With gas prices on the rise almost every week now, we need to start thinking about what are we going to do about this. we cant keep buying oil from other countries if they continue to rise the prices every few months.
The United States has many oil reserves though out the entire country. The only problem is we are too addicted to oil. One of the bigger oil reserves that we have is located in massive underground salt deposits in Texas and Louisiana, currently holding 727 million barrels of oil. The only problem is we are such and oil dependent nation that this massive Oil reserve will only supply that nation with oil for 37 days…
There is good news to this, if we do tap into our reserves it will cushion extra supplies, meaning it would put a tighter squeeze on the world’s oil as a global economy. With the U.S. being such a big buyer in the global economy for oil, if we were to stop buying it would effect every oil producing country around the world which would then most likely lower there prices of oil for sell.
At the moment though a man named Stephen Schork analyst and trader said, that is doesn’t make sense to tap into the U.S. reserves right now, The supply problem exists mostly in Europe, where many refineries rely on Libyan crude. In contrast, U.S. refineries have access to a relatively large supply.
The main thing to think about is what else can happen?
If it gets worse i North Africa of the Middle East, production could fall further and you’ll have less spare capacity. The last time the Global spare capacity fell was in 2008 when it fell below 2 million barrels per day and our oil prices spiked to an all-time record of $147 per barrel.
So should america tap into our oil reserves if this happens again?