Oil: Black Gold, Texas Tea



Ole Jed's a millionaire, Jed move away from there! and you know the rest...


Since the high cost of gas is uppermost on so many people's minds I thought I'd post a bit about oil and how it works in our economy et etera.

I suspect most people figure we get the majority of our oil from the Middle East. Actually we don't. One of the reasons that Pat Robertson threatened to have Hugo Chavez (President of Venezuela) killed is that Venezuela is our largest supplier of oil--and Chavez is starting to play hardball with the major oil companies. In addition to Venezuela, which supplies us here in the USA with just over 1.6 million barrels of crude oil a day, Canada and Mexico supply us with almost 1.6 million barrels a day each and Saudi Arabia clocks in at 1.5 million barrels a day. In fifth place is Nigeria with a bit under 1.1 million barrels a day.

Perhaps another thing that bothers the Rev Robertson is that Chavez supplies some countries, mostly in Latin America, with oil at a much lower rate than what the US pays. Cuba in particular receives a sweetheart deal getting 100,000 barrels a day of subsidized oil. Cuba in return supplies Venezuela with trained doctors and dentists to help the nation's poor with their healthcare. Venezuela has been exporting oil for a long time--they were a founding member of OPEC in 1960--but of late they've been much more militant in their dealings with the big oil companies. Even going so far as to levy fines for past behavior that has been determined reproachable in hindsight. Shell, for example, was recently given a $132 million dollar fine for previous behavior. Not exactly chump change.

Is there a solution to belligerence like this from OPEC countries? Not as long as we need their oil. Bush's recent call for energy conservation, belated as it was, seems to be the best solution for the moment. Later posts will cover where we can go in the future for alternative energy sources.

Comments

Wickwire said…
Interesting to learn about oil and how we don't get most of it from the Middle East. I'm with Pat now. Just kidding, just kidding.
Oreo said…
Wwweeellllll, I guess now I'm following you! Here from Michele's this time....
Goldie said…
Visiting from Michelle's as well, nice site. Liked the link to energy conservation tips!
kenju said…
I am forced to alter my driving habits here lately; the $$$ I pay to my gas charge card company every month has nearly doubled recently. We should be looking for alternate sources of transportation fuel, abut that is unlikely while Bush is president, isn't it?

Michele sent me this time.
Claire said…
Interesting stuff, I can't even look into it in too much detail for over here, I just get wound up that we pay 67% tax on our fuel...doesn't bear thinking about believe me!

Here via Michele's this time, but was on my way anyway!!
Karen said…
Fascinating! Thanks for the lesson on oil for today. Yesterday I rode my bike to get the mail. Not much but better than my usual....

Michele sent me.....
kenju said…
Utenzi, my speakers are not working now so I can't hear prissy pig. As soon as I figure out whay the speakers are down, I will go back to listen to her! Thanks for th4e comments.
JustLinda said…
This post made me think way too hard about things that really matter (as opposed to, say, baby drool which is what I usually like to spend my time thinking about).

Hi from Michelle's!
JustLinda said…
Oops, I meant Michele's (with ONE L, just one L, not two L's).
Lish said…
Hi Utenzi! I am flying to Dallas this weekend b/c it is cheaper than paying for the gas needed to drive there at the moment. Do you know how much crude oil we produce domestically? My family has mineral rights in East Texas, but my half-brother manages it all, so I don't know much about it. I know part of our profits come from natural gas, but I've always wondered how much oil is still there.
queenofsass said…
I am ready for mass transit improvements like in Europe. They can hope a train to pretty much anywhere.
queenofsass said…
Oopss-I meant hop a train.
Craig @ work said…
thats an eye opener...
Pearl said…
Interesting backstory. Thanks!

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