« previous | TPM CAFÉ READER POSTS HOME | next »
The Foreign oil Football
I am ifrustrated as I watch the kicking around of the latest political football; new drilling leases to "decrease our dependency on foreign oil". What the hell is "foreign oil"? Isn't oil just oil- a commodity with its price established by the market? The government gets paid for the lease, the oil belongs to whatever multinational corporation extracts it and it goes on the market. Is gold mined in America cheaper for Americans than gold mined in Peru? Even if we cranked up total global production by 5% (an impossibility) couldn't OPEC just turn down their spigot a little and keep the global supply right where they want it? I can see nobody benefiting from expanding current leases except the oil companies, who would gain a bit against the Saudis/Emirates. Not so confusing I guess.
Post a Comment