We Pay the Most for Oil

Folks, two more points on this... David Frum, George Bush’s economic policy
speech writer
relates a story on page 65, paragraph 4, of his book “The Right Man: the
Surprise Presidency
of George W. Bush... (You can read this on the Amazon web site for the book no
charge).

In a conversation Frum hits on the policy point of cheap energy, and George Bush
denigrates
Frum for missing the point that cheap energy caused the SUV, which reversed the
gas mileage
gains of the previous two decades. (Never mind the SUV was a response to
mileage rules
killing the family station wagon). At any rate, Frum makes clear George Bush is
against cheap
energy as a policy.

I am close to an ex-Shell Oil engineer who now independently consults by
modeling oil fields
for companies around the world. (An export of a service by the way). I
related this story and
he said simply: "below a certain price USA is out of the oil business." Since
we exploited oil
first, our reserves are the hardest to get to... Below about $30 a barrel it is
cheaper to
get it overseas, the trust funds begin to dry up, those oil derricks all over
Pennsylvania and
the California coast might as well shut down, Houston starts to go broke, etc.
And
personally, no one needs his services below a certain price.

It is government policy USA pays the most. This is no secret, And it is no
secret the oil
companies have done tremendously well, the best ever, with this policy.

Now, if we can just get the government to decide small business international
traders should
all get rich, as a policy. Not.

John

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