Popping The OPEC Oil Price Bubble in One Easy Step

Now Playing: Ride 'Til I'm Satisfied from Mr. Trout's classic Go The Distance

An uncompromising commitment from the Federal Government to reawakening American oil production through deregulation and government roadblock elimination, would a.) almost certainly pop that portion of the current oil price attributable to a speculative bubble, and b.) scare the hell out of OPEC by guaranteeing future competition from America in the oil market.

Both would translate as a rapid, dramatic downward pressure on oil prices worldwide.

As I've said here repeatedly, the fact that America has locked away its resources as a shrine to the religion of "environmentalism," thereby granting to OPEC a pledge of non-competition by what ought to be its largest competitor, is ethically obscene.

We have it within our power to relegate OPEC to the status of secondary player in the world petroleum market, if not bankrupt it altogether, even reestablish America as top dog in oil production and export. Economist George Reisman's landmark article Free Markets Would Be OPEC's Undoing discusses the point in some detail. All we have to do is get our power-junkies in D.C. to swear off their legislative hooch, get the hell out of the way and let American producers produce. Just that.

Increasing American oil production, whether today, next week or next decade, will be a vast, no-brainer benefit on multiple levels:

- Every new barrel of oil produced in America is a barrel NOT purchased from OPEC;

- Every new barrel of oil produced in America is a barrel that can be sold on the world market;

- Every new barrel of American oil sold on the world market represents an addition to American GDP;

- Every new barrel of American oil sold on the world market represents an increase in global oil supply vs. demand;

- Every new barrel of American oil sold on the world market represents further reduction in revenues to OPEC, via both downward pressure on oil prices and by drawing international customers away from the OPEC cartel;

- Every new barrel of American oil sold on the world market represents more jobs and income for Americans;

- Every new barrel of American oil sold on the world market represents a powerful shot in the arm of the world economy, with the potential to spur another long-term economic boom cycle;

- History has shown that worldwide economic recession is a catalyst for war, while worldwide economic prosperity is a powerful catalyst for peace - therefore every new barrel of American oil is a brick in a new foundation of world peace.


So...why isn't this simple regulatory tweak being performed by Congress, to set that long-overdue avalanche of oil prices in motion?

Simple: The Democrat-Socialist Party holds the majority in both houses of Congress, and refuses to restore freedom to America's energy industries.



Solution: Oust those neo-Luddite morons in November.