Friday, March 25, 2011

Increasing Food Prices - Price Of Gas The Culprit

Heard yesterday in the supermarket that we should expect food prices to increase significantly in the weeks to come because of the increase in gas prices.  The management of these stores are scrambling to find local sources to mitigate the effect on you, the consumer.  It is obvious that these price increases are not restricted only to food, but also to every item that must travel a long distance to reach you, the buyer.

The world is in chaos today, with natural disasters in Japan and man made turmoil in the Mideast, and this is putting great pressure on our energy needs.  Disruption of Libya's oil production, a major source of the world's supply, and the nuclear accidents in Japan with  the related political fallout, have added to the energy shortages that have been building for years.

Recognizing our vulnerability to the uprising in the Mideast, President Obama went to Brazil and spoke in support of its development of two of the largest oil fields in the world.  Aided by Obama's drilling moratorium in the Gulf and the subsequent relocation of oil rigs to Brazil, and a $2 billion loan guarantee by the IMF to Petrobras, the Brazilian oil consortium, Brazil seems to be well on its way to becoming the next world oil giant.

Unfortunately, none of this has to do with reducing gasoline prices here in the USA.  Here, at home, the President's agenda is more political.  Obama has said it himself in his campaign for President. For him to accomplish his clean energy goals, energy prices will have to increase significantly. How do you do that? By restricting the supply of normal energy sources. 

For some reason, oil sourced domestically is harmful to the environment, and oil sourced in Brazil is AOK. His EPA has delayed issuance of drilling permits, both offshore and in Alaska, for years, 

We can be energy self sufficient.  The US has more oil reserves than all the countries in the Mideast combined and with current technology, it can be recovered efficiently.  The Bakken discovery stretches from Montana, through North Dakota and into Canada.  According to the U. S. Geological Service, there is enough recoverable oil there to make the U.S. self sufficient for thousands of years.  This, along with the untapped reserves in Alaska, whose pipeline is running on half empty and awaiting more drilling, could help solve many of our current ills.

Thousands of permanent jobs would be created.  Hundreds of billions of dollars currently flowing into Mideast countries would remain here at home and be reinvested for the benefit of the American people. The need for military options to protect our national interests would lessen.  A more robust economy would reduce our deficit.

And most of all, gas would be at $2 again and food prices would revert to normal levels.

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