Another little hint dropped from the thick fur of the Bear proving yet again that the fang, claws, or whatever the Bear uses don't really change. Consider this story from WSJ: "Russia, Venezuela Sign Deals. Russian and Venezuelan officials agreed to bolster cooperation in the oil and gas industry, the latest sign of strengthening ties between two nations trying to decrease U.S. influence around the world. " Oh what surprise!! (tic) It only shows that like minds stick together and old enemies never really become friends in under a century. So is Venezuela the new Cuba crisis? I wonder how far off that thought is, yet despite all evidence is the world listening? When the stranglehold around USA's throat becomes tighter with oil extortion who will they blame? Bush? Oh yes.. let's not drill on our territories, let's just become more dependent. Strength in weakness is the motto of Congress, while our "friends" build forces much more threatening; and some think $700 billion is too high a cost!
I'll be watching the energy stocks in response to this news. Oh, I know that Congress allowed the expiration of the drilling embargo bill, but what will replace it; or what won't? I think they are playing Russian roulette (pun intended) with our economy on just this alone: No oil, more cost for oil, more cost for energy; because, like it or not, our need of oil or gas won't go away for a looooong time.
Those insisting that we can solve this with alternate energy sources quickly in the near future are not thinking, whether due to youthful optimism or downright ignorance. Their solution and philosophy, like the philosophy for better education, is to throw money at it and it will happen. The truth is we are growing, the world is growing and we need more energy for airplanes, trains, ships, trucks (unless you know of a fuel cell prototype on the drawing board for those) that wind power won't solve. Russia knows it, China knows it, all the other oil producing nations know it; that's why they have not stopped exploring nor drilling on their own soil and using our off shore resources (just outside the borders) for their own gain. So let's elect those that will give strength to our enemies and extol a huge price for our future needs; $700 billion won't be so much once we compare the costs.
This is my take: I seriously doubt that Congress will vote on an energy bill prior to election day therefore oil will stay low until the election results are sealed. A democratic majority in Congress will ensure higher oil prices unless they vote to allow drilling (forever hopeful, I am) coupled with Obama as President, we may not be able to gauge the top; of course too fast a rise may force the hand of Congress to allow drilling, so they will take it slow.
OK, so there it is in black and white.. you may call me on it, but wait until the 5 year plan expires. (If you don't know what that means, you're too young; and I'm glad you're reading this blog!)
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