be invested in new energy resources in point of fact

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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...
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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.

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