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Re: Re: Let's talk about Iraqi oil
Quote:
Originally posted by Airbornelawyer
Things to think through first:
1. Are gas prices really that high, on historically weighted terms (hint: inflation adjusted dollars)?
2. Assuming they are higher, at least in the short term, why are they higher?
3. Would "reimbursment" ameliorate this situation? How?
4. Assuming there were tangible benefits of #3, what would be the costs? Not just PR consequences, but things like loss of revenue for Iraqis for their country's reconstruction, etc.
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Why are they high?
Speculators and futures markets. Inventories are more than adequate.
Expanding Chinese economy is also increasing international market demand for oil.
Want to lower prices? Can you end futures trading of oil and gasoline?
Why else? Environmental laws.
Want to drop prices? Get back to a few blends of gas with no special state requirements. Create incentives for new refinery construction. Approve limited drilling in the ANWR. Encourage construction of new nuclear power plants to replace fossil fueled generation.
What else?
Develop a fuel cell powered auto and make it practical and affordable. Nail in the coffin of OPEC. The countries would implode as their economies failed.
TR
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"It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat." - President Theodore Roosevelt, 1910
De Oppresso Liber 01/20/2025
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