Big Business Lifts Deep Water Drilling Ban

WASHINGTON – The U.S. is back in the deep water oil-drilling business. The question now is when work will resume. The Obama administration, under heavy pressure from the oil industry and Gulf states and with elections nearing, lifted the moratorium that it imposed last April in the wake of the disastrous BP oil spill.
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When oil reached $150 a barrel the motor of the world stopped. That single event had more to do with the economic collapse of the world economy than the Iraq and Afghanistan war combine. When groups band together to limit the amount of any product to reach a market, the results will be higher prices. In the case of oil; however, it took investors looking to put their money in a safe place while currency fluctuation stabilized. That temporary parking of hundreds of billions of dollars in one commodity, caused the price of oil to spike to unrealistic prices. The price of oil was artificially high from OPEC members manipulation and for some unknown reason the Law of Supply and Demand stopped working. During the George W. Bush term as President a meeting was held with the Energy Producers where some unknown agenda was discussed that seem to have the effect of causing the Law of Supply and demand to stop working. The price of oil began to rise yet for some unknown reason producers did not increase their output. When Oil reached $35 a barrel, I expected a mad dash to drill for oil and sell it on the open market just like in years passed; however, it did not happen. When oil reached $50 a barrel the mad hunt for oil did not happen. At $75, $80, $100 and $145 a barrel mark was reached there still were no noticeable increase in output from the oil industry. This has never happened in a free market system before and should have never happened. Still it took place and it did so quietly. OPEC only controls 35 percent of the world oil output. What happen to the market system? Is there a super group that controls the rest? If so, then don’t call this a Free Market! Oil wells are being capped and output is being control. That use to be against the law in this country to group companies and fix prices. We are being held hostage by oil producers. It is time for it to stop...