Re: This is what scares me more than anything

On Fri, May 6, 2011 at 4:44 PM, Bruce Geerdes <[email protected]> wrote:
> On Fri, May 6, 2011 at 1:56 PM, Karl Swenson <[email protected]> wrote:
>> And since when is Canada a hostile nation, considering we buy most of our
>> oil from them?
>>
>> We import more oil from NON opec sources than from Opec, and Canada is the
>> highest single country (by nearly 2 to 1).  This is for both crude and
>> refined petroleum.  Mexico is nearly tied with the highest Opec Country,
>> Saudi Arabia.
>>
>> You might want to check your facts a bit before you trot out the evil
>> foreign oil meme.

Oil is a global commodity, bought and sold on global markets.  So even
if the molecules of oil that are processed and burned don't come from
OPEC, the demand ripples across the markets and drives prices up (and
thus drives up OPEC profits).  If the USA were to become a net
exporter of oil, then we could compete with OPEC and drive their
profits down.  So, yes, our oil dependence plays a role in financing
people we'd rather not finance.

When (not if) alternative power sources become price competitive with
oil, they will further drive OPEC profits down.  If USA's technology
companies are the ones that push the limits in R&D for the newer
competitive power sources, then USA's companies will be able to
capture a significant portion of the profits currently going to OPEC
countries (+ Norway + Canada, etc).  If not... then China and India
and Europe's companies will lead the way (and capture the bulk of the
profits).

-- 
Nick

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