America: Energy Supplier to the World - Think about It
We all know everyone in America is suffering from high prices and potential shortages of fossil fuels and it will take a decade to obtain some relief with new technology from enzyme produced ethanol and hydrogen fuels. And it may take 20 years to become independent of foreign fuels. It is not only a short supply and very high and growing demand thing but a worldwide fear factor type of thing.In America last year we suffered from damage to refineries and many oil platforms in the Gulf and reconstruction was delayed because many of the workers were displaced also due to the hurricanes. Today, there is the threat of world-wide shortages of oil from the middle east by Iran claiming they will perform terrorist acts in the area if they continue to be threatened. There are threats of shortages from other terrorists, too. Today there are no shortages, but the insiders have created soap operas about potential shortages and increased prices to increase profits draining a lot of extra money from the American consumers.
Americans should be happy that we do not have a pipeline from Russia since they have a history of shutting down the flow of energy on their neighboring customers.
Americans are well versed on the problems of being dependent on foreign oil and we are all wary of the situation getting worse before it gets better. America's fossil fuel is supplied by an oligarchy of oil companies. From what I understand much of the oil they provide to the American consumer is hedged meaning that they have contracted for it in advance, but it seems they charge us "market prices". I'd like to know how much of the oil they buy is at "market price" and how much is bought in advance at a contract price. I suspect they charge "market price" which is excessively higher than the contract price they paid for it.
Look at Brazil, who wisely recognized the problem of oil dependency and decided to develop their ethanol industry. They are not dependent on foreign oil because they converted to ethanol fuel for their vehicles. And they performed so well that they have a surplus of ethanol to sell on the world market. It is too bad that some of this ethanol cannot be imported to America because of two reasons that I heard about: the first is that it is prohibited by the American government and the second is that there is a prohibitive tariff on it. You have to hand it to the Brazilian leaders who had the foresight to drive the production of ethanol and wonder where America's leadership was at the same time?
They were probably hunting small stocked birds in baited fields and having secret meetings with oil industry executives. I think the meetings are still secret. What is the story, Dick?
Looking at the Brazilian model, it would be nice for America to eventually develop surpluses of alternative fuel to sell world wide. Maybe this new industry would create many long-term jobs for American citizens. It could help balance trade with other countries. Maybe it would lead American prosperity for the next century.
American leaders look dumb and dumber today. Most of the things they do are for the short time frame until they have to be re-elected. Because the American demand of foreign fuel is so huge, it appears that American progress to become self reliant is at a snails pace. America's leaders should speed the pace up. They should also look towards the future and provide incentives so that maybe America can become an international provider of fuels instead of a consumer of them as we are today.
posted by God Bless America - Bob @ 10:36 AM
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