Wednesday, September 07, 2011

The ever-increasing price of oil

A blog that provides detailed factual information on a regular basis is The Burning Platform. A September 4 post on the high price of oil is a case in point. As always, many graphs are used to illustrate the points the blogger is making. From where do we import our oil? Here are the eight largest exporters of oil to the U.S.:

1. Canada – 2.6 million barrels per day
2. Mexico – 1.3 million barrels per day
3. Saudi Arabia – 1.1 million barrels per day
4. Nigeria – 1.0 million barrels per day
5. Venezuela – 1.0 million barrels per day
6. Russia – 600,000 barrels per day
7. Algeria – 500,000 barrels per day
8. Iraq – 400,000 barrels per day (Iraq was exporting 795,000 barrels of oil per day to the U.S. in 2001 when Saddam Hussein was in charge).

How could our currency decline 20% against the Mexican peso in two years? The U.S. dollar has declined 30% versus the Canadian dollar since early 2009. The U.S. dollar has shockingly declined 20% versus the Mexican Peso since early 2009. The author blames the policies of Fed Chairman Ben Bernanke.

Did you know that U.S. oil consumption today is at the same level it was at in 1987?

The price of a barrel of oil in early 2009 was $40. Why are oil prices going up? The blogger lists three long term trends, and explains each in detail.

1. Dramatic increase in demand from China and other developing countries.
2. A plunging U.S. Dollar
3. Peak oil has arrived

1 comment:

Terri Wagner said...

I still remember Bush's first SOU before 9/11 wherein he said we've got to get off foreign oil. True then more true now.