February 22nd, 2011 10:57 EST
Oil Prices Due to Hit Record Numbers with the Turmoil in Libya and the Middle East
The Middle East has turned into a combat zone lately with the toppling of the Egyptian President Muhammad Hosni Sayyid Mubarak and the protests that lasted a couple of weeks in Egypt. Now, those same protest have set off other protests in the Middle East including Iran where their Government doesn`t try to reason with their people. The Government uses their protestors as target practice and now there are more protests in Libya where the country is under the leadership ofMuammar Qaddafi. Rumors say that Qaddafi is currently seeking asylum in Venezuela, however there are reports that he will speak on Libyan TV later today.
Libya controls about sixty-percent of the world`s oil reserves and about forty-percent of the world`s global gas reserves. With this panic in this region of the Middle East has sent the price of crude oil in London to a whopping $105.00 dollars a barrel! This is the highest the price for crude oil has been in about two and half years. Libya exports about one million barrels daily mostly to their European customers.
All this drama was caused by Qaddafi`s son Seif al-Islam who has threatened to burn the oil reserves if all the protest in Libya lead to a Civil War. All of the leaders in these Middle Eastern countries that are our enemies such as Iran and Libya know that we, the United States back the protestors in those countries so the leadership there makes stupid threats such as this one.
We do have a few choices if Libya does the bone head thing and does carry through with their threat of burning the world`s oil reserves. We do have oil reserves between us, Germany and Japan which total around 1.6 billion barrels which would give us around four million barrels a day to consume for around a year, do the math.
We have not tapped into our oil reserves since the first Gulf War in 1992 and since Hurricane Katrina interrupted oil production in 2005. This would more than likely be a last minute thing.
We do need to do something because I am tired of watching the gas prices rise every few weeks and they are rising to over thee-dollars a gallon let alone to keep hearing the rumors that a gallon of gas my hit the five dollar mark by the end of the year is just unbelievable!
This is probably why we should be thinking in the direction of making cars and anything with a combustible engine to be able to run on alternative fuels or better yet think "Green" and make more electric powered cars which is happening it is just taking too long to work out the details. Also our Government does not want to just yet, put the oil companies here out of business.
We do need to move in the direction of being self-sufficient when it comes to oil and the countries we deal with to get it. In the long run, not having to deal with the exporting of oil from the Middle East would payoff to be able to tell those countries to take your oil and put it where the sun doesn`t shine instead of having to be dependent on them and listen to threats by them of cutting us off from their oil reserves.