For all you idiots on Oil Prices

Superfreak said:
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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What's "fair value"?
 
Southern Man said:
What's "fair value"?
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The actual number is debated as it varies based on the cost to produce the oil. Some countries with higher costs (like Venezuela or the Canadian sands) argue that it should be about $90 brl. Companies/countries that have sites that have lower costs argue it should be around $60. When you average it all out, it is roughly $75-80 brl right now. Though speculation can take it above (like June of 2008 when it hit $148) or below (like late 2008 when it hit back at $35) fair value.
 
Superfreak said:
The actual number is debated as it varies based on the cost to produce the oil. Some countries with higher costs (like Venezuela or the Canadian sands) argue that it should be about $90 brl. Companies/countries that have sites that have lower costs argue it should be around $60. When you average it all out, it is roughly $75-80 brl right now. Though speculation can take it above (like June of 2008 when it hit $148) or below (like late 2008 when it hit back at $35) fair value.
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Wrong answer. Its whatever the market will bear.
 
Southern Man said:
Wrong answer. Its whatever the market will bear.
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No moron.... it is not. Fair value does not equal current price.

Fair value is EXACTLY what I stated it was. Speculation can and will drive it above and below fair value.

Market value is going to reflect what you stated 'what the market will bear'. If consumers find the value to high, they will cut back on consumption as we saw in mid 2008. If it is too low, we will tend to see an increase in consumption.
 
Superfreak said:
No moron.... it is not. Fair value does not equal current price.

Fair value is EXACTLY what I stated it was. Speculation can and will drive it above and below fair value.

Market value is going to reflect what you stated 'what the market will bear'. If consumers find the value to high, they will cut back on consumption as we saw in mid 2008. If it is too low, we will tend to see an increase in consumption.
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Wrong-o.
 
Southern Man said:
Wrong-o.
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LMAO... you can continue saying 'wrong-o' all you wish. It won't change the reality of the situation one bit. I could care less if you 'like' it or not. You asked for how fair value was determined. I provided it to you. The fact that you cannot comprehend the difference between fair value and market value is on you.

You can either choose to educate yourself or continue basking in your own ignorance. The choice is yours.
 
Topspin said:
50 oil would all but shut down new investment in the Gulf of Mexico.
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Exactly... which is why fair value right now is higher. The costs of drilling new sites has increased due to increased levels of difficulty in extracting the oil. From the Sands or deep ocean drilling etc...

That said, fair value attempts to ascertain what it would costs to recover a barrel on average. Market value is then determined by supply/demand/speculation on future supply/demand.
 
And I don't share the view of OPEC not having power. With libtards handcuffing our capacity we are at their mercy. I've seen them ramp production way too many times. Sure they cheat. It amount to us cheating on our taxes making taxes too low. They aren't.
 
Superfreak said:
LMAO... you can continue saying 'wrong-o' all you wish. It won't change the reality of the situation one bit. I could care less if you 'like' it or not. You asked for how fair value was determined. I provided it to you. The fact that you cannot comprehend the difference between fair value and market value is on you.

You can either choose to educate yourself or continue basking in your own ignorance. The choice is yours.
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You don't get to decide what fair value is. Only the market can do that.
 
Southern Man said:
You don't get to decide what fair value is. Only the market can do that.
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Listen moron... I gave you the definition of FAIR value. Just because you are too ignorant to comprehend the difference between FAIR value and MARKET value doesn't mean everyone should change the definition. It is NOT my definition.

The MARKET decides the MARKET value you twit. Fair value simply is an average of estimated drilling costs.
 
Superfreak said:
Listen moron... I gave you the definition of FAIR value. Just because you are too ignorant to comprehend the difference between FAIR value and MARKET value doesn't mean everyone should change the definition. It is NOT my definition.

The MARKET decides the MARKET value you twit. Fair value simply is an average of estimated drilling costs.
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Wrong-o. The actual drilling costs may be higher or lower. Then there's refinement, transportation, R&D, admin, etc. "Fair Value" is some lib-tard's idea of what he should pay, and therefore irrelevant.
 
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