BDKJMU wrote:kalm wrote:
So gas prices in the U.S. reflect all the costs?
Govt inflates the costs by preventing full resource extraction: extraction off of both coasts, in the eastern Gulf, in some Alaskan waters, ANWER, other govt lands..
1) You do realize pristine natural areas and a clean environment have a value too, right?
2) Govt deflates also deflates the cost.
The federal government subsidizes the oil industry with numerous tax breaks and government protection programs worth billions of dollars annually. These benefits are designed to ensure that domestic oil companies can compete with international producers and that gasoline remains cheap for American consumers.
Our dependency on oil from countries that are either politically unstable or at odds with the U.S. subjects the American economy to occasional supply disruptions, price hikes, and loss of wealth, which, according to a study commissioned by the U.S. Department of Energy, have cost us more than $7 trillion present value dollars over the last 30 years. That is more than the cumulative cost of all of the wars fought by the U.S. since the Revolutionary War. The transfer of wealth to oil-producing countries - $1.16 trillion over the past thirty years - significantly increased our trade deficit. The Department of Energy estimates that each $1 billion of trade deficit costs America 27,000 jobs. Oil imports account for almost one-third of the total U.S. deficit and, hence, are a major contributor to unemployment.
The cost of securing our access to Middle East oil - deploying U.S. forces in the Persian Gulf, patrolling its water and supplying military assistance to Middle East countries - is estimated at $50 billion per year, which adds additional dimes to each gallon of gasoline we purchase
Political instability in the region breeds wars and embroils the U.S. in costly military actions. The 1990-91 Gulf War broke out as a result of an oil dispute between Iraq and Kuwait. The cost to the international community reached almost $80 billion. The cost of the 2003 Iraq war and the following occupation of the country is estimated at $200 billion.
According to the National Defense Council Foundation, the economic penalties of America's oil dependence total $297.2 to $304.9 billion annually. If reflected at the gasoline pump, these “hidden costs” would raise the price of a gallon of gasoline to over $5.28. A fill-up would be over $105. To ensure access to the oil that fuels our economy, the U.S. is forced to maintain continuous presence in the Middle East. This presence has been a rallying cry for anti-Americanism and Islamic fundamentalism
http://www.iags.org/costofoil.html" onclick="window.open(this.href);return false;
Leveling the playing field between fossil fuels and renewables frees up the market.
