Why no lines? Why no shortage?

Jarod said:
And what has that done for the price of oil?
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Again, lower supply raised the price, less people use it therefore it is available for you to purchase. As per the polling that I saw on our local news, some 30% of the drivers here are now using public transport to save cash. That is significant here because the public transport system sucks in the Denver Metro area.

Supply and demand is working exactly as it should in this case. You have oil available at this price because less people are using the product.
 
Damocles said:
Again, lower supply raised the price, less people use it therefore it is available for you to purchase. As per the polling that I saw on our local news, some 30% of the drivers here are now using public transport to save cash. That is significant here because the public transport system sucks in the Denver Metro area.

Supply and demand is working exactly as it should in this case.
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But the price should also go back down when demand decreases, unless the increase in price is artificial, and merely done to manipulate behavior. Wouldn't you agree?
 
AssHatZombie said:
But the price should also go back down when demand decreases, unless the increase in price is artificial, and merely done to manipulate behavior. Wouldn't you agree?
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Or it will level off to where the supply and demand are self-sustaining. As it has in this case.

While the supply "shortage" is artificially created, it is still supply and demand that create the increase.
 
this is retarded assoutsourced. Where is the law that say's I can't charge whatever your willing to pay.
 
Ahh the old Republican mantra number 13, Let the market decide, supply and demand works.
If the industry supplies a monopoly let it demand what it wants to.
 
Jarod said:
That is illrelevant, there is still plenty of oil, tuns of it in surplus. This is a political problem, not a supply and demand problem.
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Please demonstrate where there is a "ton of surplus" oil that is able to be brought on line immediately (or at least in the very near future)

You are correct in that it is a political problem to an extent. We rely way too much on foreign energy. Your party is a big part of that problem.... and before you get your panties in a bunch, the Reps are as well (especially when they block alt energy).
 
Topspin said:
this is retarded assoutsourced. Where is the law that say's I can't charge whatever your willing to pay.
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People are not willing, they have no choice. ONly a small amount of people even have public transportation as an option. People still have to drive to work. But if you feel good about it, that just shows what a soulless fuckwit you are.
 
Damocles said:
Again, lower supply raised the price, less people use it therefore it is available for you to purchase. As per the polling that I saw on our local news, some 30% of the drivers here are now using public transport to save cash. That is significant here because the public transport system sucks in the Denver Metro area.

Supply and demand is working exactly as it should in this case. You have oil available at this price because less people are using the product.
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So a reduction in useage sould reslut in lower prices, right? Has it?
 
Topspin said:
this is retarded assoutsourced. Where is the law that say's I can't charge whatever your willing to pay.
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You should be allowed to do that. I agree, but then the government should be free to end subsities and free to promote competition. Currently the government is allowing, in fact, promoting monoplies.
 
Jarod said:
So a reduction in useage sould reslut in lower prices, right? Has it?
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No, it shouldn't. According to the economic theory of supply and demand it will level off at a sustainable level. At least read my responses.

In this case, the price has become relatively level at about $4 per gallon. It may go higher if this is not the sustainable level. But it has remained relatively stable for the past few weeks. If the supply increases and gasoline isn't selling because of high prices, then prices will begin to drop until they again reach a sustainable level between supply and demand.
 
Superfreak said:
Please demonstrate where there is a "ton of surplus" oil that is able to be brought on line immediately (or at least in the very near future)

You are correct in that it is a political problem to an extent. We rely way too much on foreign energy. Your party is a big part of that problem.... and before you get your panties in a bunch, the Reps are as well (especially when they block alt energy).
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Stratigic oil reserves, OPEC, plenty of other places. The fact that noone is going without, that there is as much as you want at the pump, is enough to let me know there is no supply problem.
 
Strategic reserves ? that is what about 30 days supply for the USA ? I would not be suprised if what we think is in the reserves is not there anyway.

Probably pumped out and sold from downstream wells.
amazing how Texas wells now produce Middle eastern Crude :D
 
Damocles said:
No, it shouldn't. According to the economic theory of supply and demand it will level off at a sustainable level. At least read my responses.

In this case, the price has become relatively level at about $4 per gallon. It may go higher if this is not the sustainable level. But it has remained relatively stable for the past few weeks. If the supply increases and gasoline isn't selling because of high prices, then prices will begin to drop until they again reach a sustainable level between supply and demand.
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I understand, on paper and in theory thats what should happen, but when there exists a limited number of suppliers who are protected by the government, they can charge as much as they want until the government chooses to limit the protection that has been provided, that will only happen when the people get fed up.

They are brilliant at managing the public. They slowly creap the price up ever summer, when oil is used for vacation, not for heat, until they get a certian amount of resistance, then they drop the price a bit, and the public feels lucky.
 
Jarod said:
Stratigic oil reserves, OPEC, plenty of other places. The fact that noone is going without, that there is as much as you want at the pump, is enough to let me know there is no supply problem.
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Again, this is inane. Because it is at the pump when YOU want to buy it does not demonstrate that supply and demand is not working.

We have dropped usage in OIL in the past months from last year for the first time since the OPEC crisis, this shows that price IS effecting usage and that the supply is therefore setting the price agreeable with demand. They increase when supply is short until it reaches a sustainable level.

Shortages and lines are created by artificially interrupting the process. Like Nixon's price fixing.
 
Jarod said:
Stratigic oil reserves, OPEC, plenty of other places. The fact that noone is going without, that there is as much as you want at the pump, is enough to let me know there is no supply problem.
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The above is nothing more than bullshit ranting. Like I said, show me some evidence that OPEC has the capacity to produce "tons more oil". Or demonstrate on of the "plenty of other places".

Side note: the strategic oil reserves of the US is a defense against being cut off from foreign oil supplies (which again we are currently too dependent upon). Not only would it not have a long term effect on oil prices, it would be complete stupidity to deplete those stocks.
 
Jarod said:
I understand, on paper and in theory thats what should happen, but when there exists a limited number of suppliers who are protected by the government, they can charge as much as they want until the government chooses to limit the protection that has been provided, that will only happen when the people get fed up.

They are brilliant at managing the public. They slowly creap the price up ever summer, when oil is used for vacation, not for heat, until they get a certian amount of resistance, then they drop the price a bit, and the public feels lucky.
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Again, that the limited supply is fabricated through other means does not change that it is what set the prices.

The limit is set through many different means, by refineries, etc. None of it changes the basic economic model.

We'd likely agree that there is profit incentive to decrease supply. But it doesn't change that it is Supply and Demand that is setting the price.
 
Damocles said:
Again, this is inane. Because it is at the pump when YOU want to buy it does not demonstrate that supply and demand is not working.

We have dropped usage in OIL in the past months from last year for the first time since the OPEC crisis, this shows that price IS effecting usage and that the supply is therefore setting the price agreeable with demand. They increase when supply is short until it reaches a sustainable level.

Shortages and lines are created by artificially interrupting the process. Like Nixon's price fixing.
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Have you heard of ANYONE being unable to get it? It's not just that Jarod is lucky. It's that there is no supply problems and it's a vast manipulation on the part of the fascist machine.
 
strategic reserve and opec reserves are not oil in the market place Jarod. Damn that's was a retarded comment
 
Supply and demand are not automatically morally pure, because both are manipulated by corporations and their friends in government.
 
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