Friday, November 4, 2011
The grassroots national security organization, ACT! for America, sent out a recent message about the Open Fuel Standard legislation. Here is the message they sent to their subscribers:
BRIGITTE GABRIEL CAPTIVATES CAPITOL HILL: EDUCATES ABOUT OPEC’S CHOKEHOLD ON OIL AND TERROR FINANCING
Last week, ACT! for America President, Brigitte Gabriel, and Director of Government Relations, Lisa Piraneo, were up on Capitol Hill for various meetings and events designed to educate our federal legislators about the connection between OPEC’s price fixing of world oil prices and how that threatens our national security.
In addition to a full day’s worth of meetings with Members of Congress from both sides of the political aisle, Brigitte participated in an important roundtable discussion about this issue for Hill staff, as well as a press conference with Congressmen John Shimkus (R-IL), and Eliot Engel (D-NY), sponsors of H.R. 1687, the Open Fuel Standard Act.
NASCAR driver Kenny Wallace and President Ronald Reagan’s National Security Advisor, Robert McFarlane, joined Brigitte and Lisa during their day on the Hill. In each of the meetings, Brigitte’s passionate words about the connection between OPEC’s manipulation of the world’s oil market pricing — and its ties to terror financing — captivated the Members of Congress and their staff.
Immediate progress has come out of these meetings. Already, one Member of Congress who was a part of the OFS meetings last week — Rep. Dan Burton (R-IN/5th) has “seen the light” and signed on to the legislation as a cosponsor. He joins the growing group of Congressional cosponsors this vital legislation has already attracted.
Contrary to what some believe, Canada does not supply the largest share of America’s imported oil. OPEC does. Even if we could purchase largely from our own domestic supplies and our northern neighbor, it will not destroy OPEC’s monopoly on the worldwide price of oil, nor will it decrease the terrorism that is funded through OPEC oil funds.
Why? Oil is fungible. Fungibility is the property of a good or a commodity whose individual units are capable of mutual substitution, such as crude oil, wheat, precious metals or currencies. For example, if someone lends another person a $10 bill, it does not matter if they are given back the same $10 bill or a different one since currency is fungible. If someone lends another person their car, however, they would not expect to be given back a different car, even of the same make and model, as cars are not fungible.
As long as OPEC controls enough of the worldwide oil market (and they certainly do), when they want the price to rise, they simply cut back slightly on their supply. Only a 2-3% drop in supply will typically create a dramatic rise in price.
Therefore, even if the U.S. and Canadian markets are able to generate a 10 to 15% increase in the overall supply of world oil, OPEC would simply cut back their portion of the supply accordingly for a net zero result in order to maintain the level of current pricing.
The fact is domestic oil suppliers have shown little stomach for increasing supply. Why? They like the prices OPEC’s strategy generates! This is why Governor Palin had to file suit in Alaska just to get movement on additional drilling and production. U.S. oil companies have a tendency for sitting on inventory, especially if it is likely that future pricing will be higher.
The only factor that will fundamentally reduce the price of oil is the wholesale introduction of other competing transportation fuels. This alone will finally force OPEC to its knees — and deliver a massive blow to worldwide Islamic terrorism.
To be clear, this is not about supporting ethanol, methanol, or any other specific alternative transportation fuel source. The beauty of the OFS Act is that it doesn’t support ONE particular transportation fuel — it only opens up the market to competition and finally allows the AMERICAN CONSUMER to choose from a variety of fuels for their cars and trucks. Additionally, there are no subsidies tied to the OFS legislation and there is absolutely NO COST to the Federal Government/taxpayers. New cars would cost approximately $100 more for the alcohol fuel capability, but the resulting projected fuel cost savings would be approximately $1,000 per year per car!
Please do your part today to break OPEC’s chokehold on the price of oil — and their funding of terrorism. Contact your Members of Congress through our Capwiz site and ask that they cosponsor this important legislation. We’ve made it easy to do by pre-writing the correspondence. Click HERE to reach our Capwiz site and click on the two Open Fuel Standard Act alerts (one for Representatives and one for Senators) to send your message to the Hill today.
With your support, in as little as seven years we can make our nation and our world safer for our children and our grandchildren by taking the teeth out of OPEC and providing Americans a CHOICE when they fuel their vehicles. Brazil has already reached this point. We can be next. But Congress won’t act unless they hear from you.