OIL POLITICS
Trent Telenko, Moe Freedman, and Stephen Green note that the Bush Administration has been quietly increasing our strategic oil reserves, despite the side effect of puting upward pressure on gasoline prices. They think it means we’re about to play hardball with the Saudis. I hope so, but will believe it when I see it.
I think they’re already playing hardball with the 28 page hole in the 9/11 report. The pressure on the house of Saud is being ratcheted up consistently. It’s going to be very interesting.
If we really wanted to play hardball we would flex the demand side of the oil equation and start getting serious about lowering our energy input to economic output ratio. In simple terms conserve oil. A 5% cut in the use of oil puts one million barrels back on the market per day. That is a full 1/8 of current Saudi production. We have the power to really screw the Saudis, but of course that would mean a degree of sacrifice that Americans are not ready to make.
BTW good blog, lots of intelligent stuff, We’ll put you on the blogroll over at the Rant, it’s been getting a little left heavy lately [grin]
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