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Edited on Sun Jan-23-05 03:33 PM by loindelrio
that the right has raised to the level of a religion. Oil is a worldwide commodity. If Venezuela decides not to sell to us, they will have to sell to ‘others’. The oil previously sold to the ‘others’ will now be available for us to buy.
In other words, they can’t eat their oil. Up to the fall of the Soviet Union, there was some justification for the western democracies maintaining a military presence in the Persian Gulf. The Soviet Union, by sweeping into the gulf, could have destroyed the western economies. Today, I see no such threat. The only people meddling with oil supply today are doing so for short term economic gain. Eventually, they will have to sell their oil at market prices. And it is their oil, after all.
Also, aren’t costs of a commodity due to political ramifications still a cost, and if the cost becomes too high, substitutes become cost effective (efficiency measures, renewable energy sources). Nelson’s statement strikes of a foreign policy that dictates the use of U.S. military force to ensure cheap oil. What’s next, unlimited immigration? Using special forces to break strikes? A Federal maximum wage?
(Note: Transportation costs, and adjusting to the composition of the oil, from the ‘other’ sources, would result in short term price transients, but over time things would stabilize. This is what the strategic petroleum reserve should be used for. To store enough oil for short term supply disruptions.)
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