22 June 2005

Stop the insanity

OK, granted, I am at an oil-industry meeting right now, in an oil town, outside of the U.S., so everything is abuzz with this, here linked to washingtonpost.com. I don't know if this is getting too much press at home. This is one of the most ridiculous things I have heard and our government has done in a while...like about 6 months.

The U.S. Senate voted on Tuesday to allow the U.S. government to sue the OPEC oil cartel on antitrust grounds in an outcry against crude oil prices that are fast approaching the $60 a barrel mark.
The measure, added to wide-sweeping energy legislation by a voice vote, would give authority to the Department of Justice or Federal Trade Commission to sue the Organization of Petroleum Exporting Countries.

U.S. crude oil futures hit a record $59.70 per barrel on Tuesday, even after OPEC boosted its production to nearly 25-year highs and U.S. crude inventories swelled to their highest level since July 1999.
OPEC's 11 members account for almost 40 percent of global crude oil production and two-thirds of proven reserves.

ANYWAY...So the U.S. Senate has decided to allow the U.S. to sue OPEC for price-fixing. WHAT? Umm, WHAT? I hate to break it to all the dimwits who thought this one up, but oil and gas prices are a function of supply and demand. Remember those from Econ 101? Umm, use more of a relatively scarce but critically-needed resource and the price goes up. This is really fucking intelligent. You're going to sue a cartel? Ever occur to you to perhaps look to the other 60% of suppliers out there? Or maybe reduce consumption. Oh, wait, numbnuts here is assuming that the average baby-boomer is capable of vision longer than 18 months out. My bad.

Oh wait!!!! I know, let's invade a country that has vast reserves and ensure them for ourselves! That will work!