Wednesday, July 07, 2010

Oil Gusher in the Gulf Sends Vacationers to the Atlantic



The beaches were packed this past holiday weekend shoulder to shoulder - a lot of gulf coast people came to visit Virginia Beach because Gulf Coast beaches were destroyed. I have never seen so many people on our beaches. It was other worldly.

That is real economic impact and real money into real Virginians pockets. Unlike offshore drilling which pockets the profits as States like Louisianan get zero royalty dollars.

The politicians will give away the store to win votes and appear hawkish on drilling no matter the reality. If the voters are under a misconception the politicians will pander to that misconception.

But read this and understand this NOW:

ALL oil no matter where it is discovered and extracted from goes out to an international exchange. There is no such thing as american oil. Once it's on the international exchange you bid for it - that's why speculators control the price at the pump and the prices go up every memorial day. The 2% of the worlds oil reserves we have within our borders can not and will not affect price or national security.

It's bogus to even suggest that drilling our coast will do anything for our demand, prices or national security - its a flat out lie for election purposes.

Again the oil goes to an international exchange which it is then bought from. Our measly 2% will never bring down prices. Just because its drilled within our borders means NOTHING.

The oil is sent to the highest bidder at the international exchange. With a global recession and slow productivity, manufacturing and purchasing we have a glut of oil on the market. This gusher of a spill isn't affecting prices because it hasn't diminished the amount of oil available on the international exchange. Have you noticed a drastic change of oil prices at the pump - no. Because even as millions of barrels of oil gush from the Gulf it still isn't making a dent on how much oil the Saudis produce. We have 2% of the worlds reserve. Even if we dumped all of it on the international market today the price wouldn't move not one cent.

There is no such thing as Red, White and Blue American Oil for American People. No matter what gas station you go to you are buying Saudi oil purchased off the exchange by whatever companies shingle hangs outside that station. Why are the prices all the same everyday all going up and down together - because the international exchange sets the price daily. There is no separate price based on where the oil comes from.

Stop being ignorant America.

Drilling our coasts is an unnecessary risk to the billions in tourism dollars with zero return for the average tax payer - zero.

The fact remains CEO's will cut corners to make more money to increase their share prices - bottom line period - it is this slavish mentality to ever increasing profit margins that has taught us once again the theory of diminishing returns when it comes to greed. From over fished oceans to devastating oil gushers polluting every state in the region.

You can not operate your business as if it operates in a vacuum. The market exists in a multi market reality - for every action their is a reaction across the broad spectrum of goods and services.

When the powers that be once and for all finally realize we have to co-exist with our environment and that a healthy environment means a healthy economy and a healthy citizenry able to be productive then all will be right with the world.

Until then volatility, greed, war, poverty and corruption rule the day with an iron fist. Way to go mankind - money, money, money, can't see the forest from the trees.

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