Tuesday, August 12, 2008

Guess what we are using 800,000 less a day of?

Barrels of oil, that's what.

The Globe&Mail is reporting that the US is using 800,000 less barrels of oil a day. This downward trend is expected to continue through 2009.

What can we learn from this? The Green (as in our money) Shift (as in distribute the green to core constituencies) is not required. Market forces did the trick. Damn capitalism.

Due to reduced demand, oil prices have dropped. The market has corrected. Since we are a petroleum currency, the dollar has dropped to 0.94 USD. This should help our beleaguered manufacturing and services industries.

Also, as the Canadian and American people drop their SUVs and trucks for smaller, more fuel efficient vehicles, they are unlikely to switch back to SUVs and trucks even if the dollar continues its downward trend. (I can't see it going too much lower).

If Stephane Dion is so foolish to force an election and fight over this issue, I will be sure to campaign hard against it. Putting a price on carbon is one thing, I can deal with this. Taking my upper-middle class tax dollars (single income at that) and giving it to their core constituents is a complete other thing.

5 comments:

Anonymous said...

Trying to explain this to most of the brain dead jerks who would support the Nutty Professor and his gang of bandits is like hitting yourself in the head with a hammer...it feels good when you stop. And when the problem is compounded by the MSM it's even harder.
Not five minutes ago I watched a CBC sound bite of an interview with some knitwit re the gasoline shortage in Alberta. (An interview the CBC didn't even take the trouble to correct)The shortage is the result of a major breakdown of a piece of complex fractionating equipment at Petro Canada's Edmonton refinery. This moron was whining about how it was inconceivable that Alberta, with all its oil, could be having a gasoline shortage, and he reckoned that something should be done about it.
This clown is typical of the level of intelligence you are dealing with in explaining the workings of the oil industry. A refinery has thousands of mechanical parts that are subject to breakdown. Some can be repaired in hours and don't even require a plant shutdown. Others are more complex and require weeks to repair. Having all the oil in the world wouldn't help the situation...if something mechanical breaks down is has to be repaired, and that takes time. But, like most people in this country all you hear is that SOMEBODY should do something. It's as if we could call on the good fairy to wave her magic wand and make all the problems go away.
Trying to explain to these people about how the market will evaluate and balance the demand/supply/price equation is like trying to teach a dog to do calculus. These are the people the Liberals are trying to reach to convince them that they are the good fairies who will clean up the air, get rid of petroleum, employ everyone making environmentally friendly products, and generally lead us to some carefree utopian heaven.
It's a good thing the Conservatives have an even more simplistic argument to use on these idiots..."It will cost you more money"

Anonymous said...

"We" as in Americans?!
Guess what we (Americans) are consuming in record numbers: coal.
http://www.eia.doe.gov/cneaf/coal/page/special/feature.html
Cola stimulated by high oil prices exactly cancels renewable energy growth. But I am 100% certain every Conservative that reads this will brainwash themselves they haven't and outspend the other 5 environmentally progressive parties in attempting to lie to Canadians. Your party is turning into Republicans.

Anonymous said...

The Conservatives are turning into Republicans as opposed to the Liberals and NDP who long ago turned into communists.

Anonymous said...

Phillip, your concern about coal is only valid if you have bought into the man-made global warming theory. Many of us have looked at the evidence (on both sides) and are not convinced. We have enough coal to last for thousands of years. It can produce electricity, replace our natural gas and liquid fuels, and with a little tweaking, produce the basic building blocks for the petro-chemical industry. Coal is going to be a large part of the future; bank on it.

AnonymousCoward said...

Phillip are you questioning my patriotism? Anyway, if the Americans are using less oil I am sure WE Canadians are using less oil too.

And your argument on coal is silly. The use of coal as a percentage has trailed the American GDP growth since 2004.