High gas prices are hitting truck-heavy Detroit hard. General Motors today said it was closing four North American truck plants and could even sell its
Hummer brand, in response to the increase in fuel prices. GM is cutting slow-selling trucks and SUVs from its lineup, and adding shifts at two other plants making more popular car models, as the automaker now sees higher gas prices as a permanent threat to its business.
"U.S. economic and market conditions have become significantly more difficult," GM Chief Executive Rick Wagoner said, adding higher gasoline prices have caused consumers to drop trucks and SUVs faster than expected.
In a related move, GM's board has allocated production funding to the Chevy Volt, an all-electric vehicle that GM expects to have in showrooms by 2010, Wagoner said. Additionally, they've approved funding for a next-gen compact model for Chevrolet as well as a new subcompact Chevy Aveo, also expected in 2010.
This obviously affects XM as the satellite radio industry now has a symbiotic relationship with automakers. And while both Sirius and XM insist that their increased OEM penetration is offsetting the drops in production, it's the shift in consumer priorities that's the most concerning.
Sure, car buyers who ditch a Silverado for a Cobalt might still get a trial subscription of XM in their new vehicle. But how quickly will consumers dump discretionary subscription services, like satellite radio, with the prospect of gas prices being $5/gallon looming on the horizon?
[Reuters]
You know, the only ones to blame for high gas prices being a threat are the automakers. There are technologies out there that can replace oil as Fuel for cars. I recently discovered an instruction manual to create a " converter," of sorts, that is suppose to turn water into fuel. I don't know how feasible it is but if it works and GM and automakers got off Oil and built converters like this for cars they wouldn't need to close plants.
American soldiers are in the Middle East protecting Saudi oil assets and those sand farmers say thnak you to us by jacking up the price of oil to record levels. We need to to start drilling for own oil on that 100 acres that the US oil companies have asked for in Alaska. Believe it or not those tree huggers like to drive too versus walking. Same goes for drilling off the coast of Florida out of sight from the beaches. Once we cut our reliance on foreign oil then and only then will prices come down. Nuclear power plants are another needed assets. France has been doing it successfully for decades. We are absolute suckers paying current prices for foreign oil when we have our own.
Congratulations, Ryan, for coming around to the point that I've been pushing for some time. XM'sand Sirius' growth in the OEM market are the result of larger, luxury SUVs and powerful, decked out cars. This is particularly true with GM with respect o XM.
As the company, and especially the consumer, moves to smaller, more fuel efficient cars, the likelihood that extra sub fee products like XM, become less important. Look at it this way, 12>95 buys maybe 3.5 gallons of cas. As long as there is an i-pod jack, why pay for XM. Slacker, with fresh music daily is a viable alternative to XM/Sirius.
This is not good news for either company.
in 2000 I was in England ... Gas there was the Same price as here... Well, The number was the same ... (1.75 ) now that was in brittish pounds and that was for 1 liter of fuel... so while we payed $1.75 per gallon with the exchange rate at the time of 1.8 to1 made the cost $3.15 per litre ... there are 3.78 litres in a gallon making Englands 2000 fuel cost to consumers $11.90 per gallon. or 75-80 US dollars to fill the tank of my rented VW GTI
Thats in 2000 not 2008... why are we complaining about $5 a gallon? Its still cheap!
I drive a Chevy Silverado crew cab 8' bed with a duramax Diesel ... it cost me $129 to fill the tank last week. ... and thats Cheap....
Yesterday some butt hole cut right in front of me and slammed on the brakes in a Honda. If I was not alert, the guy would have been dead and I would have had a small dent on my bumper.
Americans do not need to cut back.. we just need to be smarter... buy nothing on credit. do not exceed 50% debt to equity ratio on your home, maintain 6 months to a year in liquid funds. This entire economy bull crap hitting the fan is due to way too many people overextending themselves. ... but now that many of you have... just dont cut me off in your shit box cause I'll crush you!
Yes.. I did wake up on the wrong side of the bed. No go AWAY! And speak english.
Oh and one more thing... Enough complaining about Bush. how bout a dose of reality in the real world Huh? One guy I have woking for me, Legal with green card from Hoduras, his daughter was Kidnaped from her shcool in honduras. Why? The big thing there is they take kids and chop them up for their organs.. Yes this gus daughter may rught now be in pices being transplanted in to one of your relitives.
Welcome to the real world. now put down that Starbucks coffee and wake up America.
We have it pretty damn good.
That's an interesting article and all but isn't there any more news about female country singers.
I disagree, regardless of whether you believe in global warming there is NO reason that unless you are a contractor you should be driving a Silverado with a Duramax diesel. I respect your ability to choose, however, why would you buy a car that just funds the middle east directly?
I'm not attacking Jeff, specifically, i just cant understand the logic of getting something which costs 129 at the pump for which another car can suffice. Hell, a Corvette even gets 20mpg and is pure muscle and probably is on par with the silverado if you are talking muscle.
If you are a contractor or use the truck for work, my heart goes out to you since you are getting f-ed. Not by Bush, not by the Middle East, but by Exxon and other companies who are happy to windfall profits when its in their interest!
nobuddy wants me
Stack,
The truck is both for side jobs and to haul a trailer with my race cars inside.
(the ones Ryan won't sponsor ..LOL) just joking Ryan
And I did not take your comment as attacking me.
FYI.. the truck has gone 138 miles on 1/4 tank of fuel. About 22 MPG unloaded. I fill up about once every 3 weeks. If I drove more than 6 miles to my regular job... I would have a Geo Metro (with nerf bars and full roll cage) when hauling the trailer the fuel milage drops to about 14-15 MPG
The one at fault for the economy in the crapper and sky high gas prices lives at 1600 Pennsylvania Avenue in Washington, DC, but lucky for the country, the world not for too much longer.
As for xm and sirius sad to again bring it up but this "merge" while being a bad idea comes at a terrible time, consumers are confused and waiting for the outcome and neither sat radio company is helping out move product because there are very few models out if they are even available in retail stores. Now we know the auto market has slowed in a big way so there goes that way of getting sat radio to consumers too.
Mel's big mistake was the ego comment below, the health and well being of both sat radio company is terrible, neither one has made money ever. A "merge" in any financial climate is not a smart path forward for sirius, xm nor consumers.
Jul 1, 2006 At a Convergence 2.0 conference Mel - “Regarding XM - would we like to buy them? Sure. We’d love to buy them. Price would matter, so that would be an issue . . . [and] there would definitely be the regulatory issue,”
HD radio terrestrial radio better take well advantage of this period of time since with gas prices going up, churn and reduction of subscriptions is going to continue to be the name of the game in sat radio land. Mel and sat radio management started this "merge" game but the economy, and both sat radio companies continued horrid business plans might just finish off the entire game completely.
I don't see this as having any meaningful effect on SatRad in particular, outside of any general cut back in discretionary spending that will affect every thing else.
The owner of a Hummer is not going into a Cobalt. They may however, opt for a crossover or a Buick, or a Cadillac CTS, to name a few alternatives.
It's high time these SUV's and Pick ups were replaced with normal sedans that are capable of giving reasonably good mileage. Not one in a hundred ever needed the "utility" in an SUV.
@jeff I totally understand what you're saying but there's no question that rising gas prices are affecting how U.S. consumers are spending. That's exactly why GM has to shut down 4 factories now. Maybe Europe is used to it, but we're not. Europeans also drive around much smaller vehicles, are more densely populated, and use public transportation much more (all probably as a result of their fuel costs).
Now I drive a Dodge Ram 1500 - and cough up $4.25+ here in CT (and that's cheap) - so I'm paying dearly at the pump. But I use my truck for every inch of its worth, so it's a necessary evil. The fact is, MOST PEOPLE don't need their huge SUVs since 95% of the time they drive alone. They'll make due just fine with an ecobox, or even a mildly larger cross-over.
And as consumers become more cost conscious, because they continue to go out of budget thanks to unpredictable gas prices, they'll start to cut off the predictable expenses - like subscription spending. "Honey, do we really need HBO?" "Can we make do without Netflix?" "Should just drop XM?"
I guarantee you those are the questions people will ask. And that's my point.
It's great to see some common sense posted on this site. The people bitching about the price of gas/oil have obviously never been Europe where the prices there are double or even triple to what Americans pay. AND as a result they don't whip around in pimped out Escalades and Hummers - they drive Puegot's and other 'donald duck' type cars that are eco-friendly and easy on the ol gas pumps. Sure, you can't even scratch your ass in these cars b/c they so fucking small but Europeans CHOOSE to make sacrifices.
The people in the country that bitch and moan on this topic are ignorant pieces of shit that cause me to be concerned about our future. Open your eyes - we over-consume everything in this country and want to place blame (Bush) on someone else for our actions.
Want to blame someone for the high oil prices... blame China. Plain and simple.
"The fact is, MOST PEOPLE don't need their huge SUVs since 95% of the time they drive alone. They'll make due just fine with an ecobox, or even a mildly larger cross-over."
Great comment! Americans are gluttons and make excuses for needing an SUV or gas guzzling truck. We need to blame ourselves and not Bush, the oil companies or the Arabs.
On another note, the US automakers should have seen this coming and planned accordingly. They were making a killing on SUV's so they didn't bother with small cars; more money in the executives' pockets. I guess they thought the problem would go away. But they have always been behind the power curve when it comes to planning, retooling and modernization. They're favorite game is playing "catch-up".
Ryan,
I fully beleive that spending is way to ingrained in to the "American Way" Sure, spending will be cut back... they will wait an extra couple months to buy the Big flat screen TV. But drop Netflix? no way.. its 1/4 the price of one person going to the movies.. on the contrary.. Netflix should be thriving.. why spend 15 bucks in fuel to get to the movie theater when the movie can be deleverd. .. this is definitly a reason to go get that big flatscreen TV .. and there ya go.. Saving Fuel and money! Give up Satellite radio? Unless is compelling or your driving long distances .. that could be dropped but I doubt it. IMO its more like.. less Starbucks, Less eating out, Less home improvement projects, Frivolus spending like attending a race or funding a race car will be dropped. Hobbies are dropped. Extravigent (SP?) vacations are dropped. (who the hell am I kidding with the (SP?)) Take the cruise next year. visit Thailand in 5 years rather than next year... Delay buying that new car till next year. Buy less I tunes, open the inground pool 3 weeks late.
but drop HBO ? Nope.. not gonna happen.
I blame Barack Obama for rising gas prices.
"The one at fault for the economy in the crapper and sky high gas prices lives at 1600 Pennsylvania Avenue in Washington, DC, but lucky for the country, the world not for too much longer"
Bush has no fault in this and the economy is not in the crapper. I graduated high school in 1980, in 1980, the economy was in the crapper. Furthermore, Bush tried to get Congress including J McCain D-AZ to drill in anwar but to no avail. No matter what happens with oil/gas, Bush is castigated for being an "oil man". We have oil, lots of it, we only need to drill it. The biggest reason for the increase in price is increased demand from China and India. Global warming is a hoax, no need for pushing alternatives until the market demands it. But if it makes you feel better to blame somebody besides yourself for your difficulties, i suppose Bush is as good as anybody.
If you think Obamination is the answer think again. After two years of this Jimmy Carter wantabe, americans and the rest of the world will be begging for Bush in Co.
Alot of this can be eliminated , if we open up Alaska .
Wow. A lot of uninformed opinion above.
Petroleum prices are set globally, not by coutry. It may cost more to fill up a car in one country over another but that is purely a matter of the taxes or subsidies added to ther proice by local and national governments, in addition to other cost like distance from the nearest refinery...etc.
Drilling in Alaska will not reduce the global price of oil by any meaningful amount as the supply will be so small it will be a drop in the bucket and it will not just be sold in the US - Exxon will sell it as a commodity, globally.
Gas prices are high because:
1. Increased world demand. China and Indian want cars, not bikes these days. They have middle classes bigger than the US that are growing very rapidly. This will not stop.
2. Commodity trading. Investors see increased demand for oil as a constant and are bidding up the price on oil futures. This has created a perfect storm where the price climbs due to increased demand for these futures, and this increases demand and prices. This is one area where it is possible the bubble could pop and we could see some relief.
3. War in the middle east. Uncertainty concerning supply drives up prices. War is also a pretty thirsty business. Old GW can share some of the blame here.
4. Oil companies. It's pretty much a cartel at this point. Record prices every month and record profits every quarter. There is a link here.
5. Oil producing nations. These guys have something to do with the prices, but supply has been increasing. It's just more expensive to produce more after a certain point.
As for the US's economic crisis, it comes down to more than just high gas prices, but anyone with half a brain should have seen this coming. The flight to the suburbs with the associated increased commutes in combination with the move towards SUVs as personal vehicles has placed a massive burden on the nations energy supply. There is really nothing wrong with an individual driving what they want as much as they want but the costs are now becoming prohibitive to many to sustain this kind of lifestyle. Europe has far higher environmentally based taxes on fuel and they have higher population density and smaller commutes due to increased green zone preservation and cultural opinions on driving long distances.
The big impact on Satrad is the fact that it is a pure luxury, and when the economy is in the shitter demand will drop.
I drive a guzzler with 340hp, but I'm not sweating the cost of gas. I live less than 3 miles away. One tank every 2 weeks is something that I can afford.
O&A XM 202
if i wanted to pay what europeans pay for gas, i will move there.
but as long as prices keep raising and oil companies continue with their record profits, it is hard for me to just accept paying more for gas, and idon't have a gas guzzler, as i fill up my car-which has a 13 gallon tank once a week. I usually have to put 1/4 to 1/2 a tank of gas in it and it costs me as much as it did to fill my tank up a couple years ago.
I'VE BEEN POISONED!!!!!! ACKKKKKKKKKKKK!
blih blih
I have been bitching for 5 years, ever since I graduated High School, that Detroit needed to start making this transition and they would be much much better off in the long run. I knew gas prices weren't going down and I saw this coming. THey could have still made those trucks and SUVs but they could have already had the efficient cars now instead of 2 years from now. I'm a huge fan of GM vehicles and now Im sorta scared they will soon become a fact of U.S. History.
I am not sure why everyone is panicking. XM hired two FM hacks named Jon Zellner and Steve Kingston. So don't worry, their tired, old FM bag of tricks will save the day...won't it?
Thanks Bomshack for telling it straight to these boneheads, Bush IS partly to blame for this as well as Congress and all the good ole boys taking bribes and screwing the American public.
The auto makers deserve what they get, as they are lovers with the big oil boys too.
Drilling in Anwar is not the answer, sounds like Bush boy talking. Let's start developing alternative sources, that is our only survival.
And if it's better in Europe, then take your sorry ass there!
Actually, the bad management in our government reminds me of the bad management at XM, it's pathetic.
Ryan is right,
"they'll start to cut off the predictable expenses - like subscription spending. "Honey, do we really need HBO?" "Can we make do without Netflix?" "Should just drop XM?".......
(and Sirius) most would agree sat radio is a luxury that sure isn't needed, if family's need to start cutting expenses sat radio might be the first to go. I'd also press that free radio AM/FM/HD IF it has it's game face on might be the alternative consumers go with. The question is when the economy turns around after the lame duck living at 1600 Pennsylvania Avenue becomes only a embarrassing footnote on Wikipedia will people return to sat radio? will sat radio even still be relevant?
"will sat radio even still be relevant?"
That would imply it's relevant now.
Where are all those hippies that said we went to war for oil?
Just a quick vent out to GM and fucktard Rick Wagoner. You are the dumbest bunch of mother fuckers I have ever seen.
I invested in GM stock a few years ago, and by the grace of god I made some good money. But your incomprehensible incompetence forced my to sell all my holdings.
ah, it's great to be rich and not to have to worry about any of this. and i make money regardless of if the economy is good or bad. and now, you can't know my secret :P
Drilling in ANWR will bring oil prices down. There is more than a drop in the bucket there. Every tree hugger and Democrat that panders to the tree huggers repeats the same ole crap about not being able to drill out of this problem while simaltaniously blasting Bush for not making the arabs pump more. Their dumbass constituants are to stoopie tand too simple minded to see this contridiction. The fact is, OPEC is a cartel. They fix the price. They don't want non opec competition. If the USA even only opens ANWR ( not to mention the numerous oil reserves we have including the huge on just found in ND) for drilling oil prices would begin to come down. IF the Dems in the US Senate including J McCain D-AZ would have not blocked drilling in ANWR several years ago, we would not be having this problem to this extent. Fact is the global warming hoax koolaid drinkers want higher energy costs because they want less carbon consumption, this include the Democrats that pander to the kool aid drinkers.
Furthermore, GM builds cars that people want to buy, i.e trucks and SUV's that get bad gas milage. If GM would have shifted to smaller more efficient cars when gas was 1.50, they would'nt have sold any cars because that's not what americans wanted 5 yerars ago.
Please support the building ofmore oil refineries, and allow us to spend some of our billions in profits on drilling in oil rich locations in America such as ANWR and I promise we can lower the prices by increasing supply. Our job is to maximize profit, and if we can do that by pumping more oil at home, we will.
So, 2010 for a glorified golf cart! Damn - what a bunch a idiots!!!!! Think about it. We already have electric cars (golf carts) and those "cars" on Price is Right, don't know who makes them?? BUT - MAKE THEM STREET LEGAL - NOW!!!! IT's NOT THAT HARD!!!
I HOPE GM and FORD die a quick fast death - They are pigs and I can't stand it that they have not evolved. There is a demand that they can't live up to - serves them right!!!
I WANT MY ELECTRIC CAR!!! (for local travel)
I WANT SOLAR ON MY HOUSE to POWER MY ELECTRIC CAR!!!!
and I WANT IT NOW!!! DAMN IT!!!
Man - is it really that HARD???
...oh, and stick an audio input in the dash please, for my iPhone (which should have internet radio and Sirius on it as well...dumbarses!)
Man!
WOW 2 GM products bite the dust:
"hummer death bell tolls"
&
xm death bell also tolls
I look forward to old oil's death bell to toll, murdered by it's own greed and arrogance.
PS ANWR is not the answer, old oil is not the answer.
Simpsonic, you better think hard before you blame or wish ill will on GM and Ford. Perhaps your ignorance thinks buying foreign is cool? Think again. Think of what GM and Ford mean to the over all American economy.
The obnoxious one speaks: "I'd also press that free radio AM/FM/HD IF it has it's game face on might be the alternative consumers go with."
"Free" radio is not an "alternative" to satellite in many respects, any more than caviar is an alternative to chicken broth.
My work is related to the auto industry, which give me this viewpoint to share.
The big two and a half will be throwing the kitchen sink into subcompact cars to make up the $$ margins lost in trucks and SUV's. This will result in the heavy use of leather, navigation, computer access, backseat video AND satrad.
It will be a tough year until the 2010 model year then the shit will hit the fan with satrad loaded even in your lawn mower. A great time for the savings of the merger (if it happens before 9/2009 to be used for new subs.
PS... that was my post above... one more thing.
Thank the GOP for failing/blocking the MPG standards on Detroit for 18 years. Had the republican's forced GM and others to build fuel efficient cars, the country, let alone the industry wouldn't be hurting so bad now.
"Free" radio is not an "alternative" to satellite in many respects, any more than caviar is an alternative to chicken broth.
Only in "obnoxious" Max's world maybe, more blind believe, hook line and sinker.
I say Screw anybody that says or thinks we should have to drive lesser Cars than the people we buy oil from. Why should they have a better life style than us?
All the talk is about Gas but as important is heating oil that is the only way millions of people can heat there home. The cost is far greater than driving and can be over $1000 a month for a average home. What i expect with the cost of food and heating millions will not have enough money to pay for both of them. It would not supprise me that we see more deaths from this than we had with 9/11 next winter.
If $13 is going to make or break someone's finances, I doubt they would have subscribed in the first place.
Could someone explain this filing to me in english? It's way too lawyerish for me. Sure I had a business law class once, but holy crap... thanks.
http://fjallfoss.fcc.gov/prod/ecfs/retrieve.cgi?native_or_pdf=pdf&id_document=6520012075
@ AC: "Only in "obnoxious" Max's world maybe, more blind believe, hook line and sinker."
Another infantile reply from David Rehr's personal sodomite.
Hummer? OK!!
Max says
"Another infantile reply from David Rehr's personal sodomite. "
Max yet again showing the off topic and the lack of class posts he is only capable of, poor childish Max.
Our current gas “crisis” is one of our own making. The 1973 Arab oil embargo was our big wake up call and we ignored it. How many people remember waiting in line half a day for 5 or 10 gallons of gas? Who remembers “odd” and “even” day fueling restrictions based on your last tag #? Who remembers hunting for a station that even had any gas to sell? Those who forget their history are doomed to repeat it!
The government answer to the gas crisis back then was to “drive 55mph”!?!? We voted in the doofs that stalled the CAFÉ standards and not only did they stall them they also undermined them by allowing the exclusion of SUV’s and light trucks from the average. We the people are the ones who made gas gulpers the most popular models and President DOOFUS giving a tax break for vehicles over 6000lbs doesn’t help matters. How about a big tax break for vehicles that actually meet the CAFÉ and big tax on non-essential vehicles that don’t? Now we have the two most populated nuclear nations on the planet wanting their share of the shrinking pie. Once again this is our fault we allowed our middle class jobs to be exported over seas and this new prosperity is translated into new drivers at a record pace.
Well selling Hummer is no big surprise. The only Hummer that was worth anything is the one that they stopped selling. I say AM General buys Hummer back for 50% of what they sold it for.
GM and all american's problem is their issue with diesel engines. Put more diesel engines in vehicles and that helps a little. BioDiesel does not lower gas mileage like E85 does. I still find it funny that people didn't believe that an H1 got better gas mileage than an H2 as much as 5mpg more.
I don't understand. How stupid can you be? Why not just modify those 4 factories to produce the "New Extreme" Hybrid that gets 150 mpg. But with a weakening dollar the last thing people need is to lose their jobs.
The simple fact that unlimited growth cannot happen on a finite planet seems to escape most people. We have nearly 7 billion consuming people on the planet now as resource depletion is starting to raise its head. If higher prices do not reduce consumption then next we will get shortages and rationing. This will get very ugly.
What to do? Reduce your consumption and become as sustainable as possible to mitigate the impacts from these issues. Our home is 109% of net-zero energy (including winter heating) with only 4.5 kW of solar PV and a SDHW system. We have a large garden and orchard. In a pinch I feel we could grow around 40% of our food. We drive a 50 MPG Prius.
I have seen this coming for about 25 years (remember Jimmy Carters warnings?) and have been working hard to prepare while everyone else played. Yes we are still impacted from the rising prices, but we are much more insulated than many. I encourage people to do what they can to accommodate this "great unwinding". The hardships we are seeing now will look like "the good old days" very shortly.
I will give up food and sex before I give up my Sirius subscription!
But I love Hummers!
If people would stop buying vehicles that are not only larger than they need, but loaded to the gills with unnecessary options (which add thousands of dollars to the price), they would have no problem affording satellite radio. It's the best bang for the buck option a car could ever have. Cut out the heated side view mirrors and you're good for the next couple years!
This Gives Me Gas. The funny thing about the oil crisis is that there was no oil shortage. We were at peak storage and there was no more room at refineries and terminals. NONE.
We were not out of oil like everyone thinks we were.
Sorry Another Thought but Hubbert’s Peak does exist the only argument is when it has or will happen. Our full reserves during the '73 crisis were due to national security concerns this is the reason we now have a Strategic Oil reserve.
http://en.wikipedia.org/wiki/Peak_oil
You’ll notice these articles cite a limit in PRODUCTION not REFINEMENT.
Oil Officials See Limit Looming on Production Wall Street Journal
BY RUSSELL GOLD AND ANN DAVIS
11/19/07
A growing number of oil-industry chieftains are endorsing an idea long deemed fringe: The world is approaching a practical limit to the number of barrels of crude oil that can be pumped every day.
Some predict that, despite the world's fast-growing thirst for oil, producers could hit that ceiling as soon as 2012. This rough limit -- which two senior industry officials recently pegged at about 100 million barrels a day -- is well short of global demand projections
over the next few decades. Current production is about 85 million barrels a day.
http://online.wsj.com/article/SB119543677899797558.html
January 28, 2004 by the Toronto Star
“The basic facts are these: The entire world now both produces and consumes some 75 million barrels of oil a day. By 2015, or a decade away, demand is expected to increase by more than two-thirds, or by another 60 million barrels a day.
This extra demand simply cannot be met. We would have to find and develop the equivalent of 10 new North Sea oilfields in just a decade. Even if Iraq's oilfields are fully developed, with almost unlimited new investment and new technology, it could only produce an extra 6 million barrels, or a mere one-tenth of the amount needed.
Certainly, new supplies are being found in places such as Siberia, the Central Asian Republics and west Africa. But these are not net additions to the total output. At the same time, production from all existing super-giant and giant fields is contracting by 4 to 5 per cent a year. Additional supplies could be generated from tar sands and oil shale in Western Canada and in Venezuela's Orinoco belt. But more than half as much energy is used extracting this oil as the energy value of the oil produced”.
Fine it was because of National Security but the media as you know sells the situation as a shortage. They continuously say that we had to ration fuel because we didn't have any but the true was that we had it but our government imposed the rationing.
BTW, I like the date on the January article. Canada is the United States NUMBER 1 oil supplier so it is OLD news.
The government and media didn’t cause the 1973 oil embargo they reacted to it. The 1973 oil crisis began on October 17, 1973, when the members of Organization of Arab Petroleum Exporting Countries (OAPEC, consisting of the Arab members of OPEC plus Egypt and Syria) announced, as a result of the ongoing Yom Kippur War, that they would no longer ship oil to nations that had supported Israel in its conflict with Syria and Egypt (the United States, its allies in Western Europe, and Japan). At the same time, OPEC members agreed to use their leverage over the world price-setting mechanism for oil in order to raise world oil prices, The media never portrayed the ’73 embargo as an end of oil. EVERYONE knew it was a temporary EMBARGO caused by Arabs hence the then common name ARAB OIL EMBARGO! The media did point out our dependance on foreign oil was due to the depleation of our domestic supply but that was true. If OPEC had refused to sell oil for a decade instead of 8 months you’d be riding a bicycle to work today. The media has done stories on Peak Oil from time to time but Peak Oil is not a media concoction it is FACT. Oil company geologists discovered it in the 1960’s and acknowledge this phenomenon today the only argument is when will happened not if.
Very much like Gary Parsons and Hugh Panero, Rick has the ability to stand up quarter after quarter and spew shit about a better tomorrow that somehow, never comes.
BTW, as for Canada supplying a majority of our oil that may be technically true but the US used 20.6 million bbl/day in 2006 we import an average of 12.3 million bbl/day and Canada only produced 2.3 million bbl/day in 2006 (they are hoping to expand this capacity to 4 million bbl/day by 2015). As you can see we depend on many more exporters than Canada for oil. Places like Mexico (1.57 million bbls a day), Saudi Arabia (1.42 million bbls per day) and Venezuela (1.14 million bbls per day) are not far behind Canada and Canada isn’t in a position to make up their shortfall when they falter in the future.
http://www.eia.doe.gov/basics/quickoil.html
What 'Another Thought' is using is the dumbed-down straw man issue dragged out with nauseating regularity by those who act like oil is a renewable resource. Nobody is saying that the world's supply of crude is going to "run out" on us but rather that the world is very soon (or most likely already is now) peaking in the amount it can produce, thereafter to steadily decline of the course of decades.
Demand especially from the developing world is increasing much more quickly than production which is basically on a "bumpy plateau" for the last several years, probably soon to fall off of it and begin its inevitable downward movement. Even with the prices being what they are the "demand destruction" at this point appears to be limited to SLOWING the GROWTH of demand especially in the biggest movers on the demand side many of which subsidise their citizens' oil, rather than actual demand being expected to be LESS than the year before. And it would have to be actual demand destruction of at least 5% or more to have a noticeable effect on the price of gas at the pump. This isn't happening and it isn't realistic to expect it to happen anytime soon.
The worst part is, as mature fields decline the new discoveries aren't anywhere near keeping up with it even if one doesn't consider demand. They can't keep pace with the decline in existing fields, new finds are coming fewer and farther between and getting progressively smaller. And the people who think that just opening up ANWR to drilling combined with some oil shale alchemy is going to somehow magically increase production per day to make up for existing declines as well as demand growth need to put down the opium pipe. The U.S. consumes 21 million barrels of oil a day NOW let alone in 2020 or 2030 or something. Oil shale, tar sands, CTL, GTL etc., all that shit isn't going to amount to anywhere near half of what's going to be necessary, they're dreadful for the environment and they use unGodly amounts of energy. Give it up. Regarding fossil fuels in general, American "energy independence" is a masturbatory, impossible dream that is getting more far-fetched by the year.