The terrorist attack on the World Trade Center in 2001 was a devastating day for America’s oil industry. Oil prices skyrocketed and fear was put in America. In his article “Take $10 off the Price of Oil,” Steve Hanke states that from 2001 to 2004 oil prices more than doubled reaching $55 per barrel due to Bush’s order for the government to purchase 700 million barrels of oil that caused prices to rise from storage cost. On top of this, oil prices were high to help preserve the oil supply because the nation was afraid oil imports from the Middle East would come to a halt. The September 11th tragedy was not the only time America suffered with high oil prices. In the 1970s some foreign countries stopped exporting oil, which
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The fact of the matter is that before this massive supply of underground oil runs out, there will be an alternate form of energy to replace oil. With the high gas prices, the research for alternate energies for oil are already in production. Future vehicles may operate off of natural gas or electricity. Until then, America’s underground supply of oil could be extracted and refined for fuel. This would lessen the price of gas and diesel at the pump. It could possibly drop the prices below a dollar per gallon. This would encourage American individuals to spend their money that used to be spend on fuel for other items. This would help the economy with more money going back into circulation rather than being saved by individuals.
One of the largest producers in the world of oil is Saudi Arabia. In his journal “Treasury and Risk,” Lananh Nguyen predicts that the U.S. is expected to surpass Saudi Arabia by 2020 in oil production making the U.S. the largest producer of oil in the world. To add to this, in Congressional Documents and publications, the Obama Administration stated that America has 26 percent of the world’s technically recoverable conventional oil resources. This shows that the U.S. has the capability of controlling the world’s oil market. With America controlling the oil market, the economy will bring in more income. Oil imports from foreign nations will no longer be needed. With less imports means