Milton Copulos, President of the National Defense Council, told the Senate Foreign Relations Committee on Thursday that the real price of a gallon of gasoline refined from Persian Gulf oil is over $10.
"A set of oil supply disruptions similar in scope to those of the 1970 could carry a price tag as high as $8 trillion - a figure equal to 62.5% of our annual GDP or nearly $27,000 for every man, woman and child living in America," warned Copulos.
His testimony was derived from a study he recently updated that shows the hidden cost of oil imports skyrocketed to $779.5 billion in 2005. That would be equivalent to adding $4.10 to the price of a gallon of gasoline if amortized over the total volume of imports. For Persian Gulf imports, because of the enormous military costs associated with the region, the "hidden cost" was equal to adding $7.41 cents to the price of a gallon of gasoline. When the nominal cost is combined with this figure it yields a "true" cost of $9.53 per gallon.
We found his work to be extremely interesting and recommend you take a look at his seven pages of testimony. Very interesting stuff. If you find yourself in agreement, we also recommend you get involved with a group called Set America Free.