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August 13, 2005

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EDITORIAL

How to solve a problem: Solve it

Editorial

web posted August 13, 2005

With the recent, and seemingly out of control, rising prices on gasoline Americans are beginning to wake up to the reality that the Federal Government, under either party’s rule, is not serious about curbing our dependency on foreign oil.

America has more oil available for drilling than we need, however the environmental activist groups and the left in the Democrat Party refuse to allow America to tap the vast resources we have to be independent.

In addition to that, no single standard for gasoline means oil refineries have to produce special blends of gas depending on which state it is produced for. Gas produced for California cannot be sold in South Carolina and the trend continues nationwide. This limits production and causes a false increase in the price of available blends.

To further irritate consumers, a rise in crude today results in immediate price increases. A drop in crude prices is rarely seen within a week at the pump and the gas at the pump was produced from crude bought at much lower prices than the futures pricing on the stock market today

Many Americans resign themselves that there is no answer. Baloney!

We believe all problems have a solution and we feel we have the right one for ending the billions of dollars we send to countries who produce and fund the very people we are fighting in the war on terror via our oil purchases.

The solution is simple; we offer OPEC a maximum of $20 for each barrel of oil, take it or leave it. If they take it, fine, gas prices drop back down to well under $1.00 a gallon and we move forward. If they refuse the US should stop all imports of foreign oil immediately and open the Strategic Oil Reserves (enough to run the entire nation and military for years) and place price controls on gas at $1.00 a gallon.

At the same time we should raise the price of all outbound wheat, corn, beef, and other such products to those nations by at least fifty per cent. Not one of the oil producing countries can produce what it needs to feed its people.

Basically, the world economy is driven and measured by the US Dollar and until they want to get serious about dealing with the United States we should use that to our advantage. Saddam did not have billions of Yen or Euros in his banks, he had US Dollars.

Not to mention pulling America, which is the largest consumer of world oil purchases, out of the market would cause a collapse in the price of oil within minutes of announcing such, and sticking to our guns could force the market of below the $20 a barrel offer.

Somewhere along the line we went from protecting the weakling who was getting sand kicked in his face by the bully at the beach to being the strongman sitting down letting the weakling kick sand in our face. Of course, all the while asking for a “dialog” to see if we can understand what we did by sitting on the beach to make them kick sand in our face.

We believe if you want a problem solved, you solve it. Sometimes solutions really are just so simple they get overlooked, over studied or “what if’ed” to death. The reality of the situation is, if someone has something you want, and they need something you have, the value is based on the necessity, not the desire. America can get by without buying oil for years, and can expand production of the huge reserves that have been identified over the last thirty years that remain untapped.

The question is, can the OPEC nations eat sand and drink oil for years to get by?

We suggest solving the problem.



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