OPEC Cuts Oil Production to Raise Prices
Hey, Army! Get this!
If we ever needed a lesson in why we need to cut down on our dependence on foreign oil our “friends” over at OPEC gave it to us today. They have announced they are going to cut oil production by some 2.2 million barrels per day.
They are doing that so that the price will rise from where it is now, about $45 per barrel, to about $75 per barrel.
This is in line with what I predicted would happen last week. OPEC’s decision will likely lead to an increase in oil and gasoline prices in America and proves the point that we must reduce our dependence on foreign oil. This is further evidence that OPEC’s interests are not aligned with ours.
You can’t fault them for trying to maximize the value of a commodity they have, but you have to fault us as a nation if we don’t move fast in the next Administration to significantly reduce our dependence on foreign oil and the threat it poses to our national security and economy.
We have the domestic resources in wind, solar and natural gas to get the job done on energy and transportation, so let’s use them.”
This business of getting together to set prices is illegal in the United States but we don’t have jurisdiction over other sovereign nations. What we DO have is control over is how much foreign oil we use.
We need to take today’s statement by OPEC and use that as our rallying point to show the current leaders in Washington and - more important, the new Administration and Congress - that the Pickens Plan is the only plan which will reduce foreign oil by up to 50 percent over the next ten years.
The Congress needs to move immediately to give trucking companies and fleet owners incentives to replace gasoline and diesel fueled vehicles with natural gas.
We need to provide a long-term production tax credit (PTC) to build out wind farms in the Great Plains and solar farms in the Southwest. We need to be aggressive about retro-fitting homes and buildings with additional insulation and employ other energy-saving strategies.
We can’t allow OPEC - Saudi Arabia and Iran, Venezuela and Lybia and the others - to artificially determine what we will pay for oil. If we reduce our need for foreign oil, we can dictate terms to them, not the other way around.
The Pickens Plan is the answer. The time is now.