Libsmasher
Well-Known Member
- Joined
- Jan 9, 2008
- Messages
- 3,151
.... debate.
Experts say there is 18 billion barrels of oil on the continental shelves.
At (say) $130/barrel, that's
$2.3 trillion dollars.
$2.3 trillion dollars that wouldn't be added to our balance of trade deficit if the oil is recovered. Our balance of trade deficit is one of the main things that is weakening the dollar, and pushing up the cost of oil, since it is still mostly priced in dollars. Simply looking at how much oil would be gotten off shore, and how it would effect world prices only based on increased supply, is a typical simpleminded static analysis.
Experts say there is 18 billion barrels of oil on the continental shelves.
At (say) $130/barrel, that's
$2.3 trillion dollars.
$2.3 trillion dollars that wouldn't be added to our balance of trade deficit if the oil is recovered. Our balance of trade deficit is one of the main things that is weakening the dollar, and pushing up the cost of oil, since it is still mostly priced in dollars. Simply looking at how much oil would be gotten off shore, and how it would effect world prices only based on increased supply, is a typical simpleminded static analysis.