The refusal of the Obama Administration to permit expanded domestic resource exploration has left us vulnerable to the price fluctuations due to Middle East unrest. Well, hold onto your wallet, folks, because gas may get far more expensive yet.
Former Saudi oil minister Sheikh Zaki Yamani has told Reuters that prices could spike to $200 to $300 per barrel should the country be hit with unrest similar to that seen in Yemen, Tunisia, Egypt, Libya, and Bahrain.
“If something happens in Saudi Arabia it will go to $200 to $300. I don’t expect this for the time being, but who would have expected Tunisia?” Yamani told Reuters on the sidelines of a conference of the Centre for Global Energy Studies (CGES) which he chairs.
We’re approaching $4 per gallon gas as it is, and we’re only seeing prices in the $120 per barrel range. Sit down for a moment and consider what your gas bill would look like with $300 per barrel oil.
And that doesn’t take into consideration adverse affects on the economy, increasing prices for consumer goods that need to be manufactured and shipped, and other secondary affects.
What’s the solution? In liberal la-la land it’s to have everything run on unicorn farts and bubble gum. Unfortunately we live in a world where most people utilize gasoline-powered transportation, and we’re quite aways away from running our economy on la-la land resources.
The only viable solution in the present reality is to allow expanded domestic resource exploration.