2006-07-25 02:59:52 · 9 answers · asked by Vianey M 1 in Politics & Government ➔ Other - Politics & Government
It is the big oil company's that control this, there are producing wells here in Michigan setting idol because if we buy the oil from other country's the big oil can make more profit from it. At the same time it gouges Americans the money winds up in the oil mans pants. It has been allowed to go on for way too long but as long as we have Repuglicans in control nothing will be done about it. George Bush and family are invested in oil and are reaping the profits from this so do not expect it to get better until he is long gone.
2006-07-25 03:11:18 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Its not so much that we need to buy from the middle east.
We supply much of our own oil, which is only about 25% of our fossil fuel consuption, the other 75% is coal which the US has a several hundred year supply of.
Since the whole world needs oil, they need to get it from somewhere. If the countries besides the US dont put out enough oil then the amount of oil that the US is producing must be stretched to fit demand, which increases prices.
Even though we dont get any oil from Iraq or Iran, if they cut production because of attacks or politcal reasons, it starves the other countries of oil and that comes back to bite us when we try and aquire that extra amount of oil we need.
At one point, the arabs were just pooring oil into the market, and almost all the oil we used was from them. now, we have a limited supply, but unless demand goes up even more, the price of gas will not.
A simple explanation would be that if we supply 75% of our own energy, then if that 25% of foreign is removed, the cost will only increase by the amount that was removed, 25%. The reason that gas has gone up so high is because our output was only 30% of what we used when gas was $1.
So, if we have a certain amount of money to spent, you divide that by the amount of available oil and you get the price. So if the US is supplying 75% of its demand, and you take away that extra 25% it wants, its going to stretch the money its spending on all 100% to the 75% thats available.
So pretty much it means that the highest gas can get with the current value of the dollar is about $4. we saw that when the oil terminals from the gulf and other countries were both cut off after katrina. It cant get much worse than that. we have already seen the worst.
2006-07-25 10:02:03 · answer #2 · answered by Doggzilla 6 · 0⤊ 0⤋
Because the US still consumes more oil than it produces, or at least, more than it can produce at a sustainable cost. A large amount of oil - both in the US and elsewhere - is in marginal deposits which cost more to extract than the oil is worth. Add in the cost of paying workers fairly and compliance with regulations, and the margin of profitability in the US is even lower than in most other countries. There are also large deposits which could be developed profitably, but are off limits due to environmental restrictions, another burden which most other nations don't impose on themselves. (Canada, for example, drills in the Arctic not far from ANWR.)
2006-07-25 10:07:59 · answer #3 · answered by dukefenton 7 · 0⤊ 0⤋
a majority of the oil gathered in the United States is merely stored, not used, in case of a national or world-wide emergency. I heard that the US reserve is currently large enough to last the entire country ten years(i think thats the figure) at the current rate of consumption. we buy theirs so we can save ours for a rainy day.
I wonder if the government is counting on some day having a monopoly on oil if we are forced to use the reserve.
2006-07-25 10:08:25 · answer #4 · answered by tehckisnow 2 · 0⤊ 0⤋
because the american society is too lazy to carpool or save on gas.americans use ALOT of oil in gas each day and we dont produce enough to supply the whole us.the middle east has a vast supply.plus many oil rigs were damaged during hurricane katrina.most of our oil was near around and in the gulf coast.why do you think it was our 'gold' coast
2006-07-25 10:05:50 · answer #5 · answered by xvintageloverx 1 · 0⤊ 0⤋
Because we do not produce enough in the US to nearly meet all the demand. Not even close- the biggest oil fields in the world are in Saudi Arabia and Mexico.
2006-07-25 10:03:40 · answer #6 · answered by bmwdriver11 7 · 0⤊ 0⤋
Liberals
2006-07-25 10:03:47 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Overseas workers work for less.
2006-07-25 10:03:48 · answer #8 · answered by Robo_Geek 2 · 0⤊ 0⤋
the leberals what let them drill for it
2006-07-25 10:03:25 · answer #9 · answered by idontkno 7 · 0⤊ 0⤋