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Posted by D. Sherman on Thursday, February 28, 2008 at 23:13:19 :
In Reply to: Partly true... posted by MoparNorm on Thursday, February 28, 2008 at 21:53:05 :
No matter what currency the oil is pegged to, it's going to cost the same and be worth the same all over the world in terms of any currency you pick. Any oil that gets pumped out of ANWR or anywhere else all ends up being traded on the same commodities markets. I'm not saying we shouldn't pump Alaska dry; I'm just saying it's not going to bring down the price of oil in the US, unless we had some much that we could flood the markets, which isn't the case. Of course another way of looking at it is that we should burn imported oil for as long as possible, and then when the Arabs go dry, we'll have some of the last oil left and we'll get a very high price for it. As it is, most North Slope oil goes to Asia, so I don't see why it would be any different with ANWR oil.
I think I already mentioned that for the past 20 years or so, an ounce of gold would buy about 10 barrels of oil, and that's still true today. With oil over $100, gold pushing $1000/oz, and silver close to $20/oz, what we're really seeing is the US$ becoming toilet paper in terms of commodities that everybody around the world wants. The question isn't so much, "why is oil so high?", but "why is the dollar so low?" (just set new record lows against the Euro and the Swiss Franc as well).
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