Tuesday, June 03, 2008

Global Market Flows for Oil: U.S. Sucks It Up

The global oil flow map tells an interesting story: The U.S. sucks in oil from oil-producing countries around the world on five continents, despite the fact that it has much of its own domestic energy resources that are currently off-limits. Then when demand for oil increases in emerging markets like Russia, China, India and Brazil, and these countries compete with the U.S. for a limited supply of global oil, the U.S.: a) complains about high oil prices, but b) refuses to open up its own domestic oil supplies.

Isn't it kind of like Jed Clampett discovering oil on his land while hunting, but refusing to use it or sell it?

Update: The global oil flow map is
from the API.


At 6/03/2008 6:26 AM, Blogger Tim Schilling said...

Where's the map from, and what data is it based on?

At 6/03/2008 3:49 PM, Blogger OBloodyHell said...

> Isn't it kind of like Jed Clampett discovering oil on his land while hunting, but refusing to use it or sell it?

I think it ties to a rational kind of long-term thinking -- perhaps -- on the part of the real powers-behind-the-throne.

No, I would never suggest Congress is capable of rational thought, much less long-term thought, but there are certainly those whose influence could challenge this by promoting ideas in the media, etc., if they were so inclined.

Think about it -- the current flow of dollars is outward, which "isn't good" by some lights -- but that flow should be reversed tremendously later on, when those external sources are unavailble but US sources still are.

In short, we are buying outside while it's cheap, while maintaining our own supplies which will be worth far more later when it's not.

Not saying this is what is going on, but it would not surprise me if there are longer-term thinkers out there with this goal in mind.

Even if a suitable alternative to oil is found for transportation purposes via some tech development, oil will still maintain a high value as a chemical feedstock. So for that long-term valuation to collapse would require not one but two major tech developments to replace both gasoline and plastics. That seems to me to be a good bet.

One thing I've noticed is that our Rich Bastards are some of the smartest Rich Bastards in the world.


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