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Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.

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Mexico's energy problem - Oil, politics a difficult mix
Geology; Reserves; Oil Fields
Mexico's crude oil reserves have declined from 50.8 billion barrels in 1995 to 12.6 billion barrels in 2003, according to U.S. government figures. At its current production of about 3.4 million barrels per day, that's about a 10-year supply.

EnergyBulletin.net
Posted on Friday, October 29 @ 18:45:10 PDT by admin
 
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