Oil like all commodities is based on supply and demand. We have high prices right now because of:
-Hurricane Katrina wrecking refineries
-Hugo Chavez and Venezuela
-Problems in Nigeria
-Fewer refineries built
-Middle East instablity
If we drill, that would lower the price with more supply, right?
If we have more suppliers and more operational wells, that would lower the price by adding more sources of trade?
Am I missing something here?Price of oil?
There is no logic on the Democratic side of the aisle.
The Dems were trying to pass a bill that would block a 4.1 Billion dollar arms sale to the Saudi's unless they pumped an additonal 1 mil barrels per day. They said it would lower the price by up to 17%
Those SAME democrats said that an additional 1 mil barrels per day of OUR oil would only lower gas by ';a penny';
So which is it? Only dems pick and choose when the law of supply/demand applies.
http://www.washingtonpost.com/wp-dyn/con鈥?/a>
It's not speculation
http://biz.yahoo.com/hftn/080627/062708_鈥?/a>
And the Dems lie about the current leases
http://energytomorrow.org/energy/Facts_a鈥?/a>
US Oil production is at it's lowest since the 1940's
http://tonto.eia.doe.gov/dnav/pet/hist/m鈥?/a>
Over 1000 wells were damaged / destroyed in Katrina/Ruth
Not ONE DROP LEAKED.
Don't buy this ';ruin the environment'; crap.
Enough is Enough.
Sign this
http://www.americansolutions.com/
I'm tired of getting oil from unstable countries.
We have enough to eliminate the need for middle eastern imports
200 billion barrels in the midwest
http://www.nextenergynews.com/news1/next鈥?/a>
15-30 Billion in ANWR
';As domestic oil production continued its decline, the U.S. imported 58% of its petroleum needs in 2004. These oil imports cost more than $150 billion and robbed tens of thousands of steady, high-paying jobs from American workers.
More than 20,000 foreign supertankers (most single-hulled) offloaded oil at east, west and gulf coast refineries last year; they carry from 700,000 to 1.2 million barrels a day from Iraq alone. Foreign oil is produced and shipped under less strict environmental standards than domestic oil. Alaska's oil fields are the cleanest in the world, second to none.
Through shortsighted actions, Congress and federal agencies have banned oil activity from more than 300 million acres of federal land onshore and more than 460 million acres offshore in the past 20 years. An estimated 67% of oil reserves and 40% of natural gas reserves are on federal lands in America's western states.
http://www.anwr.org/Price of oil?
yes you are missing something, by the way I am a conservative, so I am not hyping a liberal agenda. Here is your answer more oil does not necessarley translate to lower prices, why? because the refiners put out the end product, if refineries are limited for whatever reason, hurricains, wars, demand, etc, you can add all the oil you want and prices will not improve, as a matter of fact oil production has increased since the 70's but so has the global demand net effect prices are still riseing and this is takeing refineries out of the equasation, in addition to that it is estimated that if America taped every available oil source it would only impact global demand by 20%, and global demand will keep increasing anyway. For the long term alternate energy sources are needed or we will always be subject to an economy that can change for the worse at anytime because of oil.
In 1979, oil worker strikes in Iran caused another rise as the markets panicked, afraid that a repeat of 1973 would occur. Prices eventually leveled out at $18.00 p/b after a peak of $21.00 p/b. (Bild) This was the time of the imfamous gas lines in America as gasoline prices soared. In the short term, the OPEC nations prospered, deluged with an inflow of Oil profits. Unfortunately this prosperity turned into a double edged sword as will be seen shortly.
The result of this increase in the cost of oil, was a boom in the oil exploration industry. With oil being so costly, it became economical to explore for oil again. Large new finds were made in the North Sea, Venezuela, Mexico, and Indonesia (Bild, Calvert, Howe, Hobohm, Philip, Europa Staff). This produced an oil glut of non OPEC oil that began to undermine the high OPEC costs until 1985 when a crash in oil prices dropped them from $20.00 p/b to $18.00 p/b. (Bild) This proved to be devastating to many of the oil producing countries who had large portions of their governments structured around oil money. (Venezuela is perfect example of this as it had a jump in unemployment to 20% and a total gutting of its social programs when its petroleum industry collapsed) (Calvert)
The next big problem in oil prices was the Iran-Iraq War. During this time both countries severely exceeded their quotas whenever possible to try to pay for their military expenditures. At the same time, they systematically warred on each others ability to export petroleum, ultimately culminating in the Tanker war of 1988. Saudi Arabia and Kuwait made up for the lost production of Iran and Iraq in order to meet orders. The prices of oil held at $14.00 p/b during this time as a result (Bild).
Finally, in 1990, Iraq invaded Kuwait after an unsuccessful attempt to have its production quota raised to make up for Kuwait, over production during the Iran-Iraq war. This proved to be a godsend for the oil countries for after highs of $40.00 p/b the price of oil stabilized at $21.00 p/b (Bild). Continues fluctuations of price occur now due to the continued menace of Iraq but generally, the priced have been maintained at the previously mentioned rate.
It should now be clear that the history of the Middle Eastern petroleum industry has controlled and has been controlled by many factors of modern world events. The OPEC nations, although currently being challenged by the independent oil nations and companies, are still a major economic power whose decisions can effect the well being of the industrialized nations of the world. ';King Oil'; remains a valid hyperbole in the language of business. Its historical political and geographical effects prove it to be a nickname of truth.
Oil is currently trading at $145.29 per barrel as you can see based on the history above witch is out dated to a degree, we will always be traped as long as we depend on foreign oil
(I can't believe I'm going to say this) In some ways they are right. More oil doesn't mean lower price, it just means more profits for the oil companies and more taxes for the government. Do you really think the oil companies will lower their price if there was more oil? I know for a fact they will not. Case in point, Exxon just got a very large appeal from having to pay for the Valdiese (sp?) oil spill in Alaska. It went from billions of dollars to millions of dollars but I haven't seen one penny come down in the price of Exxon's gas.
To the oil companies, more oil means more profit and if Obama gets his way, he's going to take those profits away thus driving up the price of gas to $10 or $15 a gallon. How do you like those prices? Personally I don't. I'm voting for McCain.
America has more oil under it's ground than in all of Saudi but there's a $50,000 tax on all new oil wells drilled (thanks to the democrats) and if that well come up with no oil, they lose that $50,000.
You are totally right about a larger supply lowering prices. It would even lower prices in the short term because people investing in the oil market are betting right now that supply will be down in the future. If the market new that this country was serious about drilling, oil would be trading at much lower prices.
The reason for liberals saying that ';we can't drill our way out of this problem'; is because they want to control how we behave. The more people get desperate and demand that congress do something, the more it empowers them. It also helps them in the upcoming elections to have the economy as bad as they can get it.
The speculators everyone is talking about is us. I mean people who have a 401k, mutual funds and pension funds.
Yes you are ! The speculators who buy oil stocks are driving the prices up too ! Supply side economics should chip away at the high prices, but as long as these greedy bastards are making theirs, they don't give a rat's behind about the rest of humanity.
There must be list's of oil speculators. These list's should be made public, and for the rest of us, speculation on the cost of tar and feather's would be a sure bet !
Yes you are missing something, and that is Israel screaming about Iran possibly having a nuclear weapon, and scrambling their planes and threatning to attack. thats why traders are running up the price, there is no shortage now but Iran say's they will cut off supplies to the west if they get attacked. So thats what it is all about, besides if we started drilling more right now it would take years to fill what we get off the world market, we could convert to electric cars faster.
The purpose of government is to control everything that is possibly possible. The oil pricing was already in the works, even before Bush became president.
Politics are for a selected few and the majority will never rule.
who makes decisions?
Who helps who?
Who cares about others?
Even religion cares only for their flock, right?
Families first then whatever happens....
Oil is the gold of the world and it will continue, technology is here to change the scope of oil, but then the gazillionaires will loose a few billions and then they will be sad, so we all must pitch in and help with their lavish lifestyles and never ending harlems... after all they too must set the example for their own children and their childrens children on how to immortalize their justified enrichment...
By the way, is there anyone who knows a good deal on a V-8 super charged for my kid to play in the dunes?
Thanks a lot......
There isn't enough oil to lower the price significantly. Also - what happens when that runs out - you have high oil prices and a ruined environment. Now is the time for renewables.
Yes, increased supply would lower the price of gas. Dick Morris wrote in his new book, Fleeced, that gas prices are high because of speculators.
http://www.americansolutions.com
http://www.dickmorris.com/blog/
I think they need to stop arguing over what might be the right way and just start doin it.I understand we have reserve oil here galore but they wont let us use that at all.It is a mess.
You are not missing anything. Oil companies have decided to defy the rules of economics.
Increased drilling will not lower the cost. It has to do with the value of the dollar that is severely weakened by the FED, they devaluated th currency, we print money without the backing of stable commodities like gold/silver, the more inflated and worthless it will become. It also becomes weaker due to the high overseas spending by Congress, we pay billions a day for the war(s), covert operations, and foreign US military bases we need to sustain, and this inflates the dollar easier, due to the tendency that is is a ';fiat currency';. If we quit paying the wars, withdrew our troops from every single continent, quit dumping the US dollar overseas, quit printing so much money from the Federal Reserve, you wold finally see the Dollar regain its status as a strong currency. Even better, listen to the Founding Fathers' advice: No central bank to take ahold of the currency/economy, only use gold %26amp; silver as legal tender. Soon, if we keep doing the same mistakes we are doing now, you will see the collapse of the Dollar, the economy, and wait in soup line. Before we entered the war with Iraq, oi was about $27 a barrel! Now, we inflated the currency, print too much, we are on the verge of bankruptcy, and we rely on China to pay, while our foreign debt grows to exceed $9 trillion. Take care.
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