Shortage of Oil and Drilling Equipment Another Wrinkle in Foreign Dependence on Oil

Lost in the hoopla about renewed calls to drill ANWAR is the fact that there is a shortage of oil rigs, ships and other assorted resources to extract that oil even if it were enough to make a difference in our gas prices….

As President Bush calls for repealing a ban on drilling off most of the coast of the United States, a shortage of ships used for deep-water offshore drilling promises to impede any rapid turnaround in oil exploration and supply.

What is striking is that this is yet another economic reason to wean ourselves from oil ASAP – more of our dollars headed overseas to enrich other nations to support our energy habit. When South Korean companies are putting $100 MM premiums on deepwater drilling ships – that shows up in our cost of energy – further strengthening the viscious cycle of deficit spending with regard to oil… This isn’t moving deck chairs around on the Titanic folks, this is selling the lifeboats to buy ice cubes…

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