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It will have a very, very minimal impact. You need to understand the global demand to know why this is the case. When you understand that China and India together have almost ten times the population of the United States and yet use about 1/13th of the oil on a per capita basis...well, do the math. What do you think happens to global oil demand as their economies improve - even if just slightly? Where is the United States going to come up with double, triple, or quadruple its available oil in the next five, ten, or fifteen years? We might be self-reliant -- if we were to stipulate that U.S. oil could not be traded on the global market, but that would spark a trade war. In short, the fantasies about drilling for more oil are just that, fantasies.
So when Iran slows oil production or OPEC says they plan to lower production, or a hurricane takes out oil rigs in the US, or we have a president who is hostile to oil production, then none of these have any effect on oil speculation? Our president is a hindrance to oil production, and it most certainly affects the way investors speculate on future oil production.
For example, no one knows what the hell the future for the Keystone pipeline will be, so they are not counting that oil as entering into the world market. Thanks to Obama.
By appointing an Energy Sec. that hates oil and coal and pretty much all fossil fuels. When Chu stated at a congressional hearing that his duty was not to ensure that he keep oil and gas prices low, Obama should have fired him.
When Chu stated that we needed to find a way to inflate US gasoline prices to match the $10/gal range of gas prices in Europe, before 2009, Obama should not even have nominated him.
You would have to be blind, deaf and stupid partisan hack, not to have seen or heard Obama bash the hell out of oil companies all throughout his presidency. Even now, Obama wants to strip federal tax deferments for the small independent oil companies.
You are missing the point, Obama is hostile to oil, his entire administration is hostile to it, how can this NOT affect the upward price speculation of future oil markets??
No, you're missing the point. If you say that the president is "hostile" to oil, then that requires proof that is backed up with actual policies that act as proof of your claim. There is no such proof.
The price of oil went up the same way in 2008 -- under a sitting president and vice president with heavy, heavy ties to the oil industry. You cannot possibly get any more favorable toward the oil industry than Bush and Cheney -- and yet the prices in the summer of 2008 were actually higher. Why don't you explain how that hostility thing works, professor? Or better yet...stop pulling unsubstantiated opinions out of your .... you know.
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When any president is hostile to new oil production it creates a factor to help increases in oil prices. Obama's hostile attitude towards oil is no different then if OPEC announced it planned to engage in less oil production in the future, or if Iran did some more sabre rattling.
Actually there's a big difference. OPEC shutting down production actually does mean less supply in the future to keep up with future demand. And coming from the organization that controls as much as half of all proven reserves, that means something. A president who actually sits on camera and chuckles about $5/gallon gasoline is a one-term president. I know you think Obama's stupid but if were that stupid do you think he would have gotten elected the first time around?
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I'm interested in a president and an Energy Department Secretary that have energy policies, with a priority that seeks to ensure the US has a plentiful supply of cheap energy. Instead we have an Energy Secretary who says his job is not to see to it that gasoline and oil prices are cheap, so when prices spike, we can blame them for it because they don't give a rat's ass if they are high. Does that help you understand our angst for the president and his admin?
Uh, no, not when the administration is actually increasing the supply of domestic oil -- that tanks your entire argument right there.
It will have a very, very minimal impact. You need to understand the global demand to know why this is the case. When you understand that China and India together have almost ten times the population of the United States and yet use about 1/13th of the oil on a per capita basis...well, do the math. What do you think happens to global oil demand as their economies improve - even if just slightly? Where is the United States going to come up with double, triple, or quadruple its available oil in the next five, ten, or fifteen years? We might be self-reliant -- if we were to stipulate that U.S. oil could not be traded on the global market, but that would spark a trade war. In short, the fantasies about drilling for more oil are just that, fantasies.
The magnitude of the impact is unknown. It will certainly be greater than zero, and possibly great. Increased production from a stable country decreases risk and decreases volatility.
So when Iran slows oil production or OPEC says they plan to lower production, or a hurricane takes out oil rigs in the US, or we have a president who is hostile to oil production, then none of these have any effect on oil speculation?
If Iran slows oil production, that has a tangible effect on the market. There's actually less oil physically available.
If OPEC slows oil production, there's physically less oil available on the market. Tangible market effect.
If a hurricane takes out oil rigs, there's less oil physically available on the market. Market economies are based on known or assumed supply (based on actual evidence not political @sshattery) and the anticipated demand.
"A president who is hostile to oil production"....is a very vague opinion that requires definition. It also requires evidence. You have provided neither a definition of "hostile" (beyond your unsubstantiated rants) nor have you provided any evidence that Obama has plans to make oil physically more scarce than it is now.
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Our president is a hindrance to oil production, and it most certainly affects the way investors speculate on future oil production.
He is producing more. Moreover, he is also expanding the exploration of natural gas and alternative energy sources, all of which are consumable even now. Your argument has nothing behind it expect partisan trollery.
Supplies are guaranteed to be a problem in the future, but not today. We have more than enough supplies, so much so that oil is something we're exporting today. Isn't that why "conservative" mouthpiece like O'Reilly promoted the idea of imposing an export tax on oil?
The magnitude of the impact is unknown. It will certainly be greater than zero, and possibly great. Increased production from a stable country decreases risk and decreases volatility.
You're just wrong. It's known by people who know a lot more about this stuff than you and I. The oil prices are going up precisely for this reason -- and also because of rampant speculation. Again, the Fed knows about this; Lehman knows about this; and I'm sure other banks and financial institutions know this as well. Your continued banging on about Obama might make you feel better, but trust me, you're not helping yourself or anyone else pay less at the pump. Only being an informed voter can change that. Oil and markets have no political party affiliation.
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hmm...
