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Old 11-14-2007, 06:24 AM
 
Location: Maryland's 6th District.
8,357 posts, read 25,231,290 times
Reputation: 6541

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Quote:
Originally Posted by 399083453 View Post
Another issue why gas is so expensive is the dollar is loosing value. The europeans are only paying $60 a barrel while we pay $90 per barrel simply because their money is worth more. Just something to ponder....
You have got to be kidding me? Europeans pay less!?! Dude, Europeans pay by the liter not the gallon (1 gallon = about 3.7 liters). The end result, they are paying up to twice as much depending on the country.
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Old 11-14-2007, 07:13 AM
 
1,594 posts, read 4,094,896 times
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Quote:
Originally Posted by forest beekeeper View Post
You are incorrect.

We are pumping larger amounts of oil, we are 'discovering' new oil fields, and mor eoil is becoming available.
FB, I'm sorry, but you're wrong. World oil production in August 2006 was 85.2 million barrels a day. In August 2007 it was 83.9 million barrels a day.

EIA - International Energy Data and Analysis

Last month OPEC announced with great fanfare its decision to increase production by 500,000 bpd. A week a later UAE announced it was taking 500,000 bpd offline for maintenance. What a coincidence.

The "new" fields being discovered are as a rule way over-hyped. The new discovery Mexico announced in the Gulf a month or so after the decline of its Canterell supergiant field was revealed has turned into a dry hole. Brazil recently announced a huge new field in ultra-deep water, but the most optimistic forecasts say it may produce a million bpd in another ten years or so -- after the technology is invented to exploit it. By then it will barely slow the already existing decline, although it may well make Brazil a superpower for a few years if Brazil's leaders are smart enough to keep it for the country's benefit, and if they can hold onto it.

People blame speculation and the decline in the value of the dollar for the increase in oil prices, but those factors are only minor compared to the real reason -- supply and demand. Demand is increasing daily, while supply is decreasing. Think about this: Just the increase in China's oil consumption between 2003 and today is equal to Japan's entire annual oil consumption.
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Old 11-14-2007, 07:16 AM
 
1,594 posts, read 4,094,896 times
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Quote:
Originally Posted by K-Luv View Post
You have got to be kidding me? Europeans pay less!?! Dude, Europeans pay by the liter not the gallon (1 gallon = about 3.7 liters). The end result, they are paying up to twice as much depending on the country.
Europeans are paying less in real-dollar terms for a barrel of oil, although I think the $60 figure is dated. It's more in the upper 80s now, I believe. The reason their fuel costs are so much higher than ours is taxes. Britain finances its national health care system with fuel taxes, for example. Fuel taxes throughout Europe are much, much higher than those in the United States and account for their higher fuel prices. Without the taxes, prices would be comparable.
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Old 11-14-2007, 07:32 AM
 
Location: Forests of Maine
37,443 posts, read 61,352,754 times
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Quote:
Originally Posted by Coaster View Post
FB, I'm sorry, but you're wrong. World oil production in August 2006 was 85.2 million barrels a day. In August 2007 it was 83.9 million barrels a day.
I thought I just heard in the news about a HUGE oil discovery in Brazil.
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Old 11-14-2007, 08:17 AM
 
4,567 posts, read 10,650,140 times
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Quote:
Originally Posted by K-Luv View Post
You have got to be kidding me? Europeans pay less!?! Dude, Europeans pay by the liter not the gallon (1 gallon = about 3.7 liters).
Nope. At the pumps the consumers pay by the liter, but oil is measured in barrels and sold in us dollars. The consumers also pay more because gas has higher taxes than the usa, but most of these countries also have free healthcare paid for by these taxes.

The us dollar is worth much less than a euro. For europe to buy oil they have to first convert it into a us dollar then buy it.

Todays rates:
1 US Dollar = 1.46 Euro

Barrel of oil = $92 USD
Barrel of oil sold to USA = $92
Barrel of oil sold to Europe = $62.58

Its kinda like when we used to visit Canada to take advantage of the exchange rate to buy more stuff cheap.
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Old 11-14-2007, 08:35 AM
 
1,594 posts, read 4,094,896 times
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Quote:
Originally Posted by forest beekeeper View Post
I thought I just heard in the news about a HUGE oil discovery in Brazil.
That's the field I referenced in my post:

"Brazil recently announced a huge new field in ultra-deep water, but the most optimistic forecasts say it may produce a million bpd in another ten years or so -- after the technology is invented to exploit it. By then it will barely slow the already existing decline, although it may well make Brazil a superpower for a few years if Brazil's leaders are smart enough to keep it for the country's benefit, and if they can hold onto it."

The Tupi field contains between 5 billion and 8 billion barrels, but it's also under 7,060 feet of water, almost 10,000 feet of sand and rocks, and then another 6,600-foot thick layer of salt. It will take years to develop the field commercially, if further testing reinforces the preliminary estimates. Brazil is currently a very low net exporter (about 550,000 bpd, I think), and domestic demand is increasing rapidly. So I wouldn't be surprised to see all of Tupi's oil reserved for Brazilian use rather than the export market.

Edited to add: I misspoke (miswrote?) in an earlier post when I said the Tupi field may produce a million barrels a day. Current estimates call for a max production of 100,000 barrels a day.

Last edited by Coaster; 11-14-2007 at 09:49 AM.. Reason: corrected information
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Old 11-14-2007, 08:38 AM
 
2,133 posts, read 5,874,924 times
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I have to say, the one good thing about being out here in WI is the ability to heat with natural gas. Less expensive, clean, quiet, and best of all no oil truck backing into the driveway every 3-4 weeks. Our budget payment is $75 per month and that includes our electric bill as well since one company delivers both. Can't beat that price!
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Old 11-14-2007, 08:39 AM
 
1,594 posts, read 4,094,896 times
Reputation: 1098
Quote:
Originally Posted by 399083453 View Post
The us dollar is worth much less than a euro. For europe to buy oil they have to first convert it into a us dollar then buy it.

Todays rates:
1 US Dollar = 1.46 Euro

Barrel of oil = $92 USD
Barrel of oil sold to USA = $92
Barrel of oil sold to Europe = $62.58

Its kinda like when we used to visit Canada to take advantage of the exchange rate to buy more stuff cheap.
Shouldn't that be 62.58 Euros, not dollars?
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Old 11-14-2007, 10:48 PM
 
Location: Learnifying me some good at UMaine at Fort Kent
306 posts, read 1,036,240 times
Reputation: 189
I drive to Portland 5 days a week for class. Its about a solid 45 minutes away. Then 45 minutes back. Then to Brunswick for work which takes 25. then 25 back. I drive a small car to save money on gas. It gets about 35 MPG.

I am now spending over 100 dollars a week on gas. As a college student working a crappy part time job this is tough as hell. I am insainly budgeted and am considering moving to Portland just to save money and time.
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