OIL CLOSES ABOVE $100/BARREL FOR FIRST TIME - and what we can do about it!

*******UPDATE - 2/20/08: AS I WROTE BELOW (YESTERDAY!) IT'S ALL ABOUT SUPPLY AND DEMAND - NYTIMES:

Supply Fears Push Oil to Triple Digits
By CLIFFORD KRAUSS

HOUSTON — Crude oil closed above $100 a barrel for the first time Tuesday, vaulting through a longstanding psychological barrier amid persistent concern about whether production can keep up with rising global demand.

The day’s price rise of more than 4 percent capped a week-long run-up that began when President Hugo Chávez of Venezuela threatened to cut off oil exports to the United States over a legal struggle with Exxon Mobil. Crude oil fell from a record $100.10 a barrel in New York on speculation that a U.S. Energy Department report will show stockpiles rose for a sixth week, according to Reuters. Crude oil for March delivery dropped as much as 90 cents, or 0.9 percent, to $99.11 a barrel in after-hours electronic trading on the New York Mercantile Exchange.

... World supplies have been trimmed by substantial cutbacks in production in Iraq and Nigeria in recent weeks. Nigeria alone has lost about 10 percent of its daily production since guerrillas stepped up their sabotage and kidnapping of oil workers in the Niger Delta at the end of last year. Some analysts fear that OPEC could cut production further when it meets next month to counter the prospect that a softening world economy may eventually weaken demand and push prices down.

Oil is expensive.

Expensive oil drives up costs, increases inflation, and decreases the discretionary income people have to spend - and so increases the threat of recession, too.

And a recession in the USA causes the entire world to go into a recession - because the entire world depends on US consumption.

ON ALL COUNTS IT IS BAD.

There is an easy solution: INCREASE SUPPLIES.

This can be dome easily: just let the oil companies drill for more oil in places they think there is a great chance of finding a lot; (their belief is what will incentivize them to invest billions - and it won't cost the taxpayer a single penny!).

All that is necessary to have this happen is for Congress to OPEN UP ANWR, and demand that FLA and CA open up the waters off their coasts for drilling.

THERE IS NO RISK TO THE ENVIRONMENT:

• Canada safely and cleanly drills for oil right next door the ANWR.
• Louisiana allows drilling in the Gulf - off its coast. NOT ONE OF THESE OFF-SHORE RIGS LEAKED DURING KATRINA - THE WORST HURRICANE IN THE GULF'S HISTORY.
• And the waters off of California are easier to drill in than the North Sea - where Norway and the UK have safely drilled FOR DECADES!

People who claim that burning oil creates too much CO2 and that CO2 is causing global warming are WRONG:

• there is no "man-made" global warming;
• the world is actually cooling; this winter (2007-8) is one of the coldest and snowiest in DECADES - for both hemispheres.
• And the prior warming trend was NOT outside historical norms/cycles.
• AND CO2 IS A LAGGING INDICATOR OR PRIOR WARMING PERIODS AND NOT A CAUSE.

Therefore, there is simply no excuse for NOT ALLOWING the energy companies risk their own capital and drill as much as they want.

The moratorium on drilling in ANWR and off the coasts of FLA and CA are a MUCH GRAVER RISK than global warming or leaks or any other risk of "damage" to the local environment.

Continuing the moratorium is IRRATIONAL, and SELF-DESTRUCTIVE.

It puts at risk the entire world's economy.

OVERLY EXPENSIVE OIL is one of the two or three MOST important issues facing the entire world.

The USA must lead on this issue and IMMEDIATELY take the necessary steps in Congress to increase supplies.

I PREDICT, THE DAY THE CONGRESS ACTS THE PRICE OF OIL WILL DROP 25%.

That would help the entire world's economy IMMEDIATELY.

And it would also mean the USA would NOT be sending as much money to the Middle East, not per barrel, and not as many barrels, either.

IT'S A WIN WIN WIN WIN WIN!