February 25, 2011

CNG: Cure for America’s Oil Addiction

Natural Gas: A Cure for America’s Crazy Oil Addiction

If the price of oil, currently at $99 per barrel, shoots much above $100 on continuing political and social change in the Middle East, this will be the U.S.’s third oil shock since 1970 — the fourth if you count the surge to $147.27 on speculative buying in 2008. The first two shocks were in 1973 and 1979.

Whether this is the third or fourth shock is academic because either way it’s bad news for the country.

Will U.S. policymakers ever learn? The inanity of the nation’s energy policy — indeed, nonpolicy — boggles the mind. The U.S., the largest, most technologically advanced economy in the world, is at risk of being tipped into recession — again — due to its overreliance on oil.

More Drilling Won’t Prevent Another Oil Shock

Investors and Americans in general shouldn’t delude themselves regarding U.S. oil production capabilities. The ominous reality? The country can’t meet its daily consumption needs of roughly 18.7 million barrels per day (bpd) through increased drilling, so it has to import to make up the deficit. In November 2010, the U.S. imported an average of 8.25 million bpd, about 2 million of which came from Middle East producers.

Unrest in that region could send oil above $125 per barrel this spring, which would probably push the average U.S. price for regular unleaded gasoline…

See full article from DailyFinance:http://srph.it/i6A7Pv

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