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Global Oil Reserves Tapped in Effort to Cut Cost at Pump

Discussion in 'Sports and News' started by YankeeFan, Jun 23, 2011.

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  1. dixiehack

    dixiehack Well-Known Member

    If the government wants to make a real difference, build and run some refineries.
     
    dixiehack, Jun 23, 2011
    #25
  2. Boom_70

    Boom_70 Well-Known Member

    But that won't drive down price of a barrel of oil. Could drive it up if gas is in greater supply due to more refineries.
     
    Boom_70, Jun 23, 2011
    #26
  3. Liut

    Liut Well-Known Member

    Awesome
     
    Liut, Jun 23, 2011
    #27
  4. Tarheel316

    Tarheel316 Well-Known Member

    Well said.
     
    Tarheel316, Jun 23, 2011
    #28
  5. YankeeFan

    YankeeFan Well-Known Member

    Which is why I wrote this just the other day on another thread:



    A little new oil hitting the market and a signal that additional new oil could hit the market dropped global prices by over 5% today.

    It would have dropped more than 10% if he announced we were also opening new drilling in the Gulf or in ANWAR.
     
    YankeeFan, Jun 23, 2011
    #29
  6. The Big Ragu

    The Big Ragu Moderator Staff Member

    FYI, Oil futures are going to be barely affected by this beyond a short-term blip, which might have been measured in hours, and may pass its way through the market entirely by the end of today.

    This has little impact on supply, and demand is what it is going to be.

    Watch the dollar. If it trades low, the price of oil will go up. Oil is priced in dollars globally, and we have been devaluing the dollar like mad. Politicians can blame the price on speculation--it's a faceless scapegoat--but it's their fiscal and monetary policy that has given oil a floor. They have shit all over the dollar to try to inflate away their debt, and this is the side effect.

    Then watch world economic growth. If signals are that there is going to be growth in places of significance -- the U.S., Western Europe, China and various emerging markets -- oil will trade higher. More demand, equals higher prices. If we are mired in another recession or sideways growth, oil will muddle along not much different from where it is currently trading.

    These are the facts: There is a limited supply of oil, no new known reserves and as the last OPEC meeting proved (and I said this on here several times before then), OPEC has no ability to drill any more than it already is. They have tapped all their reserves, and they lie when they pretend they can control how much they pump. They are pumping everything they can.

    So with a pretty much fixed supply, the price is going to be a function of demand. If the global economy heats up, the price will go up. If it stays in the doldrums, it will stay in the range it has been. It certainly isn't going to go significantly lower.

    Speculation has nothing to do with any of that.
     
    The Big Ragu, Jun 24, 2011
    #30
  7. hondo

    hondo Well-Known Member

    Or embrace drilling in the U.S. the same way Obama embraces Brazil doing some drilling.
     
    hondo, Jun 24, 2011
    #31
  8. hondo

    hondo Well-Known Member

    You say they're lying about their reserves and how much they can or can't pump. Can you cite some sources to back up that contention? OPEC seems to be the experts. What expertise do you have for the many claims you made in that post? In other words, show your work.
     
    hondo, Jun 24, 2011
    #32
  9. WS

    WS Member

    Pretty safe to say the sharp rise in gas/oil prices this spring contributed to the shittiness of this summer's economy, plus all the furloughs/layoffs, etc., because everything's way more expensive to transfer around because of higher gas prices.

    If gas was $2.60/gallon in January, and $3.80 per gallon and higher in early June, does anyone think the oil supply worldwide dropped that much over the past few months to necessitate that price spike?

    No, it's because like someone said earlier in the thread, speculators were playing monopoly on our behalf.
     
    WS, Jun 24, 2011
    #33
  10. Michael_ Gee

    Michael_ Gee Well-Known Member

    Look, if Presidents of the U.S. are going to be held accountable politically for gasoline prices, and they are, since it's one of the most important economic indicators in the minds of voters, then Presidents, Democrat, Republican or Prohibitionist, are going to take actions to manipulate those prices. Expect future Presidents to take FAR more dramatic actions than this little move. A military protectorate of Saudi Arabia? We have an unofficial one now, why not?
    The idea that our country faces COMPETITION for the exploitation of the world's natural resources is so far beyond the imagination of the average voter as to be incomprehensible to him/her. And what people don't understand makes them frightened and angry.
     
    Michael_ Gee, Jun 24, 2011
    #34
  11. Bubbler

    Bubbler Well-Known Member

    Which makes it all the more mystifying that average voters are reluctant to embrace alternate forms of energy or the R&D it takes to develop them.

    To me, any option that keeps us from being beholden to oil prices is a viable one, including and especially nuclear energy to power the grid and other infrastructure, like a good high-speed rail system.
     
    Bubbler, Jun 24, 2011
    #35
  12. Boom_70

    Boom_70 Well-Known Member

    But even alternative energy need fossil fuel to produce. Look at ethanol.
     
    Boom_70, Jun 24, 2011
    #36
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