Quick food for thought. With oil prices now at $40+/barrel as opposed to the $147 we saw earlier on, some analysts are predicting $25 oil which, as ludicrous as it may seem, may actually be possible (remember the insanity with $100 and $150 oil). Anyhow, while such a low oil price may be detrimental to the development of renewable energy as well as exploration & production activities, resulting in another spike in oil prices in the future, it should actually be in the interests of the US to depress the oil prices for a while.
It will definitely help ease the burden on consumers for a bit but it also just occured to me that from a foreign affairs viewpoint, such low oil prices will diminish the power and influence of Oil Nations, namely Russia, Venezuela and the Middle Eastern countries. Especially with Iran threatening to go nuclear and resisting demands, Russian intrusions into Georgia and their suspension of oil & gas into Eastern Europe earlier on as well as Venezuela increasing resistance to the US in the region. With, a budget funding primarily be oil revenue, a shortfall could lead to serious problems in the short term. Perhaps we'll see a more peaceful world for a while...
It will definitely help ease the burden on consumers for a bit but it also just occured to me that from a foreign affairs viewpoint, such low oil prices will diminish the power and influence of Oil Nations, namely Russia, Venezuela and the Middle Eastern countries. Especially with Iran threatening to go nuclear and resisting demands, Russian intrusions into Georgia and their suspension of oil & gas into Eastern Europe earlier on as well as Venezuela increasing resistance to the US in the region. With, a budget funding primarily be oil revenue, a shortfall could lead to serious problems in the short term. Perhaps we'll see a more peaceful world for a while...