When is enough, enough?
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Ok I know goign into another thread and clicking it is difficult so I'll help you out and post the link here. Read this and get back to me. It all about knowledge and economics.....
http://money.cnn.com/2008/06/06/news...=ib_topstories
http://money.cnn.com/2008/06/06/news...=ib_topstories
The premise is Oil prices will fall ONCE we find a LOT more Supply. He's doesn't really Know where the demand will come from, maybe shale, he just "knows" it will come. OK.
We KNOW Demand is going to increase and he addresses this.
I guess if a bunch of New Supply Magically appears, sure, prices should drop. Again, GLOBAL Supply, that outpaces GLOBAL Demand...
The rate China and India are growing, It's going to take a Lot of shale. But I hope it happens!
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From: Dallas Texas
Gas prices have done this before. There will be changes in laws that allow for more drilling. People are not goign to be able to afford gas and the demand will drop. I am sure that the US as a whole is using less gas today than it was a year ago. Some people just cant afford it anymore. Demand will drop. Its inevitable.
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From: Kentucky
according to the liberal gas bags who think there is only a little bit of oil. the geologists and what not who know there is a shat load of oil on the north slope
estimate a overall price drop of closer to 1.00$ a gal again we have to look at transportation costs oil is not magically transported from the middle east to the U S, its put on tankers great big 50 mil$ tankers that burn thousands of gal of fuel (that comes from oil) every trip I have seen as high as 39$ in the price of a barrel to ship it and heres what makes sense if the cost of oil goes up the shipping cost of same oil goes up so if we domestically produce oil and that brings down the cost of a barrel say $20 that does not translate to $0.05
a gal.
estimate a overall price drop of closer to 1.00$ a gal again we have to look at transportation costs oil is not magically transported from the middle east to the U S, its put on tankers great big 50 mil$ tankers that burn thousands of gal of fuel (that comes from oil) every trip I have seen as high as 39$ in the price of a barrel to ship it and heres what makes sense if the cost of oil goes up the shipping cost of same oil goes up so if we domestically produce oil and that brings down the cost of a barrel say $20 that does not translate to $0.05
a gal.
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Gas prices have done this before. There will be changes in laws that allow for more drilling. People are not goign to be able to afford gas and the demand will drop. I am sure that the US as a whole is using less gas today than it was a year ago. Some people just cant afford it anymore. Demand will drop. Its inevitable.
However the price of gas continues to rise, as the World Demand has far exceeded what the US cut. This World Demand has Double Diget Growth.
Best estimates say we could pull about 700,000 barrels a day from ANWAR. Based on this amount, released into the world Market, the price of gas would be reduced insignificantly. I don't care if they drill there or not, I'm just stating the information... If you have a study showing otherwise, I'd love to read it.
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I agree! If people are spending ridiculous amounts on gas, investors will simply put that extra money into research and development to exploit other energy sources. We have mass amounts of Shale Oil but it hasn't became cost effective to extract yet. R&D in various industries is currently taking place but we won't see the benefits for some time.
On the other hand...
OPEC threatened to reduce oil field development if people become more efficient. So basically if we become less dependent they will reduce oil supplies to sustain a high demand. OPEC story
On the other hand...
OPEC threatened to reduce oil field development if people become more efficient. So basically if we become less dependent they will reduce oil supplies to sustain a high demand. OPEC story
Last edited by cpruitt; Jun 13, 2008 at 01:02 PM.
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From: guess
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From: Kentucky
All of the ways you mentioned, not tankered by ocean as much though. We get 95% of our oil, at the refinery that I work at, via 2 pipelines. One from canada and one that runs from Texas. We ship out finished product via the same methods.