ANTIESTABLISHMENTARIAN

The people of the United States are working fast and furious to ensure that their already crippled economy starves and strangles to death from a lack of energy to power it. Hating oil and addicted to the theology of “alternatives” that do no exist, the great green machine is pulling out all the stops to ensure an ever-diminishing supply of petroleum products. If you’re angry and frustrated over $4 gas and $6 diesel, save your energy and breath for very soon we will have $8 gas and $12 diesel. Sound far-fetched? So did $130 oil only six years ago when the price was $25, but here it is.

Now, imagine six years from now the price quintupling again. That number is $650.

Despite all the moaning and groaning we have two presidential candidates adamantly opposed to drilling and increasing domestic production while at the same time bemoaning high prices. Platinum sells for $2,000 oz. because there is very little platinum in the world. How very odd that while giving lip service to free markets, politicos deny that a dearth of oil drives up the price.

Meanwhile, the single option at our disposal to alleviate shortages and reduce the price of fuel is heavy crude oil, which is rapidly becoming in greater supply than light crude. Heavy crude comes from places like Canada’s Athebasca tar sands, Mexico and Venezuela and even Iran. And speaking of the later, all the brouhaha about Iran hoarding oil by storing it in a dozen tankers is untrue; the oil in those tankers is heavy crude which they have been unable to sell.

Because of $12 price difference between light and heavy crude, U.S. refiners over the last several years have been making costly revisions to their refineries to be able to handle heavy crude. Many of these upgrades are just about complete, or completed. And what happens? The green machine starts cranking up lawsuits and the EPA refuses to grant permits to Conoco Phillips, Encana, and Chevron refineries. Also, a proposed BP refinery is being blocked in Whiting, Indiana. Refiners were planning to increase heavy crude production by 8000,000 b/d but now congressional support for “cap and trade” is about to derail that. Dealing with unproven global warming theology is considered more important. They even block “clean” energy alternatives such as wind farms on the ground it might hurt some birds.

It is now too late to do anything to prevent oil from reaching $300/bl. which it is likely to do within two years as global oil production inexorably declines and demand increases despite so-call demand destruction due to high prices. The fact is that Asia will continue to grow despite the price and no matter how much we conserve. At some point the price of fuel will collapse our already badly weakened economy. Major industries are already threatened with extinction, including airlines, autos, tourism and travel. Pressures on farmers and food costs are rapidly escalating, as is the cost of shipping imported goods halfway around the world. They will call this “inflation,” but its not; it is the increased cost of energy that our asinine economists convinced us was insignificant to our new “service economy.”

Combine the ever-rising cost of fuel with that of food and what you get is a ticking time-bomb with a very short fuse. A nation that can no longer identify the source of its sustenance is collectively incapable of surviving. It is that simple.

The American Dream is about to become the American nightmare.