For all you idiots on Oil Prices

Topspin said:
Royalties are generally 1/8th of revenue that's easily billions more. Lib- trades are objecting based on old tired 1970's politics only.
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No question it would help the budget. But when you are talking trillion dollar deficits, it will be hard for oil revenues to put the budget back on track. Yes, you are correct, it is outdated modes of thinking that keep the Dems fighting against domestic production.

They are obviously supporters of outsourcing American jobs and providing revenue to Mid East regimes. ;)
 
Here's how to balance the budget:

1. Eliminate Fed programs that aren't enumerated in the Constitution.
2. Put a $50/ bbl tariff on OPEC oil.
 
Whether the oil is obtained here or in the ME the price will remain the same for two reasons.

1. First, because there would not be enough oil here to make a difference
2. A company here is going to charge consumers the same price the ME charges; in other words world prices.
 
apple0154 said:
Whether the oil is obtained here or in the ME the price will remain the same for two reasons.

1. First, because there would not be enough oil here to make a difference
2. A company here is going to charge consumers the same price the ME charges; in other words world prices.
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If oil was $50 more per bbl because of a tariff on OPEC it would be economically feasible to drill for it here. The higher prices would also reduce the demand for oil and provide an incentive for alternative technologies.
 
Jarod said:
THats always been my point, supply is manipulated by insiders to control price. They make it go up in the summer and down in the winter. Its not based on how much available oil is out there.
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This is just plain ignorant and inaccurate. There is this thing in economics called "supply and demand" and it's a pretty basic economic concept. It applies to pretty much anything that is produced and sold on the market. Increased supply with the same demand, results in lower prices... always has.. always will. Decreased supply with the same demand, results in higher prices... again, always has, always will!

Now, we do not control the supply of oil, unfortunately, that is mostly OPEC. The reason we don't control the supply is because we don't drill for our own oil, and that is due to environmentalists and Democrat Liberals who will not allow us to. As long as that dynamic is present, we can expect to see the prices go up in 'high demand' months, because OPEC understands exactly how to manipulate supply. Until we become independent of foreign oil, that will be the case! Of course, we could start drilling our own oil, and in time, when it all started coming online and the supply increased sufficiently, we could have 37 cent a gallon gasoline... like they do in Iraq. But as long as we have to pacify environmentalists and deal with liberal nitwits who don't understand basic economics, we can expect to continue paying upwards of $3 a gallon OR MORE in the years to come.
 
apple0154 said:
Whether the oil is obtained here or in the ME the price will remain the same for two reasons.

1. First, because there would not be enough oil here to make a difference
2. A company here is going to charge consumers the same price the ME charges; in other words world prices.
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That's the old reliable dem talking point. What's hugely wrong is ignoring the jobs and billions in oil royalty that could almost pay for free healthcare. Plus why do you want to pollute the rest of the world.
 
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Topspin said:
That's the old reliable deem talking point. What's hugely wrong is ignoring the jobs and billions in oil royalty that could almost pay for free healthcare. Plus why do you want to pollute the rest of the world.
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The point is people talk about drilling 'here' and think oil prices will be lower but they won't. There may be other benefits but lower gas prices is not one of them.
 
apple0154 said:
Whether the oil is obtained here or in the ME the price will remain the same for two reasons.

1. First, because there would not be enough oil here to make a difference
2. A company here is going to charge consumers the same price the ME charges; in other words world prices.
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No, that is not the case. If you increase supply while demand doesn't change, the price will go down. That said, if we increase supply, OPEC would likely cut supply at first to match and thus keep pricing level. But again, the price is not the main issue... it is a side benefit if it drops. The main benefits of producing our own oil and nat gas as much as possible is that we keep the jobs here, we keep the money here and we control the environmental regs for what is produced here.

Also, the bullshit from the left that we don't have much oil to make a difference is getting old. If there wasn't that much oil, no one would want to explore and drill here. The fact of the matter is.... we don't know exactly how much we have because exploration is repeatedly blocked by environmental groups who believe it is better to outsource our jobs and leave the environmental regs to Iran, Venezuela, Saudi, Russia etc...

As for Nat Gas, we have an estimated 300 year supply. So do tell us what excuse you will use for not drilling and producing that.
 
apple0154 said:
The point is people talk about drilling 'here' and think oil prices will be lower but they won't. There may be other benefits but lower gas prices is not one of them.
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Again, if you have a set expectation for supply and demand for the future and then you increase the amount of supply, the price will fall. It is the law of supply and demand. OPEC etc... can try to off set the increase by decreasing their production, but in the end that only hurts them.
 
Southern Man said:
If oil was $50 more per bbl because of a tariff on OPEC it would be economically feasible to drill for it here. The higher prices would also reduce the demand for oil and provide an incentive for alternative technologies.
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At $80 brl, it is already economically viable to drill for oil here and in most off shore sites. The only thing I can think of that might not be viable is the oil sands up in Canada and other similar locations. On this point, I will let toppy tell us where break even is on deep sea/sands etc... as he works for one of the oil companies.
 
WinterBorn said:
What was it that SM said that was inaccurate?
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He is off on the power of OPEC, but otherwise what he stated is essentially correct.

OPEC most certainly CAN control price to a large degree. Just look at the recent run from $60 oil to $80 oil. It was largely due to Saudi cutting their production by about 25%. (other OPEC nations also cut to lesser degrees)
 
Superfreak said:
He is off on the power of OPEC, but otherwise what he stated is essentially correct.

OPEC most certainly CAN control price to a large degree. Just look at the recent run from $60 oil to $80 oil. It was largely due to Saudi cutting their production by about 25%. (other OPEC nations also cut to lesser degrees)
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Sometimes OPEC gets their act together, but they're like a gaggle of back-stabbing cousins. They all cheat on each other when they can and hold grudges against those who cheat them.
 
Southern Man said:
Sometimes OPEC gets their act together, but they're like a gaggle of back-stabbing cousins. They all cheat on each other when they can and hold grudges against those who cheat them.
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Not saying there isn't in-fighting and cheating. There is.

But that does not change their power when they take a stance against the rest of the world. They know how much power they wield. For too long, the west kept oil at artificially low levels. Now they are determined not to let us drive the price down below fair value. They have tasted the benefits that come with higher oil prices and they are not going to be letting go anytime soon.

Thus the best way to take away some of their power is to increase our own.
 
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