All the Oil We Need

[groovedaddy]

(Poster's preemptive statement: WE HAVE TO GET AWAY FROM CARBON BASED ENERGY! This article simply demonstrates how we are being lied to and how markets can be manipulated).

WHILE oil prices have declined somewhat of late, the volatility of the market and the political and religious unrest in major oil-producing countries has Americans worrying more than ever about energy security. But they have little to fear — contrary to common understanding, there are robust stockpiles of oil around the globe that could see us through any foreseeable calamities on the world market.

True, trouble for the world’s energy supplies could come from many directions. Hurricanes and other natural disasters could suddenly disrupt oil production or transportation. Iran loudly and regularly proclaims that it can block oil exports from the Persian Gulf. The anti-American rhetoric of President Hugo Chávez of Venezuela raises fears of an export cutoff there. And ongoing civil unrest wreaks havoc with Nigeria’s output.

Even worse, this uncertainty comes in the context of worrisome reports that oil producers have little spare capacity, meaning that they could not quickly ramp up production to compensate for a disruption.

But such fears rest on a misunderstanding. The world actually has enormous spare oil capacity. It has simply moved. In the past, major oil producers like Saudi Arabia controlled it. But for years the world’s major consumers have bought extra oil to fill their emergency petroleum reserves.

http://www.nytimes.com/2008/08/21/opinion/21press.html?th&emc=th

[GliderGuider]

1. Pardon my French, but

What a frackin' idiot.

He enumerates 2.6 billion barrels of reserves world-wide. That's one freakin' month of world consumption. Yeah, we're fine -- everyone just lie down and go back to sleep.

[groovedaddy]

2. As the article pointed out, the U.S. has about a 35 day supply

at current consumption rates. Their assumption is that the oil supply would never be entirely shut off, only "disrupted."
Like I said though, we need to get off carbon based energy.

[kristopher]

3. Actually, his basic thesis is correct.

Any strategic use of oil as an economic weapon is of only limited value to the country attempting to use it that way. The cost to the country withholding oil is very high, and the supply is diverse enough that SPR can supplement it for quite a period without driving the economy to collapse.

I don't have a problem with people believing otherwise, however; it is a good motivator to change our energy infrastructure.