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Foreign Dependence on Oil and Gas Continues to Rise at Alarming Rate; Tax Incentives Enacted
Foreign Dependence on Oil and Gas Continues to Rise at Alarming Rate; Tax Incentives Enacted
The demand for oil and gas continues to increase at a rate that has caused considerable alarm throughout the world. Analysts predict that by 2012 oil prices will reach an all-time high and with civil unrest spreading through Middle East, encouraging an increase in domestic production.
Albuquerque,
NM,
United States
(pr4links.com)
06/04/2011
The turmoil that began in Tunisia with the ousting of their President has spread throughout North Africa and the Middle East. This region of the world produces 65 per cent of the world's oil, and countries like the United States become victims of the speculative nature of oil. Even though Libya only produces 2 per cent of the world's oil, the turmoil in that country has pushed oil prices to more than $105 per barrel.
T. Boone Pickens explains, “Let me give you a number that is pretty shocking when you hear it. The world uses 30 billion barrels of oil a year. There is no way we're replacing 30 billion barrels of oil. Just a million barrels a day is 1,000 wells producing 1,000 barrels. That's big.” Our reliance on oil might be able to be reduced by pursuing solar and wind energy, but it will not be enough to replace the oil needed. According to Pickens, “The world produces about 85 million barrels a day. That's where demand is now, too. And I've seen forecasts that demand is going to be higher than that by the end of the year.”
Scientists believe that many forms of energy, including wind, solar, hydroelectric and coal will be needed in addition to oil simply to the growing international demand for energy. The tax incentives that encourage additional domestic production will provide the United States with a resource that will offer a solution to both the country's energy woes as well as its financial woes, particularly when oil prices are expected to rise above $400 per barrel.
A powerful tax incentive, in which proceeds from sales of real estate can be rolled into oil and gas investment to avoid capital gains taxes is certain to offer advantages to sophisticated investors. For more information about oil and gas investing, please visit. http://oilandgaspartnerships.net/.
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