Ta Da! MORE OIL!

Posted By: J.J. Jackson* on November 29, 2005

A lot of people, conservatives included, thought that I was way off my rocker when it wrote my article A Tale of Mythical Proportions back in September putting fears of “price gouging” to rest. Even though that article settled the argument, there were still many that wanted to continue on with the argument any way.

It was a simple explanation of Supply and Demand. And it is something that many cannot grasp because of its simplicity. I have also said for years that if you try to artificially inflate the price (and profits) you get more people jumping in trying to reap the benefit and by consequence increase the supply of a good which in turn decreases price.

That too draws the ire of many people even economic conservatives. Well this is someone else telling you it too:

continued higher price of crude oil “puts in place a new set of dynamics, where smaller and smaller companies can come in and open up the capped wells profitably. California remains the fourth-largest oil producing state in America, and while our fields are considered mature fields, the new technologies may end up extending production another 15 to 20 years longer than expected.” - John Martini, CEO of the California Independent Petroleum Association

This article also talks about something else I have been accused of “making up” over the years and that is that our capped oil wells are not empty:

Wells that are 45 years old are being put back into production, with many wells in Los Angeles having been shut down after only 20 or 25 percent of the oil was extracted, reported the Associated Press. Current technology permits up to 50 percent of the reserves in a well to be drained before the well is capped. While California has some 3,000 abandoned wells, oil experts are predicting that all of them may soon be operating again.

Uh huh … now maybe some of you will actually listen?

Contributor's website: http://www.libertyreborn.com

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