High Oil Prices A Good Thing?
As a consumer, the thought of high priced oil seems dreadful. However, let’s look at it from a different point of view. Travis Hoium looks at how slightly increase oil prices could positively effect the U.S. oil industry. I know you are skeptical, but keep reading!
"1. Creating jobs here at home
One of the side effects of higher oil prices over the past decade has been increased production in the U.S. and Canada, lowering our dependence on oil from the Middle East.
That trend will continue if oil stays above $100/barrel, but when oil starts to drop, the economics change. Oil shale is economically viable when oil is between $70 and $95 per barrel, but wells are shut down if oil goes lower. The higher the price of oil, the more economical it is for companies including Kodiak Oil & Gas (NYSE: KOG ) , Continental Resources (NYSE: CLR ) , and Petroleum Development to expand oil shale production.2. Reducing our reliance on foreign oil
The expansion of oil shale and deepwater offshore exploration and production has also led to a lower reliance on foreign oil over the past six years.
Not many people realize that our net oil imports have fallen from 60.3% of total consumption in 2005 to 47% today. Rising oil prices have had a direct impact on this continued reliance on foreign oil. If oil prices go down, shale production shuts down, offshore drilling stops, and we import more oil."
Find the third reason here: http://turnkeyoil.com/2011/09/14/high-oil-prices-a-good-thing/