Drill Here, Drill Now, Pay Less

[Genacide]

http://www.americansolutions.com/

I just signed up.

For the naysayers that think drilling won't bring prices down, when the Senate sub committe bill was shot down yesterday to drill off the coast crude went up over $3 a barrel. Right now prices are being set by speculation.

[yankeekd25]

I thought this was some thread about cheap prostitution.

[SDS]

Prices are set by supply and demand. Quit buying it and the price will drop.

[BG5150]

I thought this was some thread about cheap prostitution.

Me, too.

[themidnighter]

Prices are set by supply and demand. Quit buying it and the price will drop.

Only partially true. The Futures Market actually sets the price per barrel of crude oil, and futures rates are frequently boosted dependent on speculation related to events in the world arena (ie, terrorist attacks in the middle east, severe weather, etc...). Supply and demand is a large factor (ie, the industrialization/increased demand in China and India), but it's far from the only factor.

I'm all for off-shore drilling, and limited drilling in Alaska.

[AKMass]

I say drill anywhere...Make it someone elses problem. If we start to run out, we'll find an alternative. We're humans, we adapt, it's what we do. Even if it caused the world to end, no one would be around to care, so it wouldn't matter.

[crazedwombat]

actually wasnt there sand pits in canada that are mixed with oil. They have to go through some extraction process but if streamlined, there's more oil there than in the middle east. I read that article somewhere, but sounded hopeful on it. I'm for drilling also, but more so I'm against ethanol and all its stupidity.

[Relentless]

actually wasnt there sand pits in canada that are mixed with oil. They have to go through some extraction process but if streamlined, there's more oil there than in the middle east. I read that article somewhere, but sounded hopeful on it. I'm for drilling also, but more so I'm against ethanol and all its stupidity.

http://en.wikipedia.org/wiki/Tar_sands

Yup. Sand pits.

[smokinHawk]

I was watching Cspan a couple of nights ago about the energy conferences and what got me curious is they stated the oil companies have millions of acres of permitted land to drill in yet they arn't drilling in it

[Nik00117]

They are waiting to tap on that when gas hits 7 dollars a gallon

[Phenom]

Hey, remember that time when they told us gas prices shot up because of Hurricane Katrina, and most americans believed them. LOL that was funny.

[Invain]

Hey, remember that time when they told us gas prices shot up because of Hurricane Katrina, and most americans believed them. LOL that was funny.

Haha.

[anelka]

Why should they drill, when there's more money to be made in increasing prices?

[killxswitch]

Why should they drill, when there's more money to be made in increasing prices?

QFT, unfortunately. I wonder if oil is like diamonds. There are millions of diamonds in vaults (I think in Antwerp?), locked away by de Beers to create an artificial shortage and keep the value of diamonds high. The difference is that people don't need diamonds to get to work or to visit family or power their home. However I don't know for sure that the analogy holds up proportion-wise.

[bjohnso]

QFT, unfortunately. I wonder if oil is like diamonds. There are millions of diamonds in vaults (I think in Antwerp?), locked away by de Beers to create an artificial shortage and keep the value of diamonds high. The difference is that people don't need diamonds to get to work or to visit family or power their home. However I don't know for sure that the analogy holds up proportion-wise.

De Beers isn't going to be in business much longer.

[Phenom]

Why should they drill, when there's more money to be made in increasing prices?

Especially when the president has stock in oil.

[shootermcgavin7]

[url]Right now prices are being set by speculation.

The interesting thing about these situations is that when these bubbles crash, they crash hard. And swiftly.

It will be telling if, in the near future, we see the oil futures plummet 50% in a week.



You're spot-on: right now, investors are buying oil because oil has been increasing, and they think this means that the price of oil will increase. This increases the price of oil, and other investors buy oil because oil has been increasing, and they think this means that the price of oil will increase. This increases the price of oil, and other investors...............

[killxswitch]

De Beers isn't going to be in business much longer.

Why's that?

[d'Anconia]

The interesting thing about these situations is that when these bubbles crash, they crash hard. And swiftly.

It will be telling if, in the near future, we see the oil futures plummet 50% in a week.



You're spot-on: right now, investors are buying oil because oil has been increasing, and they think this means that the price of oil will increase. This increases the price of oil, and other investors buy oil because oil has been increasing, and they think this means that the price of oil will increase. This increases the price of oil, and other investors...............

Well put. Many of the more intelligent people I've talked to about this subject almost all agree the bubble will pop once people in the future market realize the price of oil will only be able to go so high. Apparently we haven't hit that point yet but I'm sure we will soon enough.

As for high oil prices meaning oil companies won't drill more, I would think that's only kinda true and kinda not. Normally huge profits mean that newer/smaller businesses will start drilling more and increase the supply which would bring prices back down. Unfortunately with government restrictions on who can drill and who can not this is not happening and as a result we are all taking it in the behind.

On the other hand I'm hoping that much of the increased demand is coming from the Far East. It could mean they are really just industrializing a lot right now and that eventually will mean the price of goods will drop down.

There's always good with the bad although not as much when the government puts up barriers to entry.

[themidnighter]

QFT, unfortunately. I wonder if oil is like diamonds. There are millions of diamonds in vaults (I think in Antwerp?), locked away by de Beers to create an artificial shortage and keep the value of diamonds high. The difference is that people don't need diamonds to get to work or to visit family or power their home. However I don't know for sure that the analogy holds up proportion-wise.

This was at one point true, IIRC. In the 90s, when gas was like a dollar a gallon, we had plenty of surplus oil. Then, because prices were so low, people started buying gas guzzling SUVs at a ridiculous rate. And we exhausted our extensive reserves.

And now, we're here. Approaching $5 a gallon. With very little reserve.

[bjohnso]

Why's that?

Manufactured (real) diamonds.

[kevowamo]

a good site for info on all things oil is theoildrum.com. its an excellent professional blog with tons of informative and non-biased information. but back to the conversation in the thread...whats to say the us government isnt just letting all the middle east countries sell all of their reserves (while, true, they are getting rich off it) and when they are all out...tap into the alaskian fields that are capable of producing 200M barrels a day (then we get rich)? if this is the plan then the middle east gets rich now (catching up to the more developed countries), and when theyve dried all of their fields up...we get rich. that may be very general and sound stupid, and is obviously much more complicated...but it could be true. hell the oil coming out of that region is already falling in quality. theyre oil is becoming less light and sweet (the stuff we need) and more of the opposite

[mickyjune26]

a good site for info on all things oil is theoildrum.com. its an excellent professional blog with tons of informative and non-biased information. but back to the conversation in the thread...whats to say the us government isnt just letting all the middle east countries sell all of their reserves (while, true, they are getting rich off it) and when they are all out...tap into the alaskian fields that are capable of producing 200M barrels a day (then we get rich)? if this is the plan then the middle east gets rich now (catching up to the more developed countries), and when theyve dried all of their fields up...we get rich. that may be very general and sound stupid, and is obviously much more complicated...but it could be true. hell the oil coming out of that region is already falling in quality. theyre oil is becoming less light and sweet (the stuff we need) and more of the opposite

Where did you read that their oil quality is waning?

That is a scary situation politically. We invest in a region to help stabalize it and when their resources are gone, we leave. Poverty reins and terrorism increases. That is a formula for an international "ghetto" if I've ever heard one.

Concerning prices, they will rise until demand goes down (it started to go down in May). The prices will also go down when more suppliers enter the market. There is a natural equilibrium and more government interference is not always a good thing.

[blackboard]

The Oil companies already have 68 million acres of lease land they can drill on. Straw man alert!

[mickyjune26]

It would be interesting to know the exact supply (including potential capacity) and demand numbers. I really doubt all oil producers are at max capacity.