June 26, 2010
Will the Economy Fail Again
written by Steven Barrymore
An estimated 60,000 barrels a day (1) are being lost in the Gulf Oil (spill) Blowout. This must have some impact on how the other oil companies are going to price oil, and what will this new pricing scheme do to the economy. We already experienced $5 per gallon gas prices during the start of this recession. Will gas reach or surpass those levels again? Before this gulf oil blowout gas prices were going down, now they are creeping up, where will the ceiling be? Are the gas companies artificially increasing the price of oil due to the Gulf disaster? If gas does reach the $5 mark or above, what will you give up to pay those prices?
In addition to the gas prices and other product mark ups that use oil products. This event is obviously affecting those in the region. Payouts for losses are stated to be coming from BP, but when and how long are the payouts good for. The recovery for the region could take longer than the payout will be of benefit. Is this $20bn payout fund set up by BP going to be enough?
I am amazed at the low-tech approach to this oil mess. Crews hand picking tar balls on the beach. You would think that after all these years of offshore oil drilling, these oil companies would have put some bucks into the research and development of higher tech and effective methods for oil spill cleanup. Where were all the preventative measures — or are these oil companies operating under a “fix it when it happens” matrix?
Reported in the news recently is the effort of OTS and actor Kevin Costner to find a solution to the oil disaster. Story here: Oil Spill Cleanup
Should fossil fuels remain buried? And we as a nation move forward, in a massive way, on alternative energy resources, ie; environmentally friendly wind generation, hydrogen, more efficient solar cell technology for homes and Solar Power Plants, and geo-thermal?
This is our opportunity as a nation to speak up, and not only with our voice, but also with our actions. We deserve better, and it better start now.
(1) Calculation based on 42 gallons on crude oil per barrel with an estimated 2.5 million gallons per day gulf oil well loss.
