February 15th 2011(War on Libya) part 1

WHY A WAR ON LIBYA?
     Oil
 Much of the country's income comes from its production in oil.  Libya is the 18th largest oil producer and has the 9th largest oil reserve in the world and produces around 5- 7% of the worlds oil.  The United States alone buys roughly around 90,000 barrels a day from Libya,  and uses over 20 million barrels a day.  Since the start of the war in Libya oil prices have been at their highest since 2008 and the cost per barrel has gone up at least $20.  This past March, ABC news reported the highest month ever in gas prices they steadily rose for over a weeks span. 


Who benefiets from high oil prices? 
                   One of the world's largest proven oil reserves, Iraq is from oil prices that have soared above $100. The International Monetary Fund estimates that higher oil revenues will help Iraq's economy grow 11.5% in 2011. Iraq's stock market surged over 25% in the first three months of this year. 
               Exxon Mobil and Shell reported significantly larger first-quarter profits due, in great deal, from high oil prices and strong refining margins.  Gas prices have reached over a 35% rise since last year(2010).  On top of that, many oil companies have received tremendous tax breaks.
Exxon recently reported a 69% increase in profits this year and Shell a 22%.  Shell stations have bought out all the BP stations in my area and remodeled most of them as prices countinue to rise.  Mining stocks and chemical companies tend to do well when oil prices have been rising. Hi-tech companies also fare better than most companies as well.  I will tell you who isn't benefieting from the high oil prices, it's the american people and the regular citizens of the world.   We do not have our greedy fingers strring the oil fields.  We will look more into this as we get more in-depth into the causes and effects of the recent Lybian war.  Look for the next post to look more into this subject.