Business As Usual

[StockTrader]

I didn't read the article, but I'll respond anyway.

Even though we are domestically producing more oil, that doesn't mean we are producing enough to make an effect on the price of oil.

Scenario. We produce 10% of the oil we consume, and import 90% from OPEC countries. We increase production to 15% and import 85%. BUT, the imported price rises [thanks OPEC for not following the rules of supply and demand!] then the effects of the difference in production are not felt. If we increase production from 10% to 50% and increase the supply to the market, such that we import less from OPEC countries, THEN we'll see real results.

Anyway, I'm just feeling ornery today, but that's how I see the 'big oil' picture.

Nick

[SayOw]

Originally Posted by StockTrader

I didn't read the article, but I'll respond anyway.

Even though we are domestically producing more oil, that doesn't mean we are producing enough to make an effect on the price of oil.

Scenario. We produce 10% of the oil we consume, and import 90% from OPEC countries. We increase production to 15% and import 85%. BUT, the imported price rises [thanks OPEC for not following the rules of supply and demand!] then the effects of the difference in production are not felt. If we increase production from 10% to 50% and increase the supply to the market, such that we import less from OPEC countries, THEN we'll see real results.

Anyway, I'm just feeling ornery today, but that's how I see the 'big oil' picture.

Nick

The article explains that data shows there is no correlation with the production of oil and gas prices in America. Right now, if the amount of oil production in America dictated the price of gas in America, we should be paying (on average) $2.10/gallon ... and that is with cost of living and inflation adjustments factored in.

One of my points of "evidence" that oil companies just charge what they want too for gasoline and don't simply "pass costs of production" down the line. Its just another bs line you hear from politicians and big oil to get free money, land and whatever else they want and still make billions of dollars year after year..."Hey, if we could only drill more in America gas would be cheaper!" ... um... not. Maybe cheaper for the manufacturers to produce, thus increasing their profit margin, but they certainly aren't passing any "savings" down the line to consumers.

[StockTrader]

Originally Posted by SayOw

The article explains that data shows there is no correlation with the production of oil and gas prices in America. Right now, if the amount of oil production in America dictated the price of gas in America, we should be paying (on average) $2.10/gallon ... and that is with cost of living and inflation adjustments factored in.

One of my points of "evidence" that oil companies just charge what they want too for gasoline and don't simply "pass costs of production" down the line. Its just another bs line you hear from politicians and big oil to get free money, land and whatever else they want and still make billions of dollars year after year..."Hey, if we could only drill more in America gas would be cheaper!" ... um... not. Maybe cheaper for the manufacturers to produce, thus increasing their profit margin, but they certainly aren't passing any "savings" down the line to consumers.

Yeah, agree re: no passing down savings. But, such is life. Eventually we'll find an alternative fuel [Gasification, anyone?] that is cheap and affordable to make. Until then, we're at the mercy of the oil refiners.

Nick

[P562045]

Another quote is needed from Sayow's article in 15.

"U.S. oil production is back to the same level it was in March 2003, when gas cost $2.10 per gallon when adjusted for inflation. But that’s not what prices are now."

This says all a person really needs to know about what we are discussing with regards to gasoline prices. Certain politicians not telling the truth what a surprise well not really when a person thinks about it in a critical way.

[-mmm-]

Originally Posted by P562045

This says all a person really needs to know about what we are discussing with regards to gasoline prices. Certain politicians not telling the truth what a surprise well not really when a person thinks about it in a critical way.

Certain ones? Or nearly all of them?

Politicians would get eviscerated (in a figurative sense) by the media if they spoke the plain truth and the plausible consequences. Gas prices are not going to come back down (even fracking all the oil out of the Badlands wont accomplish this task). Easy credit to buy things like cars and houses are not coming back (at least for the forseeable future). This combination means that the suburban lifestyle most Americans have been inured with for the past 50+ years is in serious jeopardy.

[P562045]

There are certain politicians the relative few that could tell the whole truth and still get reelected time after time but that is a very limited amount of politicians. But so few politicians tell the whole truth because part of the truth is inconvenient to them.

What we are discussing about oil is an excellent example. There is much more demand for oil than just for gasoline but that has been the main focus recently. So we are not getting the whole story and other parts of the story that may be just as important as what is being discussed is just ignored. An example of this is that the amount of oil we have has little to do with how much we pay for a gallon of gasoline as an example. And of course only focusing on part of the problem can lead to other problems down the road when we are focusing on only part of the problem and not the whole problem.

[yon Beast]

gas isn't the only thing that comes to my mind when i see oil prices....any more.
Plastic(s) are also in demand more and more, for another thing.

True dat! Politicians are common and all suck!...rarely there be a good one at a federal level...they be turned by then.

[SiteWolf]

There really is a lot of correlation between our political/economical situation and Star Wars (seeing you mention them being 'turned')

...only all the Jedi knights (politicians/anyone in power) have turned to the dark side long before they've been any real use in the rebellion....heck, they've even forced us to pay to build their Death Star for years now

[SayOw]

When it comes to big oil, they don't care what your political affiliation is, they will gladly write you a check once you get elected. And politicians, regardless of their affiliation, are more than happy to accept that check and then read off big oil talking points as needed.

So both parties "share blame" for whatever pricing big oil does in this country and they are more than happy to accept the blame because they got a nice fat check and a shiny binder with all the answers as to why a person is paying more at the pump.

And the typical "news cycle" is this:

So a press conference is called, with the both democrat and republican politicians standing side-by-side because this is such a huge problem they (the politicians) are willing to set aside their differences and work in a bipartisan manner to fix this problem. Their first step is, of course, is to meet with all the CEO's of the big oil companies and go golfing with them and then have a lunch before taking in a sporting event and wrap it up with some night life...and then the politician's will let the citizen's of this country know that there is nothing that can be done because Iran is talking mean to Isreal so gas prices are going to continue to go up, but they aren't taking this lying down, they are going golfing with the big oil CEO's again next week and ask them if they could do something about gas prices again and the politicians will share that info with everyone at that time and repeat...