Is Offshore Oil the Answer?

Before we delve into this question, we must first understand the history of the mess we are in with regards to the oil price spike.

I was recently attending a discussion by a representative of the gas and oil industry who covered the topic of oil output versus price, and why the oil/gas price spike began.

He began by showing a chart, representing the fixed price of oil based on supply from US wells.

He then made a comment that has to be retold: After Katrina and Rita, we have not been able to open up our Gulf of Mexico wells.

That was the key. The oil industry's inability (or unwillingness) to open those wells due to fear of continued storms (and the low cost of oil at the time to cover any future losses) created the first artificial spike in the oil and gas prices. Since then, subsequent drop in oil production in the middle east and throughout the United States has driven the prices higher yet.

Now Congress is being asked by President Bush if they will allow continued exploration off the coasts of the United States.

I say, let them. They should not have been stopped in the first place... assuming they have adequate protection for marine life and against spills, especially in sensitive areas.

Not to mention that the very oil that the US is unable to drill due to Congress, China is drilling. That is right. China is drilling off the coast of the United States with the help from Cuba. China is tapping into the United State's oil fields while we sit by and do nothing. There is something wrong with that picture.

There is one other problem with the oil crisis that must be spoken. In watching congressional hearings on CSPAN (yeah, I am one of the few who actually watch that channel), I noticed that the oil executives had a common theme (let us develop). They wanted to be able to explore and build new refineries... that comment struck a chord with me. Are the oil monopolies holding Congresses feet to the fire by way of artificially high fuel prices to get access to these additional fields?

If so, this is criminal. You are putting the very life of the country in jeopardy for your own gain, which I amount to holding the US hostage for a ransom. If this is, in fact, the case, I hope to see a drastic hammer falling in favor of the US people.

Until such time that we can sort this mess out, let us open the capped wells in the gulf, and continue drilling in new offshore fields.

The end of Castro's Cuba

I have waited my entire life for this news. Fidel Castro is officially stepping down after half a century of rule over the Cuban people. But with Castro's brother likely to get the nod, one must wonder how things will change.

Will the embargo end after all these years? Will the people of Cuba be the inhabitants of a freer Cuba? Will we see an end to families sailing to America in refrigerators and other make-shift rafts? Will Cubans be free to travel the world without the Cuban government wondering if they will come back to their island prison? Will the free market take hold on the Caribbean Island, allowing lower prices and more selection of goods?

Time will tell.

I have been waiting for the day when the Cuban markets are open to the Americans for one reason: Cars.



Cuba is chock-full of classic cars straight out of the heyday of American automobile era! Rust buckets or not, opening this market to investors will allow a huge new inventory of well kept automobiles! And soon thereafter, these cars will make a new appearance on the streets of America… a homecoming of sorts!



Cuban cigars… pfft. I am looking forward to the cars!



And what better way to help boost the economy than with the flood of the Cuban Economy with the US Dollar in exchange for their automobiles!

The US economy will see a boost as well. Auto traders will be looking for replacement parts, kits to revive the old beauties, and of course mechanics will be in high demand.

But back to the more serious issue of freedom. If the Cuban market is allowed to be free, the people will have the opportunity to thrive. If the people can be successful in a free market, they have something to fight for, and the Island will strengthen itself as a free nation. If Cuba becomes a free nation, Cubans will be less likely to flee the country in search of freedom in America. The increase in wealth will spark the increase in education and health, and of course leisure. Cubans will be free to once again explore the world as free people, without fear of returning home. And foreigners will be free to visit the island, strengthening their tourism market, and creating jobs.

This could be the perfect example of the importance of a free market society, and the benefits thereof. We would not have seen such a turn around since the fall of the Berlin wall… so this will be a great example for our youngest generation.

And the possibilities for Cuba are endless.

Cuba needs no real army. The only nation to invade or attack them in 50 years has been the United States. They can reduce their armed forces spending, and in turn reduce taxation of the Cuban people. I am sure the US would be more than happy to provide military defense of the island nation.

Cuba is a great place for the space industry to flourish. Florida is nice, but Cuba is better! Cuba’s more southern location makes it a better location to launch into GEO orbit. The closer to the equator the less fuel required to stabilize the orbit, and the less money required to launch. Cuba could market itself as the hub to the space tourism market, providing low cost and highly accessible launches to space tourists on their way to honeymoon in orbit, or eventually on the moon itself.

But before we get ahead of ourselves, let’s wait and see who the new president of Cuba will be, and if the successor has the foresight required to bring his country to the forefront of the developed nations.