I said cheap oil. There is a differance. The cost of getting oil out of the ground is going up and up. That will not change.
Bringing down the cost of oil will only perpetuate the inefficiant energy waisting world we live in. And will only serve to put off into the future the end of the oil age.
It is almost like your wishing for a 1980s event and somebody is going to rescue the US with the gift of cheap oil.
there still might be cheap oil to be found. if large reserves are found. oil companies will find a "cheap" way to get it out of the ground. you arent much a realist. but I'm with you, I want an end to the oil age as well. just dont see it happening anytime soon. there are no viable alternatives
ugh. oil is a scarce natural resource and when it is burned it creates a giant externality. it's supposed to be expensive. ride a bike.
lol I do ride a bike. hell, I dont even own a car. but the high price of oil has a overall negative effect on the american economy. so like I said, I'll take any news that will bring down the price of oil.
there still might be cheap oil to be found. if large reserves are found.
Even if there was (which is highly unlikely) the price still wouldn't go down. The demand is continously rising and it won't get better anytime soon. The days of cheap oil are far behind us and I just hope we find realistic alternatives soon.
Even if there was (which is highly unlikely) the price still wouldn't go down. The demand is continously rising and it won't get better anytime soon. The days of cheap oil are far behind us and I just hope we find realistic alternatives soon.
more supply, less the price. basic economics. and at this point, there is room to fall. its at all time highs.
more supply, less the price. basic economics. and at this point, there is room to fall. its at all time highs.
that isnt basic economics and youre making yourself look really uneducated...
the more supply of oil doesnt necessarily mean the lesser the price when oil is the middle man of war... you arent taking that factor into your thinking.... your thinking of ecnomics domestically... i can understand your confusion, however
Wonder how quickly we'll start to buddy up to them.
If we are fighting this war for oil why are we still paying $115/ barrell for it. Been involved for five years and have not reaped a penny from it. Doesn't seem like its over oil.
If we are fighting this war for oil why are we still paying $115/ barrell for it. Been involved for five years and have not reaped a penny from it. Doesn't seem like its over oil.
Te invasion of Iraq is over oil.. but it doesnt mean we were invading to ship the oil over here. but we do have control of it ..there are aother middle east countries who are watching over it to.
that oil is in an unstable region..you cant just drive oil out of there into france than over seas.. shits being blown up.
and also... More oil supply will most likely have the price going up.
Te invasion of Iraq is over oil.. but it doesnt mean we were invading to ship the oil over here. but we do have control of it ..there are aother middle east countries who are watching over it to.
that oil is in an unstable region..you cant just drive oil out of there into france than over seas.. shits being blown up.
and also... More oil supply will most likely have the price going up.
How do you figure that more supply will have price go up? Just curious as to what your school of economic thought is.
By the way we import way more from Canada and Mexico than we do from OPEC or anywhere else for that matter
How do you figure that more supply will have price go up? Just curious as to what your school of economic thought is.
By the way we import way more from Canada and Mexico than we do from OPEC or anywhere else for that matter
that isnt in reply to me right.. because i understand that most of our oil isnt from the middle east.
also... youve got to take your mind out of our domestic ecnomic system... its not the case world wide.. OPEC cant even enter u.s. soil because they are an illegal cartel..
and if you notice.. oil goes up when the region becomes more unstable regardless of the supply or demand... americans are willing to pay almost anything for gas (nothing has been proven otherwise) so it is going to continue to rise and it willr egardless of how much oil is obtained... with no legal competition.. domestic ecnomics should be lef tout of the thinking... its simply not the case here.. there are many reasons im sure the oil price is rising
that isnt in reply to me right.. because i understand that most of our oil isnt from the middle east.
also... youve got to take your mind out of our domestic ecnomic system... its not the case world wide.. OPEC cant even enter u.s. soil because they are an illegal cartel..
and if you notice.. oil goes up when the region becomes more unstable regardless of the supply or demand... americans are willing to pay almost anything for gas (nothing has been proven otherwise) so it is going to continue to rise and it willr egardless of how much oil is obtained... with no legal competition.. domestic ecnomics should be lef tout of the thinking... its simply not the case here.. there are many reasons im sure the oil price is rising
Sure i understand that world demand is driving oil prices, but the statement that greater supply will lead to higher prices is economic stupidity. The price is high right now because we consume more oil than we produce(shortage). Now why would an oil field discovery in Brazil, or even if drilling started in Alaska still raise prices, if anything that lowers prices.
Granted Opec limits their output to keep prices up, new oil finds here would certainly drive down the GLOBAL price of oil. If The oil sands in the U.S. and Canada are eventually tapped prices could fall back to 60-80 range which is still historically high but much better. These shale oil reserves will double the output of what the Saudi produce.
Sure i understand that world demand is driving oil prices, but the statement that greater supply will lead to higher prices is economic stupidity. The price is high right now because we consume more oil than we produce(shortage). Now why would an oil field discovery in Brazil, or even if drilling started in Alaska still raise prices, if anything that lowers prices.
Granted Opec limits their output to keep prices up, new oil finds here would certainly drive down the GLOBAL price of oil. If The oil sands in the U.S. and Canada are eventually tapped prices could fall back to 60-80 range which is still historically high but much better. These shale oil reserves will double the output of what the Saudi produce.
i think your thinking is shaded... i guess its cool to pretend corruption doesnt exist but... you said yourself... its economic stupidity... and your right... but is that saying it isnt going to happen... oil has been running out since day one... and the price has gone up
more supply, less the price. basic economics. and at this point, there is room to fall. its at all time highs.
you fail at economics then. Because while more supply at a constant demand lowers the price, more supply with more demand isn't generally met with low prices. Especially for vital goods like oil.
Not to stray too far off topic but I was just looking at a chart of the increase of the price per barrel of oil from 1996 to today. I understand the whole supply and demand and how that affects the market, but can we honestly say that supply and demand is the sole reason, or even the major reason, why the price of oil has skyrocketed from a medium of $20.00 a barrel in 1996 to over $110.00 today.
I find it hard to believe that the global consumption of oil has increased to the point where the price of a barrel increased by over 500% in the span of 11+ years.
A report, published by the Worldwide Institute, showed that oil consumption increase by a little less than 1% from 2006 to 2007. The two previous years the increase was less than 2% for each year. Even despite the relative slow increase in consumption the price of oil increase by 100% in 2007 alone, the price of oil in January 2007 was $50.00 a barrell by yaers end it was $100.00.
So if demand is not increasing at a high rate, but by recent figures seems to be leveling off, then why is the cost of oil continuing to increase at such a high rate?
"When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
i think your thinking is shaded... i guess its cool to pretend corruption doesnt exist but... you said yourself... its economic stupidity... and your right... but is that saying it isnt going to happen... oil has been running out since day one... and the price has gone up
There would be nothing corrupt about drilling in Alaska. I know what you are saying though. New oil finds would lead to temporary short run decline in oil prices, but one that find is tapped out oil will trend even higher in the long run. That is a way to look at it.
But then there was this bet between an environmentalist(erlich?) and an economist(julian simon)
Erlich bet simon that a basket of five commodities price would rise dramatically over a decade because of world demand, Simon said that the price would drop inflation adjusted of course. Bet was $10,000. Simon ended up winning the bet as more of commodities were discovered as time went by, loweing prices. If they followed the bet over the next decade Simon woul've won again. I always found that interesting.
Not to stray too far off topic but I was just looking at a chart of the increase of the price per barrel of oil from 1996 to today. I understand the whole supply and demand and how that affects the market, but can we honestly say that supply and demand is the sole reason, or even the major reason, why the price of oil has skyrocketed from a medium of $20.00 a barrel in 1996 to over $110.00 today.
I find it hard to believe that the global consumption of oil has increased to the point where the price of a barrel increased by over 500% in the span of 11+ years.
A report, published by the Worldwide Institute, showed that oil consumption increase by a little less than 1% from 2006 to 2007. The two previous years the increase was less than 2% for each year. Even despite the relative slow increase in consumption the price of oil increase by 100% in 2007 alone, the price of oil in January 2007 was $50.00 a barrell by yaers end it was $100.00.
So if demand is not increasing at a high rate, but by recent figures seems to be leveling off, then why is the cost of oil continuing to increase at such a high rate?
I hear some analysts say that 30% of the price of oil is attributed to speculators.
Not to stray too far off topic but I was just looking at a chart of the increase of the price per barrel of oil from 1996 to today. I understand the whole supply and demand and how that affects the market, but can we honestly say that supply and demand is the sole reason, or even the major reason, why the price of oil has skyrocketed from a medium of $20.00 a barrel in 1996 to over $110.00 today.
I find it hard to believe that the global consumption of oil has increased to the point where the price of a barrel increased by over 500% in the span of 11+ years.
A report, published by the Worldwide Institute, showed that oil consumption increase by a little less than 1% from 2006 to 2007. The two previous years the increase was less than 2% for each year. Even despite the relative slow increase in consumption the price of oil increase by 100% in 2007 alone, the price of oil in January 2007 was $50.00 a barrell by yaers end it was $100.00.
So if demand is not increasing at a high rate, but by recent figures seems to be leveling off, then why is the cost of oil continuing to increase at such a high rate?
this is exactly why using domestic economic principles is wrong when talking about why the price is rising..
oil is higher than milk.. its higher than tobacco... its HIGHER THAN WATER...
this is why all ecnomics aside... you will pay what they tell you to pay.. and we obey... its as simple as that folks.. no amount of bending or domestic econmic reasoning is going to change it... its no conspiracy... ITS MONEY
this is exactly why using domestic economic principles is wrong when talking about why the price is rising..
oil is higher than milk.. its higher than tobacco... its HIGHER THAN WATER...
this is why all ecnomics aside... you will pay what they tell you to pay.. and we obey... its as simple as that folks.. no amount of bending or domestic econmic reasoning is going to change it... its no conspiracy... ITS MONEY
Isn't it crazy that milk is actually the same price per gallon as gasoline. in some senses more. Its just that there are many substitutes to milk and no viable ones to gas.
more supply, less the price. basic economics. and at this point, there is room to fall. its at all time highs.
the problem is refined oil. There is plenty of crude. I think the US closed something like 24 refineries since the 80's-intentionally bringing the supply down, raising prices. Opec is in on the scam too.
And who exactly are the speculators? Oil companies, market analysts, etc...
Energy traders on the floors of the futures markets, what need do they have for thousands of barrels of light sweet crude?
I can see some shipping businesses trying to hedge costs on oil, but when traders are buying these contracts solely to make a buck those are the speculators
Energy traders on the floors of the futures markets, what need do they have for thousands of barrels of light sweet crude?
I can see some shipping businesses trying to hedge costs on oil, but when traders are buying these contracts solely to make a buck those are the speculators
Those shipping companies need someone to trade those futures contracts with. Its a double edge sword. They shipping companies need the futures for cost balancing and the traders are needed to make that happen.
I like to see this world institute study that says oil demand has only gone up 1% Basic Logic sayes that study is bunk. But since I have not seen it I can not say forsure.
I hate quotations. Tell me what you know.
~Ralph Waldo Emerson~
Energy traders on the floors of the futures markets, what need do they have for thousands of barrels of light sweet crude?
I can see some shipping businesses trying to hedge costs on oil, but when traders are buying these contracts solely to make a buck those are the speculators
So in short Traders on the futures exchange are inflating the price of oil in order to increase their profit.
"When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
Those shipping companies need someone to trade those futures contracts with. Its a double edge sword. They shipping companies need the futures for cost balancing and the traders are needed to make that happen.
I like to see this world institute study that says oil demand has only gone up 1% Basic Logic sayes that study is bunk. But since I have not seen it I can not say forsure.
Two types of traders in the energy markets hedgers and speculators. The pure speculators make greater price swings in the markets. They buy the contracts and NEVER hold them to the expiration date. They are constanly flipping them making greater fluctuations. The hedgers will buy the contracts and recieve the oil on a specified date. Hedgers are legit. speculaors are just trying to make a buck for themselves.
Those shipping companies need someone to trade those futures contracts with. Its a double edge sword. They shipping companies need the futures for cost balancing and the traders are needed to make that happen.
I like to see this world institute study that says oil demand has only gone up 1% Basic Logic sayes that study is bunk. But since I have not seen it I can not say forsure.
It was actually an article and the facts where provided by the EIA, Energy Information Administration, which is basically the Office of Energy Statistics for the US government. Oil consumption has not gone down but it is leveling off.
"When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
So in short Traders on the futures exchange are inflating the price of oil in order to increase their profit.
To some degree they are. If they THINK the price of oil will rise they will buy the contracts and then try to sell them at a higher price, none of that is based on any supply or demand numbers, many of these contracts are traded months in advance sometimes a year.
That is just a portion of what is built into the price of oil
To some degree they are. If they THINK the price of oil will rise they will buy the contracts and then try to sell them at a higher price, none of that is based on any supply or demand numbers, many of these contracts are traded months in advance sometimes a year.
That is just a portion of what is built into the price of oil
I was also reading something about off-shore traders, over the counter as they where called in the article, that do not fall under the jurisdiction of the regulations commision. The article mentioned how they greatly influence the price of gas because they are not restricted by the rules that traders on the Commodities Exchange are.
"When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
that isnt basic economics and youre making yourself look really uneducated...
the more supply of oil doesnt necessarily mean the lesser the price when oil is the middle man of war... you arent taking that factor into your thinking.... your thinking of ecnomics domestically... i can understand your confusion, however
YOUR DEAD WRONG
the laws of supply and demand don't change. sorry pal
Comments
there still might be cheap oil to be found. if large reserves are found. oil companies will find a "cheap" way to get it out of the ground. you arent much a realist. but I'm with you, I want an end to the oil age as well. just dont see it happening anytime soon. there are no viable alternatives
ugh. oil is a scarce natural resource and when it is burned it creates a giant externality. it's supposed to be expensive. ride a bike.
lol I do ride a bike. hell, I dont even own a car. but the high price of oil has a overall negative effect on the american economy. so like I said, I'll take any news that will bring down the price of oil.
Even if there was (which is highly unlikely) the price still wouldn't go down. The demand is continously rising and it won't get better anytime soon. The days of cheap oil are far behind us and I just hope we find realistic alternatives soon.
more supply, less the price. basic economics. and at this point, there is room to fall. its at all time highs.
that isnt basic economics and youre making yourself look really uneducated...
the more supply of oil doesnt necessarily mean the lesser the price when oil is the middle man of war... you arent taking that factor into your thinking.... your thinking of ecnomics domestically... i can understand your confusion, however
YOUR DEAD WRONG
Te invasion of Iraq is over oil.. but it doesnt mean we were invading to ship the oil over here. but we do have control of it ..there are aother middle east countries who are watching over it to.
that oil is in an unstable region..you cant just drive oil out of there into france than over seas.. shits being blown up.
and also... More oil supply will most likely have the price going up.
How do you figure that more supply will have price go up? Just curious as to what your school of economic thought is.
By the way we import way more from Canada and Mexico than we do from OPEC or anywhere else for that matter
that isnt in reply to me right.. because i understand that most of our oil isnt from the middle east.
also... youve got to take your mind out of our domestic ecnomic system... its not the case world wide.. OPEC cant even enter u.s. soil because they are an illegal cartel..
and if you notice.. oil goes up when the region becomes more unstable regardless of the supply or demand... americans are willing to pay almost anything for gas (nothing has been proven otherwise) so it is going to continue to rise and it willr egardless of how much oil is obtained... with no legal competition.. domestic ecnomics should be lef tout of the thinking... its simply not the case here.. there are many reasons im sure the oil price is rising
Sure i understand that world demand is driving oil prices, but the statement that greater supply will lead to higher prices is economic stupidity. The price is high right now because we consume more oil than we produce(shortage). Now why would an oil field discovery in Brazil, or even if drilling started in Alaska still raise prices, if anything that lowers prices.
Granted Opec limits their output to keep prices up, new oil finds here would certainly drive down the GLOBAL price of oil. If The oil sands in the U.S. and Canada are eventually tapped prices could fall back to 60-80 range which is still historically high but much better. These shale oil reserves will double the output of what the Saudi produce.
i think your thinking is shaded... i guess its cool to pretend corruption doesnt exist but... you said yourself... its economic stupidity... and your right... but is that saying it isnt going to happen... oil has been running out since day one... and the price has gone up
you fail at economics then. Because while more supply at a constant demand lowers the price, more supply with more demand isn't generally met with low prices. Especially for vital goods like oil.
I find it hard to believe that the global consumption of oil has increased to the point where the price of a barrel increased by over 500% in the span of 11+ years.
A report, published by the Worldwide Institute, showed that oil consumption increase by a little less than 1% from 2006 to 2007. The two previous years the increase was less than 2% for each year. Even despite the relative slow increase in consumption the price of oil increase by 100% in 2007 alone, the price of oil in January 2007 was $50.00 a barrell by yaers end it was $100.00.
So if demand is not increasing at a high rate, but by recent figures seems to be leveling off, then why is the cost of oil continuing to increase at such a high rate?
There would be nothing corrupt about drilling in Alaska. I know what you are saying though. New oil finds would lead to temporary short run decline in oil prices, but one that find is tapped out oil will trend even higher in the long run. That is a way to look at it.
But then there was this bet between an environmentalist(erlich?) and an economist(julian simon)
Erlich bet simon that a basket of five commodities price would rise dramatically over a decade because of world demand, Simon said that the price would drop inflation adjusted of course. Bet was $10,000. Simon ended up winning the bet as more of commodities were discovered as time went by, loweing prices. If they followed the bet over the next decade Simon woul've won again. I always found that interesting.
I hear some analysts say that 30% of the price of oil is attributed to speculators.
this is exactly why using domestic economic principles is wrong when talking about why the price is rising..
oil is higher than milk.. its higher than tobacco... its HIGHER THAN WATER...
this is why all ecnomics aside... you will pay what they tell you to pay.. and we obey... its as simple as that folks.. no amount of bending or domestic econmic reasoning is going to change it... its no conspiracy... ITS MONEY
And who exactly are the speculators? Oil companies, market analysts, etc...
I can see some shipping businesses trying to hedge costs on oil, but when traders are buying these contracts solely to make a buck those are the speculators
Those shipping companies need someone to trade those futures contracts with. Its a double edge sword. They shipping companies need the futures for cost balancing and the traders are needed to make that happen.
I like to see this world institute study that says oil demand has only gone up 1% Basic Logic sayes that study is bunk. But since I have not seen it I can not say forsure.
~Ralph Waldo Emerson~
The Tie-Dye Lady is HOT!!!
So in short Traders on the futures exchange are inflating the price of oil in order to increase their profit.
It was actually an article and the facts where provided by the EIA, Energy Information Administration, which is basically the Office of Energy Statistics for the US government. Oil consumption has not gone down but it is leveling off.
That is just a portion of what is built into the price of oil
I was also reading something about off-shore traders, over the counter as they where called in the article, that do not fall under the jurisdiction of the regulations commision. The article mentioned how they greatly influence the price of gas because they are not restricted by the rules that traders on the Commodities Exchange are.
the laws of supply and demand don't change. sorry pal
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