Timothy Birdnow

Here's how to do it!

Trump to Unlock 82% of Alaskan Petroleum Reserve

Increase supply and costs decline.

We may shortly be losing a lot of oil from the world market as the Israelis could well strike iran's refineries. Almost all of Iran's refining capabilities are located on one island in the Gulf of Arabia (formerly Persian Gulf) and almost all oil passes through Kharg Island - close to 1.5 million barrels per day.) If Israel takes this out the oil will stop and prices will spike significantly. But just the promise of new oil fields will help temper that. Oil prices are driven by oil futures. That is why Trump has made this announcement now.

Most of China's oil passes through Kharg Island, by the way, which is why they will be furious if the island is bombed. It's cause for concern at a minimum.

Be that as it may this is a welcome development. Nowadays oil drilling does not require giant derricks which hit gushers and dump oil all over the place; they are small, about the size of riding lawn mowers, and clean. They will barely impact the local environment, and if they do it will be for the good as local wildlife like the warmth from the oil pipelines and that is very welcome in a place that gets bone-chillingly cold.

Drill baby drill!

Posted by: Timothy Birdnow at 09:44 AM | Comments (2) | Add Comment
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