The Price of oil dropped from a record high of $147 dollars a little over a week ago to $128.88 on Friday. The drop marked the largest ever drop in a price of oil recorded in a week. Some anaysis have siad that a nationwide average of under $4 a gallon could be fast approaching. The average is currently $4.10 a gallon.
There could be several reasons for this sudden drop in prices: people driving less, buying cars with better gas millage, oil inventories being up, but I go back to what I wrote a couple of days ago President Bush lifting the moratorium on drilling off shore. Notice that we didn't start drilling, or even lift the congressional ban on drilling. Which we would have to do before we could start drilling. Still, the Price of a barrel of oil has dropped almost $20 a barrel since that announcement. I've read in some places that if Congress would follow suit we could have gas prices back between $2- $2.50 a barrel. This is without touching Alaska or the oil shell in the Mountains.
Alot of the Price of oil is psychologically drive. If traders believe the oil will go higher they bid the price of oil higher. With wars in Iraq and Afgahnistan, problems with Iran, and the constant threats made on Israel. It's no wonder that traders bid oil higher since we have to get so much of it comes from that region of the world. However when those traders believe that we will start drilling for our own oil and our serious about adopting new forms of energy then the price drops as it has this week. So when President Bush lifted the Ban on drilling in the Atlantic and Pacific Oceans it caused a sell off which drove prices down at a record rate. The fact that American's having been using less oil recently also helped.
Americans need to continue to use less oil from here on out. No matter what the price is. We cannot forget the lessons we have learned during the past two years and go back to what we were doing before. However we will need oil for the foreseeable future. We need for that oil to be affordable for every American so that they can live their lives. Right now the best way to get to price of oil back to an affordable level is to follow President Bush's lead and drill. I don't know if their will ever be a time where we will not need oil at all. However I do believe we can make our need for oil significantly less than it is now with innovation and American ingenuity. However make no mistake about it right now we need oil!
Unfortunately the Democrats in Congress are more interested in sabataging Bush's Presidency than they are doing what's best for America. Their worried about how their liberal base will react if they allow a vote on lifting the moratorium on drilling, which would pass both the House and Senate. So right now Speaker Pelosi is the only thing standing between Americans and lower prices at the pump. So what's it going to be Speaker will you hold our wallets hostage to the environmentalist, or will you do what's in the best interest of your country. We're waiting for the answer.
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Food for Thought
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