$100 Oil coming soon
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Interesting Tidbit on speculators: http://mises.org/daily/4460
Originally Posted By: BMWTurboDzl
I'm by no means an expert but from my understanding oil is bought and sold on the world markets so the market price is reflective of worldwide demand. Where the oil comes from only addresses supply and remember OPEC quickly adjusts their output accordingly. Basically what I'm saying is that if we opened all the taps in the US. OPEC would quickly reduce their output to keep the price within X range and conserve their reserves.
If OPEC sees that we are shooting ourselves in the foot by purposely restricting our own oil, then they have every reason to raise prices. If they see that we are serious about getting our own oil....
I'm by no means an expert but from my understanding oil is bought and sold on the world markets so the market price is reflective of worldwide demand. Where the oil comes from only addresses supply and remember OPEC quickly adjusts their output accordingly. Basically what I'm saying is that if we opened all the taps in the US. OPEC would quickly reduce their output to keep the price within X range and conserve their reserves.
If OPEC sees that we are shooting ourselves in the foot by purposely restricting our own oil, then they have every reason to raise prices. If they see that we are serious about getting our own oil....
Originally Posted By: Tempest
Originally Posted By: BMWTurboDzl
I'm by no means an expert but from my understanding oil is bought and sold on the world markets so the market price is reflective of worldwide demand. Where the oil comes from only addresses supply and remember OPEC quickly adjusts their output accordingly. Basically what I'm saying is that if we opened all the taps in the US. OPEC would quickly reduce their output to keep the price within X range and conserve their reserves.
If OPEC sees that we are shooting ourselves in the foot by purposely restricting our own oil, then they have every reason to raise prices. If they see that we are serious about getting our own oil....
The US gov't would have to subsidize a price which is lower than the worldwide price. Jimmy Carter tried price controls and it almost killed off the economies of Texas and LA. If you subsidize a lower price the $$ has to come from somewhere? Do we sell more US Treasuries? Raise taxes? Sell some oil on the worldmarket via Gov't run oil company? The only countries which can get away with an oil subsidy are oil producing countries via their state run oil companies. Now surely you don't want the US Gov't to own say Exxon do you?
Originally Posted By: BMWTurboDzl
I'm by no means an expert but from my understanding oil is bought and sold on the world markets so the market price is reflective of worldwide demand. Where the oil comes from only addresses supply and remember OPEC quickly adjusts their output accordingly. Basically what I'm saying is that if we opened all the taps in the US. OPEC would quickly reduce their output to keep the price within X range and conserve their reserves.
If OPEC sees that we are shooting ourselves in the foot by purposely restricting our own oil, then they have every reason to raise prices. If they see that we are serious about getting our own oil....
The US gov't would have to subsidize a price which is lower than the worldwide price. Jimmy Carter tried price controls and it almost killed off the economies of Texas and LA. If you subsidize a lower price the $$ has to come from somewhere? Do we sell more US Treasuries? Raise taxes? Sell some oil on the worldmarket via Gov't run oil company? The only countries which can get away with an oil subsidy are oil producing countries via their state run oil companies. Now surely you don't want the US Gov't to own say Exxon do you?
Originally Posted By: Tempest
The Feds have put massive restrictions on domestic ON SHORE drilling. This will always keep oil prices higher. It's like they want energy prices to skyrocket...
I can invest in quite a number of Aussie companies drilling in the US and Alaska.
Where's all these massive restrictions when little Aussie companies can drill there ?
The Feds have put massive restrictions on domestic ON SHORE drilling. This will always keep oil prices higher. It's like they want energy prices to skyrocket...
I can invest in quite a number of Aussie companies drilling in the US and Alaska.
Where's all these massive restrictions when little Aussie companies can drill there ?
Originally Posted By: Shannow
Originally Posted By: Tempest
The Feds have put massive restrictions on domestic ON SHORE drilling. This will always keep oil prices higher. It's like they want energy prices to skyrocket...
I can invest in quite a number of Aussie companies drilling in the US and Alaska.
Where's all these massive restrictions when little Aussie companies can drill there ?
they arent, open Anwar.
Hopefully the dialog will change after Nov elections and people will realize we should be drilling were it is easy and push aside the barriers versus drilling at 5000 ft because environmentalists didnt have the fore thought to make those areas off limits too.
Originally Posted By: Tempest
The Feds have put massive restrictions on domestic ON SHORE drilling. This will always keep oil prices higher. It's like they want energy prices to skyrocket...
I can invest in quite a number of Aussie companies drilling in the US and Alaska.
Where's all these massive restrictions when little Aussie companies can drill there ?
they arent, open Anwar.
Hopefully the dialog will change after Nov elections and people will realize we should be drilling were it is easy and push aside the barriers versus drilling at 5000 ft because environmentalists didnt have the fore thought to make those areas off limits too.
Originally Posted By: BMWTurboDzl
The US gov't would have to subsidize a price which is lower than the worldwide price. Jimmy Carter tried price controls and it almost killed off the economies of Texas and LA. If you subsidize a lower price the $$ has to come from somewhere? Do we sell more US Treasuries? Raise taxes? Sell some oil on the worldmarket via Gov't run oil company? The only countries which can get away with an oil subsidy are oil producing countries via their state run oil companies. Now surely you don't want the US Gov't to own say Exxon do you?
I have no idea how you got any of that out of my post...
When we get serious about domestic drilling, the world pays attention.
http://hotair.com/archives/2008/07/23/oil-down-dollar-up-since-bush-rescinded-drilling-restrictions/
The US gov't would have to subsidize a price which is lower than the worldwide price. Jimmy Carter tried price controls and it almost killed off the economies of Texas and LA. If you subsidize a lower price the $$ has to come from somewhere? Do we sell more US Treasuries? Raise taxes? Sell some oil on the worldmarket via Gov't run oil company? The only countries which can get away with an oil subsidy are oil producing countries via their state run oil companies. Now surely you don't want the US Gov't to own say Exxon do you?
I have no idea how you got any of that out of my post...
When we get serious about domestic drilling, the world pays attention.
http://hotair.com/archives/2008/07/23/oil-down-dollar-up-since-bush-rescinded-drilling-restrictions/
Last edited:
Originally Posted By: Tempest
Originally Posted By: BMWTurboDzl
The US gov't would have to subsidize a price which is lower than the worldwide price. Jimmy Carter tried price controls and it almost killed off the economies of Texas and LA. If you subsidize a lower price the $$ has to come from somewhere? Do we sell more US Treasuries? Raise taxes? Sell some oil on the worldmarket via Gov't run oil company? The only countries which can get away with an oil subsidy are oil producing countries via their state run oil companies. Now surely you don't want the US Gov't to own say Exxon do you?
I have no idea how you got any of that out of my post...
When we get serious about domestic drilling, the world pays attention.
http://hotair.com/archives/2008/07/23/oil-down-dollar-up-since-bush-rescinded-drilling-restrictions/
Well I think sometimes people try to link short term price fluctuations with policy changes. I think it's foolish for people to believe our domestic output can set a floor/ceiling on the price of oil. Like I said in a few post earlier. We could open all the taps in the US, and OPEC would close theirs keeping the price of oil @ X. I also said from a strategic perspective we want to use everyone elses oil first. Imagine how influential the ME countries would be if they had no oil?
Originally Posted By: BMWTurboDzl
The US gov't would have to subsidize a price which is lower than the worldwide price. Jimmy Carter tried price controls and it almost killed off the economies of Texas and LA. If you subsidize a lower price the $$ has to come from somewhere? Do we sell more US Treasuries? Raise taxes? Sell some oil on the worldmarket via Gov't run oil company? The only countries which can get away with an oil subsidy are oil producing countries via their state run oil companies. Now surely you don't want the US Gov't to own say Exxon do you?
I have no idea how you got any of that out of my post...
When we get serious about domestic drilling, the world pays attention.
http://hotair.com/archives/2008/07/23/oil-down-dollar-up-since-bush-rescinded-drilling-restrictions/
Well I think sometimes people try to link short term price fluctuations with policy changes. I think it's foolish for people to believe our domestic output can set a floor/ceiling on the price of oil. Like I said in a few post earlier. We could open all the taps in the US, and OPEC would close theirs keeping the price of oil @ X. I also said from a strategic perspective we want to use everyone elses oil first. Imagine how influential the ME countries would be if they had no oil?
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That's the thing. Everyone is looking at this from a luxury and convenience standpoint ...not a survivability/sustainability standpoint. It's really ...hmmmm...overbearing. The self centered and short term greedy ..long term VERY FOOLISH attitude.
I often liked someone who said that the kids of the future will be smarter so that he doesn't have to worry about it. I've wondered what he did with his "smarter" that the last generation attributed to him. Obviously it was a mistake thinking that he would do anything productive with the added knowledge. A waste of time.
I often liked someone who said that the kids of the future will be smarter so that he doesn't have to worry about it. I've wondered what he did with his "smarter" that the last generation attributed to him. Obviously it was a mistake thinking that he would do anything productive with the added knowledge. A waste of time.
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