Oil Hits $65 per barrel

Oil has moved to $65 per barrel. When it hit $50 per barrel, At that price, many oil companies could recoup their fracking costs and ramped up production.

Natural gas is collected with the oil drilling process. We produce all the natural gas we need in the US and have started producing liquid natural gas that allows us to export this to other countries.

We have been importing half of our oil needs. US oil consumption is 20 million barrels per day. The US currently produces about 10 million barrels per day. Now at $65 per barrel, oil companies have no barriers to producing all of our US oil needs. This additional production should result in lower oil prices.

The US government has already approved drilling in the Midwest and recently in Anwar (Alaska) and off-shore drilling everywhere. Oil companies should be able to do this drilling without fowling the environment because they will be able to afford the best drilling equipment.

The US will need to finish pipelines and build a few new ones, but the oil companies will be able to make this investment that will allow them to transport oil and natural gas cheaper and safer.

Cutting oil imports and increasing natural gas exports will lower the US trade balance. Increasing oil production by 10 million barrels per day at $65 per barrel will generate $650 million dollars a day. That’s $4.55 billion a week. Based on 52 weeks, this could generate $236.6 billion dollars a year and would put quite a dent in our $550 billion trade deficit.

Norb Leahy, Dunwoody GA Tea Party Leader