that we could avoid losing American lives in conflicts that might not affect us anymore.
ReplyDeleteI have to agree with Ben. This is much more than potentially lower oil and gas prices. It's a chance to spare the troubles of war for millions of our troops. If we have fewer people overseas fighting for a cause that is not as relevant now, there will be more of those troops to help here and abroad in places that need support. The fact that gas prices and oil could become cheaper is just an added bonus to a bigger and more important cause.
ReplyDeleteI think that if the country were to occupy the oil producing countries in the Middle East, it would completely lower the ridiculous prices of gas. I couldn't tell if you were saying we take over the oil producing business or take over the countries in a militaristic way. Because if you mean take over the countries with military force, I don't think that the world would approve.
ReplyDeleteThe future of this country includes our own energy independence. There is going to come a time when we will not be able to rely on these other nations to produce our oil. Natural gas is very important, but research also needs to be done to find alternative fuel. The day we no longer have cars running on oil and gas is the day America truly becomes independent from our OPEC acquaintances.
ReplyDeleteI'm glad to see that America will be advancing towards being energy independent. Plus the fact that gas would be cheaper is a nice bonus. We would still have to be careful with how we use our resources though.
ReplyDeleteMore competition for oil is a great thing. More competition equals lower prices. Lowering the cost of gas has some pros and cons as well. One of the reasons gas is so high is due to our self reliance on it. If gas prices continue to grow it would push car industries to make more state of the art technology to use other sources as a type pf energy.
ReplyDeleteThis is a great thing, but in ten years time the United States is most likely going to have alternative fuel supplies or methods of energy that are readily accessible to all Americans, not just the ones that have the means to pay more for such methods. By that time, it might be so late that it won't even have much effect. I guess it's better late than never though.
ReplyDeleteAs a young driver, I am hit hard by gas prices in today's market. To me, anything that would lower these prices would be a godsend. Becoming energy independent is a step towards greatness for America. The day we no longer need to rely on OPEC to power our machines is the day that we move ahead in the world. I believe that energy independence, plus alternative fuels, are in our future, and that they will change our country for the better :)
ReplyDelete