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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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An Open Letter to Our Next President about Energy
Public Policy; Political and Legal NewsGuest writes:

Mr. or Madam President,

Vice President Dick Cheney once famously quipped "The American way of life is non-negotiable." I submit that while our next president might not be so brash in stating this, the root of our energy problems can be traced to this attitude. But, nature doesn't negotiate. It doesn't appear that any of the remaining presidential candidates understand the basis of the problems we face: Oil is a depleting, finite resource - albeit one crucial for the "American way of life."


Because this resource is so crucial - and obviously not just for Americans - depletion is going to drive prices up as consumers bid for dwindling supplies. Threatening to sue OPEC isn't going to change that. Threatening to tax Big Oil into submission isn't going to change that. Mandating that we will invent new technologies to meet a greatly increased Renewable Fuel Standard isn't going to change that. These are the sorts of proposals that merely demonstrate that your grasp of the problem is superficial. And you have to understand the problem in order to begin addressing it.

The Oil Drum

Posted on Wednesday, April 30 @ 12:14:58 PDT by Leanan
 
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Most read story about Public Policy; Political and Legal News:
ARE We Out of Gas Yet?

 
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