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Old 08-24-2005, 12:33 PM   #16
tjinaz
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Export tariff on natural gas sold to the American southwest. That will do. Natural Gas demand is inelastic as it is used for electrical generation. Once electricity prices double in Arizona, Nevada, California etc. Then the U.S. will give us our $5bn back.
Um sorry... Cali, AZ and Nev have what is called the Colorado river with many many Hydro plants on it for electricity. You will not hurt them. AZ in particular has surplus Electricity that it sells to Cali. All of Las Vegas is powered from Hoover dam and there are 3 more further down river.

Also the US uses 21k barrels of oil a day. Canada supplies 1.6k barrels to the US so don't think that the US is that dependant.

Beware playing hardball. If threatened the US will simply plan around the problem by building more power plants or using the oil tarriff as ammo to drill more in Alaska. That is the beauty of American capitalism it is very flexible in the near and long term. You can play the card once.
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