- Sep 29, 2000
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Another article about OPEC cutting supply to keep prices high.
Oil suppliers are making a killing now. This decade--only several years ago--I remember Opec publically stating that they felt oil should be around $28/barrel (it was around there then) and would manipulate supply accordingly. Well, they've grown accustomed to prices three times that and apparently that's the new "proper price".
I used to think we should let the private market sort this issue out, but it's happening so slowly, and this is more than an economic issue. The US could be held hostage by various countries/groups, from Venezuela with its empty threats about holding off oil (but what if Chavez did?) to OPEC having done it before and could again. Oil is one of the key motivators of foreign policy.
I think it may be worth the government throwing vast sums at this problem because it represents a national security issue. Imagine the freedom the US would have from being embroiled in certain situations if it was no longer importing its energy deficit. Could it be done, though? Could a couple trillion spent over the next 10-20 years even get it there without an associated loss somewhere else, from corn fields to whatever else?
Oil suppliers are making a killing now. This decade--only several years ago--I remember Opec publically stating that they felt oil should be around $28/barrel (it was around there then) and would manipulate supply accordingly. Well, they've grown accustomed to prices three times that and apparently that's the new "proper price".
I used to think we should let the private market sort this issue out, but it's happening so slowly, and this is more than an economic issue. The US could be held hostage by various countries/groups, from Venezuela with its empty threats about holding off oil (but what if Chavez did?) to OPEC having done it before and could again. Oil is one of the key motivators of foreign policy.
I think it may be worth the government throwing vast sums at this problem because it represents a national security issue. Imagine the freedom the US would have from being embroiled in certain situations if it was no longer importing its energy deficit. Could it be done, though? Could a couple trillion spent over the next 10-20 years even get it there without an associated loss somewhere else, from corn fields to whatever else?