This preview shows page 1. Sign up to view the full content.
Unformatted text preview: oing
well, so $4 billion should be confiscated from them and handed over to solar and wind companies like Solyndra. That is the
gist of Obama's suggestion that the "money saved ... be invested in new energy resources." In point of fact, the International
Energy Agency recently issued a warning that global oil supplies will be tight in 2012. Stockpiles are dwindling. Global
demand for 2012 is estimated at 90.5 million barrels per day. At the end of 2011, global production was estimated to be 90.2
million bpd. With many of the world's older oil fields depleted, significant new production is needed to avoid a shortfall
and price-squeeze. The most recent economic reports in the U.S. and China, the world's top consumers of petroleum
products, only add to the argument for increased oil and gas production. Increased employment in the U.S. will inevitably
lead to more energy consumption. In China, where the overall economy has cooled along with the housing market, 2012
GDP is still predicted to expand at more than 8%. And while Europe may experience a mild recession, that slowdown is
expected to be brief. Once Europe, China, and the U.S. return to normal levels of growth, demand for oil will increase well
above 90 million bpd. Along with increased demand will come higher prices, and this is where domestic production is so
important. The 9 million bpd that America now imports acts like a tax on every American. At $100 per barrel, the cost of
importing half our oil amounts to $328.5 billion per year. Imagine the economic effect of circulating that amount of money
within our own economy rather than shipping it off to Venezuela, Saudi Arabia, Nigeria, and other suppliers. 23
Last printed 9/4/2009 7:00:00 PM Oil DDW 2012 1 Link – Congestion 24 Oil DDW 2012 1 Infrastructure investment results in a decrease in fuel use and energy spending
Stoller 3/25/12 [Gary Stoller, http://www.usatoday.com/money/industries/energy/story/2012-03-25/wasted-fuel-report/53776164/1?
csp=34money&utm_source=dlvr.it&utm_medium=twitter&dlvrit=110940 As Americans pay about $4 per gallon for gasoline, they're wasting 1.9 billion gallons of it annually in traffic on congested
roads, a new Treasury Department report says. Traffic congestion costs drivers more than $100 billion annually in wasted
fuel and lost time, according to the report released Friday. The report — released in support of President Obama's plan to
upgrade and expand America's transportation infrastructure in fiscal year 2013 — comes as Republican presidential
candidates criticize Obama for high gasoline prices and his administration and the Senate wrestles with House Republicans
over a new transportation bill. The White House supports a two-year, $109 billion transportation and infrastructure bill
approved March 14 by the Senate. House Republicans are divided over a five-year, $260 billion bill. The House votes
Monday on a temporary extension to continue providing highway and transit aid to states as the spring constructions...
View Full Document
This note was uploaded on 01/30/2013 for the course ECON 101 taught by Professor Burke during the Spring '13 term at Southern Arkansas University.
- Spring '13
- The American, Saudi Arabia, Peak oil, Nuclear weapon, Oil prices