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Old 02-24-2011, 07:01 AM
 
29,978 posts, read 18,545,322 times
Reputation: 20748

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Quote:
Originally Posted by lisan23 View Post
There's several problems with the idea that drilling more here in the US will actually lower the price of gas.

First, before the off shore moratorium they were increasing drilling in North Dakota, drilling was steady in Alaska, Texas, and other states where they normally drill for oil, and off shore drilling was increasing. Gas was still easily hitting over $3 a gallon. Clearly, drilling more at home didn't affect gas prices before, therefore there's no reason to think that doing so now would actually change anything.

Second, the price of oil is not determined by supply and demand. Libya imports very little oil to the United States, yet before we could even feel the impact of any shortage of oil coming from Libya (which is highly unlikely that we would) our gas prices were going up.

Third, oil drilled here in the US does not stay in the US. It goes to the world market where it is sold to whoever will pay the most for it.

Fourth, if by some freakish chance an increase in oil actually did make the price of gas lower, drilling companies would slow down the drilling. They've yanked crews off wells before, and they'll continue to do it. If the price drops, they stop drilling as much to try and get the price to go back up.

Even if the off shore moratorium gets lifted, even if we drilled more in the US, it wouldn't lower the price of gas. Our government can't stop the private corporations from not drilling if they feel the price of oil has gotten to low.

Of course. Someone magically refuted the laws of supply and demand and they are no longer valid! I guess someone should tell all those folks buying the corn, soybeans and cotton that the high prices really are not issues of supply and demand and that they should just knock it off!

Supply Up = Prices Down

Keep telling yourself these things. When things don't appear to make sense, usually they don't.
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Old 02-24-2011, 07:05 AM
 
8,377 posts, read 7,333,919 times
Reputation: 8691
Quote:
Originally Posted by shorebaby View Post
Of course, which I explained above.
Sorry, I got interrupted mid-post by someone IRL. By the time I hit the submit button you had already posted.
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Old 02-24-2011, 07:07 AM
 
Location: Hoboken
19,890 posts, read 18,707,565 times
Reputation: 3146
Quote:
Originally Posted by djmilf View Post
Sorry, I got interrupted mid-post by someone IRL. By the time I hit the submit button you had already posted.
Pesky real life!
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Old 02-24-2011, 07:11 AM
 
Location: Sango, TN
24,869 posts, read 24,320,215 times
Reputation: 8672
Quote:
Originally Posted by shorebaby View Post
This could be the silliest thread I have read in some time. Of course increased oil supply decreases price. Who cares were the oil goes? The price of a barrel of oil is the same world wide. Increases in the overall supply of oil lowers the overall price per barrel.

What neither of the above posters seem to grasp is, OPEC manipulates prices by manipulating supply. World commodities markets set the price based on supply. If the US and non OPEC countries contributed more to supply the lass OPEC would be able to influence overall supply.
The problem is that we don't have enough supply to meet the demand, or even increase supply by 10%.

As long as the middle east has a large quantity of oil, the unrest in that part of the world will lead to increased speculation costs, regardless of how much or where we drill.

The answer is to lower our oil needs by 30%. That would increase world oil supplies because we are the single largest importer and user of oil in the world.

Go to electrical on cars, natural gas on trucks, oil for synthetics and the older cars on the road, and increase the use of coal, nuclear, wind, and other alternative electrical resources. Also use oil shale, start building that industry up by giving them the subsidies of the oil companies in the United States already.

Thats not a green answer, thats a sensible response to a problem
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Old 02-24-2011, 07:18 AM
 
Location: The Republic of Texas
78,866 posts, read 46,420,298 times
Reputation: 18520
Quote:
Originally Posted by lisan23 View Post
Changed the word to world market instead free market, my mistake.

Either way... it still doesn't necessarily stay here in the US.

I knew what you meant.

I was referring to the fact supply and demand locally, or even nationally, has nothing to do with world speculation.
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Old 02-24-2011, 07:43 AM
 
Location: Wisconsin
37,883 posts, read 21,972,634 times
Reputation: 13716
Quote:
Originally Posted by EinsteinsGhost View Post
How did you arrive at that conclusion? For example, how long did it take the Niger delta to be destroyed? But more importantly, answer the original question, for how long?
For starters, we aren't Nigeria. The environmentalists are always wanting to stop drilling in and around the US, for the environment, but the truth is we are one of the best countries to drill for oil, because we have protections and regulations in place, and will not pollute the planet as they do in other countries.

For example, 0bama won't let US oil companies drill off our coasts, but China, Cuba, Vietnam, and Mexico will just go ahead and drill those same wells. Who do you think will be be more safe? When these countries have a blown oil well, do you think they will clean it up like BP, Shell or US oil comapnies would?

Secondly, we do have a lot of oil in and around the US, and they are always finding more of it. Its not just oil, its also natural gas that we can capture from those wells. Asking "how long" is a relative question, since it depends on future oil discoveries, and whether or not we go after heavier crude, and not just the light crude.

If we do not drill, then we are subject to the whims of OPEC, and left will whine about the US as being guilty of "plundering the world's resources". You cannot have it both ways, you cannot have a president whine about our dependence on foreign oil, and using and unfair amount of the world's resources, and then preventing us from drilling domestically.

If we drilled at home, we may be able to obtain the vast bulk of our oil from North America, and allied countries, and not be at the whims of the despots and mad men in the Mid East.
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Old 02-24-2011, 07:54 AM
Status: "I'm not MAGA, I'm an American!" (set 21 days ago)
 
Location: Upstate
9,434 posts, read 9,713,535 times
Reputation: 8778
Quote:
Originally Posted by Memphis1979 View Post
The problem is that we don't have enough supply to meet the demand, or even increase supply by 10%.

As long as the middle east has a large quantity of oil, the unrest in that part of the world will lead to increased speculation costs, regardless of how much or where we drill.

The answer is to lower our oil needs by 30%. That would increase world oil supplies because we are the single largest importer and user of oil in the world.

Go to electrical on cars, natural gas on trucks, oil for synthetics and the older cars on the road, and increase the use of coal, nuclear, wind, and other alternative electrical resources. Also use oil shale, start building that industry up by giving them the subsidies of the oil companies in the United States already.

Thats not a green answer, thats a sensible response to a problem
I think everyone can agree with this!
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Old 02-24-2011, 08:00 AM
 
Location: Wisconsin
37,883 posts, read 21,972,634 times
Reputation: 13716
Quote:
Originally Posted by Bostonian123 View Post
I"m not a rich guy but I make enough to get by. I would put my self in right in the middle class income level. The problem with people like you are the shorted sightedness and lack of economic education. The short term rise in gas prices will lead to many long term benefits as the entire economy is forced by the market to adapt by becoming more energy efficient. Many Americans are willing to accept this short term pain to get the long term benefits.
Inflicting real economic pain on low income families, during already brutal economic times, is not a good plan to obtain some vague notion of "long term benefits". The low income family that loses their home, defaults on loans, and destroys their credit rating, not to mention how this affects their children, is not going to be pretty, and certainly will not earn them appreciation of your vague predictions of "long term benefits".
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Old 02-24-2011, 08:18 AM
 
Location: Wasilla, Alaska
17,823 posts, read 23,375,559 times
Reputation: 6541
Quote:
Originally Posted by USNRET04 View Post
I think everyone can agree with this!
You thought wrong.
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Old 02-24-2011, 08:20 AM
 
Location: AL
2,476 posts, read 2,597,896 times
Reputation: 1015
Do people remember when Obumer said..."It is ok for gas to be $5.00 a-gallon".
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