Actually worldwide demand is leveling off. While demand may be on a steady rise in places like China and India. It is declining in other areas of the world to compensate for the increase. From 2005 to 2006 worldwide oil consumption increased by less than 2%. The same applies for the increase from 2006 to 2007. From 2007 to 2008 worldwide gas consumption increased by less than 1%. From January 2007 to January 2008 gas prices went from $50 a barrel to $100 dollar a barrel while the increase in consumption does not warrent that type of price increase. So this myth that gas prices are so high because of this huge increase in global consumption is just that a myth.
I think you under-estimate what China is doing to the prices...take steel for example it has gone through HUGE increases in cost due to the shortage caused by the modernizing of China....oil is going the same way....I do not know your source but I have to respectfully disagree with you....
Plus you are under-estimating the costs of labour, refining, chemicals for refining, construction costs, drilling/completion/servicing, plant/field operator costs that all contrribute to a higher price with oil....if you are correct with the demand....you must look at these factors as well.....oil companies are popping up left and right and therefore demand for quality workers goes hence increasing the cost of final product....seriously I am not forgiving of the oil industry but costs to operate them have sky-rocketed over the past 10 years.....and that is fact....
How about you send us a discounted resource and we will sell it back to you at a premium price....then tell me how you feel about it then....trust me, from looking at your posts and economic savy (yes that is a compliment) if you were in my shoes that dollar figure would not be enough......
Hehe...me thinks that instead of calling Americans "leeches", you might just try building a few more refineries. The same goes for us as well.
Hehe...me thinks that instead of calling Americans "leeches", you might just try building a few more refineries. The same goes for us as well.
Leech is a term and never was intended as being "personal" more a metaphor to describe how our oil is beign sucked from us from a nation that strives for more....more of my anger is towards Canadian business/government men who allow for this leeching to happen.....
Dumb ass Canadian want to make the quick buck instead of the smart buck...trust me I am a proponet of more refineries...been sayingit for years....
Leech is a term and never was intended as being "personal" more a metaphor to describe how our oil is beign sucked from us from a nation that strives for more....more of my anger is towards Canadian business/government men who allow for this leeching to happen.....
Dumb ass Canadian want to make the quick buck instead of the smart buck...trust me I am a proponet of more refineries...been sayingit for years....
Ah...all's forgiven then. We have much the same problem here, in fact.
I think you under-estimate what China is doing to the prices...take steel for example it has gone through HUGE increases in cost due to the shortage caused by the modernizing of China....oil is going the same way....I do not know your source but I have to respectfully disagree with you....
Plus you are under-estimating the costs of labour, refining, chemicals for refining, construction costs, drilling/completion/servicing, plant/field operator costs that all contrribute to a higher price with oil....if you are correct with the demand....you must look at these factors as well.....oil companies are popping up left and right and therefore demand for quality workers goes hence increasing the cost of final product....seriously I am not forgiving of the oil industry but costs to operate them have sky-rocketed over the past 10 years.....and that is fact....
I am sure that operating cost have risen dramatically. My post was to discredit the whole demand is driving the price. Demand is a contributing factor to the price of oil but by no means is it the driving force. Production cost and speculators play a major role in determining the price of oil.
My source for the numbers I posted was a report by the US Energy Commission.
"When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
I am sure that operating cost have risen dramatically. My post was to discredit the whole demand is driving the price. Demand is a contributing factor to the price of oil but by no means is it the driving force. Production cost and speculators play a major role in determining the price of oil.
My source for the numbers I posted was a report by the US Energy Commission.
Yeah I see your point...but like I said do not discredit operating costs....take this for example in a span of three years the cost of welding increased 200% (needed for pipeline/facility/process vessel construction)....the average cost of drilling a deep oil well in my area increased by almost a million dollars in that same span....these trends go right through the industry.....some people under-estimate these factors immensly....but China is passing American for oil consumption...you have the American source but I know China's hunger is increasing at an alarming rate....wait until more oil companies start catering to China over our countries....prices will get worse.....
Yeah I see your point...but like I said do not discredit operating costs....take this for example in a span of three years the cost of welding increased 200% (needed for pipeline/facility/process vessel construction)....the average cost of drilling a deep oil well in my area increased by almost a million dollars in that same span....these trends go right through the industry.....some people under-estimate these factors immensly....but China is passing American for oil consumption...you have the American source but I know China's hunger is increasing at an alarming rate....wait until more oil companies start catering to China over our countries....prices will get worse.....
I'm sure they will. In fact I'm almost hoping they will. It seems that this country doesn't really believe in being pro-active. We decide to wait till the shit hits the fan before we react to any given situation. Maybe when we start seeing gas prices hovering around the $5.00-$6.00 marke the people of this country will start to finally conserve and put more pressure on corporate America to develope viable alternative fuel sources.
"When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
I'm sure they will. In fact I'm almost hoping they will. It seems that this country doesn't really believe in being pro-active. We decide to wait till the shit hits the fan before we react to any given situation. Maybe when we start seeing gas prices hovering around the $5.00-$6.00 marke the people of this country will start to finally conserve and put more pressure on corporate America to develope viable alternative fuel sources.
Yes I like where you are going with those thoughts, I am worried with what I write in this thread because I am not pro big-oil.
However, unlike any corporate business (including my small business that I am opening soon) they have rising costs to deal with to, and quite frankly the end product is gasoline that the majority of people need....I like that you posted a great positive from this debacle, higher prices will hopefully make people learn a hard lesson....good things indeed can come out of all this.
Like I said, too many people (Americans, Canadians, etc.) have been living the past few decades on a product that was under-valuing itself and now we are left with the reprecussions, its just a shame that society today is led more to belief that credit is cash and have inadvertantly created a debt induced culture.....rising gas prices, signing stupid mortgages, "getting in over head", people like myself who prefer to live based on what I can support or provide will not have trouble through this oil crisis....this is a harsh reality for many people....but one that was coming.....
Comments
I think you under-estimate what China is doing to the prices...take steel for example it has gone through HUGE increases in cost due to the shortage caused by the modernizing of China....oil is going the same way....I do not know your source but I have to respectfully disagree with you....
Plus you are under-estimating the costs of labour, refining, chemicals for refining, construction costs, drilling/completion/servicing, plant/field operator costs that all contrribute to a higher price with oil....if you are correct with the demand....you must look at these factors as well.....oil companies are popping up left and right and therefore demand for quality workers goes hence increasing the cost of final product....seriously I am not forgiving of the oil industry but costs to operate them have sky-rocketed over the past 10 years.....and that is fact....
Hehe...me thinks that instead of calling Americans "leeches", you might just try building a few more refineries. The same goes for us as well.
Leech is a term and never was intended as being "personal" more a metaphor to describe how our oil is beign sucked from us from a nation that strives for more....more of my anger is towards Canadian business/government men who allow for this leeching to happen.....
Dumb ass Canadian want to make the quick buck instead of the smart buck...trust me I am a proponet of more refineries...been sayingit for years....
Ah...all's forgiven then. We have much the same problem here, in fact.
I am sure you do and I am sure that it also angers you.....
The US Energy Commission Report
cool, have a link?
I am sure that operating cost have risen dramatically. My post was to discredit the whole demand is driving the price. Demand is a contributing factor to the price of oil but by no means is it the driving force. Production cost and speculators play a major role in determining the price of oil.
My source for the numbers I posted was a report by the US Energy Commission.
Farfromglorified posted a link to the same information.
Yeah I see your point...but like I said do not discredit operating costs....take this for example in a span of three years the cost of welding increased 200% (needed for pipeline/facility/process vessel construction)....the average cost of drilling a deep oil well in my area increased by almost a million dollars in that same span....these trends go right through the industry.....some people under-estimate these factors immensly....but China is passing American for oil consumption...you have the American source but I know China's hunger is increasing at an alarming rate....wait until more oil companies start catering to China over our countries....prices will get worse.....
I'm sure they will. In fact I'm almost hoping they will. It seems that this country doesn't really believe in being pro-active. We decide to wait till the shit hits the fan before we react to any given situation. Maybe when we start seeing gas prices hovering around the $5.00-$6.00 marke the people of this country will start to finally conserve and put more pressure on corporate America to develope viable alternative fuel sources.
Yes I like where you are going with those thoughts, I am worried with what I write in this thread because I am not pro big-oil.
However, unlike any corporate business (including my small business that I am opening soon) they have rising costs to deal with to, and quite frankly the end product is gasoline that the majority of people need....I like that you posted a great positive from this debacle, higher prices will hopefully make people learn a hard lesson....good things indeed can come out of all this.
Like I said, too many people (Americans, Canadians, etc.) have been living the past few decades on a product that was under-valuing itself and now we are left with the reprecussions, its just a shame that society today is led more to belief that credit is cash and have inadvertantly created a debt induced culture.....rising gas prices, signing stupid mortgages, "getting in over head", people like myself who prefer to live based on what I can support or provide will not have trouble through this oil crisis....this is a harsh reality for many people....but one that was coming.....