There are times when I think the whole green movement is going to accomplish nothing, but lots of lost cash. Why?
Not long ago Brazil announced a major oil find. Such finds, and a number of other factors, have some energy analysts predicting a possible, although short term, glut in the oil market within the next decade. Yet, such gluts can last years.
Today, oil prices fell .00 on falling demand and an increase in inventories, and Valero warned that it might actually have to shut down refineries due to lack of demand.
Oil supply is overwhelming demand, and with several months of a severely recessed economy almost a certainty, it’s hard not to assume that supply could overwhelm demand for the next few years.
Couple that with potential new oil supplies, such as those in Brazil, or new operations in Libya, for instance, and a serious glut in oil demand could be imminent. The oil market has experienced such cycles in the past. Eventually, that has to mean lower gas prices.
Sure, cheap prices are unsustainable. Yet, how many Americans will continue to support Obama’s green, efficient plans for autos if gas is cheap for the next four years?
Without a permanent floor on gas, it seems that Obama’s green plans could come back to haunt Obama, and the green movement. Inevitably, cheap gas is not good for America. It’s like smoking. It’s a cancer upon our society. And, at some point one must ask is gas really cheap?
Forget the trillions we’ll spend in Iraq. Today, it costs many billions for the Coast Guard and Military to secure US oil lanes out of the Persian Gulf – even at peace time – yet, those costs have never been included at the pump. Why?
Foreign oil has costs. It’s time to accept them. It’s time for a new gas tax – a tax the government returns to consumers via tax credits for compliant vehicles.